Where to Property Search
Now that you know absolutely everything there is to know about mortgages, and also how much money you can afford to borrow, it’s time for the fun bit – house hunting.
Local press and estate agents’ windows are a good place to start, but these days, most new homes are found online.
Some of the biggest property search sites claim to host details on close on a million properties – you’d need a pretty big estate agent window to beat that. The sites are simple to use too – just narrow your search according to location and price and you’ll soon be presented with a list of homes that match your criteria.
Popular property search sites include rightmove, fish4homes and primelocation.
The Art of Viewing
The next step is to see what you can get for your money. Make a checklist of things you want in a home and view as many properties as possible that meet your criteria.
You may be surprised by the difference between homes in your price band – it’s not unheard of to be shown a run-down shack at the top end of your budget one viewing, followed by your dream home for £10k less on the very next.
When viewing, don’t be embarrassed to have a really good nose around; maybe take a camera to help you recall details. A good idea is to take someone with you – a second pair of eyes may correctly identify what you saw as a delightfully rustic wall effect as rising damp!
Questions to Ask When Viewing a Property
A new home will be the biggest purchase of your life – so make sure you know exactly what you’re paying for.
How long has the property been on the market?
If a home has been on sale for ages, find out why. It could be overpriced, previous buyers may have dropped out at the last minute, or maybe the home is in a dodgy area.
How long have the current owners lived there?
If the current owners have only been there a short while, it could suggest problems. Try and find out if the previous owners were also there for a short time. A string of short-term owners suggests there’s something’s fishy.
Has there been much interest?
If there has and you really like the place, consider making a quick offer. However, if there hasn’t been much interest, even after lots of viewings, it could be a warning sign.
Why is it so cheap?
Be cautious if the price seems too good to be true. If the reason is a legitimate quick sale, you may have found a bargain, but do your checks and find out for sure before making any commitment.
Are the sellers in a chain?
This will give you an idea of how long it will take to move in. If the seller isn’t in a chain, things will proceed quickly, but if they are, things can only move as fast as the weakest link, i.e. a delay for one owner means a delay for all.
What’s included in the price?
You’ll get the four walls, floorboards, ceiling, roof and central heating, but beyond that – who knows! Plenty of new owners have moved in to find door handles, light bulbs and laminate flooring all gone. So find out exactly what’s included.
What’s the council tax?
This will give you a better idea of your monthly expenses. Remember to never overstretch your monthly outgoings and always ensure you can comfortably afford to make repayments.
What are the utilities charges?
As above, but if you think the charges are steep, try searching online for cheap gas and electricity for that particular address.
If leasehold, what are the service charges?
If the property is leasehold, ask what the annual service charges are and factor this cost into your repayment calculations.
How old is the property?
The older the property the more you will have to pay in maintenance and upkeep. Ask how old the boiler is and when the electricity was last checked. These things can cost thousands to put right so it’s a bonus if they’ve recently been upgraded.
If you like a property and fancy a second viewing, revisit on a different day at a different time to help build up a picture of what the neighbourhood is really like. For example, a quiet cul-de-sac could turn out to be a noisy nightmare if you return at rehearsal time for next door’s death metal band.
It’s also good to know what the local schools are like. A property that lies within the catchment area of a good school will be more expensive, however, it will also be easier to sell at a premium in the future.
Leasehold and Freehold
If you buy a freehold property, you become the freeholder and wholly own both your home and the ground it stands on.
If you buy a leasehold property, you purchase the right to live in that property for the duration of the lease, and the longer the lease the better. A landlord is the actual owner of the freehold, which means you must also pay service charges and a small annual rent. In general, most flats, maisonettes, house conversions, and some houses, will be leasehold.
What if I want to buy the Freehold?
For leasehold houses:
- You must wait until you have lived in your property for more than two years
- You must have a long lease (in excess of 21 years remaining)
- You must give the freeholder written notice that you intend to buy
- You must pay all costs
For leasehold flats it’s trickier as you will also need to satisfy the following:
- At least 50% of the flats in your block must agree to buy the freehold (if there are only two flats, both leaseholders must agree)
- At least 75% of the block must be for residential use
- No adult member of the freeholder’s family has lived in any of the flats in the past year (if the freeholder owned the building before conversion and converted it into four flats or less).
Yep, it’s complicated, but leaseholders may also have the right to buy the freehold if the current freeholder has a proven poor record of maintaining your property. Always check the lease carefully and seek proper legal advice if intending to buy the freehold.
Commonhold Properties
A relatively new (introduced September 2004) and comparatively rare concept, a commonhold allows a block of flats to be jointly owned by all owners of the flats. A company (knows as commonhold association) needs to be jointly set up by the owners to manage and maintain the common areas of the building.
Next - Step 7: Make an Offer They Can't Refuse
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