Conveyancing – Frequency Asked Questions

How long does the entire process take?

If the property is vacant and the purchaser does not require a mortgage, then a sale or purchase can be completed usually within a few weeks but this is exceptional.

However it is more than likely that a mortgage will be required and there will be a chain of transactions. In such circumstances, this is likely to take 8 to 10 weeks as a general guide from the onset of instructing us to act on your behalf.

Nevertheless, we will do all we can to progress your transaction as quickly as possible but we cannot offer any guarantees about definite completion dates until the entire chain of transactions is ready to exchange contracts.

How soon will l need to pay any money?

When you have made the decision to purchase a property, we will then request you to pay £205.00 upfront to cover the cost of the initial disbursement searches that will be required in the transaction. These are namely, Local, Water/Drainage and Environmental Searches (see also "What searches do you carry out and why?").

The balance of the purchase price and our costs will be payable at least 7 days’ before completion unless you are borrowing more than 90% of the purchase price in which event we will then require the full amount prior to exchange of contracts (see also "How much deposit will I require to pay").

If you are just selling, we will not require you to forward any money in advance. The costs, disbursements and agents fees/commission will be paid out from the sale proceeds on completion before any remainder balance is sent to you.

Do I need a survey?

If you are obtaining a mortgage then the mortgage lender’s valuer will inspect the property on behalf of the lender. The valuer’s report will only give you an indication as to whether the property is worth the amount that you have asked to borrow. Therefore, if things did go wrong you would not be able to rely on it.

For an extra fee you can arrange for the same valuer to carry out a more detailed "Home Buyers Report". This can be relied upon by you so that if at a later date you find a problem that is not mentioned in the report you will have some redress against the valuer.

If the property is quite old and you are particularly concerned about its condition you can obtain a full structural survey report which is even more detailed.

Always remember the golden rule is "let the buyer beware" so (provided you have not been misled) you will be liable for any problems that you discover after exchange of contracts.

How much deposit will I require to pay?

It is standard procedure for a deposit to be paid on exchange of contracts. Although most people think that 10% is required, this is often untrue. Generally sellers will be prepared to accept a reduced deposit but only on the basis that if you fail to complete the purchase, you are under an obligation to pay the outstanding balance of the 10% deposit. If you are buying and selling we can usually use your buyers deposit in connection with your purchase in which case you will not have to provide any funds.

If you are just purchasing, the amount of the deposit will usually depend upon the size of your mortgage loan (if any). If you are borrowing less than 90% on mortgage, then you will usually need to pay a 10% deposit. If you are borrowing a 100% on mortgage and cannot afford any deposit whatsoever, we can often persuade the seller to accept a small amount. This amount would be equivalent to our fees and disbursements. Only in some exceptional cases will the sellers be prepared to exchange with “no deposit” although this is something we do not encourage.

What searches do you carry out and why?

There are five main types of search that require to be carried out and the buyers solicitors will decide which of these are necessary in any particular case:-

Local Authority Search

This reveals details of the planning history of the property and whether the Council are aware of any breaches of planning, also any proposals for new roads or traffic schemes, tree preservations orders, conservation areas, confirmation of completion certificates for works carried out to the property in compliance with building regulations and any other matters within the Council’s control that may affect the property.

Water/Drainage Search

This will show whether or not the surface and/or foul water drains run into a public or private sewer. Also if the property is connected to the mains water supply and the supplier’s details.

Environmental Search

It has been recommended that the buyers solicitors should also carry out an environmental search which reports on the site history and other environmental factors affecting e.g. if there are any landfill or waste disposal sites in the area, whether the site has been authorized by the local authority to store hazardous substances, if the property has been built on an old industrial site and whether there are any risks from contaminated land, toxic emissions, flooding, risk of ground subsidence relating to shallow mining, natural ground subsidence and Radon etc.

Land Charges Search

If you are obtaining a mortgage, the lender will require us to carry out a search to make sure that you are not bankrupt! Quite often the search can reveal an entry against someone else with a similar name. Provided the entry revealed does not relate to you, you will be asked to sign a copy of the result confirming this is the case.

Land Registry Searches

There are two searches carried out. When you are selling your property, we obtain out a search of the latest "Official Copy of the Register". This provides the buyers with up-to-date information on your ownership of the property. The other form of search is when you are purchasing and is carried out just before completion in order to find out if there are new mortgages registered against the property that have not previously been disclosed. If there are any new registrations, then the buyers solicitors will obviously require confirmation from the sellers solicitors that these will be repaid along with any existing mortgages.

When do I need to arrange buildings insurance?

Unless the building insurance is being arranged by your lender or it is a leasehold property and the insurance is dealt with by the freeholder you must arrange buildings insurance from exchange of contracts as the property will be at your risk from that time.

The amount of cover should be the estimated cost of re-building the property if it burns to the ground which is not necessarily the same as the current market value. If you had a survey or you are obtaining a mortgage your surveyor or the mortgage lenders valuer will usually suggest the minimum amount of cover in their report.

Can I exchange contracts before I receive my mortgage offer?

No, we would strongly advise you against this. If for any reason the mortgage offer is declined or delayed or it contains any conditions that you cannot comply with in good time, the money may not be available when required so, it would be extremely dangerous to exchange contracts without it.

What do we need to know if we are buying in joint names?

Under English Law there are two basic ways in which two (or more) people can hold Land. The differences are as follows:

Joint Tenants

This is where you own undivided shares of the whole property and means that it will automatically pass to the survivor when one of you dies. When the survivor eventually dies, all of the value of the property will be included in his or her Estate for Inheritance Tax purposes. Most couples who are married or in a stable relationship usually purchase as joint tenants.

Tenants in Common

This is where you can stipulate that you own specific shares of the property, usually equal shares. By making a Will, you can leave your half share to someone other than your husband or wife, thereby substantially reducing any Inheritance Tax consequences. The survivor can remain in the property throughout his or her lifetime and you can always include a provision in your Will allowing them to sell the property and to purchase another with all of the proceeds of sale.

If you are putting unequal amounts into the property the person who is paying the large amount can and often should be protected by a "trust deed" which sets out your respective shares so that in the event of any dispute or upon the death of one or other of you in the future your original intentions will be clearly recorded. Once you have considered the above options and/or if you require further advise you should notify us to that we can make sure that your intended wishes are carried out.

When do I get the keys to the property?

These are usually left with the estate agent (if any) and the buyer collects them once the money has been paid over on the day of completion. If there are no estate agents (or this is not convenient) then the seller will hand them directly to the buyer upon completion.

Either way, it is important that arrangements are made well in advance to prevent the possibility of the buyer having to wait outside with the removal van!

Although we always try to ensure that everything is finalized as early as possible on the day of completion, and usually this is dealt with by mid-day, there can sometimes be unexpected delays, for example, if we are still waiting for the mortgage monies to arrive or there is a particularly long chain. If this happens please do not panic or become upset because we will invariably resolve the problem by early afternoon, if not sooner!

When will I receive my money?

If you are just selling or there is a surplus due back to you after the completion of your sale and purchase, we will always try to send this to you on the day of completion or, at the very latest on the next working day.

Payment is usually made by cheque but for larger amounts we can transfer the money direct to your bank if you request this in advance and provide us with your account details. There will be an additional bank transfer fee for this.

Why should I use Edward St J Smyth & Co. for my Conveyancing?

For the sole reason that we are a small professional, well known and reputable firm of Solicitors locally situated in Northampton and you will always be guaranteed to receive an individual and personal "one on one" service from the Conveyancing Team. We are friendly, very reliable, extremely approachable and businesslike. We provide a service to the highest quality standards and we are thoroughly committed to you from the onset.

We will also endeavour to keep you regularly updated albeit by e-mail, telephone or letter. We can also arrange meetings "out of hours" if you find it inconvenient to attend during normal work hours. In this way you do not feel obligated to take time off from work in order to make the commitment.

Finally, we also have a substantial database of clients who keep "coming back to us" for repeat business and a large proportion of our clients are introduced to us by personal recommendation from well known accountants, mortgage brokers, friends or family who have themselves been delighted with our services.