Before buying or selling a property, you need to be aware of the total costs and when these become payable.
The total cost of purchase is the purchase price plus stamp duty plus land registry fees plus professional costs. We will advise you of these at the outset, so you can plan your budget.
A property purchase is normally funded through a combination of bank loans (mortgage) and cash reserves.
There are generally three occasions when you pay money
- a small payment on account at the start of the matter, normally £400
- the deposit immediately before exchange of contracts
- the balance of funds (less any mortgage) immediately before completion (the move date).
The deposit is the performance bond paid on exchange (traditionally 5-10% of the price). It is forfeited if you do not complete on the date you agree to move.
If your transaction includes a sale and a purchase, a solicitor will use the deposit received on your sale towards the deposit on your purchase. You may have to finance the difference.
You must arrange the mortgage and discuss any concerns with your financial adviser. Most solicitors are not permitted to give financial advice.
Your lender will require a survey. This will be a valuation survey and the fee for this is usually paid to the financial adviser.
Third party deposits/loans and gifts.
If you are receiving any money from a third party, you must decide whether it is a gift or a loan. This should then be reflected in an appropriate document.
If you are obtaining a mortgage, you must disclose this information to the mortgage company. We cannot receive any payments direct from third parties.
Please telephone and speak to one of our property solicitors for free on 0800 037 1625 or fill in the online form to request a call back and someone will ring you within 24 hours.
You can access any of our conveyancing lawyers at any of our offices spread throughout Surrey, Hampshire and Greater London including Kingston upon Thames, Bordon, Cheam, Canary Wharf, Leatherhead, Raynes Park, Surbiton, Tolworth or Walton on Thames.