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Exchanging contracts on a house marks a pivotal moment in the home-buying journey. It signifies the point where the sale becomes legally binding, setting the stage for the final steps towards ownership. Here’s what you need to know about the process, from preparation to completion. Preparing for Exchange of Contracts Before contracts are exchanged, several key preparations must be completed: Agreement on Purchase Price: Buyer and seller must agree on the price. Financial Readiness: Buyer secures a formal mortgage offer and prepares the deposit. Legal Checks: Buyer’s solicitor conducts necessary searches and verifies the EPC. Insurance Arrangements: Buildings insurance is arranged. Agreement on Fixtures and Fittings: Details are finalized. Exchange of Contracts Explained What is Exchange of Contracts? Exchange of contracts is the moment when buyer and seller swap signed contracts, legally committing to the property sale. When Does Exchange Happen? Typically occurs 5-28 days before completion, often around 10-14 days prior. Understanding the Exchange Deposit Buyer pays a deposit (usually 10% of the purchase price) to confirm commitment. This deposit is non-refundable and protects the seller if the buyer withdraws. Completing the Purchase Setting the Completion Date Agreeing on the completion date involves coordination, especially in property chains. Flexibility may be necessary, particularly in larger chains. Completion Day: What to Expect On completion day, all financial transactions are finalized. Once funds are received, keys are released to the buyer. Completion Checklist Ensure these steps are covered: Funds are ready. Removal company is scheduled. Buildings insurance covers the new property. Key collection logistics are clear. FAQs Can I Exchange and Complete on the Same Day? Possible but uncommon due to logistical complexities. Typically, a gap of at least 5 days is advised. Can I Change My Mind After Exchange? Yes, but consequences are significant, the seller can issue a 'Notice to Complete' and retain the deposit if the buyer defaults. Costs Involved in Exchange? Usually a deposit of 10% of the property price, but first-time buyers might negotiate a lower amount. Can I Proceed Without a Solicitor? Not recommended. Legal intricacies require a qualified solicitor’s expertise. Conclusion Navigating the exchange and completion of a house involves careful planning and adherence to legal procedures. Understanding these steps ensures a smoother transition to homeownership. For personalized guidance through this process, contact Howards today. Discover your path to owning a new home with confidence.

Congratulations! You’ve found your dream home, made an offer, and now it’s been accepted. What comes next? Ask the Seller to Take the Property off the Market Once your offer is accepted, it’s wise to request that the seller removes the property from the market. This helps prevent other buyers from offering more money and reduces the risk of losing out to a higher bid ('gazumping'). The estate agent will typically require details of your solicitor and your mortgage offer in principle to proceed with this. Complete Your Mortgage Application Unless you’re paying in cash, you’ll need to finalize your mortgage application. This involves submitting documents such as proof of address, ID, earnings, utility bills, and bank statements. Find a Conveyancing Solicitor Selecting a conveyancing solicitor is crucial. They handle legal aspects such as drafting contracts, conducting local searches, and managing funds. Your solicitor will provide legal advice throughout the process. Arrange for a Property Survey It’s recommended to arrange a property survey to assess its condition. There are different types of surveys available, ranging from basic inspections to more detailed structural assessments. Sign and Exchange Contracts Exchanging contracts makes the sale legally binding. At this stage, you’ll typically pay a deposit (usually 10% of the sale price). Once contracts are exchanged, neither party can withdraw without financial consequences. Completion Completion is the day agreed upon by both buyer and seller for transferring funds and finalizing the sale. The timing of completion can vary based on factors like chain length and removal company availability. Frequently Asked Questions How long does completion take after an offer is accepted? Completion timelines vary, but on average, the process takes around three months. Delays can occur due to property chains or issues revealed during surveys. What if my offer is accepted but then rejected? Unfortunately, a seller can still consider other offers after accepting yours, potentially leading to ‘gazumping’. You can counter-offer, but the outcome depends on the seller's decision. Is an offer on a house legally binding? No, offers are not legally binding until contracts are exchanged. Does ‘under offer’ mean a house is sold? No, a property ‘under offer’ indicates that an offer has been accepted, and the property is temporarily off the market pending the buyer’s next steps. Conclusion Understanding what happens after your offer is accepted is crucial for navigating the property buying process in the UK. From legal steps to financial considerations, each stage plays a vital role in securing your new home. For more information or to start your property search, contact your local Howards branch today.

Indemnity insurance plays a crucial role in property transactions, offering protection against potential financial losses arising from specific issues related to the property. Here’s a comprehensive guide to understanding indemnity insurance, its purposes, costs, and common types relevant to buyers and sellers. What is Indemnity Insurance? Indemnity insurance is a specialized type of insurance used in property transactions to safeguard both buyers and sellers from financial risks associated with certain property issues. These issues, if left unresolved, could potentially jeopardize the sale or lead to legal disputes in the future. Why Do Solicitors Recommend Indemnity Insurance? During the conveyancing process, solicitors may advise their clients to obtain indemnity insurance when there’s a concern about a property defect or legal compliance issue. This precautionary measure helps mitigate risks that could affect the transaction's completion. For example, missing planning permissions or building regulation certificates are common triggers for indemnity insurance requests. What Does Indemnity Insurance Cover? Indemnity insurance does not cover the cost of fixing a property defect itself, such as replacing a boiler or upgrading windows. Instead, it provides financial protection against any legal costs or claims that may arise due to the uncovered issue after the property sale has completed. How Much Does Indemnity Insurance Cost? The cost of indemnity insurance varies depending on the type and extent of coverage needed. Typically, premiums are paid as a one-time payment and can range from several hundred pounds upwards, depending on the perceived risk and the financial limit of coverage required. Who Pays for Indemnity Insurance? In most cases, it is the seller who pays for indemnity insurance. This is because the policy relates to potential issues or defects within their property that could affect the sale process or property value if not adequately addressed. Common Types of Indemnity Insurance Restrictive Covenant Insurance: Covers breaches of restrictive covenants, which are legal restrictions on property use specified in the property deeds. Planning Permission Insurance: Protects against issues arising from alterations made without proper planning permissions or building regulation compliance. Boiler Installation Indemnity: Ensures coverage if the installation certificate for a boiler cannot be located, providing protection against safety claims. Window FENSA Certificate: Covers properties where the FENSA certificate for window installations cannot be found, protecting against enforcement actions. Chancel Repairs: Provides coverage for potential liability to contribute to church chancel repairs, a legal obligation in some properties. Absence of Easement: Covers loss of property value due to lack of legal rights (easements) for access or utilities. Insolvency Cover: Protects against financial risks if funds from a third party (e.g., for deposit assistance) become subject to creditor claims. Conclusion Indemnity insurance is an essential consideration in property transactions where potential issues could impact the sale or future ownership. Understanding the types of risks covered and the role it plays in mitigating these risks is crucial for both buyers and sellers. If your solicitor recommends indemnity insurance during your property purchase, it’s important to weigh the advice and understand the protection it provides. Stay informed about indemnity insurance and other aspects of property transactions to make informed decisions. Register for property alerts by Howards to stay updated on new listings and opportunities in your area, ensuring you’re ready to navigate the property market with confidence. By understanding indemnity insurance and its role, you can protect your interests and ensure a smoother property transaction process.

Howards-Help to Buy is a comprehensive government initiative aimed at facilitating homeownership in England. Whether you’re a first-time buyer or looking to move up the property ladder, understanding the various schemes available under Howards-Help to Buy can significantly aid your journey towards owning a home. This detailed guide provides an in-depth look at each scheme, eligibility criteria, and how they can benefit prospective homeowners. What is Howards-Help to Buy? Howards-Help to Buy encompasses a range of schemes designed to assist individuals in purchasing a property. While some schemes have closed to new applicants, others remain active, offering valuable support tailored to different stages of the homeownership process. Howards-Help to Buy ISA and Lifetime ISA The Help to Buy ISA, which closed to new applicants in 2019, allowed savers to receive a 25% government bonus on their savings towards their first home purchase. Existing account holders can continue to save until November 2029 and claim the bonus until November 2030. The Lifetime ISA replaced the Help to Buy ISA and offers similar benefits but with additional age restrictions and criteria. Shared Ownership Scheme The Shared Ownership scheme enables buyers to purchase a share (typically between 25% to 75%) of a property's value and pay rent on the remainder. This option is suitable for first-time buyers, existing shared owners looking to increase their share, or those who cannot afford to buy a property outright. Help to Build Equity Loan For individuals looking to build their own home, the Help to Build equity loan provides financial assistance covering 5%-20% of the total costs, up to a maximum of £600,000 (£400,000 for those who already own the land). In London, the loan can cover up to 40% of the costs, making it a significant support for self-build projects. New-Build Property Equity Loan Previously available until October 2022, the New-Build Property Equity Loan offered buyers up to 20% off the cost of a new build home, requiring only a 5% cash deposit. This scheme aimed to make new build properties more accessible to buyers. Right to Buy and Right to Acquire Under the Right to Buy scheme, council tenants have the opportunity to purchase their home at a discounted price. Discounts can vary based on tenure length and property type, offering significant savings for eligible tenants. Similarly, the Right to acquire scheme applies to housing association tenants, providing discounts on the purchase of their property under specific conditions. Applying for Howards-Help to Buy Applying for Howards-Help to Buy schemes involves several steps: Research and Preparation: Understand the eligibility criteria for each scheme and assess which ones align with your financial situation and homeownership goals. Seeking Guidance: Consult with estate agents and developers who specialize in properties eligible for Howards-Help to Buy schemes. They can provide insights into available properties and recommend mortgage advisors who are familiar with the application process. Application Process: Once you’ve identified a property and confirmed your eligibility, work with your chosen mortgage advisor to complete the application process. Ensure all required documents are submitted accurately and promptly to avoid delays. Completion and Ownership: Upon approval, finalize the purchase of your property and complete all necessary legal and financial transactions. Enjoy the benefits of homeownership with the support provided by Howards-Help to Buy. Conclusion Howards-Help to Buy schemes play a crucial role in making homeownership achievable for many individuals across England. Whether through financial assistance like equity loans or savings schemes like the ISA options, these initiatives cater to a wide range of home buyers’ needs. By understanding the nuances of each scheme and navigating the application process effectively, prospective homeowners can take significant steps towards securing their own property. If you’re considering buying a home and seeking financial support, exploring Howards-Help to Buy schemes is highly recommended. Stay informed about updates and changes to eligibility criteria to make the most of these beneficial opportunities. With the right information and guidance, achieving your dream of homeownership can become a reality with Howards-Help to Buy.

When you’re house hunting, you might encounter the term "maisonette." This guide aims to explore what a maisonette is and whether it could be the right choice for your next home. What exactly is a Maisonette? The term "maisonette" has varied meanings globally. Originating from French, it translates to "little house." In the UK, a maisonette refers to a self-contained two-floor apartment within a larger building. Unlike flats, maisonettes have their own staircase and entrance. They're often found in converted period homes or above shops in town centres. In Scotland, a maisonette is part of a duplex flat complex, accessed through a communal entrance. In the US, they’re often called duplexes, typically occupying the top floor of high-rise buildings, akin to penthouses. How Do Maisonettes Differ from Flats? Flats are usually stacked vertically in blocks with shared entrances and communal spaces. In contrast, maisonettes offer direct access to the outdoors from your front door. They span two levels, resembling a house layout more than a flat. Maisonettes may also include private outdoor spaces like gardens, distinct from the communal areas typical of flats. Maisonettes vs. Houses: What Sets Them Apart? While maisonettes share some similarities with houses—such as private gardens and direct outdoor access—they are generally smaller in size. Maisonettes typically offer up to two bedrooms, whereas houses can accommodate larger families with four or five bedrooms and often feature attic spaces not found in maisonettes. One significant advantage of maisonettes is their affordability compared to houses, making them an attractive option for first-time buyers. Leasehold or Freehold? Maisonettes can be leasehold or freehold properties. Leasehold maisonettes involve paying ground rent to the freeholder, with potential service charges for shared outdoor spaces. Acquiring the freehold grants ownership of the entire building, allowing the collection of ground rent from other occupants, usually in converted period buildings. Understanding these distinctions is crucial when considering maintenance responsibilities and potential costs associated with owning a maisonette. Pros and Cons of Buying a Maisonette Pros: Affordability: Maisonettes are often more affordable than houses, offering better value for money. Unique Living Spaces: Unlike flats in uniform blocks, maisonettes can be unique and offer bespoke layouts and features. Additional Storage: Maisonettes may come with useful storage spaces like garages, which are less common in apartments. Cons: Limited Expansion: Maisonettes may require planning permission for significant alterations, unlike houses with permitted development rights. Space Limitations: They offer less space compared to traditional houses, which may be restrictive for growing families. Shared Responsibilities: Owners of maisonettes may need to collaborate with neighbours for exterior maintenance and repairs. Is a Maisonette Right for You? Choosing a maisonette depends on your space needs and preferences regarding leasehold versus freehold ownership. For first-time buyers or those seeking affordability and manageable space, a maisonette could be ideal. However, larger families or those planning extensive home expansions may find traditional houses more suitable. At Howards, we’re dedicated to helping you find your perfect home. Contact us today and let us assist you on your journey to finding the right property. Explore our range of guides and resources, from buyer advice to house viewing checklists, designed to support you every step of the way.

When you purchase a property, there's crucial paperwork that establishes your ownership. Among these documents are your title or property deeds, mandated since 1990 for properties in England and Wales. This guide clarifies what property deeds are, their significance, and best practices for safekeeping. What Are Property Deeds? Property deeds are legal documents that officially record property ownership and any associated land. They are securely stored by HM Land Registry, it's necessary to register your property with them whether you've bought it, inherited it, received it as a gift, exchanged it for other property or land, or taken out a mortgage. Upon initial registration with the Land Registry, a scanned copy of the original title deeds is retained and returned to the submitting party, typically a solicitor or conveyancer. Regional Variations in the UK HM Land Registry exclusively manages land and property records in England and Wales. Residents of Scotland or Northern Ireland should refer to their respective land registers for property transactions. What Do Property Deeds Look Like? Property deeds aren't typically physical documents unless they are the original copies. Instead, they are maintained electronically and updated with each change of ownership, akin to an ongoing ownership log. Unless your property has never been registered before, it's unlikely you possess the original deeds. You can verify registration status by searching the Land Registry. Upon property purchase, your solicitor should furnish you with a copy of the 'registered title,' ideally within a month of completion, although delays may occur. Land Registry Fees Land Registry fees vary based on transaction type, such as first registrations versus transfers of property shares. Your solicitor will provide detailed fee information specific to your property. For complete fee schedules, visit gov.uk. Do You Need Deeds to Sell Your House? If your property is registered with the Land Registry, original deeds are unnecessary to confirm ownership and complete a sale. The Land Registry maintains the official record of ownership for land and property in England and Wales, providing all necessary information for property transactions. However, retaining a copy of your deeds is advisable, as they can offer additional insights into legal boundaries and history. Safekeeping Your Property Deeds Since copies of property deeds are stored digitally by HM Land Registry, it's improbable they'll be misplaced. Nonetheless, if your property isn't registered, safeguarding the original deeds is crucial, as the responsibility lies with the seller to produce them. Keep your own copy of property deeds along with other essential documents at home. Ensure they are stored securely in a folder or filing cabinet to maintain their safety and organization. What If You Lose Your Property Deeds? With digital registration at HM Land Registry, the likelihood of losing property deeds is minimal. However, for unregistered properties, preserving the original deeds is essential. If you can't locate proof of ownership, contact the solicitor who handled your property transaction to submit a deeds request form to HM Land Registry. A nominal fee is applicable for this service. If the original deeds cannot be found, you must provide alternative evidence of ownership status. Considering a Property Purchase? At Howards, our commitment is to facilitate your move smoothly. Our Buying Process guide outlines the steps, responsibilities, and tips to streamline your experience.

When purchasing a property, it's crucial to be aware of property covenants, as they can significantly impact your plans. Breaching a covenant can lead to substantial financial consequences, so understanding these legal obligations is essential. What is a Covenant? A covenant is a legal obligation contained within the title deeds of a property that a new owner must adhere to. Typically, covenants apply indefinitely, meaning they affect all future owners of the property, therefore, it's important for buyers to identify any covenants associated with a property they are considering. Types of Covenants There are two primary types of covenants: positive and restrictive. Positive Covenants Positive covenants require property owners to perform specific actions or contribute financially to certain aspects within the property boundaries. Legally known as "burdens," these obligations often involve maintenance or shared responsibilities. Positive covenants usually involve two parties, with one party benefiting from the covenant. Restrictive Covenants More common than positive covenants, restrictive covenants impose limitations on what property owners can do within their property boundaries. These covenants often prohibit specific activities or alterations, such as construction work. Like positive covenants, there is typically a party that benefits from and enforces the restrictive covenant. Common Examples of Covenants Restrictive Covenants: Prohibiting property alterations, such as building extensions or converting a house into flats. Restricting the construction of buildings or other substantial structures on certain parts of the land. Banning the operation of trades or businesses on the property. Prohibiting the keeping of livestock. Positive Covenants: Maintaining a fence or shared driveway. Repairing a shared roof. Why Are Covenants Needed? Covenants provide landowners with control over how the land they sell is used and its appearance. Often, covenants are established during the initial sale of land, possibly from a Greenfield site to a residential development. The seller might insert a restrictive covenant to maintain the area's residential nature or ensure that any building alterations align with the area's character. Sign up today to be among the first to know about property for sale in your area. Consequences of Breaching a Covenant Breaching a covenant can have serious repercussions. Depending on the covenant, you might have to undo extensive projects, such as extensions, if they are not permitted. Legal action or financial penalties can also result from covenant breaches. Therefore, it is imperative to thoroughly understand your property deeds before making any significant changes. Modifying or Removing Covenants If a covenant on your property deeds seems unreasonable, you can apply to the Lands Chamber of the Upper Tribunal to have it modified or discharged. However, this process can be costly and time-consuming, additionally you may need to compensate the party benefiting from the covenant and cover legal fees. Frequently Asked Questions How to Find Covenants on Property: When purchasing a property, request your conveyancer to examine the title deeds thoroughly for any covenants. Once you sign the deeds, these covenants become your responsibility, breaching a covenant, even unknowingly can lead to liability. Should I Buy a House with a Restrictive Covenant? The decision depends on the specific restrictive covenant. If the covenant does not hinder your plans, such as not intending to make prohibited alterations, it might not affect your decision. However, if you plan to utilize significant land attached to the property for building, ensure there are no restrictive covenants. Are Covenants Legally Binding? Properly established covenants are legally enforceable. It's important to check if a covenant "runs with the land," meaning it applies to all future owners, or if it was only enforceable on the first owner. How Long Does a Covenant Last on a Property? Covenants typically last indefinitely, even if a covenant dates back to the 19th century or earlier, it retains its legal status. Nonetheless, some very old covenants might be considered unenforceable due to their archaic nature or irrelevance due to subsequent developments. What Does a Deed of Covenant Mean? A deed of covenant is a legal document where the party burdened with a covenant agrees to fulfil the covenant's obligations. Contact Howards for Assistance with Your Property Search If you're interested in purchasing a property, reach out to your local Howards branch for expert assistance and guidance. Being informed about property covenants ensures that you make well-informed decisions and avoid potential legal and financial pitfalls. Whether it's maintaining a shared space or adhering to restrictions, understanding these obligations is crucial for any property owner.

When you hear about properties with both a leasehold and a freehold, you might come across the term "share of freehold." Understanding what this means can be crucial if you're considering buying such a property. Essentially, acquiring a share of freehold means you gain shared ownership of the building's freehold title. What Does Share of Freehold Mean Purchasing a property with a share of freehold implies that you own the leasehold for your specific property, and a share of the freehold for the land and the building. This concept is most commonly associated with the purchase of flats. In such cases, the flat owners possess the leasehold for their individual flats and collectively own the freehold for the entire building and the land it stands on. This collective ownership can be managed in two ways: Through joint management or a management company, regardless of the method, you’ll still hold a share of the freehold for the property. Limited Company Share of Freehold One common method of managing a share of freehold, particularly when there are more than four freeholders, is to create a private limited company. In this scenario, the company is registered as the building's freehold owner, while you and the other co-owners are registered as shareholders and directors of the company. Using this method means you'll need to navigate company law procedures as part of your homeownership responsibilities. Sometimes, it might be preferable to appoint one occupant as the company director, with the others remaining as shareholders. Sign up today to be among the first to know about property for sale in your area. Share of Freehold in Personal Names Often referred to as "tenants in common," this approach means that each person holds an equal percentage of the freehold. For example, four share of freehold owners would each hold 25% of the freehold. This method operates based on trust, which can be risky, but it generally involves fewer administrative fees than a limited company. Each owner is equally invested in the property, which can make this method suitable in certain situations. Is Share of Freehold the Same as Leasehold The primary difference between a leasehold and a share of freehold lies in ownership and obligations. With a leasehold, you own the lease of your property for a specified period (often decades or centuries) and pay ground rent to the freeholder, who owns the building and the land it stands on. In contrast, owning a share of freehold means you have a stake in the building's freehold along with the leasehold for your individual property. The Pros and Cons of Share of Freehold Owning a share of freehold comes with both benefits and potential drawbacks. Here’s a closer look at what you can expect. Share of Freehold Benefits Control over Property Maintenance: With a share of freehold, you and your fellow freeholders have a direct say in the upkeep and management of the building. This often results in a higher standard of property maintenance. Lower or No Ground Rent: Typically, there are lower or no ground rent costs involved. Lease Extension: You have the ability to extend your lease up to 999 years at no extra cost, which can prevent the devaluation of your property associated with shorter leases. Lower Service Charges: Since the management company is internal (comprised of you and your co-freeholders), service charges are generally lower. Problems with Share of Freehold Variable Service Charges: While some months may have minimal maintenance costs, there can be times when significant repairs are needed, leading to higher charges. Time-Consuming Administration: Managing the building’s affairs can be time-consuming and, if handled incorrectly, costly to rectify. Insurance Costs: Obtaining home insurance might be more complex and expensive. Rental Restrictions: Renting out your property can be difficult if your neighbours are opposed or if your lease has restrictive terms. Share of Freehold Extension While owning a share of freehold allows for lease extension without paying a premium, all freeholders must agree to the proposed extension. Their cooperation is crucial for the transaction. Even though co-freeholders do not have to extend their leases simultaneously, collective lease extension can lead to modernised and updated lease terms. Service Charges and Ground Rent Even with a share of freehold, you’ll still need to pay ground rent and service charges unless otherwise specified. However, because you co-own the freehold, it’s less likely you’ll face excessive or unfair charges. Transferring Share of Freehold When selling your leasehold property, you can transfer your share of the building’s freehold. This involves using a formal deed to transfer ownership from you and your co-shareholders to the new property owner and your co-shareholders. Getting a Mortgage on a Share of Freehold Property Securing a mortgage for a share of freehold property is possible, although some lenders may view the associated costs as a potential risk. Nonetheless, many lenders are willing to provide mortgages under these conditions, here are some tips to improve your chances: Long Lease: Choose a flat with a long remaining lease, as this positively impacts the property’s value. Management Company: Ensure a management company is in place in the property you’re considering. Higher Deposit: Be prepared for a higher deposit or interest rate, as only certain lenders might offer a mortgage for share of freehold properties. Let Us Help You with Your Next Move If you're thinking about purchasing a property with a share of freehold, Howards, is here to assist. 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