Buying or selling your home?
Moving house is always an exciting prospect, but without the help of a solicitor it can also be a legal minefield. Pennine Law is qualified in all areas of property law, and is here to help you at every stage; from making an offer to getting the keys to the door.
We offer personal one to one services in buying, selling, re-mortgaging and transfers of equity. Take advantage of our expertise and up-to-date technology, and we will take the stress and strain out of buying or selling your property, ensuring a smooth and efficient completion.
Contact Pennine Law as soon as you think about selling or buying a home and we can discuss with you the services that we can offer and give you an estimate of costs.
How should you own the property?
If you are buying a property with someone else, it is important to understand the basis of ownership type you are entering into. There are two kinds of joint ownership:
This is where both parties own the property equally. Therefore upon the sale of the property, the proceeds will automatically be divided 50/50, regardless of contributions made to purchase price or subsequent improvements.
If one joint owner dies, his or her share automatically passes to the surviving owners without payment. The transfer of the deceased owner's interest to the other joint owners is automatic, and is not affected by any Will of the deceased owner.
Tenants in Common
This is when two (or more) people own the property, but the shares in the property are specified. They may own property jointly as tenants in common in equal shares or unequal shares. This form of ownership can record differing shares, particularly if one party has contributed more of the purchase money than another. The effects are as follows:
In this case, on the property sale the proceeds are distributed between the owners in accordance with the shares stated.
If any owner dies his or her share does not automatically pass to the other owner but will form part of the deceased estate and therefore pass to either the beneficiaries under the Will or if no Will has been made to the deceased next of kin.
Survey & Mortgage
If you are applying for a mortgage your lender will need an independent valuation of the property. They normally appoint their own surveyor to do this, which the buyer pays for. This is a valuation not a survey and cannot be relied upon in determining the condition of the property.
Unless you are buying a new property which has the benefit of a ten-year guarantee, or some other form of guarantee, it is recommended you obtain an independent survey of the property by a chartered surveyor. This is known as a "Home Buyer's Report", the price of which varies according to the value of the property. This is important as once you have completed the purchase, it will be too late to rectify any defects which were not disclosed.
There are various searches which can be undertaken when purchasing land or property to assist in identifying the facts, and decisions that may adversely affect the property or your enjoyment of it. These include:
- Local Authority Search
- Drainage Search
- Environmental Search
- Mining Search
- Chancel Repair Search
Pennine Law undertakes the majority of these searches on line which means the results are processed quicker.
Investigation of Title & Enquiries
The Sellers Solicitors provide the draft Contract and various information for the purchaser to approve.
The Buyer's solicitors will ensure that all the documents are checked thoroughly before proceeding, thereby ensuring everything is as it should be and no difficulties should arise following completion.
The seller will provide information of what is being included and excluded from the property. Boundaries and maintenance of boundaries will be identified, disputes with neighbours and work carried out to the property will also be provided.
Once this information is provided further enquiries may need to the raised with the Seller's solicitors.
Exchange of Contracts
Once the contract has been signed, the title document and search results are satisfactory, and funds are available, all parties can proceed to exchange of contract.
Exchange of contracts is carried out by the Solicitors, and is when the transaction becomes legally binding on all parties. A completion date will be set at this stage, and the terms of the transaction cannot be varied.
The buyer will usually pay the Seller a deposit of 5% or 10% of the purchase price upon exchange of contracts. The buyer will also be responsible for the buildings insurance on the property from exchange of contracts. When there are linked transactions exchange of contracts must take place simultaneously throughout with the same completion date.
Completion day is when the balance of the purchase money is paid to the sellers solicitors and in return the buyer receives the keys to the property.
Stamp Duty Land Tax
Stamp Duty Land Tax is payable to the Inland Revenue within 14 days of completion. Up to date rates of Stamp Duty Land Tax are available on the following link www.gov.uk/stamp-duty-land-tax.
Registration of Property
Following completion and payment of any Stamp Duty Land Tax the Buyers solicitors will register the Buyer as owner, and if applicable the mortgage at the Land Registry. Following registration the Land Registry will provide a copy of the Title Information Document. If a mortgage is in place on the property a copy of the Title Information Document will be sent to the lender.
Note: If you have not already done so, Pennine Law recommend you consider making a Will after completing your conveyancing, as this will have the effect of bringing certainty into what is otherwise both an uncertain and very often unsatisfactory area, particularly when people die intestate. If you would like us to assist you in the preparation of your Will please arrange an appointment with our specialist.
Tenancy agreements often include a large list of conditions which are specific to the property, and usually exist to protect the landlords’ interests. However these can often cause real confusion for potential tenants when it comes to understanding any obligations they may legally be putting themselves under. Using our experience and skills in negotiation and business resolution, mean your tenancy agreement and your interests are well protected.
For the Landlord too, complications arise when you decide to let your property. Investing in some effort into drafting the perfect agreement for your particular situation and getting the agreement correct from the start is the only way to avoid the large majority of potential problems associated with letting. Our experts are specialist at doing exactly that.