FAQs

How long will it take?

The honest answer is ‘we simply do not know’. If a buyer has cash, all the legal documents are satisfactory and the property is empty, then completion could take place in a matter of days. A typical freehold transaction takes about 6 to 8 weeks. You should allow longer if you are selling or buying a leasehold property.

Where there is a chain of people involved, and each party has to arrange a mortgage, several weeks can go by with little apparent progress being made.

It is useful to establish at the outset, whether the chain of buyers and sellers is complete and whether each party has their financial arrangements in place.

In any event, you should not make any final arrangements for moving until contracts have been exchanged.

Sale

How will I know how much my lender will need to redeem my current mortgage?

We will request a redemption statement from your lender at the beginning of the transaction and send you a copy for your information. This is to avoid any nasty shocks! Once contracts are exchanged and the completion date known, a further redemption statement is requested, calculated to the day of completion. On the day of completion we send your lender the exact amount they require to redeem your mortgage and close your account.
When should I stop paying my mortgage?

You should continue to pay your mortgage and any other outgoings until the day of completion. Your lender will refund any overpayments.
When do I pay the estate agent and the conveyancing fees?

Once contracts have been exchanged, the estate agent will send us their commission account. A few days before completion, we will send you a statement setting out all of the costs, including the agents commission, the amount to redeem your mortgage, our fees and any other costs and disbursements. The statement will show the balance due to you.
When is the deposit paid to me?

On exchange of contracts the deposit is held by the seller’s lawyer and is not paid to you until the day of completion.
When do I hand over the keys to the property?

Most Seller’s take the keys to the estate agent once they have moved out. The keys are not released to the buyer until we have received all the purchase money from the buyer’s lawyer.

Purchase

Is a deposit really necessary?

On exchange of contracts a deposit is paid to the Seller’s lawyer as part payment for the property. This is usually between 5% and 10%. If you do not complete the purchase, the deposit is paid to the Seller as compensation. If you have paid less than 10%, you will be required to make up the difference and this would be paid to the Seller, together with compensation for any loss and inconvenience suffered by your seller.
What happens if I am selling and buying and I don’t have any deposit?

The deposit we receive from the sale will be used as the deposit from your purchase. If the property you are buying is much more expensive, you may have to contribute some money towards the deposit your seller requires, or negotiate to provide a lesser deposit. The contract provides for a 10% to be paid on exchange of contracts, but this is not always available and as little as 5% can be accepted.
Do I have to have a survey?

You do not have to have a survey carried out, but you are advised to have one as this reduces the risk of unexpected repair bills once you own the property.

Your lender will carry out a valuation, but you should not rely on this to point out defects in the property. We would advise you to contact a surveyor and discuss with him the type of survey that would best suit your needs.
What do the searches tell me?

We carry out a local authority search, as well as environmental and drainage searches. The local authority provide information relating to matters which might affect the property such as road developments, smoke control orders, conservation areas and listed buildings etc. The local authority search only gives information relating to the property you are purchasing. It does not give any information relating to neighbouring property, or any planning applications affecting them.

The environmental search gives information about any potential contamination of the land the property is on or near. A specialist surveyor assesses the information and gives a professional opinion. Most properties ‘pass’ and additional information is required for just a few. The drainage search provides plans of the public water and foul waste pipes. It also confirms that the property is connected to the mains. Property owners are responsible for any private drains and pipes between the property and the publicly maintained drains and sewers.
I have my mortgage offer in principle – can we exchange contracts?

No. We have to receive written instructions from your lender to act for them. Your lender requires us to confirm to them that the conditions in your offer have been met before it will release the mortgage advance to us. We will tell you about any special conditions that have to be satisfied before exchange of contracts.
What does exchange of contracts mean?

As soon as the legal work is completed by each lawyer in the chain, contracts can be exchanged. The completion date is agreed by everyone in the chain and written onto the contract that you signed. The lawyers exchange contracts on the telephone and from that moment the contract to buy and sell the property is binding and you have bought or sold your property. Your deposit is sent to your Seller’s lawyer on the same day. Once contracts have been exchanged there is no turning back. Neither you nor your seller or buyer can change their minds with out having to pay substantial compensation.
When do I cancel the insurance on my sale property and insure the new one?

You should maintain insurance on your existing property until the day of completion. On the property you are purchasing, insurance must be put on risk from the day of exchange of contracts. This is because you are responsible for the property from that day. Insurance is not transferred from one property to another. A new policy is started for the new property and the policy on the old property is cancelled.
What happens on the completion day?

Completion takes place about 10 days after contracts are exchanged and must be on a week day. This is because the banks do not transfer money at weekends. On the day of completion we send the money to the Seller’s lawyer. Once this has been received you can move into the property and the Seller must move out. Most sellers have packed up and moved out by about mid day, but sometimes it takes them longer and tolerance is needed by everyone on such a busy day. If there are any substantial delays however, you should let us know.