LATEST TWEETS
Top tips for first-time buyers
Top tips for first-time buyers
The number of first-time buyers is at its highest for ten years, accounting for 51 per cent of the market despite rising prices and record deposits according to the Halifax. If you are thinking about taking that first step onto the property ladder, the legal aspects of ownership may be the last thing on your mind. However, taking a little time to think about these issues will help make sure your hard-earned money goes as far as possible. Claire Wicks, Legal Executive with the Residential Property team at Parnalls Solicitors in Launceston, shares some tips to ensure buying your new home runs smoothly.
Work out what you can afford
Buying a house or flat will probably be the biggest financial commitment of your life, and it pays to budget carefully.
Work out the overall cost of buying a property before making an offer. Include all your incidental expenses, such as stamp duty land tax (SDLT), surveys and legal fees. If you are taking out a mortgage, you also need to be confident that you can meet the monthly repayments. If you fail to meet them you risk losing your home, so it is essential that you investigate fully the affordability of any intended purchase. There are several online resources that allow you to do this such as the Money Advice Service, an independent body set up by the government to help people plan and manage their money.
Find the right mortgage for you
Few of us are fortunate enough to be able to buy a house outright and you will probably be looking to borrow some of the cost. Conventional lenders like banks and building societies will expect you to save a deposit of between five and twenty per cent. There are a wide range of mortgages on the market, and it is a good idea to get some independent financial advice on what is best for you.
Consider different sources of funding
You may also want to investigate other sources of funding. For example, parents or other family members may offer to contribute through a gift or loan. However, this type of assistance needs careful consideration and any arrangement should be documented to ensure there are no misunderstandings later. The tax and other legal implications need to be fully explored with your lawyers.
There are also some government-backed schemes aimed at helping first-time buyers, such as Help to Buy and the Starter Home Scheme. You can find out more here
Another idea is to pool resources with a partner or friend, which could allow you to afford a home that would otherwise be too costly. However, co-ownership can give rise to problems if the basis of your ownership is not addressed at the time of purchase. Your laywer can help by making sure the transfer deed correctly reflects your intentions. This is the document which transfers ownership from the seller to the buyer.
Agree the basis of co-ownership
If you buy a property with another person, you need to agree whether you will be ‘joint tenants’ or ‘tenants in common’.
Joint tenants have equal rights to the whole property, whereas tenants in common own separate and distinct shares. If you are a joint tenant, when you die your surviving co-owner(s) will automatically own the whole of the property. In contrast, if you are a tenant in common, your share will pass to someone of your choice via your will or according to the rules of intestacy if you die without one.
If you are contributing in unequal shares and wish to avoid disputes in the future, it is worth investing in a declaration of trust. This can set out how you want to split the net sale proceeds when you sell the property, and what should happen if one of you wants to end the arrangement.Deciding how you will own your new home should form part of your overall financial planning as it could have a major impact on how much tax your estate pays in the event of your death. Equally, you may want to ensure that your partner does not have to worry about keeping their home should you die before them. So, now could also be a good time to make or review your wills.
Check whether the property is freehold or leasehold
Any property will be either freehold or leasehold, and it is a good idea to clarify this at the outset.
With a freehold, you own the property and the land it sits on outright. In contrast, a leasehold gives you the right to occupy the property for a set number of years. With a leasehold property, somebody else owns the freehold which means you will have a landlord. You will have to pay them ground rent and possibly a service charge to cover insurance and the upkeep of common parts. These can add considerably to the ongoing costs of ownership and you will need to factor them into your budget. A lease is also likely to include restrictions on how you use the property. For example, you may not be allowed to keep pets, or you may need the landlord’s permission to make alterations. If you are interested in a leasehold property, it is important to be aware of any additional charges or matters that could affect your use of it. An experienced conveyancing solicitor can explain the lease terms to you and help you avoid potentially expensive pitfalls.
For advice on buying your first home, or buying or selling a property, please contact Claire Wicks, on 01566 772375 or email wicksc@www.parnalls.com
The contents of this article are for the purposes of general awareness only. They do not purport to constitute legal or professional advice. The law may have changed since this article was published. Readers should not act on the basis of the information included and should take appropriate professional advice upon their own particular circumstances.
Tags
Categories
MORE NEWS
Valuing an estate for probate
Do I need a cohabitation agreement?
Have you had an accident involving a horse?
Planning, Construction & Development
Preparing to sell your Launceston property
The Need for Updating Wills
Debt recovery and how we can help
Claiming compensation for a serious road traffic accident
Planning Disputes
Residential Sale and Purchases
Information to gather for your probate solicitor
Accidents, Compensation & Personal Injury
Property Disputes
What type of will do I need?
Had an Accident in Someone's Home?
Ten common debt recovery mistakes
How to choose an executor to administer your estate when you die
The ultimate personal injury and accident claim checklist
BREAK-UP ADVICE
Putting your legal affairs in order
Your responsibilities when you have people working in your home
10 reasons to appoint a Personal Injury solicitor
The risks of DIY probate
Does your lawyer progress your accident claim efficiently and provide you with a personal and professional service? Can I change solicitors for my accident claim?
Why you should always use a solicitor to prepare your will
Five problems with a leasehold property
Making a will when you retire
Employment Disputes
Buying your first home with a small deposit
Site assembly for commercial development
Meeting your conveyancing solicitor, what you need to prepare
Landlords’ options for enforcing commercial tenants’ obligations
Untangling Overseas Assets
KATHERINE FLASHMAN KITSON CELEBRATING 25 YEARS AS A DIRECTOR OF PARNALLS
Do you know the difference between…
When to consider appointing a professional attorney
Should I get a cohabitation agreement?
The Right to Make Noise
Ill-health pension transfer not liable for IHT
Legal Time Limits - why so important?
Would you pay a premium for a south-facing garden?
Video-witnessed wills to be made legal
New Planning Relaxation Is Not the Whole Storey
How to minimise delays in obtaining Grant of Probate
Could you benefit from the Green Homes Grant?
A SHOCK TO THE SYSTEM: new electrical safety regulations for residential tenancies
Property of Cornish residents who die without a will goes to Prince Charles
What effect could the new changes to stamp duty have on property sales?
Staying safer in video meetings
Making Sure Your Great New Home Comes With Clean Air
Property Market Re-Opens in England
Coronavirus: Wills and Powers of Attorney FAQ
Medical Care Received Not Up to Scratch?
Accident or Injury Involving a Dog?
Social Distancing No Obstacle for Parnall's Mobile Document Signing Team
Coronavirus (COVID-19) and Commercial Property Legal FAQs
Rent Charge Suspensions: Protecting Your Interests
Been Asked to Sign an Employment Settlement Agreement? Seek Advice Urgently...
Services Update: Continuity of Legal Service Provision
Advising You in Uncertain Times
Coronavirus Update
Could carelessness on social media land you in court?
Is an electronic signature on a commercial property document acceptable?
What happens when there is no health & care LPA in place
Social Media Training for Businesses
Gazundering, what it is and how to avoid it
Relief from forfeiture – what happens if the tenant forgets to pay the rent?
Not so safe at work - compensation for an accident at work
New organ donation law: giving you control
Running a business from home
Have nude photos of you or your teenager been posted online?
Landowners’ rights and the Electronic Communications Code
Building in your back garden
Christmas is a time for giving (and inheritance planning)
Buying the freehold of your leasehold house
Redeveloping an empty pub for commercial use
Why it takes time to obtain the Grant of Probate
Social Media: The unconscious privacy threat
Is your reputation being threatened?
Making a will after your spouse or partner has died
Interns celebrate completion of internship at solicitors
Selling your home in a flat market, some top tips
New Media and Communications Court list reflects surge in internet defamation claims by Laura Baglow
Has your personal information been shared without your permission?
Planning your escape to the country, what you need to consider – part 2
Government consultation on new national model for shared ownership
Choosing a partnership structure
Planning for what happens when you die by Deborah Adams
Changes to legislation could offer protection for tenants in the private rental sector
Move to the country - Part One
Will your septic tank still be legal in January?
The death knell for ‘kiss and tell’?
Selling your property at auction
Not looking so good - your guide to compensation for botched non-surgical cosmetic procedures
New threshold of seriousness in defamation proceedings
Legal considerations when building a granny annex
Choosing the right person for your power of attorney
Formal Interviews - Do you need legal representation?
Privacy rights and aerial images
Trustees’ duty to give information to beneficiaries
Taking your first commercial lease
Is your organisation protected from employee social media legal risk?
Have you been targeted by negative social media posts?
Farmers be alert when being inspected
Help for House Sellers?
Don’t let your digital assets end up in a digital grave
Development proposals and your local authority search
What can you do if your child is injured in a serious accident
NetRights welcomes new protection for social media users
SHOULD I GET A LAWYER FOR A SPEEDING OFFENCE?
Supreme Court recognises that social media is a “casual medium” in libel battle
Choosing the best conveyancer who is right for you
Making a will after a second or subsequent marriage
Option or promotion agreement – which is best for landowners?
Anonymous pub and restaurant online reviews leave a bad taste
Help to Buy – beware of some cracks in the structure
Understanding Lasting Powers of Attorney
Changes to Energy Performance Certificate for Landlords
Had a cycling accident? Your route to obtaining compensation
New year, new home: tips to sell your home in the New Year
Tax Planning for your inheritance
Hearing loss: when your employer may be liable
Buying a home for your retirement, five things you need to consider
Farmers plan to diversify after Brexit
Ministers press ahead with probate fee shake-up - reports BBC News
Botched dental treatment? You may be entitled to compensation
Why a Health and Welfare Power of Attorney is a good idea
Will the new charge on building developments in Cornwall affect you?
Energy Performance Certificates – Do They Matter?
HMRC Challenging Stamp Duty Land Tax Payments
Ben Mitchell qualifies as a solicitor
The potential implications of Brexit on employment law
Appointing a guardian for your children
Houses in multiple occupation – new rules from October 2018
New Agriculture Bill published
Will Brexit affect my pension?
Dreaming of a holiday home? Sort out the legals before putting your feet up
Lasting Power of Attorney by Deborah Adams
Settled status after Brexit by Alexis Hager
How overage agreements can boost profits from your land
Top tips for first-time buyers
How Could Brexit Affect My Farm?
Wills & Succession in Spain by Deborah Adams
Brexit – an international and local view by Alexis Hager, Litigation
Capital gains tax - important facts for non-residents of the UK
Buying a home: the importance of making sure the seller is entitled to sell
Changing a will after someone has died: it is possible and it could save you money
Sad passing of Battle of Britain pilot who served with Parnall family member
Considerations when buying a heritage property
Disciplinary proceedings at work: guide for employers
Employers should have a disciplinary process in place, but just following this may not be enough to avoid falling foul of the law and exposing yourself to the risk of an employment tribunal claim.