LEGAL

Practical advice for anyone buying their first home

Awais Mahmood and the Heald conveyancing Department deal with all elements of purchasing or selling a property.

Artemis House, 4 Bramley Road Milton Keynes MK1 1PT

The above information is for general guidance only and does not constitute legal advice. Heald Solicitors disclaims and excludes any liability in respect of the contents of this article or for action taken based on this information. If you need legal advice, please contact a solicitor. Getting on the property ladder can be daunting. It is one of the most expensive purchases you are ever likely to make. Everyone seems to have an opinion, using jargon you’re expected to understand.

At Heald Solicitors, we help first-time buyers avoid common pitfalls and wrong turns. We are always happy to answer your questions. We do so clearly and concisely. It is important that you understand what you are signing up to. We are here to help you.

Here are some (not all!) of the key things you should know.

First-Time Buyer Schemes The government has several schemes to encourage home ownership. We can help you use any of them. Schemes include the Help to Buy Equity Loan, where the government provides some of the mortgage funds, the Lifetime ISA, where the government provides a 25% boost to your savings, and the Shared Ownership Scheme, where you can buy part and pay rent on the remainder of the same property.

Mortgage This is a loan secured against your property. If you don’t make the monthly payments, the lender may take over ownership of the property (known as repossession). Mortgages can be used with the FirstTime Buyer Schemes mentioned above and the lender will set conditions before they loan the money to you. We can help ensure that these conditions are met in time for you to buy your home.

Deposit You will usually need to provide the deposit before your mortgage is available, as it has to be paid at exchange of contracts. A Seller will expect a deposit of 10% of the purchase price, although they might agree to accept less.

Survey It is a good idea to instruct a specialist surveyor to carry out a structural survey of the property for you before exchange of contracts. While your lender might carry out a survey, this might not be as detailed as you need and because it is done for your lender, you might not be able to rely on this if something goes wrong. Stamp Duty Land Tax (SDLT) SDLT is a tax paid on property transactions. The amount payable is based on several criteria, including the property’s value. To encourage first-time buyers, no SDLT is charged on purchases under £300,000.

Service Charges and Ground Rent Many properties have hidden charges. Ground rents are paid to the landlord of a lease (usually where you are buying a flat). They can vary from several hundred pounds a year to a nominal amount (a peppercorn). Houses and flats may also have to pay service charges to cover the maintenance of communal areas. The amount can vary substantially and change each year, depending on what work is required. We will carefully check the documents to advise you of any issues and to ensure you are fully informed of your financial obligations.

Search Fees Various searches need to be carried out when you buy a property. These ensure, for example, that the property has been built legally, that it is not in flood risk area and that it is connected to the mains drainage and water supply. We conduct the searches on your behalf and check the results for you. Currently, the cost for a complete set of searches is around £300.

If you are looking for a high-quality conveyancing service that will give you peace of mind, our residential conveyancing team would be delighted to help you. You can find out more by visiting our website or calling Awais or Elaine on 01908 662277.