Although the prospect of buying your very first property is an exciting one, it can also seem quite scary and overwhelming. After all, there is a reason why moving house is one of the most stressful life events. Once you have saved up a deposit and secured a mortgage, the really hard bit is done – you can begin the property hunt!
As a first time buyer you are an incredibly attractive prospect to the vendor, as you will be able to move much quicker than people trying to sell a house – this is what is meant by being chain free, and is one of the reasons this is highlighted on some properties, because it is seen as a positive. So do keep in mind that you are in a strong position when negotiating price.
It is also important to remember that there are additional costs, as well as the property – you will need a solicitor to deal with the legal side such as these conveyancing solicitors Cheltenham https://www.deeandgriffin.co.uk/ as well as stamp duty. It is also worth remembering that you may need to pay to have work done to the property to update it or to repair anything that may be past it’s best! Particularly if you are buying an older property or one that has been empty for a while.
A lot of first time buyers often prefer to purchase a new build as you can receive assistance from the Government help to buy scheme, as well as the fact that you can have a ‘clean slate’ with no work needing to be done to the property at all.
How conveyancing works, stage by stage
Conveyancing is the legal work involved in transferring ownership of a property. Once your offer is accepted, contact your conveyancer. In the pre contract stage, they carry out searches covering local authority records, water and drainage, environmental matters and anything specific to the location, and they receive the seller’s property information, deeds and draft contract.
You will also need a mortgage valuation, but that only tells the lender whether the property is adequate security. A building survey gives you a much more detailed picture of its condition.
When everything is satisfactory, your conveyancer reports back, takes your deposit and asks you to sign. Exchange of contracts then commits both sides to a completion date. On completion, the balance is paid and you receive the keys. Afterwards, the stamp duty return is submitted and the property is registered in your name at HM Land Registry.
Common first-time buyer mistakes to avoid
Excitement can cloud your judgement, so avoid hasty decisions. Make sure you are not overpaying, and do not overlook problems with a property just because it feels like the one. The perfect home rarely exists, so be ready to compromise on your wish list and re-prioritise.
Be realistic and stick to your budget. Check your credit score before you apply for a mortgage, and save for the costs that are easy to forget, such as stamp duty and legal fees. Keep an emergency fund on top of your deposit and fees so that unexpected repairs or maintenance do not put you under strain. Do not be afraid to haggle, either, as negotiation is a normal part of buying a home.
Independent legal advice is one of the most important parts of the process. Buying property is a huge undertaking, and you need someone who can spot the risks and any conflicts of interest before you commit.
Help with the deposit and creative ways to buy
For most first time buyers, the deposit is the biggest hurdle. There are ways to buy with a smaller one. Government-backed schemes can help, and if your parents are in a position to do so, they may be able to act as guarantors on a low deposit mortgage. Both options are worth investigating before you assume you need to save for longer.
The next challenge is finding a home you like within budget. Here it can pay to think creatively. A growing number of first time buyers are choosing to build their own homes, sometimes with the help of companies that specialise in supporting self builders.
Self build has two clear attractions. It lets you set your budget from the outset rather than stretching to fit whatever is on the market, and it means you end up with a home in the style you actually want. It takes more planning, but for the right buyer it can open doors that the open market keeps shut.