House Buying Flowchart/Process

peterc2609

Is there any such thing as a standard process...

i.e. View house, Put offer in, arrnge mortgage etc

I'm struggling to work out where the surveys land searches etc all come into play.

jrangi

This is why the government has introduced HIP - to make things easier.

Basically you view house, have an offer accepted, sort out mortgage/have a survey done and then it is down to the HIP. Which is needed by your solicitor from the seller.

Doozergirl

jrangi wrote: »

Basically you view house, have an offer accepted, sort out mortgage/have a survey done and then it is down to the HIP.

If only! The HIP contains the title information, EPC, and two searches which may or may not be accepted and may or may not be in date. HIPs for leasehold proeprties contain more information but depending on how quickly the proeprty goes under offer, you can still wait forever for them to come through!

There isn't really a flow chart. There are a number of things that need to happen in order for the buyer's solicitor to be satisfied enough to exchange - as there are a number of different outside parties involved in returning this information, the order in which they can be ticked off changes with each transaction.

eg. A formal mortgage offer can come through almost as a soon as you've instructed a solicitor or it can sometimes take weeks and weeks waiting for the survey and subsequent offer; meaning everything else is actually ready and waiting for exchange when it finally arrives.

The first thing the vendor's solicitor does is issue a draft contract. The first thing a buyer's solicitor often does is organise searches once the buyer has paid for them. That would usually be my rule of thumb for knowing that things were underway.

Hopefully when you get to sign the contract, you're nearly there - but not always!

SquatNow

I don't know about the first part of the flowchart, but the last box has the words "Declare Bankrupcy" written in it.

lotto-dreamer

VERY simplistically this would be a basic scenario (but it is not always this straightforward depending on what searches and title reveal):

1. Your offer accepted you instruct solicitor and give Agents your solicitor's details.

2. Your solicitor receives details from Agent and writes to you and seller's solicitor

3. Seller's Solicitor sends draft Contract and various title/property information documents or HIPS Pack (the HIPS pack does NOT make things quicker or easier ...I won't get started)

4. If no HIPS pack your solicitor will submit searches (or submit additional searches anyway because HIPS does not contain everything required). You may also want to instruct a surveyor to do your Homebuyer Survey. (Your lender does a valuation but it is not the same thing - just checking it's worth what they are offering)

5. In the meantime, your solicitor may raise enquiries based on information so far received.

6. Finally, when all enquiries have been answered satisfactorily and title checked - a report is usually sent to you with docs to sign - or you make appointment to go in to see your solicitor to deal with this. Your mortgage offer will have arrived by this stage as well.

7. Get exchange and completion date agreed (completion date is fixed at exchange so you need the agreed completion date when you exchange)

8. Exchange contracts (your deposit is required) - (you can now book your removal company!)

9. Just before completion solicitor does priority search (to protect lender -or you if you are paying cash) at Land Registry

10. Bankruptcy searches done if you are purchasing with a mortgage

11. You send balance of monies to solicitor in time before completion takes place. On day of completion you get the keys once seller's solicitors have received their money

12. Your solicitor submits your Stamp Duty form and when that and the confirmation of discharge of any mortgage which your sellers had over their property is confirmed - then your title is registered at the Land Registry.

13. Solicitor usually sends copies of Register to you as well as any title deeds not required by lender.

14. You swear never to move again

MadMonkey

1) you make an offer
2) you instruct a solicitor
3) the surveys are done on the houses in the chain.
4) Searches are applied for
5) SPIF forms are sent out and completed and returned
6) Solicitor raises any queries regarding these forms.
7) Solcitor writes to seller on Monday with the query, next solicitor recieves it on Tuesday and writes to their client on Wednesday who receives it on Friday, they then answer it in writing and the solicitor recieves it back on Monday and then answer the initial solicitor who recieves it around Wednesday. This means one query takes 9 days.
8) One or more of the surveys highlights a "problem" which then takes weeks and weeks to resolve.
9) All solicitors and EA are uncontactable whilst this is being resolved.
10) You turn to drink.
11) At some point you may move house OR you may be sectioned under the mental health act.

HTH:j

mr.broderick

SquatNow wrote: »

I don't know about the first part of the flowchart, but the last box has the words "Declare Bankrupcy" written in it.

Will you please have a day off....

peterc2609

So what about costs?

What (rough) costs should I expect to incur outside of the mortgage:

So;

Solicitor
Searches
Survey
Estate Agent

Anything else??

Lotus-eater

lotto-dreamer wrote: »

14. You swear never to move again

:rotfl: How true is that

You also left out all the (insert number)a's, where every step goes wrong.

lotto-dreamer

peterc2609 wrote: »

So what about costs?

What (rough) costs should I expect to incur outside of the mortgage:

So;

Solicitor
Searches
Survey
Estate Agent

Anything else??

Yes, there will be other costs:

Stamp Duty Land Tax - percentage of purchase price (nil up to £125,000, 1% up to £250,000, 3% up to £500,000 or 4% over £500,000

Additional fees solicitors may charge on top of their basic fee - Stamp Duty form (can vary but say £75 plus VAT) Lender's Admin fee although not all solicitors will charge this (say £40 plus VAT) Telegraphic Transfer fee for sending purchase monies (say, £30-40 plus VAT) Postage and copying (can be added on top of basic solicitor's fee)

Land Registry fee - to register your title at the Land Registry (this depends on purchase price but varies e.g. £150 to £220)

Indemnity Insurance (if required) - usually sellers will pay but occasionally they may refuse.

Planning Permissions/Copy documents - usually this would be paid for by the Seller but occasionally buyer may have to.

Also, if there are problems with title e.g. boundary issues - this could cause additional work and the solicitors may charge for this.

not that I want to put you off :rolleyes: but at least you know what you COULD be looking at ....

lotto-dreamer

Lotus-eater wrote: »

:rotfl: How true is that

You also left out all the (insert number)a's, where every step goes wrong.

quite but I was trying to be positive

my all time favourite :rolleyes: was when the bottom of the chain solicitors forget to send the money - it was a long chain and a very long and miserable day :mad: