Buying a Property in London

Homehunting in a new area can be a frustrating and exhausting experience. The aim of this section is to save you time and energy by giving you an overview of popular London areas, and to outline how to go about looking for a property in the locality.  A useful guide to property hunting locations has also been prepared with the assistance of local estate agents in London and its surrounding suburbs.

Where to Look for a New Home

There are four main sources of information about property for sale: estate agents, websites, newspapers, and developers and builders.

Estate Agents

London is extremely well served by local independent estate agents as well as the large ‘chain’ estate agents. Once you have decided on the general area in which you would like to find a home, you should contact various estate agents and brief them on your specific requirements. Agents hold particulars of all the properties they are handling and will arrange appointments to view and will show prospective purchasers around suitable properties. There is no charge to the purchaser. If you purchase a property through an estate agent, it is normal to engage a solicitor to carry out the conveyancing. Estate agents usually have links to mortage brokers; however, for expatriate mortgages, a more focused service may be required.

Websites

These are a very useful tool for finding properties. Some estate agents have their own websites, or include details of their properties on estate agency group websites or general property websites.

Newspapers

Local newspapers are an invaluable source of information about properties for sale. The London area is served by a wide range of local newspapers, weekly and daily, paid for and free. Some papers, including the free Evening Standard, cover the entire city.

New Property

If you decide to purchase a new property, you can contact the developer or builder direct for details of the properties available or under construction. Most developers have sales offices on site, and some will have showhouses which are available to view at set times throughout the week. The procedure for purchasing a new house is explained later in this section.

How to Buy a Property

It is now mandatory for the seller of any home put on the market, no matter what its size, to provide potential buyers with a Home Information Pack (HIP). This pack must contain a sale statement, evidence of title, standard searches and an Energy Performance Certificate that outlines how energy efficient your home is. Sellers and buyers are advised to check for latest developments.

It is normal to engage a solicitor to handle your conveyancing. He or she will approve the draft contract which states price, terms and conditions relating to the transaction, undertake the Local Authority search, and check details of freehold or leasehold title. He or she will ensure a satisfactory mortgage offer has been issued, obtain your signature to the contract, ensure your purchaser is ready to exchange if there is a chain, and agree a completion date.

Valuations & Surveys

A private report or valuation for your own purposes can be arranged with an independent valuer. A structural survey and valuation for mortgage purposes must be arranged with the agreement of the mortgage lender, who will specify their approved valuers.

Exchange of Contracts

This takes place, often by telephone between the solicitors, when all parties in a chain are ready to sell and buy. At this point, all parties agree a completion date, which is added to the contract. A deposit is required at exchange of contracts. This will normally be 5–10% of the purchase price of the property and is held by your solicitor. If there is any problem with your purchase of the property after this date, for example if your building society fails to provide you with your expected mortgage, the other parties in the chain of purchases could claim against your deposit for their costs. After this stage, it would be difficult to withdraw without incurring financial penalties.

Completion

Completion is the final stage, when keys and money are handed over. It usually takes place about two to four weeks after exchange of contracts, although it can be sooner if necessary. It involves mostly administrative procedures, such as mortgage documentation and transfer documentation. Keys are usually left with the selling estate agent, who will release them on instruction from the solicitor. From the date of completion, you become liable for the insurance on the property, and you should ensure that adequate cover is arranged. After completion, your solicitor will register the title and pay Stamp Duty, where applicable, on your behalf.

Buying a New House

Once the prospective purchaser has visited a site showhouse and decided to purchase, the normal procedure would be for a reservation to be granted on a specific property. Assuming the decision is taken to proceed, the purchaser’s solicitor would request the standard form of contract from the developer and the procedure would continue as above. It is worth noting that some developers, in an effort to make things easy for the purchaser, offer a fully self-contained system, with the company providing advice on a range of matters, including financial and legal ones. It is recommended, however, that you retain your own solicitor, to avoid any conflict of interest.