Are you a first time buyer thinking of getting on the property ladder, either for residential or investment purposes in the UK?

Here’s our handy 12 step checklist that will help guide you through the property purchase experience, from finances to completion.

1. Finances

Before you begin the search for that dream first property, getting your finances in order is a must. You will need savings for a deposit as well as an additional buffer to cover tax, fees and any potential work required at the property. You will also need to work out how much you can afford to spend per month paying the mortgage.

If you are currently in the midst of the house purchase process, the good news is that the Stamp Duty Holiday has just been extended to the end of June, giving you an extra three months.

We recommend speaking to your bank or building society, or an independent mortgage broker who can guide you through the different mortgages available in the market based on your requirements and affordability. For instance, a help to buy scheme may be beneficial to you.

The new Help To Buy: Equity Loan scheme will be open to first-time buyers only and is set to run from April 1 2021 to 2023.

If you are a first-time buyer who is struggling to save up the sizeable deposit needed in your area, a Help to Buy: Equity Loan could make it easier to get on the housing ladder.

The government will lend homebuyers up to 20 per cent of the cost of a new-build home with borrowers required to pay a further five per cent. The loan is interest-free for five years.

It’s worth getting a ‘mortgage in principle’ in place, which details how much a mortgage lender would be willing to lend, based on an initial assessment of your circumstances.

This is not binding, but does give a helpful indication of the amount you will be able to borrow and help narrow down the price bracket of properties to aid your search.

2. Affordability and Location

Now that you’ve got an idea of how much you can borrow, you can start thinking about the area you would like to live in and the kind of property you can afford in that area.  We call this the ‘home triangle’: budget, space and location.

Other important aspects to consider are transport links, especially if you don’t drive, proximity to shops, restaurants, pubs, schools and other local amenities.

3. Property Viewings

Once you’ve narrowed down properties based on affordability and location, we recommend arranging viewings, whether in person or virtual.

We have a great selection in our property portfolio and are also able to help source properties for you based on your specifications and requirements.

4. Research 

Ask your property broker to help you with your search. The expertise, experience and ability to see things differently may prove to a shrewd investment on your part.

Once you’ve got your heart set on a property, we recommend having a few more viewings as you will notice different things each time.

Try and visit the area and street a few times at different times and on different days to get a feel for the area. Ask yourself; Can you see yourself living here? 

5. Make an Offer

Once you’re happy with the property, you make an offer and request the property is taken off the market once accepted. 

The things to consider when quantifying your offer are your perceived value of the property, the demand for the property and your budget, and whether it is possible to stretch it slightly.

It’s then up to the seller to decide whether to accept the offer you’ve submitted through the estate agent.

6. Apply for a Mortgage

Once you’ve had your offer accepted, you need to apply for a mortgage officially.

You can do this either directly with the lender or via your broker. To make this process quicker, be sure to have all your recent documents ready to send such as bank statements, utility bills, etc. This will help speed things up as trying to get recent documents from the council for example, can take a week or two and delay the process.

7. Appoint a Solicitor

Once you’ve had your offer accepted and confirmed your mortgage, you have to appoint a solicitor to handle the legalities such as reviewing all the legal documents and starting the necessary searches, such as local authority, environmental and water and property.

8. Commission a Survey

Once your mortgage is officially agreed, we recommend you commission a survey.

While there is no official requirement to get a survey carried out, it is highly advisable, as a buyer, to arrange your own survey so you will get a more detailed inspection of the property you’re hoping to purchase.

There are three different types of survey to choose from: the Home Condition Report (the cheapest), the HomeBuyer Report (the mid-table version), and the Building Survey (the most expensive).

Be sure to make the right decision on the type of survey you choose. Remember, if the survey does show any major issues, you can go back to the seller to re-negotiate.

9. Schedule a Provisional Completion Date

This is an exciting stage as this is the date you will mutually agree to complete the transaction and acquire the keys to the property.

10. Exchange Contracts

Once all the searches are complete, the legal work is finalised, and the mortgage is in place, you can exchange.

This is the point at which both buyer and seller are legally bound to go ahead with the transaction on the terms agreed.

It is also the point at which you pay the deposit to the solicitor (this is usually 10% of the purchase price). If you pull out of the deal after this, you forfeit your deposit.

11. Completion Day!

On completion day, your money is transferred to pay for your new home.

In addition, you need to pay any outstanding fees, such as stamp duty (based on the price of your property), and the cost of legal work.

12. Move in/ Tenancy

Once you’ve completed, you can finally collect the keys to your new home and move in or begin the search for a tenant! If you have purchased the property as a buy to let, here are the 5 Most Crucial Things to Consider.

If you are new to the property buying process and would like some help or advice, or a referral to bank, mortage broker and solictor, be sure to get in touch with us. We are one of London’s leading bespoke real estate firms and would be delighted to help you acquire your dream property. Call direct on + 44 (0) 207 993 4081 or simply send an email for a fast response.