Things to consider:

1

Deposit

2

Mortgages

3

Stamp Duty

4

Property Search

5

Placing an Offer

6

Contract Exchange + Completion

If you are purchasing a new family home the rules are the same, the bigger the deposit, the better the interest rate, the lower your monthly repayments, the cheaper the mortgage. For a Buy to Let different lenders have specific criteria but the usual trend is to try and save at least 20 to 25% of the property amount i.e £250,000 = £62,500 deposit.

As well as saving for your initial deposit, you’ll also need funds to put towards fees like property searches, surveys, mortgage arrangement fees, solicitor’s fees, stamp duty, home insurance, removal costs and so on

v

Say Hello!

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit.

If you are applying for a mortgage, the lender will assess your affordability by looking into your annual salary and any other income you receive.  Speak with one of our accredited Financial Advisors to find out how much you can borrow and how much your mortgage repayments will be.

Your home or property may be repossessed if you do not keep up repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you re-mortgage.

v

Say Hello!

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit.

Since April 2016, when it was announced that 3% would be added to the standard rate for stamp duty in each band. It is the same case for buy-to-let stamp duty too.

HMRC has stated the rates to be as follows for each property price bracket:

Buy to Let/Second Home Owner Rate 2016:

Brackets Rates
£0-£125,000 – 3%
£125,001-£250k – 5%
£250,001-£925k – 8%
£925,001-£1.5m – 13%
£1.5m+ – 15%

The extra stamp duty to be paid on a second home can be off-putting, However, if you sell your original first property within 3 years, there is the possibility of getting the extra stamp duty paid back. Another point to bear in mind is that you are still liable to pay the extra stamp duty if your second property is abroad.

To learn more about STAMP DUTY.

 

v

Say Hello!

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit.

When placing an offer to the Estate Agent marketing the property.

You will need to provide the following proof to get your offer looked into and hopefully accepted:

  • Photo I.D of buyers
  • Proof of current address
  • Proof of Deposit
  • Mortgage in Principle or A.I.P
  • Solicitor

If your offer has been accepted, you will need to formally apply for your mortgage, It is at this point that the sale is ‘agreed’ and both parties will receive a Memorandum of Sale to confirm. Your bank or mortgage advisor will be instructed to get surveys carried out on the home you are purchasing. There are no legal obligations on either side until contracts are signed.

v

Say Hello!

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit.

Your solicitor will now begin all the legal work involved when purchasing a property, known as conveyancing.

Up until this point, either party can withdraw from the sale without financial loss.

Once the contract has been signed by both parties the deposit (usually 10% of the purchase price) will be transferred or paid in the form of a banker’s draft from your solicitor to the seller’s solicitor.

On completion day, you will be notified by your solicitor to collect keys either from the estate agent or seller themselves.

v

Say Hello!

Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit.