Want to buy a property but don't know where to start?

Want to buy a property but don't know where to start? Well here’s a little guide for you.

Firstly, you need to save up. Start budgeting your expenses NOW. So, that means dinners, coffees, subscriptions or all your other impulse buys. When you're thinking of buying something, think if you REALLY need it.

What is your budget?

Speak to a mortgage broker to see how much you can afford. They'll go through your current credit score, regular payments. Make sure you have your proof of income and bank statements ready. They'll need to go through it and advise how much you can afford.

Try to have at least 10% of your budget saved. For example, the average price of a flat in Stratford is ￡393,615, so you will have to save at least ￡40k-45k to put down a deposit and for purchasing costs.

Once you have your budget, work out your realistic requirements. Whether you want a flat or house, number of bedrooms, location. Have a look online on Rightmove and Zoopla to see the type of properties you'll get within your budget in your preferred locations.

Go to view properties. Don't feel pressured into putting in offers and negotiating but get a feel of the type of properties which are on the market. If you fall in love with a property, put an offer and leave room for negotiation.

Do your research on the property and the surrounding area. Find out whether the property is freehold or leasehold. If it's leasehold, find out the ground rent, service charges and other restrictions.

Your offer has been accepted, does that mean the property is now yours? Nope, you still have a long way to go and this is where the nitty-gritty really begins. It's not yet legally binding. You need to have the property surveyor, arrange your mortgage and instruct a solicitor.

A surveyor will provide a valuation report to your mortgage broker. They'll check for structural issues and let your lender know if your property is worth how much you offered. If it is then your broker will send across a mortgage offer.

If not, then you may need to negotiate a new price for the property or find some extra cash for your deposit. You can also pull out of the sale at this stage.

Make sure you instruct a good solicitor. A difference between a good and bad one could be ￡500 more but it's worth paying for one of the biggest transactions of your life. They'll go through enquiries, contracts, searches from local authority.

Your solicitor conducts searches which would highlight if there is anything which negatively impacts your property, access rights, common drains, planning implications, conservation areas, etc.

Your solicitor will work towards the exchange of contracts; this is when the contracts are legally binding. They also register the property with the Land Registry and make sure the contracts are drawn up correctly.

Exchange is when contracts are signed and you usually pay 10% of the purchase price to the solicitor. The property is now yours but you don't get the keys until you pay the remainder of the funds, which is a date is mutually agreed with the seller.

That date is your completion date and when you can officially move into your new home.

You'll need to factor for other costs too.

Solicitor will cost around ￡1000

Surveyor will cost around ￡300

Mortgage arrangement fee will be around ￡500

There's also stamp duty which for a first-time buyer is nothing until the purchase price is above ￡300k, it's then 5% of however much is on top. So if you buy for ￡350k, you pay 5% of ￡50k.

Don't forget decorating and furnishings too. This needs to be factored in at the beginning.

You can calculate your stamp duty costs here https://www.stampdutycalculator.org.uk/

It is a long and stressful process but as long as you have a good estate agent, solicitor, brokers, the process will be easier. There's always bumps in the road and it will be nerve-wracking so you'll have to be patient.

If you'd like further information, just get in touch by calling us on 0203 026 4420 or visiting our office in Stratford.

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