

Conveyancing
Conveyancing is the legal process to transfer
the ownership of a property
from the seller to the buyer. People usually opt to hire a solicitor or licensed
conveyancer for their conveyancing purposes.
If you are buying a property, your solicitor
generally works on behalf of your mortgage
lender, who usually insists on certain searches before they will
release the money for your house. When selling a property, the solicitor
of conveyancer
will draw up a contract for the sale. They will also apply title deeds from
your mortgage lender. They will also organise searches and send a list of
questions to the buyer's solicitor.
Searches
for conveyancing
Lenders
will always require a local authority search, showing details of planning
permissions given on the property, and any plans to build roads within a
certain radius of the property. However, it does not nearly go into the detail
of a plan search; it will not reveal details about planning permission on
nearby properties.
A drainage search is also a given. This uncovers
whether the waste water produced by your house goes into a public or private
sewer. A land registry search will also be conducted to make certain that
the property has not changed hands. A land charges search will ensure that
you are not, and have not been, bankrupted.
The types of searches conducted do have regional
variations. Lenders may ask for different types of searches for different
areas of the country. For instance, in Cornwall where much of the land is
covered by disused tin mines, they may ask for a tin mining search.
A survey is usually undertaken at the same
time as conveyancing. This survey will show up any repair or renovation work
that needs to be done. If work is necessary, you may be able to renegotiate
your offer and the terms of the transaction.
Contract
exchange and completion
Following completion of the survey and searches,
and a mortgage
offer is in place, your solicitor should be able to organise a date for you
to exchange contracts. At this point, the sale becomes certain and contracts
between buyer and seller are swapped.
Contracts generally include a date for completion,
and at this stage you are the official owner of the property. When you have
completed, you will be able to pick up the keys from an estate agent, and
move into your new house. The deeds for the house will be passed to your
mortgage lender, who will hold them until you decide to sell.
Fees
Solicitors are expensive, although fees do
vary between individuals and practises. Some will charge a fixed fee, whereas
others look for a percentage of the value of the property.
As well as solicitor's fee you will also have
to pay for disbursements. Disbursements include the transfer of money from
lender to the account of property owner, VAT, postage and other costs that
may occur from conveyancing work.
Stamp Duty
Stamp duty is another cost, and is applicable
for all houses over £120,000. Some properties may qualify for an exemption
from stamp duty, and it is the responsibility of your solicitor to know if
this applies to you. Properties are liable for different levels of stamp
duty dependent on their value.
Properties up to £120,000 = Nil
Properties between £120,000 and £250,000
= 1 per cent
Properties between £250,001 and £500,000
= 3 per cent
Properties over £500,000 = 4 per cent