Page 7 - Millers

MORTGAGES
In order to speed up your house buying process, it is advisable wherever possible to get an AIP or an Agreement in Principle before any final decision on your new property is made. The added advantage of providing you with a clear indication of what is affordable and the fact that you have a mortgage agreed in principle is also attractive to sellers.
MAKING AN OFFER
Once you have located your ideal property, your offer will be submitted by us to the vendor for their consideration. This is done both verbally and in writing. NB: Please note that all offers are “subject to contract” and therefore neither party is legally bound until the contract is actually signed.
ACCEPTING AN OFFER AND INSTRUCTING YOUR SOLICITORS
As soon as your offer has been accepted by the vendor you should instruct a solicitor to act on your behalf. Your solicitor will handle all legal requirements of your purchase. At this point, you also need to formally proceed with your mortgage application and instruct your mortgage consultant/broker accordingly.
SUBJECT TO SURVEY
The next step is to obtain a Mortgage Valuation or Property Survey. This should be conducted by a Chartered Surveyor acting in your best interest as the buyer, or carried out by your Mortgage Lender. The report is to provide a valuation i.e. determine whether the amount of loan is secure and also deals with the basic condition of the property. Since you, as the buyer, are also provided with a copy, it allows both parties to evaluate the findings prior to entering into a commitment to purchase. NB: However, we would not recommend that a buyer relies solely on the Mortgage Valuation survey as the inspection is limited and although it may cost a little more to obtain a more detailed report yourself, this could in the long run save you from making a costly mistake.
TYPES OF SURVEY
1. Homebuyer Survey/Valuation
This is the mid-range option as it is more expensive than the Mortgage Valuation but less than the Building Survey (see below). It is a basic service and therefore more appropriate
to properties in apparently good condition and conventionally constructed. The survey’s purpose is to highlight any pressing
or significant defects and problems which are likely to have an overall impact on the value of the property. The objective of the Homebuyer Survey is to provide a more in-depth report which will assist the buyer in making an informed decision whether to proceed with the purchase and also whether the agreed price reflects the actual value. Moreover, the professional opinion of the surveyor as contained in his report will also set out particular features of the property which may possibly have an affect on the present value and potential future marketability.
2. Building Survey
Unlike the Homebuyer Survey, this is suitable for all types of property whether conventional or unconventional. The term “unconventional” encompasses properties that have an unusual construction, are historic or listed buildings, have
been extensively altered, or where major work is planned. The Building Survey is comprehensive and lists full technical details
of the construction, materials and condition. It highlights the full spectrum of defects from the more serious down to the insignificant and the terms of the survey are therefore tailored to fit the client’s specific needs. However, it should be noted that this does not include a valuation and is only conducted by prior agreement.
SEARCHES
These are conducted by the buyer’s solicitor who submits a local authority search to the local borough council. Its purpose is to ascertain if there is any planning consented previously granted on the property or if there are any other local issues which may have an impact on the purchase. In some instances, the search may also include an Environmental and Drainage search.
DRAFT CONTRACTORS
The draft contract is drawn up by the seller’s solicitor and is forwarded to the buyer’s solicitor for consideration. Any additional queries or questions will be asked and answered
and the contract amended accordingly, subject to final approval.
MORTGAGE OFFER
The Lender is now in possession of the Mortgage Valuation survey and, subject to the findings of this report; receipt/ap- proval of the mortgage application and provided all references and checks have been conducted satisfactorily, the Lender will send a formal mortgage offer to the buyer and their solicitor. The document is then signed and returned and funds requested by the buyer’s solicitor.
EXCHANGE OF CONTRACTS
Once the contract has been signed by both parties, a deposit (normally a small percentage of the purchase price) is paid by either bank transfer or banker’s draft. At this stage, the parties agree on a date for completion.
COMPLETION OR TRANSACTION
Completion usually follows a few days or weeks after exchange of contracts. The balance of the purchase price is transferred by the buyer’s solicitor to the seller’s solicitor and the keys released Congratulations! You are now the owner of your new home!
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