Put simply, this is the figure provided by the mortgage lender that shows the amount needed to clear your existing mortgage. We will request a redemption statement from your lender and ask them to calculate the amount outstanding up to the date you are due to complete. Sometimes due to their regulations, Mortgage Lenders will send a further copy to you for your information.
Estate Agents Fees
People selling their homes normally have to give a percentage of the sale price (often between one and three per cent) to the estate agent as commission. How much agents charge usually depends on the type of contract you agree to have with them. It is usually worth shopping around and getting quotes from a few different estate agents before you agree to sell through a particular agent. Ask what they charge for each different type of contract.
Searches are enquiries made with relevant bodies to identify common factors that could adversely affect the property. Typically these may include:
- Local Authority Search – to ascertain if there are any planning permissions relevant to the property, to identify if access roads are adopted and to identify any “local land charges” such as conservation and smoke control area statuses
- Drainage Search – to identify whether or not foul and/or drainage water from the property has access to the public sewerage system and to identify if any public sewers are on the property
- Coal search – specific searches for mining activities that may have taken place near the property and whether any subsidence claims have been made.
- We will request the sellers’ Solicitor draft contract package. This contains the draft contract, the legal title, property information form and fixtures, fittings and contents form.
- We will then check the contract pack and raise any enquiries we may have in relation to the legal title or the property.
- If you are taking out a mortgage to assist you to buy your property we need a copy of your mortgage offer direct from your Lender and you will need to comply with any special conditions attached to the mortgage by your lender.
- We will then report to you on the mortgage and send you the mortgage deed together with any other documentation which the Lender requires to you to sign.
- At this time we will provide you with a completion statement showing any amount required from you, including the balance of the legal fees, VAT and expenses, in order for exchange and completion to take place together with details of your payment options. Please note that if there is a balance due from you we cannot exchange contracts and complete without cleared funds from you.
Exchange of Contracts
- Once we have received all of the search results, satisfactory replies to enquiries, signed documentation from you and the balance monies (including your deposit) and these have cleared through our banking system we can exchange contracts. Exchanging contracts is a milestone process which makes the purchase legally binding and neither party can withdraw from the transaction without severe consequences including breach of contract.
- Once a completion date has been agreed (if appropriate throughout the chain and the whole of the chain are ready to proceed) then exchange of contracts will take place.
- At this stage, you will need to have made arrangements with the seller regarding the handing over of the keys. If there is an Estate Agent involved these will normally be available from them on completion. If not, you will need to make arrangements direct with the seller.
- Once we have exchanged contracts the legal preparations are carried out. If we have not already done so, the mortgage advance will be requested from your mortgage lender (if applicable).
- On the completion date we will place the purchase monies in the bank system, once we have received the mortgage advance from your Lender (if applicable).
- Once the sellers’ solicitors receive the money they will then authorise the release of the keys.
- We will call you on completion to tell you when you can collect your keys and all you need to do is move! Please note that we cannot guarantee a time as we are dependent on the chain and the banking systems.
Inland Revenue and Land Registry
- After you have moved into your new house, we still have post-completion work on your behalf to finalise. This includes the completion of a Land Transaction Return form which needs to be completed on all matters and if applicable also sent with the appropriate stamp duty payment.
- After approx 28 days we should the have received a Certificate from the Inland Revenue and upon receipt of this we will then be able to register your ownership at the HM Land Registry and if applicable the Lenders charge.
- Once the registration has been completed we will then need to send the legal title to your Lender (if applicable) and a copy of the legal title and any pre-registration title deeds and documents to you for your safe keeping.
- We will obtain a copy of your legal title from the Land Registry (if registered) or your title deeds (if unregistered) and you must forward any guarantees or other documents to us that are not contained within your title deeds.
- If you hold any pre-registration title deeds (which may have been sent to you when you purchased or re-mortgaged your property) then these may be useful to your buyer so please also forward these to us.