PROPERTY CONVEYANCING
For a buyer the stages of conveyancing are as follows:
Stage 1: Instructing a conveyancer
Once you have found your property and your offer has been accepted the vendor’s estate agent will request your conveyancer’s details to pass on to the sellers’ solicitors. It is best to do your research and select who you would like to act on your behalf so that you can act quickly once your offer has been accepted.
The conveyancer acting for the seller will prepare a legal information pack which will include a draft contract, a fixtures, fittings and contents form, a property information form and the legal title to the property.
Stage 2: Apply for a mortgage
When making a purchase requiring a mortgage you will have already secured a mortgage in principle to prove you’re a legitimate buyer but at the point your offer is accepted you will need to complete a formal mortgage application.
The mortgage lender will arrange a valuation on the property to ensure the property value matches the purchase price. You will then be sent a copy of the formal offer and your conveyancer will receive this at the same time
Stage 3: Searches and enquiries
As a minimum, your appointed conveyancer will need to apply for three different searches:
- Local authority search
- Water and drainage search
- Environmental search
In addition to these, your conveyancer will also receive the legal information pack mentioned above and raise enquiries relating to the property, to ensure you have all the information you need.
There may be other chargeable searches such as bankruptcy and anti-money laundering checks.
While your conveyancer will do their due diligence to find out as much about the property as they can, this does not include the physical condition of the property. Therefore, you need to arrange a property survey or any specialist reports such as electrical or damp reports. A property survey can often be arranged through your mortgage lender or by your instruction via third party suppliers.
It is always recommended that you should have a full survey as the lender survey is a basic valuation survey and may miss important structural items and possible build over and planning issues. You need to read your survey thoroughly and understand the content and any implications highlighted.
Stage 4: Pre exchange
Once your conveyancer has received the results of their various searches, replies to the enquiries raised by the other side, and confirmation of your mortgage offer, they will compile a full report on the property which they will send and arrange for you to sign your part of the contract. You need to read the report carefully, so you are aware of all the factors which affect the property you are buying. It is your responsibility to satisfy yourself with any items reported to you.
Stage 5: Exchange of contracts and completion
For a freehold purchase, on average, it usually takes around 14-16 weeks to reach this point, but it is around 16-18 weeks for a leasehold purchase. Once the contract has been signed by both parties, the conveyancers will then ‘Exchange Contracts’ and the property transaction becomes legally binding.
You will need to have your buildings insurance in place at the point of exchange. Lots of people question this as the property is then insured by both parties. The common law position is that the risk of damage or destruction of the property passes to the buyer on exchange of contracts unless the contract provides otherwise.
It is therefore imperative that a buyer takes out their own policy of insurance which will be effective immediately upon exchange of contracts.
Completion can sometimes be on the same day as exchange, however, if a mortgage is involved, you will usually need a week between exchange and completion. The completion day is the final part of the conveyancing process and is the day you finally get the keys to your new home.
WHAT IF I AM TAKING OUT A MORTGAGE?
If you are taking out a mortgage on the property AND the insurance is being arranged by the lender then it is likely the lender will have the property insured from exchange of contracts. You MUST, however, check with the lender that this is the case. Do not leave this until the last minute.
WHAT IF I AM NOT TAKING OUT A MORTGAGE?
If you are not having a mortgage or you have chosen not to let the lender deal with insurance, you will be responsible to arrange the buildings insurance. The seller has no obligation to you to insure the property other than in certain circumstances, for example, where the property is leasehold, or the contract provides otherwise.
Can you do the conveyancing yourself?
Self-conveyancing or DIY conveyancing is possible for a mortgage free transaction, but rarely occurs these days.
If you’re taking out a mortgage on a property you intend to purchase, then your mortgage lender will insist on you instructing a conveyancer. If you are selling and have a mortgage to repay, the buyer’s solicitor would insist the sale processed are paid to a solicitor who would discharge the existing mortgage. In addition, any party not represented by a conveyancer or solicitor would need to take steps to have their identity verified by a regulated professional.
Is it better to use a local solicitor for conveyancing?
A local conveyancing solicitor should be people’s go-to preference. There are good reasons for this such as the conveyancer having good local knowledge of the area and the types of property and the local items needing to be searched such as Radon Gas, mining, boundaries etc. It is becoming more common now for property buyers and sellers to consider ‘online conveyancing’ from a national conveyancer or “bucket shop conveyancer”. Whilst this is usually cheap you do get what you pay for.
It will ultimately come down to whose services best suit your needs.
Using personally recommended firms and individuals is a good place to start.
You may find you are put under pressure from the estate agent to not use one firm and to use one they recommend. It is usually the case that the agent is being paid a referral fee from the firm they try to push you on to and they are not receiving anything from the firm they are trying to dissuade you from using.
We recommend that you never use the firm, individual or broker that the agent wants you to use. It is current practice of some estate agents especially the ones who employ sales progressors to try to dissuade clients from using a lawyer who is “Picky” and asks too many questions. A “Picky” lawyer is exactly what you need when making such a large purchase. No stone left unturned is a good thing when buying property. Time taken over your purchase means you should not have any issues when you come to sell because your lawyer has been thorough.
Remember your lawyer has you, their clients best interest at heart. The same cannot usually be said for anyone else. During the process.
The average referral fee demanded by the agent from a law firm and broker combined is approximately £500.
Do you pay stamp duty every time you move?
Yes, if your property purchase is above £250,000.
There are different rules for First Time Buyers (see below), owners of more than one property and non-UK residents.
To find out more about the current stamp duty rates see here.
What fees do first-time buyers pay?
For first time buyers, the fees paid aren’t likely to be much different to those who have purchased a property previously. There are however different Stamp Duty Land Tax rates, with no SDLT payable for properties worth up to £425,000, compared with up to £250,000 for those who have owned property before.
The fees paid to your conveyancer will still be the same regardless of if you’re a first-time buyer or previous homeowner. Yet, there are several schemes to help support first-time buyers to get on to the property ladder – take a look here for further detail on what help you could get as a first-time buyer.
How much do searches cost?
The overall cost of property searches depends various factors. When doing your research into appointing your conveyancer, searches are likely to be estimated as part of disbursements assuming at the very least you will need local authority searches, environmental searches as well as water and drainage searches which are approx £300 – £400.
Please feel free to contact us if you need any guidance or a quotation to help with your property legal needs.
info@sussexlawsolicitors.co.uk
01273 561312
Careers with Sussex Law
Sussex law have a current vacancy for a full time Senior Conveyancing Solicitor
Senior Residential Conveyancer
We are looking for a senior residential property solicitor/conveyancer for our busy office in Patcham. You will be able to run your own matters from start to finish using digital dictation and be able to manage a mixed caseload of freehold and leasehold transactions.
It would also be beneficial if you already have links within the Brighton residential property sector. However, we do not and will not pay referral fees to agents. You will need to be dynamic, motivated and self-reliant with good attention to detail and be commercially aware.
This is a full-time role and an exciting opportunity and there is potential to become a partner. Salary is available upon application, is based on experience and is competitive.
IF YOU ARE INTERESTED IN THIS POSITION, PLEASE SUBMIT YOUR CV IN THE FIRST INSTANCE TO STEVE COLE AT SUSSEX LAW SOLICITORS. info@sussexlawsolicitors.co.uk
Call 01273 561312 or send an email to info@sussexlawsolicitors.co.uk
Sussex Law Best Rated Property Lawyers in Brighton
We are proud to be rated Top 3 Property Solicitors for the city of Brighton.
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Let us know if you need any property related advice or have a requirement for our conveyancing service.
We also have an excellent Private Client department for all of your Wills, Probate and Power of attorney and Estate Planning needs. Contact Sally or Linda.
info@sussexlawsolicitors.co.uk or 01273 561312
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Working with us.
Sussex Law Solicitors in Patcham have a vacancy for a full time
Residential Property Legal Secretary
This is a fantastic opportunity for an experienced Legal Secretary to join our busy property department based in Patcham, Brighton.
You will need to have secretarial experience, preferably with Residential Property.
The Role
• To provide secretarial support to the property fee earner
• Audio typing using digital dictation
• Diary management
• Sending client care letters and supporting documentation.
• Apply for searches using on line services including land registry
Experience required:
• At least 1 years recent Residential or Commercial Property legal secretarial experience or several years secretarial experience.
• Fast and accurate audio typing skills, including Digital dictation preferable.
• Experienced with Microsoft office , word, outlook, Excel
• Able to prioritise and multitask
• Friendly working environment
• Competitive salary
You must have good typing skills and an eye for detail.
This is a full-time post 9-5pm some flexibility possible.
Please contact info@sussexlawsolicitors.co.uk with your current C.V. or to communicate your interest.
Our Cost Transparency
Our rate card for conveyancing, wills, probate and LPA’s is available on request.
Our rates are also available to view in these blog pages under the heading of interest you can use our search box to the right of the page.
The conveyancing rate card below is displayed as a general guide as each matter differs in complexity. Sussex Law are proud to be an accredited member of the Law Society’s Conveyancing Quality Scheme (CQS), the most important benchmark of quality for residential conveyancing.
| RATE CARD CONVEYANCING | 2022/2023 | |||
| PRICE RANGE | £0 – £250000 | £250000-£500000 | £500000-£1M | £1M PLUS |
| SALE FREEHOLD | £1200 | £1400 | £1800 | £2000 |
| PURCHASE FREEHOLD | £1500 | £1750 | £2000 | £2500 |
| SALE LEASEHOLD | £1600 | £1800 | £2000 | £2500 |
| PURCHASE LEASEHOLD | £1800 | £2000 | £2500 | £3000 |
| HTB SCHEME ADD £250 + VAT | |
Prices are exclusive of VAT
Please call us on 01273 561312 or email info@sussexlawsolicitors.co.uk
For conveyancing quotes ask for Jane Cole
For wills, probate or LPA’s please ask for Sally Taylor or Linda Tomsett
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Residential Conveyancing Solicitor
Are you a solicitor 3 years+ PQE? Are you looking to work towards becoming a partner in a progressive firm whilst providing outstanding and proactive client service?
We have a rare and fantastic opportunity for an experienced, qualified Residential Conveyancing Solicitor to join our residential conveyancing team here at Sussex Law
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We are a well-established local firm possessing the Conveyancing Quality Scheme.
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