5 Ways to Speed up your Property Purchase
parnalls.com/top-tips-pushing-house-purchase-quickly-possible/
So, you found your dream house, had your offer accepted… and now have to wait for what feels like an eternity while questions and paperwork go back and forth. What, if anything, can you do to help your house purchase go through quicker?
How long does the conveyancing process usually take?
In the UK it usually takes 8 – 12 weeks from having an offer accepted on a house to completing and receiving the keys. Sometimes, for instance with cash buyers or auction properties, it can be quicker, but other times it can take much longer. Your solicitor or conveyancer should be able to give you an estimated time.
If you’re buying a property and want to take advantage of the stamp duty holiday, you need to complete by 31 March 2021.
How quickly your purchase will complete depends on a range of factors. These include how long it takes to get a mortgage, whether you are in a chain, the attitude of the vendors, and how efficient your surveyor and solicitor are.
If you’re trying to sell your property as well as buying a new one, you’ll need to hurry up. How long it takes to sell a house from putting it on the market to completion depends on how accurately your property is priced and how well it’s marketed, as well as demand in your area.
Your estate agent will be able to advise you on how to sell your house quickly.
How long does a mortgage application take?
Applying for a mortgage and being accepted normally takes about 4 to 6 weeks. But there are several ways you can speed things up.
You should get a mortgage in principle from a mortgage lender before you even start your property search. This only takes a few minutes and will give you an idea of how much you can borrow as well as showing that you are a serious buyer.
How long does a mortgage in principle last? This depends on the mortgage lender but it’s normally 60 to 90 days.
Once you’ve had an offer on a property accepted, you’ll be able to proceed with a full application. The lender is likely to ask for the following documentation:
- at least 2 utility bills at your current address
- 3 to 6 months of payslips and a p60 from your current employer
- 2 years of business accounts and an SA302 tax return form if you are self-employed
- proof of identification such as your passport or driving licence
- evidence of any benefits you get
Having this information readily available can speed up your mortgage offer.
You can also boost your chances of being accepted for a mortgage by saving up a bigger deposit as you can. You’ll have more choice of mortgage deals if you can save more than 10% of the purchase price.
How long does conveyancing take?
Finding a good conveyancing solicitor will make all the difference to how quickly your purchase completes. Ask around your family and friends, and on local social media for recommendations.
Get quotes from several solicitors before making a decision. You can speed things up by choosing a solicitor who can also act for your chosen mortgage lender. A solicitor can only do this if they are on your lender’s panel of approved solicitors.
Picking a solicitor who can work for your lender will mean that part of the legal work will not need to be outsourced to another firm. Outsourcing this work can often cause delays.
Whichever solicitor you choose, he or she will send you a lot of information and documents to be signed straight away. Make sure you fill in and return everything requested as soon as you can.
Many first-time buyers get help with their deposit from their parents. If this applies to you, tell your solicitor immediately. He or she will need to draft a ‘Gifted Deposit’ document for the lender. Leaving this to the last minute could delay your mortgage offer.
Tips on speeding up your house purchase
Find a ‘contract ready’ property to buy
One way to speed up solicitors is to buy a property advertised as ‘Contract Ready’. This is a sign to show buyers that the vendor is committed to a quick sale. It also means your solicitor will have less work to do.
Getting a property contract ready is down to the seller, their estate agent and their conveyancing solicitor. It includes doing certain work related to the sale, such as local authority, planning, and flood risk searches, before a buyer is found.
These normally take a few weeks if the buyer’s conveyancer does them after an offer has been instructed.
If as a buyer, you find 2 properties you’re considering offering on, and one is contract ready but the other is not, opting for the contract ready property is likely to result in a quicker purchase.
Avoid being in a chain
One of the most common factors that delays completion of a house purchase is being in a chain. A property chain is the connection between 3 or more buyers and sellers of property.
Being in a property chain means you are reliant on the other people being ready to exchange contracts on the same day as you.
The best way to avoid delays in a property chain is to not be in a chain at all. This normally means being a first-time buyer purchasing a property with no onward chain.
If you are in a chain, setting target dates for exchange and completion at the outset can help keep things on track.
Book your survey early
Once you’ve had an offer accepted on a property, you should book the survey straight away. Although a survey is not compulsory, it’s a good idea to get one done as it should identify any structural issues with the property that will cost money to fix.
You can research recommended surveyors and get an idea of how busy they are in advance of making an offer – then once your offer is accepted you can book in the survey straight away.
When you get the survey back, read it in full and ask your surveyor or solicitor about anything you are not sure about.
Set target dates for exchange and completion
Try and set a target date for exchange and completion as early on in the process as you can, so everyone knows the date you’re working too. Bear in mind that you’ll only benefit from the Stamp Duty holiday if you complete (not just exchange) before the deadline of 31 March 2021.
Don’t be afraid to push your solicitor for updates during the buying process – you’re paying them, after all.
Estate agents can also be very good at moving things along and communicating between the various parties. They only get paid if and when the sale completes.
You may be able to add a clause into the contract that says if completion goes beyond the deadline due to the fault of the seller, that you (the buyer) can either withdraw from the transaction or that the purchase price is reduced accordingly.
Get your money ready for exchange
Before you exchange contracts, you’ll need to pay an exchange deposit worth 10% of the purchase price to your solicitors’ client account. Your solicitor will pass this deposit to the seller on exchange of contracts.
This is not the same as your mortgage deposit, but will usually come from the same pot of money as your mortgage deposit. When you go on to complete on the purchase, you will transfer any remaining money from your mortgage deposit to your mortgage provider. However, if you back out of the purchase after paying the exchange deposit, you will lose the 10% paid.
You need to make sure this money is readily accessible – this usually means moving it into your current account from which you can make a CHAPS payment to your solicitor’s account.
CHAPS stands for Clearing House Automated Payment System and is usually made the same day.
Some banks don’t usually allow you to move more than £25,000 out of an account per day so if you have a big deposit, or money with various banks, you’ll need to plan how and when to move your money around.
