Buying Your First Property - A Legal Marketer’s Tips and Tricks for a Smooth Process.
Introduction
I know the feeling - the excitement of buying your first property. The relief of escaping the rent cycle. The exhilaration of finally being able to capitalise on those hard-earned savings. The first step on the property ladder.
That was me, back in 2023 - post the Covid housing bubble where the surge of house prices made house ownership feel even further away. Eventually, after a lot of patience, I started my journey as a first-time buyer.
This blog is for anyone else looking to take their first step on the property ladder. I appreciate this may be easily perceived as biased advice from a marketing manager at a law firm. However, my story began before my journey into the legal world, these tips are based on my own personal experiences before I started working at a law firm, and also contain a further insight into the property and legal world after joining the profession.
Your first viewing is unlikely to be ‘the one’
When I first started my property search, I was self-employed and I had difficulty obtaining a reasonable mortgage that didn’t involve a guarantor or, with what was then deemed, very high interest rates.
I had viewed several flats in Leeds city centre, many of which had cladding concerns post the Grenfell disaster. Even when estate agents assured me these flats weren’t affected, I later watched significant work being undertaken on several in the years that followed.
As I began making offers on properties, the second hiccup hit, the Covid-19 pandemic. What almost shut down the property industry at first, led to a significant boom, driving prices to levels I could never afford. I put the search on hold and decided to rent a property in the city centre and enjoy the lifestyle without the commitment.
During this time, I re-entered full-time employment and started looking again with my partner. Although prices were still high, they had plateaued. Now with the security of a full-time income, lenders were keener to lend.
Our search originally focused on location and a relatively affordable price. Following several viewings and debating what was most important to us, we eventually settled on a Victorian end-terrace. Increasing our budget allowed us to buy a character-filled property which had already undergone significant refurbishment and modernisation.
Looking back, we were lucky. We bought our house through a fairly reputable estate agent, the property had no deeply troubling issues, and our solicitors were thorough with their work. So here is my guide, for those buying their first properties.
Learn by viewing
Firstly, don’t be afraid to view plenty of properties as your start your search. Waiting to view the ‘perfect’ property may mean you miss out on what could have been a very happy house. You could even find the property is so popular that a bidding war takes it out of your affordability.
The common advice to view as many properties as you can is recommended for good reason. Stepping foot through the front door allows a real feeling of the features you may like and need from a property. Many people find their requirements of a property evolve throughout a search. Mine certainly did.
Let estate agents know you are serious and ready to buy. Any good estate agent will add you to their database, notifying you about any upcoming properties in your chosen area. If you let estate agents know you are serious about buying a property this may help you later down the line when submitting an offer or negotiating a price.
Don’t focus on house price - consider affordability
House prices and affordability have changed dramatically and have been hot topics over recent years. Prices have risen around 22%, making it easy to get drawn in to how much the bank will lend you.
I’m sure many readers will have received advice to borrow as much as you can to maximise your future return. With mortgage rates remaining high, most first-time buyers are now looking at an average mortgage payment of around £1,075pm which represents an incredible 61% increase from £667 in 2019.
Be realistic about your monthly outgoings to calculate what you can afford, here, laying out your current and expected outgoings may help. Most first-timer buyers will be used to paying council tax and energy costs from renting. Check the area you are moving too, and the property you are purchasing. Will these costs go up or down?
Exploring mortgage products with your bank or with a mortgage advisor will help you on your path. Be mindful though, some advisors may receive a kickback from your mortgage provider, usually the larger the mortgage, the larger their commission. Choose a recommended supplier, but remember, some estate agents may receive a fee for your referral.
Think ahead
My next tip on property is to plan ahead, how long will your first property last? Are you in the opportunity to buy a larger first house to suit your future needs?
Personally, I wish I would have stretched to buy a 3-bedroom property rather than 2. Our next move will involve not only estate agency and solicitors’ fees, it will also include stamp duty, potentially involving an additional £7,500 on the price of moving home.
Research your suppliers
In a fast-moving market, you need all your ducks in a row. I have heard tales of less-honest estate agents not passing offers to sellers unless a solicitor was instructed, and the ‘Mortgage in Principle’ was provided. This is incorrect, although the seller may choose to take the offer less seriously if a mortgage in principle is not in place. Accepting any offer is at their discretion.
To prepare for these potentially hiccups – plan as much as you can in advance. Speak to your chosen bank or mortgage provider to make sure you have a mortgage in principle in place at the amount you are comfortable with.
Next, research a competent, and recommended conveyancing solicitor.
You want the best legal advice for the worst situation
You never know your situation until you are in it! I hadn’t realised the importance of great legal advice until I heard of the situations that can happen during a property transaction whilst working at Emsleys.
The most common piece of feedback received from our clients regarding other solicitors is the lack of a dedicated individual or team working on a case throughout the transaction. When there is a constant rotation of people working on a property transaction there is real risk of information to not be spotted or passed on to the client correctly. A lack of personal support is often reported too, often at times when it is most needed.
At Emsleys, clients are provided with a small team as a consistent point of contact. If a solicitor is unable to speak at a given moment, there is always a fantastic group of support staff on hand who will know any case inside-out.
When shopping on price, our research increasingly finds cheaper firms have cut corners in other areas. During the conveyancing process, solicitors undertake various searches on the properties. Whilst Emsleys always use the most detailed searches, which are more expensive and usually take longer, our conveyancing experts are seeing a rise in the use of cheaper alternatives which don’t offer the same level of accuracy. Emsleys has acted for clients on potential purchases where drainage pipes have run underneath new extensions, an incredibly problematic issue if the water company finds out as they require easy access to the pipework. In the most severe cases there may be a requirement to demolish the conservatory.
Most often than not delays in property materialise from cheaper firms. Too often I’ve heard frustration and upset from clients when we are unable to contact the required individual on the day of exchange or completion.
In East Leeds there are various complications and regular issues regarding properties and land specific to the area. For example, mine shaft entrances are very common around Garforth due to historical mining. Our team access thorough local searches which advises on previous claims and issues in the area. Emsleys can advise on this and ensure your mortgage lender is satisfied with the information provided.
Disputes or unclear property access and boundaries are regular problems which can be helped by local legal experience and expertise. The conveyancing team are regularly uncovering pieces of land not correctly registered or claimed to the property. If an unscrupulous individual was to realise this, you could return home one day to find half of your garden has been occupied!
Yes, property transactions can go swimmingly and progress without hiccup, however you never know the competence of the other parties’ solicitors, or others if you are part of a chain.
Conveyancing is extremely complex. There are nuances to many areas of the process , many of which we haven’t been able to cover in this article. In my opinion, the best way to find an excellent conveyancing firm is by exploring the following points.
Check online reviews by real clients – Websites such as Google and Trustpilot can give honest and transparent feedback. Reviewing bad feedback provides a feel of regular complaints. Spotting a pattern suggests this isn’t just one disgruntled client. Be dubious of no poor reviews either, this can be suspicious.
Look for accreditation marks – skilled conveyancing firms are likely to have further accreditations to prove their level of competence. The Law Society’s accreditation ensures high-quality legal advice is delivered throughout every case.
Be aware of online only firms – I am unfortunately hearing of an increasing number of issues coming from these types of firms. Some operate on a very large volume to offset their low costs, meaning the levels or service and amount of advice may be spread thinly. There is a lot to lose if you fail to receive the level of advice you may require.
Ask friends and family – Look for recent reviews from friends and family. At Emsleys, recommendation is a leading source of introduction. Our priority is to ensure clients’ satisfaction throughout their case.
Protecting Contributions and Relationships
This following section is crucial for couples buying together or who are unmarried.
During the purchase you’ll be asked by your solicitor how you would like to legally own the property. If you’re contributing unequal amounts or are planning to pay different amounts towards the mortgage, this can be recorded in the Declaration of Trust. The Declaration of Trust sets out how the property is owned and will be referred to when the property is sold and cash is being divided.
Many will assume because they’re at a stage of life where they are purchasing a property together their relationship will continue to marriage. However, ensuring there is clarity in case the relationship breaks down is important, as it does happen. Starting this discussion is an important step before starting the house buying process. Making these monumental choices during the excitement of the purchase may encourage less rational decision making.
Cohabitees and Contributions
Unequal deposit contributions are relatively simple to draw out, however not all contributions are as simple as deposits. Sometimes value may be added to the property in other ways, for example, extensive refurbishments.
Many young people are electing to buy cheaper properties which are in need of renovation. If one party were to pay for the majority of the works this would not be recorded in the Declaration of Trust.
A Cohabitation Agreement can protect other assets of the relationship, too including other savings and physical assets such as jewellery and motor vehicles. Read more about cohabitee agreements with this article by our Head of Family Law, Rosalind Blaza.
Remember who acts in your best interests
One final point, which often catches first-time buyers off guard. The friendly and helpful estate agent guiding you through this property may not be acting in your best interests. It is important to recognise their client is the property seller. Keep this in mind if they start pushing you to make decisions or request completion and exchange dates. At times I felt my naivety as a first-time buyer was taken advantage of. An excellent conveyancing solicitor will be there to fight your corner.
Don’t be pushed to rush decisions. If the estate agent is applying pressure you are well within your rights to involve your solicitor in the conversation.
The house buying process is often slow at first, though it can quickly ramp up in the later stages. Don’t forget to pause and enjoy the situation! The chances are you’ve waited a long time for this opportunity so soak it all in.
Time to take down that Sold sign
Buying your first property is one of the most exciting times of your life. It is a whirlwind from start to finish and I’m sure you will face stress and anxiety along the way. However, with some early planning, a good understanding of your financials, and most importantly, the advice of a highly rated and accredited conveyancing solicitors on your side, the journey can go from a bumpy storm to calm waves.
If you’re starting the process as first-time buyer, the team here at Emsleys Solicitors are here to help. With transparent pricing, friendly advice and as experts in conveyancing, we are here to help.
