Residential Conveyancing

BUYING YOUR NEW BUILD HOME

BBH Legal Services Limited has a specialist New Build Property Team. They have vast experience in dealing with new developments for residential purposes which includes many schemes such as:

• Stand-alone purchases
• Part exchange - Developer will take your current property in part exchange
• First Time Buyer utilising a government scheme such as Help to Buy
• Shared Ownership.

I HAVE RESERVED A PLOT, WHAT SHOULD I DO NOW?

In order to reduce the risk of losing your new build property, make sure that you instruct solicitors as soon as you decide to reserve a new build. Early appointment with your proposed Lender is recommended to ensure you meet your Reservation Expiry Date.

WHAT HAPPENS NEXT?

When you buy a new build property it is usually purchased off-plan and the developer will require contracts to be exchanged within a tight deadline. Once you have exchanged the developer will build the property and will then obtain a guarantee from NHBC or a similar organisation. It is important that you understand the transaction and any potential difficulties, which may arise. By appointing us to act on your behalf you may be assured we will:-

• Let you have copies of all relevant estate documents
• Produce a full contract report on all documents received
• Advise on planning, building regulations and new build warranty conditions
• Deal with lenders conditions for re-inspection or new build guarantees
• Liaise with developers’ site offices and legal departments
• Meet your deadlines for legal work, searches and enquiries wherever possible

WHO WILL BE RESPONSIBLE FOR THE ESTATE ROADS?

We will ensure that a Highways Act Agreement is in place. The agreement is made between the Local Authority the Developer and a third party providing an insurance guarantee. The agreement confirms that the estate roads are the responsibility of the developer until they become publicly maintained (adopted) by the Local Authority.

COMPLETION

Completion is usually required within a set period of time, which can range between 10 and 14 days notice being given by the developer. Our team will ensure that you meet every deadline and that everything is prepared beforehand and that you don’t miss out on your new home.

WHAT IS EQUITY RELEASE?

Providing that you and (if applicable) your partner are over the age of 55 and you are a homeowner then Equity Release allows you to release money tied up in your property. There are a wide variety of plans on the market which allow you to take a tax-free lump sum or a regular income, or a combination of both. There are no repayments to make during your lifetime. Your financial advisor is qualified to recommend an Equity Release Plan which will meet your needs. It is our job to ensure that you understand exactly what you are doing, your legal obligations and what the immediate and longer term consequences might be, so that you can make your decision to proceed with confidence.

If you do not have a financial advisor but are interested in Equity Release then we may be able to introduce you to one. Please contact us for more information.

POPULAR REASONS FOR RELEASING EQUITY

• Home repair and improvement
• Buying a second home
• Repaying an existing mortgage or debts
• Gifts to family and friends
• Daily living expenses
• Car purchase
• Home care
• Holidays

THERE ARE TWO MAJOR TYPES OF EQUITY RELEASE PLANS

1. Lifetime Mortgage: - with this plan the money you release is not repaid until you leave the property or die and there are no repayments to make during your lifetime. Interest rolls up during the lifetime of the mortgage and will be included in the repayment sum.

2. Home Reversion: - with this plan you sell all or part of the interest in your home in return for money and a lease which allows you to stay in your property for life rent free.

Your financial advisor will recommend the best scheme for you.

WHY IS EQUITY RELEASE BECOMING POPULAR?

Equity Release is not new, but it is now regulated by the Financial Conduct Authority. You also have the assurance that your financial advisor will be fully authorised and qualified to give expert advice.

Releasing capital from your home is now accepted as a popular method of planning for retirement and boosting your finances. The benefits and variety of Equity Release have improved significantly over the years, with more and more retired homeowners taking advantage of the equity built up in their home.

When you have decided on the house you want to buy and your offer has been accepted, this is the time to talk to us. We will contact the sellers solicitor to obtain the contract papers, liaise with them and sort out any queries that may arise. We will then raise a number of enquiries on the property. The seller will provide us with a list of the items included in the sale and the contract which will be checked with you. We will liaise with your lender, check your title and look to arrange completion as soon as possible.

SURVEY

As part of your mortgage application a Valuation Survey will be carried out. The information obtained from this is limited and as the sellers are not obliged to point out any defects, we recommend that a more detailed survey of the property is undertaken.  

SEARCHES

  All the necessary searches will be carried out, including Local Authority searches and local planning checks relating to the property.

DEPOSIT

If you are selling one house and buying another we can usually use the sale deposit from one house for the purchase deposit on the other. Obviously, if you are trading up you may need to provide more money.

EXCHANGE OF CONTRACTS

Both you and the seller will have been sent copies of the contract. Once these have been signed, contracts will be exchanged with the seller’s solicitor for the house you are buying and we will pay over your agreed deposit.

COMPLETION DATE

When contracts are exchanged, the completion date is also agreed. This is the day when the balance of the purchase money is paid and the house becomes yours.

Re-mortgaging means replacing the existing mortgage on your property with a new one. People re-mortgage their properties all the time for a whole host of reasons. The mortgage market is very competitive and you may have sourced a lower rate of interest that can reduce your monthly payments, wish to consolidate several loans into one payment, or you may be borrowing more than your present mortgage to pay for home improvements or a family holiday.

PRELIMINARIES

We will write to your present lender and ask them for a Mortgage Redemption Statement for your property. At the same time we will send off your Local Authority search and any other necessary searches. During this time you should have made an application for a new mortgage.

MORTGAGE OFFER

Once your new mortgage application has been finalised a Mortgage Offer will be issued. Where your lender allows we will use a local search Indemnity Policy rather than full searches. This keeps costs to a minimum and allow early completion. An Indemnity Policy provides cover should something be found to negatively affect the value of a property whilst searches asses potential risks which are then reported to yourself and your new lender.

COMPLETION DATE

A completion date is arranged for the earliest possible date and the Mortgage Deed sent to you for signature and return. We will also ask your current lender for a Mortgage Redemption Statement so we have the exact figure owing to your existing lender.

COMPLETION DAY

As soon as we have received the money from your new lender we will send the amount owing to your existing lender in order to pay off the mortgage. Any balance due to you will be sent to you the same day.

POST COMPLETION

We will send the Mortgage Deed to the Land Registry so they can amend and update their records.

Now you have received an offer for your house, what should you do next? Call us as soon as you decide to put your property on the market so we can start to get your deeds and contract papers ready to help avoid delays later on. At this time we will also send you a questionnaire asking for information about the property. It will help to speed things up if you complete and return this to us as quickly as you can.

CONTRACTS

The contract papers will be prepared and sent to the buyer’s solicitor for agreement. When agreed we will forward one copy of the contract for you to sign.

CONTENTS

We will send to you a questionnaire which includes a checklist to make it easy for you to decide what is included and what is not.

EXCHANGING CONTRACTS

Only when both you and the buyer have signed and the contracts have been exchanged does the sale become legally binding on you both.

DEPOSIT

When exchanging contracts we will also ask the buyer’s solicitor for a deposit. The amount is usually 10% of the purchase price but this may be negotiable. If buying simultaneously this can be used towards the deposit on your purchase.

COMPLETION DATE

When contracts are exchanged, the completion date is also agreed. This is the day when the balance of the purchase money is paid and you must move out of the house.

ESTATE AGENT’S FEES

If you are selling through an agent the fees will be due on completion of the sale. There is no need for you to worry about this as we will pay these fees from the proceeds of the sale unless instructed otherwise.