HOW TO BUY 1
HOW TO...
BUY
A guide for people looking
to buy a home in
England and Wales
Part of the How to Guides series
HOW TO BUY 2
Contents
Introduction 3
Who is this guide for? 3
How to use this guide 3
Who can help me? 3
What can I afford? 4
Preparing to apply for a mortgage 4
ID checks 5
Choosing a home
5
Buying a new build property 7
Buying a home in later life 8
Other types of homes 8
Leasehold and freehold
8
Buying a rented property
9
Making an offer
9
Referrals 9
Instructing a legal representative 10
Searches 10
Your mortgage 11
Survey 11
Fraud 12
Exchange and deposit 12
Moving your belongings 13
Preparations for moving 13
Completion and moving 13
After moving 14
Making a complaint 14
Buying and selling at the 14
same time
Other organisations who can help
15
Glossary 16
Annex - Key milestones 18
This information is frequently updated. Search on GOV.UK for How to Buy to ensure you have the
latestversion.
The online version contains links you can click on to get more information.
If you do not have internet access, ask your local library to help.
September 2019
HOW TO BUY 3
How to Buy
Introduction
Buying a home is often the largest purchase you will
make in your lifetime. It is really important you have the
right information, at the right time, to ensure you make
informed decisions.
You can avoid stress and speed up the process by
knowing which questions to ask, what your rights are,
and what responsibilities you have as a home buyer.
You will find a glossary at the end of this guide for
many of the technical terms it uses , including those
highlighted in bold.
Who is this guide for?
• This guide is for people who are
thinking of purchasing a home.
First-time buyers may find it particularly
useful, but as the buying process can change,
even more experienced buyers can benefit
from understanding the latest key steps.
• It is focused on freehold properties.
• It includes a short overview of how to buy
a leasehold property – more detailed
information is available in Government’s
How to Lease guide.
• It covers purchasing a property which is
currently rented out, but only if you plan to
live in it yourself. If you’re looking for more
information on buying to let, details are
available in Government’s How to Let guide.
• It is intended for people purchasing a home in
England or Wales. More information on buying
property in Scotland or Northern Ireland is
available through the links.
• It is intended as a helpful overview of the
process; it is not a definitive statement of the
law and not all of the steps are mandatory
for all cases. If you are thinking of buying a
property, you should seek independent
financial and legal advice.
How to use this guide
• This guide is best viewed online as it contains
hyperlinks.
• If you are reading this on a computer or tablet, you
can click on the links to go to other websites with
more detailed information.
• Hyperlinks are coloured and underlined like this.
• On Android and Windows devices, links work better
if you download Acrobat Reader.
Who can help me?
During the home buying process a number of specialists
can offer you advice or assistance:
• Lender – able to lend you money to purchase the
property
• Insurer – able to provide the building insurance
policy you need in order to purchase a property and
the contents cover to protect your belongings
• Legal representative/conveyancer – able to
carry out the legal work needed to buy a property
• Surveyor – able to assess the physical condition of
the property and can give an independent valuation
• Mortgage Broker or Adviser – able to advise
which mortgage is best for you
• Specialist professional or tradesperson – able
to advise on any maintenance or building works that
are identified in the survey
• Energy Assessor – able to answer queries on the
Energy Performance Certificate (EPC)
The estate agent will help guide you through the
buying process and work with other parties to help the
sale progress. But remember - their primary role is to
help the seller sell their property.
HOW TO BUY 4
What can I afford?
Before you start looking for a new home, you should
have an idea of how much you can afford to spend on a
property. Most buyers will require a mortgage in order
to purchase a home. You can typically borrow a multiple
of your household income and this amount will be
influenced by your credit score. Adding this sum to
your deposit will give you an indication of your budget.
The larger your deposit, the more favourable the
mortgage deals you are likely to be able to access.
Government has a range of schemes to help people buy
a home. These include Help to Buy: Equity Loan, Help to
Buy: ISA, Lifetime ISA, (England); Help to Buy Wales,
Homebuy Wales, and Rent to Own Wales (Wales).
Shared Ownership and Shared Ownership Wales may
be able to help you buy when you aren’t able to afford a
property on the open market in a specific location. You
should make sure you are clear about what these
schemes can offer you and when – for example the Help
to Buy: ISA bonus can’t be put towards the deposit or to
pay for legal representative’s or estate agent’s fees, or
any other indirect costs.
You should remember that buying the property is not
going to be your only expense. You may also need
money to pay for:
• stamp duty in England or Land Transaction Tax in
Wales (unless you are a first time buyer and fulfil
certain criteria – see links for more information)
• getting up-to-date surveys / reports
• conveyancing fees
• search fees
• building insurance
• moving costs
• essential home repairs or improvements
• mortgage costs and life insurance
• service charges and ground rent in leasehold
properties (if appropriate – more information about
leasehold properties is in the How to Lease guide)
Preparing to apply for a mortgage
Before you speak with a mortgage broker or adviser, you
should check your credit score. This score shows how
likely you are to be accepted for credit. The higher the
number, the more likely you are to be offered a range
of good mortgage deals. Information on how to
check your credit score and how to improve it can
be found from the Money Advice Service.
A mortgage lender will consider the total amount you
can borrow and how affordable your monthly mortgage
payments will be when deciding how much to lend. The
affordability assessment will take into account your
income and your current outgoings, and will consider any
changes that might affect whether you would be able to
afford repayments (for example if interest rates change or
if you were made redundant). You may want to consider
paying down debts on credit cards or loans before you
apply for a mortgage, as the monthly repayments will be
factored into the amount you can borrow. More details
about what information mortgage lenders might
consider, as well as a checklist of the information you
might need to prepare for a mortgage application, can
be found from the Money Advice Service.
There are many different types of mortgages on offer.
Looking at price comparison websites can help you to
understand the types of product available. Using a
mortgage broker can be a good way to get
individualised mortgage advice, although you may have
to pay a fee. It may be especially useful to get
individualised advice if you have unusual circumstances
(e.g. if you are self-employed or have a low credit score),
as this can limit the types of mortgages that are available
to you. Equally, many lenders will have mortgage
advisers who can advise on their own range of products.
Before you begin viewing properties you should get a
mortgage decision in principle. This is a written
statement from a lender giving an estimate of what you
can borrow. It gives you some indication of your budget
and signals to sellers that you are serious about buying a
property. Getting a decision in principle from one lender
does not mean you have to take out a mortgage with
them. However, as part of the decision in principle, the
majority of lenders will carry out a credit search. Some
lenders will carry out a soft enquiry that will not affect
your credit score. Other lenders will undertake a hard
enquiry that may affect your credit score. You should
find out what type of enquiry lenders use, as too many
hard enquiries could negatively affect your credit score.
HOW TO BUY 5
ID checks
Estate agents, lawyers and mortgage lenders are
required by law to check your identity to prevent money
laundering and fraud. At several stages during the
transaction you will have to produce documents to
prove your identity or address and information on your
source of funds. This could include receipts from the sale
of another property, savings, inheritance monies and
financial gifts from family and friends. Checking this
information is a legal requirement to help safeguard
your transaction, and failing to provide ID documents
could slow down the process.
Get the documentation you need together
now to make sure you are prepared:
£ proof of identity - passport, driving licence, EEA
member state identity card.
£ proof of address - driving licence, bank or credit
card statement, utility bill (not more than 3
months old). Mobile phone bills are not a valid
proof of address.
£ proof of source of funds – including your last
three months’ payslips; P60 form from your
employer; tax return and other documents if
you are self-employed. More information on the
documents you need is available on the Money
Advice Service website.
Choosing a home
Most people start their property search with online
property sites or through local estate agents.
When browsing properties you should think about lots
of different criteria:
• affordability – what can you afford to spend on a
property? (see page 4)
• location – the region or town you want to live in,
and you may also wish to consider the feel of the
area (quiet roads or social spaces) and amenities of
the immediate neighbourhood (local shops,
doctors’ surgery, schools etc.) There are a number of
sites online where you can find out more about a
local area – try searching for ‘local area information’.
• transport links – you should check your commute
to and from work and/or school, using public
transport or otherwise.
• flat or house – flats are nearly always leasehold, so
you will pay a regular service charge and you may
have to renew the lease. More information on
purchasing a leasehold property can be found in the
How to Lease guide.
• new build or second-hand – new builds can be
appealing as they will be clean and energy efficient,
and you may be able to make some decisions about
fixtures and fittings (e.g. kitchen cabinets, tiling,
lighting etc.). However, new builds may be more
expensive than a similar second-hand home – this is
known as the ‘new-build premium’. Second-hand
homes can provide more opportunities for
improvements to tailor it to what you need and
allow you to add value to the property.
• number of bedrooms – consider how many
bedrooms you need now and how many you may
need in the future.
• energy performance – how is the property’s
energy performance? What would need to be done
to improve it? This information can be found on the
property’s Energy Performance Certificate or
EPC (an image of an EPC is on the next page)
although certain properties (usually historic
buildings) are exempt from providing EPCs.
HOW TO BUY 6
• amount of living space – think about your lifestyle
and storage needs – do you have a bike or a pram?
Where is it going to go?
• internet speed – do you need fast internet for
work or leisure?
• car parking – if available, is parking on-street, on a
drive, or in a garage; and are there any parking
permit costs?
• scope for extending – would you be able to
extend the property or convert the loft or garage to
make more space?
• garden – do you want an outside space? How
much maintenance are you able and willing to do?
Would the space be yours or would it be shared
with other properties?
• conservation area or listed building status –
check if the property is included on the National
Heritage list as this may affect your ability to make
changes to both inside and outside the property.
Such properties may qualify for Energy Performance
Certificate exemption – more details can be found
on the Government’s website.
• condition – some properties are immaculate and
need no work; others may need updating and some
may need considerable renovation or repair. You
should think about how much time and energy you
have to make the necessary repairs.
• drawbacks – properties on busy roads, backing on
to railway lines, or located some distance from
shops and public transport routes are often cheaper.
You should make sure you are happy to make any
compromises before you buy. These properties may
also take longer to resell.
You should find out as much as you can about any
properties you are interested in to help you decide
which, if any, to buy. Things you may wish to ask the
estate agent include:
£ is there anything I should know about the
property before I put in an offer? Ask your estate
agent for the material facts about the property as
they are legally required to pass this information
on to you.
£ how long has the property been on the market?
If it has been on for longer than 3 months ask
why they think it isn’t selling. Is there something
other people have been put off by, or is it
overpriced?
£ is the property part of a property chain, where
a number of people are buying and selling their
properties at the same time? How many people
are in the chain? Will the sellers need to tie in
their own purchase?
£ how long have the owners lived there? If it is a
short period of time you may wish to find out
why – for example, there may be an issue with
noisy neighbours.
£ has the property repeatedly changed hands or
have previous sales fallen through – if so, why is
that? You can check the former online by looking
at ‘sold property price’ data, which will also tell
you what price the seller paid for the property.
£ when are the sellers hoping to move out?
£ have all the necessary consents been obtained
for any work already carried out on the property?
£ can you speak directly to the sellers? They will be
able to give you good insight into issues relating
to the property.
£ is the property leasehold or freehold?
HOW TO BUY 7
£ if leasehold, how much longer is there remaining
on the lease? How much is the ground rent and
service charge? Will they change and if so, when
and by how much? Are there any upcoming works
for the building that you will have to budget a
lump sum for? More information on purchasing a
leasehold property can be found in page 8 of this
guide and in the How to Lease guide.
£ is the seller willing to enter into a reservation
agreement to show they are committed to selling
you their property and prepared to pay you
compensation if they pull out of the deal?
While at the property you should also look at the condition
of the building. A useful list of things to check outside and
inside the property can be found on the Which? website.
If you are interested in a property, you should consider
visiting it several times if the seller is agreeable. Visiting
at different times of the day can be helpful – for
example, traffic in the vicinity may be busier at certain
times of the day.
Buying a new build property
Buying a new build property can be quite different from
buying a second-hand home. You may be buying
off-plan, meaning the property may not even be built
yet. Some differences to be aware of include:
Money
• When buying a new build home, you may need to
put down a reservation fee to hold the property.
This may only be refundable in certain circumstances,
so check the small print before you pay.
• Many developers will ask you to exchange contracts
and pay a deposit shortly after reserving the
property. You should make sure your lender and
legal representative are aware of the deadline and
are able to meet it.
• Many developers will have referral relationships with
specific mortgage advisors and legal representatives.
You are under no obligation to use these firms if you
don’t want to. More advice on this can be found on
the Home Owners Alliance website.
• There may be additional charges associated with a
new build property, for example estate facility
charges. Make sure your legal representative fully
explains the details of the contract so you know
what you are signing up to.
Timescales
• If your property is still being built, your developer
may give you a date by which the property should
be finished. On some occasions this end date may
be delayed or brought forward. Make sure you
know what will happen in either scenario. If the
former, your mortgage offer may need to be
refreshed as they usually only last for a limited period.
• A long-stop date can be written into your contract,
which permits you to withdraw from the purchase in
the event of long delays to the property being finished.
Snagging Issues
• Snagging issues are defects or unfinished pieces of
work in a new build home.
• You should consider agreeing at exchange that a
snagging survey should be carried out once the
property has been built and prior to completion.
• This survey can be carried out by a professional
company or done yourself. You should report back
any issues to your developer and ask for them to be
addressed before you move in.
• Most new build homes have a 10-year warranty for
major structural problems and a 2-year warranty for
general defects, but this may not cover the whole of
the property and any attached land. Make sure you
are clear about what is and is not included in the
warranty before you put down a deposit.
• Before you make an offer, understand what will and
won’t be fixed before completion and what
happens if you have a dispute with the builder.
Make sure you ask the developer for all material facts
relating to the property before you commit to buying.
More information on buying a new build home can
be found on the Which? website.
HOW TO BUY 8
Buying a home in later life
While many people want to stay in their family home for as
long as possible, some may want to consider the potential
benefits of moving to a more manageable property in later
life. There can be advantages in terms of cheaper energy
bills and maintenance costs; and in the case of specialist
retirement properties, improved accessibility, care plans
and communal spaces. More information about housing
options in later life can be found from the Elderly
Accommodation Counsel.
If you are considering a specialist retirement property,
you should be aware that it is different from buying a
freehold home. The property is likely to be leasehold and
you may have to pay ground rent, service charges and
event fees, or be subject to restricted sales clauses. You
should do your research carefully and make sure you and
your legal representative check the small print in detail to
understand current and future costs. Advice about
leasehold retirement properties is available from the
Leasehold Advisory Service.
Other types of homes
Other special case property types include park homes,
house boats, mobile homes and so on. Some of the
advice in this guide will still be relevant for purchasing
these types of homes, but you should also seek out
specific advice. Guidance on park homes for England
and Wales can be found by clicking the links.
Leasehold and freehold
When considering a property purchase, it is really
important that you know whether the property is
freehold or leasehold.
A freehold property means you own the property
and land outright.
A leasehold property means you only own the property
for a fixed number of years. You have the right to live in
that property, but you will need to follow any rules laid
down in the terms of the lease. Flats are often leasehold,
but houses can be too.
The length of the lease will be specified in the contract,
but you should ask the estate agent up front how long is
left on the lease and should wait until you have this
information before making an offer. Estate agents must
be upfront about lease length, any costs or fees, and
how these might change over time. As the lease length
gets smaller, the property value may be affected,
especially once it falls under 80 years. Many lenders are
reluctant to lend on properties with less than 80 years
left on the lease. More information is available from the
Leasehold Advisory Service.
If you buy a leasehold property you may have to pay
regular ground rent and service charges to your freeholder.
• The ground rent is a sum you have to pay to
your managing agent/landlord if it is a condition
of the lease.
• The service charge is paid to the managing agent
or landlord towards the costs they incur for the
services they provide, like repairs, gardening or
cleaning of common areas. It can also include
building insurance.
Both ground rents and service charges vary from one
property to another and details about both should be
written in the lease.
If you are thinking of buying a leasehold property, make
sure that you have carefully considered the terms
of the lease. It is important you ask your legal
representative to find out:
• what the cost of the ground rent is; when it is
likely to increase; and what the scale of these
increases will be as these costs may impact the
future value and saleability of the property. They
should also check that your mortgage lender is
happy to provide your mortgage based on the
proposed level of ground rent and the length of
the remaining lease.
• whether the previous owners of the property
have paid all outstanding service charges and
if the landlord is planning any major building
works you will have to contribute to. The
seller’s legal representative should provide an LPE1
form and supporting documents which will help
clarify these issues.
• whether the lease contains any restrictive
terms and conditions; for example it may not
allow you to keep pets in the property.
A leasehold property can often take a few weeks longer
to purchase than a freehold property due to a number
of additional steps in the process. More information on
leasehold properties can be found in the Government’s
How to Lease guide and from the Leasehold Advisory
Service.
HOW TO BUY 9
Buying a rented property
Buying a rented property with a sitting tenant, or buying
with the purpose of renting the property out, may be an
investment option; however it is beyond the scope of
this guide. If you are thinking of taking this route you
should seek expert advice, as there are legal, tax and
mortgage implications to becoming a landlord.
Buying a rented home to live in yourself is no different
from buying a property that was occupied by the owner;
you should take the same care in arranging surveys and
researching the property’s location (more detail on this
below).The tenant may still be occupying the property
when it is on the market, but the landlord must give the
tenant a notice period to find a new home. This may
add to the time it takes to complete the sale – you
should ask the seller what arrangements they have
made with their tenant.
When you are visiting the property, you should be
mindful that it is the tenant’s home and be respectful of
their property, just as you would expect others to be
respectful of yours. The landlord must give their tenant
24 hours’ notice that a potential buyer is being shown
the property, so bear this in mind when you are
arranging viewings.
Making an offer
Making an offer on a property is a big step. You
shouldn’t feel pressured to put in an offer before you
are ready – a second viewing is usually helpful when
deciding whether it is the right place for you. The asking
price is just that – don’t be afraid to make a lower offer.
This is the start of a negotiation process. The estate
agent is legally obliged to pass on all offers and the
seller is not obliged to accept any offer, regardless
of how much it is.
Before you make an offer on a property, make sure you
have considered the following:
£ what is included – which fixtures and fittings
does the offer include e.g. will the seller leave
white goods or the garden shed?
£ what the property is worth – what have
similar properties in the area sold for and how
many are on the market at the moment?
£ leasehold – how much is ground rent and
service charge, and will these change over time?
£ what you can afford and are willing to pay
– have an upper limit in mind, above which point
you will walk away.
£ seller’s circumstances – is the seller part of
a chain?
£ your appeal as a buyer – let the seller know
that you have a decision in principle (or are a
cash-buyer), and if you are a first-time buyer or
have already sold your home
£ interest in the property – has or is anyone
else making an offer?
You should not put an offer in unless you are serious
about buying the property. Pulling out of a purchase
once a verbal offer is accepted will cause delays, extra
costs and frustration both to you and the seller. A verbal
offer can be renegotiated at any time up to exchange,
but you should think carefully before renegotiating and
only do so when a change is justified; for example if the
home survey identifies significant issues. Attempts to
renegotiate the offer when a sale nears completion may
cause delays and could risk the sale falling through.
If your offer is accepted, congratulations! You should ask
the estate agent to stop actively marketing the property
and to remove the listing from any online portals,
although it is the seller’s choice whether to leave it on
the market. You should advise the agent of your legal
representative. You should receive a memorandum of
sale from the estate agent which outlines your offer in
writing and provides details of the legal representatives
for each party. A few days after your offer is accepted,
check with your legal representative that the seller has
instructed their own legal representative and the
purchase is progressing.
Referrals
The estate agent, developer, mortgage broker/lender
and online property sites can be useful sources of
recommendations for property professionals such as
legal representatives or surveyors. They may refer you to
a company because they recommend the service, and
may also receive a payment (known as a referral fee)
from the business they have referred you to.
This is an established way of working, but the estate
agent is obliged to tell you about any referral fees up
front, allowing you to make an informed decision about
which firm to choose. Do not feel obliged to take up any
HOW TO BUY 10
ref
erral the estate agent, developer or mortgage broker/
lender makes – it is entirely your choice. You should
shop around for the best deal for you, although be
aware that for mortgages multiple lender inquiries may
have an impact on your credit score. If you’re in doubt,
ask your mortgage provider for more detail about how
they carry out credit checks.
Instructing a legal representative
Once your offer has been accepted, you need to select a
legal representative. They play a key role in helping you
purchase your home - they carry out the appropriate
legal checks on the property, complete the legal work
for your property purchase and, if you are getting a
mortgage, ensure that it meets your lender’s
requirements. They will identify any title or planning
issues; advise you on which searches to have carried out
(see the next section), and do the legal work of
transferring the ownership of the property from the
seller to you. You should instruct a legal representative
as soon as your offer has been accepted, but if you have
any special requirements (for example if you only want a
home which you can run a business from), you might
want to instruct a legal representative to check this for
you before you put your offer in.
There are various legal professionals who are qualified
and regulated to carry out conveyancing work: solicitors,
licensed conveyancers, chartered legal executives and
CILEx practitioners. The Legal Choices webpages for
each conveyancing professional (linked above) contain
information on how to check that your legal
professional is regulated by the appropriate body.
It’s a good idea to get a number of different quotes
before you select a legal professional. You should
consider:
£ the price – you should expect to be told the full
price up-front, but you should check if there are
any hidden extras and if they have paid a referral
fee for your custom. Ask what fee you will be
charged in the event your sale does not go
through.
£ the quality – do they have online reviews? If
so, what do customers think of the service they
provide? If your property is more complex than
nor
mal (leasehold, shared-ownership, listed
building etc.) do they have the specialist skills to
handle your purchase?
£ the service – will you have a named contact?
How will they communicate with you (phone,
email etc.) and how often? Do you prefer online
or in-person service? Do their opening hours
suit you? Do they have experience conveying
properties in your local area?
£ Are they on the panel of approved legal
representatives for your mortgage lender?
Once you have agreed that a legal professional will act
for you, they should provide you with a letter of
engagement which sets out the terms of your
agreement with them including the instructions you
have given them, the fee they will charge, the timescales
for the agreement, and other relevant information.
Searches
Your legal professional will organise local authority
searches on the defined property and/or land. These
searches tell you about any restrictions relating to the
land or property (e.g. tree preservation orders; whether
the property is listed or in a conservation area) and
about any relevant external factors (e.g. new roads
[except those proposed by private bodies] or rail
schemes) but do not tell you about development on
the neighbour’s land. If you have concerns about this
then your legal representative can request a specialist
search for you.
Your legal representative will also advise you about any
additional searches you should undertake, such as flood
risk or a mining report. It is sensible to ask your legal
representative to order searches as soon as possible to
prevent delays, but some professionals advise you to
wait until your mortgage offer has been confirmed. You
typically have to pay for the searches up front.
During the process your legal representative will raise
enquiries. These are questions about the information
which they have received e.g. the title, or the mortgage
offer. Enquiries take place on a wide range of issues,
and are therefore raised at different points through the
process and will normally need to be answered by the
seller. You should think about whether there is anything
you would like your legal representative to ask on your
behalf.
HOW TO BUY 11
More information on property searches can be
found in Land Data’s guide.
It may be possible to take out indemnity insurance to
protect against issues uncovered by the property
searches. Your legal representative will be able to advise
you on this option.
You should save the search information you receive in a
safe place – it may come in handy for reference if you sell
the property in the future, although searches are only
valid for a certain number of months and therefore may
need to be redone.
Your mortgage
Once your offer has been accepted, you need to complete
a full mortgage application for the lender you wish to use
(this can be either the lender who gave you your initial
decision in principle, or another provider). If you have a
mortgage broker they may complete the application for
you. Make sure you select a lender who offers the best
deal for you for the property you wish to buy.
When applying for the mortgage you will need to
complete a form and show ID, proof of address and
proof of income. Self-employed people may have to
provide extra assurances of their income, so find out
what the requirements will be before you apply. Most
people applying for a mortgage will have to complete a
mortgage interview. Contact the mortgage provider for
more information about what this will involve.
The mortgage provider will carry out a mortgage
valuation, where they check that they are happy to
lend against the property. This is not a survey -
valuation does not protect you if something goes
wrong with the property and may not even include a
physical inspection of the property (for this information
you will need to have a survey carried out – see the
following section).
Survey
A survey is a detailed inspection of a property’s condition.
There are various different types of home survey, some of
which include advice about how to rectify any issues
identified. More information on home surveys can be
found from the Money Advice Service website.
Remember – a mortgage valuation is
not the same thing as a home survey.
A valuation does not protect you in the
event that something goes wrong with
the property.
Remember – an Energy Performance
Certificate (EPC) is not the same thing
as a home survey either. It is only a visual
assessment of those elements which
play a factor in determining the energy
efficiency of the property (such as
heating sources and cavity wall
insulation). An EPC does not indicate
whether these elements are in good or
bad condition – it assumes all elements
are working correctly.
You should strongly consider having a survey carried
out. A survey is useful because it will advise you of minor
maintenance and major works required on the property
now and in the future.
The survey should be carried out by a trained
professional; for example a member of the Residential
Property Surveyors Association (RPSA), the Royal
Institution of Chartered Surveyors (RICS) or the
Independent Surveyors and Valuers Association (ISVA).
Your estate agent, legal representative or lender may
refer you to a particular surveyor, but it is your decision
who you appoint. You should speak with a surveyor to
get advice on what level of survey service is
recommended for your property. You should also
consider the nature of the property when selecting a
surveyor. Properties built before 1919 are constructed
differently, so you must ensure that your surveyor is
qualified to assess such buildings.
Some buyers have a survey carried out as soon as their
offer has been accepted, while others wait until their
lender carries out their mortgage valuation and
confirms the sum they are willing to lend. Bear in mind
your surveyor may be busy, so don’t leave it too late.
Make sure you read your survey report carefully and
speak with your surveyor afterwards to ensure you
understand what the problems are, how serious they
are, and what the remedies might be. You may be
advised to get a specialist to visit the property and carry
out a further assessment; for example a boiler check or
damp assessment.
HOW TO BUY 12
If any significant issues are uncovered by the survey you
can ask the seller to pay for them to be fixed before you
purchase; you can renegotiate your offer to take into
account the cost of the work; or even withdraw your
offer altogether. You may wish to share the relevant part
of your survey with the seller’s legal team in order to
negotiate any of the above.
Fraud
Buying a home involves the transfer of large sums of
money and can attract the attention of criminals.
Though the risk of fraud is low, you should be vigilant
about common scams.
Misdirection fraud is when you receive an email or
phone call which seems to come from your legal
representative informing you of a change to their bank
account details.
It is extremely rare for legal
representatives to change their
bank account. If you are in any
doubt, do not transfer any money.
Call your legal representative on a known number (i.e.
not the number listed on the potentially fraudulent
email) to check.
Also consider your behaviour and be social media savvy.
It is not uncommon for fraudsters to find the information
they need to commit fraud from your social media
profiles. For example:
• If you have shared a post that contains details about
your move, such as the day your offer was accepted,
the day you will be moving, the road/area the new
property is in or even a picture of it.
• If there are open groups on a social media platform
such as Facebook containing you and the other
people in your property transaction chain. This can
also obstruct your legal professional in their work.
• If there are any types of open discussions with
others involved in the process on an open
online forum.
This information can be used by criminals to quickly
identify which property you are buying and other
important details about you, which can then be used
for fraudulent purposes.
Exchange and deposit
Exchange is when the buyer and seller exchange their
signed agreements which legally bind them; committing
them to the transaction. Your legal representative
should advise you when you are ready to exchange. You
can exchange when:
£ you are happy with the searches, survey, and the
details in the contract;
£ your lender has confirmed your mortgage;
£ you are able to pay the deposit (if you are
using a Help to Buy or Lifetime ISA you need to
instruct your legal representative to apply for the
government bonus);
£ you are able to pay all other associated costs
including stamp duty, removal costs and so on, in
cleared funds. Bear in mind that you may need to
pay a bank charge for the transfer.
In order to exchange you need to organise buildings
insurance, because upon signing the contract you are
legally responsible for the property. At exchange you
will also confirm a completion date; often around 2-4
weeks later (though they can occur simultaneously),
which is when you will be able to move in or start any
work on your new home.
Exchanging contracts is an official legal
commitment. If you withdraw from the
agreement after exchange you may lose your
deposit and have to pay compensation to the
seller for other losses. If the seller withdraws they
may be liable for your costs and even compensation.
As purchasing a property is a big commitment, it is
worth considering whether you should take out life
insurance cover before you exchange. This insurance is
often required to secure a mortgage.
HOW TO BUY 13
Moving your belongings
You need to consider how you are going to move your
belongings into your new home. You may be able to
move yourself or hire movers to help you. You can opt to
pack yourself or have the removal firm do it for you. If
you need a professional removals company make sure
you give them as much notice as possible. Fridays
and the first and last days of the month are often very
busy, so you may get better rates and availability if you
try to avoid these times.
When selecting a removals firm you should consider
price, quality of service and availability. They will be
responsible for all of your possessions.
You should get more than one quote before selecting
your removals firm. Check:
£ are they a member of a Trade Association such as
the British Association of Removers?
£ do they have insurance in place and are your
belongings covered throughout the move?
£ how are their online reviews? If there are issues,
how are they resolved?
£ check the small print for additional charges – a
professional company will explain them to you
If access to your property is difficult or you have unusual
items to move, ensure the removal company visit before
giving you a quote.
Preparations for moving
Between exchange and completion you should:
£ inform your removal company of your move date.
£ contact your utilities, water and broadband
providers to close or move your old accounts.
£ you will already have arranged buildings insurance
for your new property at exchange. You should
also consider taking out contents insurance to
cover your belongings.
£ organise for your post to be forwarded to help
protect you against identity fraud – the Royal
Mail offers a post-forwarding service.
£ ask the seller about another visit to measure
rooms for furniture etc.
£ ask the seller where the fuse box, energy meters
and stopcock (water supply valve) are located.
£ order any appliances and furniture you will need
(consider when you want them to arrive - on
moving day or shortly after).
£ start packing and clearing out unwanted objects.
Completion and moving
Completion is when your legal representative transfers
the remaining funds to the seller’s legal representative,
and you take ownership of the property. The keys are
often handed over around lunchtime, at which point you
can move in or start building work on your new home.
• Remember to take meter readings when you leave
your current property and when you arrive at the
new one. A date-stamped photograph is useful.
• It is also advisable to pack a box of essentials that you
will need on the first night in your new home – this
might include toilet paper, crockery and cutlery, a
kettle, snacks, toiletries, bedding and towels,
chargers, cleaning items, bin bags and lightbulbs.
• When you first arrive in your new home, it may be
dirty from the builders or previous owners. Be
prepared to give it a quick clean before you move
your belongings in.
• If there are delays to your money being paid to the
seller (which is more common in long chains) you
may not get access to your new home when
expected. These delays may incur additional charges
from your removal company – check their policy in
advance.
• You may wish to change the locks of your new home
to ensure you are the only one with a set of keys.
After the move your legal representative will register
the change of ownership with HM Land Registry
and settle any other payments, including Stamp Duty
Land Tax in England or Land Transaction Tax in Wales.
HOW TO BUY 14
After moving
Once you have moved home, you should update the
following with your new address:
• local authorities of both your new home and your
previous one to get your Council Tax liability
transferred to your new property to ensure you
don’t keep paying tax on your old one. Similarly
you should move your electoral roll registration
over to the local authority in your new area.
• utilities and water
• GP and other medical providers e.g. dentist
• DVLA (if applicable)
• bank or building society
• insurance company – cancel insurance for your old
property. Having building insurance is normally a
requirement of having a mortgage, but you should
also consider contents insurance to protect your
belongings
• any financial products you have (e.g. bank or
building society accounts; pension schemes)
• mobile phone, TV and internet packages
• vet, especially to change your pet’s micro-chip
details (if applicable)
Making a complaint
If you’re unhappy with the service provided by a
company you’ve used during the buying process, the
first step with any complaint is to raise it via that
company’s complaints procedure. They will have a set
period of time to investigate your complaint.
If you are not happy with the final response from the
company, you may be able to escalate the complaint to
an ombudsman. Ombudsmen provide a free and
independent advice service for consumers who want to
complain about a company. Once the ombudsman has
received your complaint, they will investigate the claim
on your behalf.
• All estate agents are required to be signed up to a
redress scheme – The Property Ombudsman or
The Property Redress Scheme. Ask the estate agent
or check online to see which scheme they belong
to, and then follow the complaints procedure on
the website.
• If you have an unresolved complaint against a
legal professional, you should contact
The Legal Ombudsman.
• if you wish to escalate a complaint about a lender,
you should contact the Financial Services
Ombudsman.
Other professionals may be members of trade
associations who can investigate complaints (e.g. your
surveyor may be a member of the Royal Institute of
Chartered Surveyors). You may also be able to pursue
complaints in court.
Buying and selling at the
same time
If you are selling as well as buying, check our guide on
How to Sell.
HOW TO BUY 15
Other organisations who can help
Citizen’s Advice – free, independent, confidential and
impartial advice on a wide range of areas including on
housing and consumer issues.
Money Advice Service – free and impartial money
advice, including on mortgages
Which? – free and impartial consumer advice
Home Owners Alliance – provides free expert advice and
services for homeowners and aspiring homeowners.
Age UK – free advice on retirement properties
PropertyChecklists.co.uk – free checklists on all aspects
of buying and selling
Money Saving Expert – free advice on mortgages and
homes
Historic England – free advice on the implications of
living in a listed building or conservation area, and how
to look after a listed home
Elderly Accommodation Counsel – helps older people
make informed choices about meeting their housing
and care needs
Leasehold Advisory Service – free information and
advice about residential leasehold and park homes law
Move IQ – tips for buying, renting, selling and
moving home
Conveyancing Association – more information on the
legal aspects of the home buying and selling process
HM Land Registry – searchable property information
(e.g. flood risk) and advice for joint property owners and
for boundary questions
The Law Society – more information about
conveyancing and helpful infographics
HOW TO BUY 16
Glossary
• completion – when your legal representative
transfers the remaining funds to the seller’s legal
representative and you take ownership of the
property
• conservation area – an area with extra planning
controls to protect its special historic and
architectural elements such as original windows or
doors. These controls are tailored to each area by
the council. Find out if these controls apply to your
area by contacting your local planning authority.
• conveyancer – legal executive, licensed
conveyancer or conveyancing solicitor who does the
legal work to do with transferring the ownership of
land or buildings from one person to another. They
will generally owe a duty to their client to take
reasonable care when carrying out that legal work.
• credit score – a rating showing how likely a lender
is to lend you money.
• decision in principle – a written statement from a
lender to say that ‘in principle’ they would lend a
certain amount to a particular prospective borrower.
• deposit – a payment passed on to your legal
representative upon exchange of contracts, which
represents a percentage of the purchase price.
• Energy Performance Certificate (EPC) – an
Energy Label with a ranking of between A and G
that also indicates running costs and suggests
suitable improvements which can be made to a
property to make it more energy efficient. An EPC
must be provided to any potential buyer unless the
property is exempt from EPC requirements.
• exchange of contracts – when contracts are
exchanged between buyers and sellers. Legally
binding and commits the parties to the property
sale/purchase.
• estate facility charge – an annual fee for
maintaining the wider estate on which a property is
located, e.g. for upkeep of public areas
• equity – the difference between the property’s
value and the outstanding debts you owe on it.
• event fee – a fee payable under a term of, or
relating to, a residential lease of a retirement
property on certain events such as resale and
sub-letting. An event fee is sometimes referred
to as an exit or transfer fee.
• fittings – items in your property that are not fixed
down e.g. carpets, curtain rails, free-standing ovens,
fridges, freezers and washing machines.
• fixtures – items in your property that are fixed to
the floor or wall, e.g. light fittings, built-in
wardrobes, boiler, radiators, plug sockets.
• freehold –where you own the land and the
buildings on it outright.
• ground rent – A payment generally made annually
by the leaseholder to the freeholder under the terms
of a lease. Historically many ground rents are set at a
minimal ‘peppercorn’ rate; but it is also common for
the lease to provide that the ground rent increases
at intervals. For example, initial ground rent of £100
per annum going up after 33 years to £150 p.a. and
after 66 years increasing finally to £200 p.a.
However, there can be substantially higher increases
and more regular changes, so the amount and any
consequential changes should be understood at an
early stage.
• home survey – a report to advise clients on the
condition and matters relating to a property.
• HM Land Registry the organisation which
registers the ownership of land and property in
England and Wales.
• indemnity insurance – insurance that can be used
during conveyancing transactions to cover a legal
defect with the property that can’t be quickly
resolved, or at all.
• lease – a document which sets out the rights and
duties of landlord, leaseholder and any other party,
such as a management company, who has rights
and obligations in the lease.
• leasehold – where you own the right to occupy a
property for a fixed number of years, typically 99
years or more.
• letter of engagement – sets out the terms of
agreement between the client and their legal
representative including client instruction, fees,
timescales and other relevant information.
HOW TO BUY 17
• listed building – listing marks a building’s special
architectural and historic interest and brings it under
the protection of the planning system. Depending
on the category of listed building and the scope of
alterations a householder may wish to make, listed
building consent will need to be secured to make
any changes that might affect the building’s special
interest. More details are available on their website.
• local authority searches – a set of information
about a property and/or land and the local area
provided by the relevant authority.
• LPE1 form – contains information about a property
held by landlords, managing agents and
management companies - for example, information
on ground rent and service charges.
• mortgage valuation – an assessment made by
your mortgage provider as to whether they are
willing to lend you money against a property. This is
not the same thing as a survey.
• ombudsman – an official organisation appointed
to investigate individual’s complaints against a
company or organisation.
• property chain – linked property transactions,
where a seller of one property is a buyer of another.
• property searches – a legal professional will conduct
legal searches when you are buying a property to
ensure there are no other factors you should be aware
of. Some searches will be recommended by your legal
representative for all purchases and others will be
required by the mortgage lender to protect them from
any liabilities that the property may have.
• redress scheme – all estate agents are legally
required to be members of a redress scheme.
Schemes may be able to resolve disputes between
estate agents and consumers once internal complaint
processes have been exhausted. More information is
available from from the Government’s website.
• referral fee – a payment made from one business to
another in exchange for referring customers to them.
• reservation fee – a payment made to a developer
to secure a property.
• service charge – A contribution payable by a
leaseholder typically to a freeholder or managing
agent, for a share of the cost of insuring,
maintaining, repairing, and cleaning the building.
• snagging – defects or unfinished pieces of work in
a new build home.
• sold subject to contract (SSTC) – an offer has
been made on the property and the seller has
accepted it, but they have yet to exchange, so it is
not legally binding.
• stamp duty/Land Transaction Tax – a tax paid
upon purchase of any homes costing more than
£125,000 in England (or £180,000 in Wales), unless
you are a first time buyer.
• (home) survey – an agreed level of service to
advise clients on the condition and matters relating
to a property. The homebuyer’s survey should not
be confused with a mortgage valuation.
• (home) surveyor – it is advisable to employ the
services of a qualified surveyor to conduct a
homebuyer’s survey before purchasing a property.
• title – a legal document signifying ownership of a
property.
• under offer – the same as ‘sold subject to contract’
- an offer has been made on the property and the
seller has accepted it, but they have yet to exchange
contracts, so it is not legally binding.
HOW TO BUY 18
Annex - Key milestones
Length varies depending on how many options you consider and how specific your requirements are
Searching to buying subject to contract
Understand
your finances
• Think about
what you can
afford
• Consider
mortgage
options
Think
about your
requirements
• Size, location,
price - be as
flexible as possible
to maximise your
options.
• Tenure -
freehold or
leasehold?
• Special
requirements
e.g. retirement
housing?
Look for a
property
• Do as much
research as you
can
• View properties
Make an
offer
• Negotiate with
potential seller(s)
Buy the
house (subject
to contract)
• Choose a legal
representative
Completion
and moving in
• Payments
transferred
by legal
representative
• Estate agent
gives you the
key to your new
property
• Post-move -
notify local
authority,
utilities providers
& other relevant
organisations
of your address
change
Plan to move
Buying subject to contract to moving in
Exchange
contracts
• Agree moving
date
Property
searches &
survey
• Your legal
representative
arranges
property
searches and
raises enquiries
• Arrange a
property survey
• Additional
enquiries
• Research
& choose
a removal
company
c. 28 - 45 days
Arrange
mortgage
• Research options
and make
application
c. 18-40 days
Approx. 12 weeks (although precise timing varies)
A guide to additional key milestones in purchasing a leasehold property is available from the Leasehold Advisory Service.
Prepared with input from
Published by the Ministry of Housing, Communities and Local Government.
© C
rown copyright 2019.
Product code 978-1-4098-5455-5
