Buying a house

[Dalemac]

Time for another chapter in life! buying our first house.


Haven't done it before. We have found a suitable property in our price range. recently refurbished throughout. No chain, can move in asap presuming all goes without a hitch. After some significant playing around we have come to an amicable price, and have an accepted offer. We have an agreement in principle from Natwest but i'm not happy with the deal, so we are going to seek further advice. We have a 10% deposit ready and solicitors fees ready to go. No stamp duty to pay.

I like the house because all the boring kitchen/bathroom/decorating has just been done, but i have a nice little outhouse type thing which with a bit of work can be a nice bike workspace and storage area, and there is loads of space in the garden for the mrs to go mad with flowers and trees and stuff..

I'm uncertain as to the correct procedure with this. Can anyone clarify?

Next Procedure:

• Mortgage adviser - find a more suitable mortgage deal. HSBC seems to be the best we can find currently, but hoping an adviser can do a little better.
  Solicitor - Once the mortgage stuff is sorted the solicitor does their thing (whatever that might be??).
  Surveyor?
  Get mortgage finalised
  exchange contracts
  Move in.

Bills:

• Council tax - how do we go about setting up payment for this?
  Gas/electricity
  Water - house is currently not metered, what do people think about meters?
  Internet (not wanting a phone line, going with virgin media)

Have I missed anything?

Then of course there is sundries which we already have in place(food, phones, vehicle stuff, etc)

At what point do we start putting the items from the bills list in place? Obviously we need some of it before we move in. Once the mortgage is finalised seems logical to me?

Thanks for any help!

Dale

[Aladinsaneuk]

record the electricity and gas meters etc as soon as you move in

shop around for the best mortgage - I have a VERY good mortgage advisor but as you are not local then find some one close by - don't go for any one that friends etc do not recommend

a good advisor will also help sourc ehe best deal with regard to house and contents insurance - you do not have to accept what the big boys will try and sign you automatically into.....

a decent solicitor will be known by your mortgage advisor - expect to pay 750 to 1000 for it..... (ensure that the figure quoted includes all the search costs - why the fuck I had to pay for a mines search in norfolk beats me but....)

budget to get ripped off once money starts moving around - the lender will charge you, the solicitors will charge you and so on - about 50 quid a pop..... (Don't forget that you will be charged for the deposit to move..... I kicked off with the natwest when they charged me 45 quid to move my money..... got 100 quid back as a good will gesture)

get a proper survey done - anything less is a false economy imho

if your house does not have a water meter - resist the encouragement to get one..... a flat rate is better hygiene as you can bath / shower as often as you like and the robbing bastards cannot apply a percentage increase per unit.....

check out on uswitch what the best tariff for your utilities is..... lock in to a deal for 12 to 18 months

i think you will find it worthwhile doing the same with internet providers - and i suspect that to get the best deal, you will need a phone line - it will be cheaper! also play sky and virgin off against each other

when we moved i put 2000 into a joint account - that was the emergency fund just in case... ie the boiler needed work etc - funds were there when needed

council tax - just inform the council on the date you move in.....

[Willopotomas]

Hmm. Difficult to explain over t'interweb to be honest. It's something most of us just get on with. Even through we rent, we still have all the other usual bills etc.

One thing you have missed is house insurance. Building's insurance (as far as I'm aware) is compulsory, but contents is not.. As we rent, that is taken care of by the landlord, so not 100% certain.

Energy. Very much the same as finding a mobile phone contract.. Just costs a feck load more. Depending on the size of the house, I'd budget a good £1,500 per year for energy. This could be higher or lower depending on the house.

Water. Meters can save you loads, or cost you loads. Current water bill for our gaff is about £250 per year flat rate. Personally, unless it's compulsory in your area or you use next to no water, I would avoid a meter. Washing machines and dishwashers use more than you think.

Virgin. Good if they have the fibre line in the street.. Not all areas have it, so check that before you decide. If you go for ADSL, you'll need a phone line (as you know).

Council Tax. This will be decided by your local council and you'll get a letter in the post or a knock on the door. Once all the papers are signed, head on down to the Council House/Town Hall and get yeself sorted. While you're there, get both of you on the electoral register. Even if you decide not to vote, it helps when applying for credit as they'll have a proof of address.

Emergency Buffer. Not all do it, but we do. Set aside a portion of your monthly income for emergency's.. Such things like a washing machine packing up, water leaks or any other unexpected issues that may cost a small fortune.

Mortgage/Solicitors. This should all be sorted and advised by your mortgage lender and estate agent. If there is anything they need, they'll ask you for it.

I think that's about it. Just be careful on the mortgage.. What looks like a good deal now could bugger you up with even the smallest interest rate rise. And fer feck sake DON'T get an interest only mortgage. (unless you can afford to buy your house again at the end of the term that is)

[D-Rider]

When we bought our house you just went to the building soc with whom you saved and got a mortgage - never dealt with the concept of shopping around.

Water meters are a one way street. Once you've got one you can't go back to unmetered. If you use little water they can be cheaper but if you don't they'll cost you more. Think about the future too. Dunno whether you're thinking of kids in the time frame you'll live there but they will add considerably to water usage .... and washing machine wear and tare

[lazarus]

the legal sequence as I remember it is:
1/ you make an offer subject to contract. Last three words are important cos what they mean is that you arent at this stage legally bound to go ahead
2/ offer accepted also subject to contract
3/ you find yourself a mortgage because they will have a list of lawyers and surveyors they will accept. dont forget the house is security for their loan so they have a vested interest in its survey and the lawyers that act for you also in effect act for them.
Incidentally you do not need to go through a mortgage broker who are the whores of the process. you can go direct to a building society or bank and you can get better deals this way since the banks arent having to pay the whore.
4/ you negotiate a fee with the lawyer. do not tell the lawyer he is hired without a clear idea of what he is going to cost. ditto the surveyor but with the surveyor you need to decide what sort of survey you need. look on the www. .
5/ before the surveyor goes in, visit yourself and take a house owning mate. have a real good look around, take notes and make a list of questions for the surveyor. the surveyor then goes in, gives you a report and you consider what to do. careful here - most surveyor will cover their backsides and frighten you to death. make a list of questions you have from the survey and talk them through with the surveyor who will usually calm you down.
6/ if necessary renegotiate and agree a new price
7/ price agreed - tell your lawyer to go ahead, and he will get you to the contract stage. once the contract is signed you are legally committed.
8/ completion - this is a seperate legal stage at which the house is transferred to your ownership.
9/ leccy and other services - just shop around. make sure you tell them the completion date and m,ake sure that you go to the property on that date and take meter readings.
10/ do not rely on the estate agent to recommend one of their pals as solicitor or surveyor under any circumstances.
11/ be prepared to be raped. do your best to minimise it but there are lots of sharks out there ( surprisingly the solicitor is the least likely to rip you off) who see you as a sheep to be sheared to mix a metaphore
12/ dont be too worried. house buying is a very common transaction and usually goes smoothly

[lazarus]

.

Water meters are a one way street. Once you've got one you can't go back to unmetered.

Not correct. You can go back unmetered within the 12 months according to http://www.stwater.co.uk/category/1068

[D-Rider]

.

Water meters are a one way street. Once you've got one you can't go back to unmetered.

Not correct. You can go back unmetered within the 12 months according to http://www.stwater.co.uk/category/1068

Ah OK - thanks for clarifying - I was under a misapprehension.

Nevertheless once the 12 months has timed out you are trapped - and given that changes in circumstances often occur after the first 12 months, the thrust of what I was saying is still worth considering.

[flatlander]

Couple of minor points to add council tax is usually quoted as 10payments you can legally request 12 of it suits you better.

Surveyors do not move furniture etc so have a look behind stuff yourself one of those extending mirrors from aldi can be quite useful

Check for type of walls as this will affect any insulation possibilities

Visit the house / area at random times of day. Just sit in a car or cafe down the road at school or kicking out time

Check direction of garden affects what plants and sun you get

Do not rely on the searches done by your solicitor or an agent go to the planning office and ask and book a time to see the plans maps etc hat the searchers do. They only search the property you need to be checking the area

Check online sale prices zoopla right move nethouseprices upyourstreet etc

You can cover thinks like environment risks for free online too and title at the land registry where you will also see any restrictive covenants

Specifically and directly ask if there has ever been any issues / disputes with neighbours not all are declarable but if you ask outside of Q3 on the information form it covers you more

Don't assume the leanto is legal whilst you are at planning check the history of applications in the property and the area

You don't want to move in and find that your neighbour has been campaigning to breed dogs

Also go and introduce yourselves to neighbours once you are cllose to signing and judge for yourself if they are nutters

If you find out their names then search the Internet for them

Shall I continue or have I put you off yet? :)

Basically there is an endless list of what you can or should do but most people decide on a house in about 30 seconds and won't be put off so you can do as much or as little as you are comfortable with. Me I'm a mosey bastard and love snooping when there's nowt on tele :)

[BikerGran]

There can be some confusion about surveys. The mortgage lender will require a survey (which you have to pay for of course) to check whether the house is a good investment for THEM.

This is totally different from a survey by someone appointed by you, to find out anything that's wrong with the property or will need doing to it - ie a surveyor working for YOU.

[HowardQ]

People seem to have come back with lots of good answers aleady, so I'll just say it's great news Dale!
Hope the move in goes well, it's always a stressfull time, but really nice when it is all done and you can just sit back and relax in your new home .

[T.C.]

a decent solicitor will be known by your mortgage advisor - expect to pay 750 to 1000 for it..... (ensure that the figure quoted includes all the search costs - why the fuck I had to pay for a mines search in norfolk beats me but....)

budget to get ripped off once money starts moving around - the lender will charge you, the solicitors will charge you and so on - about 50 quid a pop..... (Don't forget that you will be charged for the deposit to move..... I kicked off with the natwest when they charged me 45 quid to move my money..... got 100 quid back as a good will gesture)

Depending on the value of the property, £495 - £595 + disbursements. Well thats what we charge anyway.

Look for a solicitor that is CQS accredited (Conveyancing Quality Solicitor Scheme). A firm who is CQS accredited has been audited and approved by both the lenders and the Law Society, and have shown they are reputable. CQS accredited solicitors are also licenced to deal with mortgages on behalf of both HSBC and Santander which means you do not have to go hunting around for someone who is approved if that is who your lender is.

If you get stuck, drop me a PM and I will be happy to put you in touch with one of my colleagues in our conveyancing group. We are CQS accredited

Oh and by the way, a decent firm will also do everything by email including exchange of contracts which speeds up the whole process by about 4 - 5 weeks. It is allowed and preferred this avoids the need for trips to your solicitor to see them in person and they can also keep your agent in the loop so they know what is happening as well.

[Dalemac]

Thanks for the well detailed and informative replies everyone. it will truly help us out, so we appreciate it very much.

I am going to write this advice up into a little pack for myself which I can have handy when talkint to banks, solicitors, estate agents, etc.

I'll keep you guys informed!

Dale

[lazarus]

Couple of minor points to add council tax is usually quoted as 10payments you can legally request 12 of it suits you better.

Surveyors do not move furniture etc so have a look behind stuff yourself one of those extending mirrors from aldi can be quite useful

Check for type of walls as this will affect any insulation possibilities

Visit the house / area at random times of day. Just sit in a car or cafe down the road at school or kicking out time

Check direction of garden affects what plants and sun you get

Do not rely on the searches done by your solicitor or an agent go to the planning office and ask and book a time to see the plans maps etc hat the searchers do. They only search the property you need to be checking the area

Check online sale prices zoopla right move nethouseprices upyourstreet etc

You can cover thinks like environment risks for free online too and title at the land registry where you will also see any restrictive covenants

Specifically and directly ask if there has ever been any issues / disputes with neighbours not all are declarable but if you ask outside of Q3 on the information form it covers you more

Don't assume the leanto is legal whilst you are at planning check the history of applications in the property and the area

You don't want to move in and find that your neighbour has been campaigning to breed dogs

Also go and introduce yourselves to neighbours once you are cllose to signing and judge for yourself if they are nutters

If you find out their names then search the Internet for them

Shall I continue or have I put you off yet? :)

Basically there is an endless list of what you can or should do but most people decide on a house in about 30 seconds and won't be put off so you can do as much or as little as you are comfortable with. Me I'm a mosey bastard and love snooping when there's nowt on tele :)

There's some very good practical advice here. Neighbour and noise issues can completely spoil living in the house so take some care to check up on these. Visiting at different times is good - we once sold a house that backed onto a school and whilst we were happy to hear the noise of ki9ds playing, we took care to make sure than any visits from the purchasers happened other than when the kids were going into school or coming out. Ask about drainage issues and insurance claims. Ask about burglaries.

But in the end do as much as you can for yourself. Sellers have been known to lie on the forms to get a house sold. One near us is down in the bottom of a valley and has flooded numerous times. The seller told the current owners that it hadnt but when the case got to court the compo awarded by the judge was derisory. Little more than the cost of one flooding let alone the price of the house itself. As I'm sure TC will confirm, the law and justice / fairness are two different things. The buyre could easily have avoided that property, as we did when it was previously up for sale, by asking round neighbours.

[T.C.]

As I'm sure TC will confirm, the law and justice / fairness are two different things.

Thats for sure, no argument from me

[Gio]

To be perfectly honest now isn't a good time to buy housing, prices will be falling further, especially as the government is lending banks cheap money (our money the b'stards).

When the cash cow thats our gov runs out of money, watch interest rates soar, oh and want to bet that in the not to distant future if you make money on a house sale it'll be CGT time.