Before selling your property, you will need to understand its current market value. A property valuation, also known as a market appraisal, will provide a guide price for putting the property on the market.
Property valuations differ from mortgage valuations, which are usually carried out by a surveyor once an offer has been made. Mortgage valuations take into account the structural integrity of the building and help buyers and mortgage lenders verify the value of the property for lending purposes.
At Location will carry out the market appraisal, this is free of charge and will use their knowledge of the market to assess the property’s value based on the following considerations:
It is important to remember that London pricing can move quickly and a property valuation is completed at a point in time. The price At Location will suggest you should market the property at will therefore be the asking price and may not be the price that a buyer eventually pays, which could be higher or lower than the valuation. We aim to the achieve the best possible price for you but its important to be realistic and we look at the current market condition, over inflated price are not attractive and can possibly delay the process.
When selling a property there are a number of documents that will need to be in order. As the seller you will need to gather the following yourself:
Arranging a Mortage
Ideally you will have arranged a mortgage before you find a house you want to buy. This will allow you to understand what your affordability is and to which realistic range should you be looking for which is right and affordable for you.
Some lenders will issue mortgage in principle agreements stating that, subject to valuation and status, you are a guaranteed a loan up to a certain amount. A mortgage in principle will persuade the seller that you are serious, and speed things up, as will the ability to give the seller/estate agent a solicitor's details straight away
Arranging a Solicitor
You will need a solicitor to deal with the legal aspects of buying and selling your property. they will support you with:
The home you have just made an offer on may look safe, but you don't know what problems may be lurking behind the walls. A surveyor's report will point out any problems the property may have, and its important you know beforehand rather then later. Your mortgage lender will arrange for a qualified valuer to do a brief survey, called a valuation, which you pay for. Provided the lender is satisfied the property offers enough security for a loan, you will be offered a mortgage. However, it is generally worth paying out the extra for a more in-depth survey. It may seem expensive at the time but compared to the costs a problem home can bring its worth doing.
There are three types of survey. It is in your interests to get the most thorough one you can afford.
The compulsory mortgage valuation.
It simply tells the lender that if you default on the payments it will be able to sell the property and get its money back. It won't spot major faults. In some cases nowadays, lenders do not even visit the property and do automated valuations based on area and house price data.
A homebuyer's survey
It should reveal any serious defects. It can save you money because if it uncovers any major faults you can ask the seller to rectify them or reduce the price so you can afford to get them fixed.
A full building survey
It goes into more detail about the condition of the property and any remedial action the surveyor thinks will be necessary. The older and more expensive the property, the more important it is to have a full survey.
However, even the full building survey will not tell you everything you need to know. The surveyor won't start taking up floorboards and won't necessarily have access to the roof. Much of the report represents the surveyor's views on the probable condition of the home and things which might go wrong.
This is the legal term for transfer of ownership of the home and often the most painful part of buying a home. It is undertaken by your solicitor and the seller's solicitor and involves ensuring the seller has the legal right to sell the property, checking that no-one has right of way through it and that there are no land disputes.
The seller's solicitor must get the deeds to the property. These may have to be obtained from the building society or bank which is lending the mortgage. The solicitor then prepares the contract. With leasehold properties - in particular flats with service charges - the solicitor will also have to obtain the 'memorandum and articles of association' of the management company and the accounts of the management company over the past three years. This often slows down the buying process.
The buyer's solicitor makes a local authority search. This will provide details of who owns or is responsible for the roads or sewers and whether there are any road-widening proposals near the property. Separate inquiries may have to be made to the relevant water company. Some local authorities return the searches within two days, others can take up to eight weeks.
Most of these details should be provided in the Home Information Pack provided by the seller, however, your solicitor is likely to still want to check them out.
When a prospective buyer is ready to make an offer, they will contact your estate agent. Each offer is considered based on the amount offered and the buyer’s position. A buyer may increase their offer more than once and negotiation may be required before an agreement is made.
It is important to remember that until contracts are exchanged, the agreement is not yet legally binding and either party can still pull out from the transaction up to this point.
When an offer is accepted a memorandum of sale is usually issued to set out the details of the transaction and to declare both parties’ intent to complete the transaction. This will usually require you to take the property off the market however this should be discussed with your agent.
The buyer will arrange for a surveyor to inspect the property. This is usually done on behalf of the mortgage lender when a mortgage is required or the buyer may appoint their own surveyor. If the survey shows that the property requires significant work, or there is a down valuation, renegotiation may be required. At this stage, you may need to obtain quotes for the required work and balance the cost effectiveness of paying for the work yourself against accepting a reduced offer.
During this period the buyer’s solicitor will carry out any necessary searches, and both solicitors will draft contracts. The contracts will reference the following:
The completion date included in the contract should be mutually agreed by all parties in the property chain.
When both parties are satisfied with the contracts, they are signed and exchanged. It is at this point that you are bound by law to sell the property to the buyer and the buyer is legally obliged to proceed with the purchase.
The buyer’s solicitor will contact the Land Registry Office to arrange for the deeds to be transferred into the buyer’s name, and the deposit will be transferred to you solicitor.
On the date of completion the money will be transferred from buyer to seller up the chain via the solicitors.
Providing the buyer’s money has been transferred, this is the date they can access the property so you will need to vacate the property and arrange for the keys to be handed to the buyer. It is common to leave the keys with the estate agent for the new owner to collect. Once the estate agent has been advised by the solicitor that all necessary funds have been transferred, they are then instructed that the keys may be released.
Other Terms Explained
Bank Transfer Fee
A fee solicitors charge when a CHAPS transfer is required for one of a number of purposes, e.g. to pay off a mortgage, to send monies to the seller’s solicitor or to transfer the net proceeds from a sale to the your bank account.
Bankruptcy Search Fee
If you are funding your purchase by a mortgage, your lender will require the solicitor to check whether you are or have been bankrupt.
Liability Search fee
A search to establish whether there is a risk of the property falling within a parish where the house owner faces a potential liability to contribute towards the repairs of the chancel/local parish.
Are amounts that solicitors pay others on your behalf in the course of your transaction.
Water & Drainage Search
The solicitor will need to make a drainage search to check whether the property you are buying is connected to public drains.
Environmental Search Fee
An environmental search may be necessary if there are concerns over environmental issues such as subsidence, flooding, industrial contamination or radon.
Freehold / Leasehold
Property can be freehold or leasehold. Freehold, which means full ownership, is the most common. Leasehold property is property held on a lease. Transactions involving leasehold properties are normally more complex and involve more work.
Registry Document Fee
Authenticated copies of your title from the Land Registry
Land Registration Fee
After your purchase is complete, the solicitor will register you as owners of the property at the Land Registry and any mortgage charge. The Land Registry fee is paid to the Land Registry for the work they do in registering your ownership and/or mortgage charge.
Land Registry Search Fee
Following exchange of contracts a priority search of the title register is made to check that the state of the register has not changed and to ensure that the buyer has priority for a period of 30 working days over any other application to change the register that is lodged during that time.
Local Authority Search Fee
A local authority search should reveal whether there is anything adverse recorded against the property with the local council. The Council is asked to reply to a long list of questions by the solicitors. Some conveyancers will use a search company to undertake this work and the fees can vary substantially.
Legal Fees or solicitor's fees
This is the solicitor’s fee for performing the conveyancing work for you
Mortgage Fees – Purchase
If you are buying with the aid of a mortgage, the solicitor will normally be asked to act for the lender as well as for you, which will be additional chargeable work.
Mortgage Fees – Sale
If your present house is subject to a mortgage, it will be necessary for the solicitor to pay the lender the money due on the mortgage and cancel the registration of the mortgage against your property.
SDLT Completion Fee
An additional fee for completing the Stamp Duty Land Tax return form which has to be submitted to HM Revenue & Customs in almost all cases following completion of the purchase, along with any payment due.
Online conveyancers’ may charge this fee as an additional Legal Fee for performing the required searches. Solicitors tend to include this work within the quote for Legal Fees as the searches are almost always required.
Stamp Duty Land Tax
This is a tax payable to the government calculated on the value of the house to be purchased. • 0% rate applies up to £125,000. This can calculated by your agent or you can visit the www.gov.uk for a tax amount. Please note this will vary depending on type of purchase and amount of properties you have.
VAT is payable on the solicitor fees at the rate applicable at the time of the bill,
Sealed bids might be used in areas where market demand is high and properties are attracting interest from a large amount of prospective buyers.
After the viewings, your estate agent will contact any interested parties and ask them to submit their best and final offer by a given deadline. It is usual practice to also ask the buyer to state their readiness to proceed (i.e. do they have the mortgage agreed in principle? Are they a cash buyer? Is their current home not yet on the market?). In some cases the prospective buyers may include personal information in a bid to make their offer more appealing.
Once all bids have been submitted, it will be up to the seller to choose the most appealing offer.
If two or more bids are equally appealing, you may ask for further bids or you can determine the winner based on who is first to arrange a survey or contract. Contract races can be costly to the bidder who misses out, so taking this approach may discourage the bidders from proceeding further.
If you have any queries or wish to make an appointment, please contact us:
Office: +44203 488 0206
Business Mob +44745 5050609
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