ASK ROSS: Agreeing a price for a house is just the start of the spending spree. This month, Ross looks at some of the costs that form part of your conveyancing.
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
My solicitor has said I must have a local search as well as a survey carried out on the house I am buying. What is the difference?
A survey is needed to check there are no defects in the physical construction of the property and that no serious repairs are likely to be required in the near future.
Many mortgage lenders carry out a minimum valuation to ensure the amount you are borrowing is covered by the property. This offers little protection to the purchaser, so you may want to have an independent survey carried out to ensure you are not going to be engaged in any expensive maintenance.
The surveyor will cast an expert eye over the property and issue a full report so you can, if necessary, renegotiate the purchase price or, if serious repairs are needed, actually withdraw from the sale, before contracts are exchanged.
A local authority search covers numerous points with the council, including the existence of any road developments that may affect the property and if planning permission was granted when it was built. It will also flag up any outstanding compulsory purchase or tree preservation orders, if the road is a public highway or maintained privately, any public health orders and whether the property is in a slum clearance, conservation area or clean air zone.
The search consists of a standard form that is answered either by the local council, or more commonly these days, a search agent. It will take approximately 10 to 14 days to complete and cost in the region of £150.
I need to pay a stamp duty on the purchase of my property. When is it due?
Stamp duty must be paid within 28 days of the transfer deed being lodged, which is normally done on the date of completion.
It is likely you will be asked to provide the funds to cover the cost of the stamp duty before completion so it can be paid to the Inland Revenue fairly soon after to avoid it being overlooked. If the 28-day period is exceeded there is a penalty for late stamping.
Your solicitor will also want the stamp duty paid relatively quickly so your purchase can be recorded. The Land Registry will not recognise your purchase unless it has evidence the stamp duty has been paid.
I am buying the carpets in my new house from the vendor. Shall I pay for them directly or via my solicitor?
To avoid any confusion, your solicitor will want a record be made of the carpet sale in the contract for the house purchase. If this is agreed, the money for the carpets should be given to him. He will, in turn, pay the vendor’s solicitor on completion.
This should avoid any misunderstanding between you and the vendor about the agreed price or the particular carpets being purchased.
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