First time buyer questions answered
15th September 2022 by John Munro
If you are planning on buying your first home, you probably have many questions. The process can be confusing and it is important to fully understand what you are taking on when you make such a major investment. We answer some of the most commonly asked questions of first-time buyers.
How do I know which is the right property for me?
The choice of property can be overwhelming, so it is helpful to make a list of what you want before you start looking. Focus on major points to start with, such as whether you want a property that you can renovate or whether you’d rather have somewhere that is in good condition with modern fixtures such as electrical car charging ports and solar panels.
If you choose a fixer-upper, make sure that you look into the likely costs before calculating your budget. Checkatrade suggests that the average price of renovating a three-bedroom home is between £38,000 and £74,000.
The area may be important to you, particularly if you have children and you want to be close to parks and good schools.
Try not to narrow down your choices too much early on however, or you may struggle to find the right property, particularly in a competitive market, where compromises may have to be made.
Do I need a survey?
You are always strongly advised to have a survey carried out when you buy a property. It is a major investment and you need to know exactly what you are taking on. There are different levels of survey suitable for properties of different age and condition. A Royal Institute of Chartered Surveyors (RICS) level 1 survey might be enough for a modern home in good condition, while a level 2 survey is advisable for a property older than 50 years or where you may wish to do some work or there appear to be areas of concern.
If you intend to renovate your home or it is large, old or unusual in design, you should consider an in-depth level 3 survey.
When should I apply for a mortgage?
It is important to apply for a mortgage before you find a property to buy wherever possible. This will allow the lender to carry out the necessary checks in plenty of time and they will be able to issue you with a mortgage decision in principle. This will demonstrate to the sellers that you are serious and ready to proceed. It can also save considerable time once the conveyancing transaction gets under way.
How much can I borrow?
You may be able to borrow up to 95% of the value of the property, depending on your chosen lender and the amount you will realistically be able to pay back each month. When calculating how much you can borrow, remember that mortgage payments could go up substantially if interest rates rise. Banks lend up to four times annual salary, but it is advisable not to stretch yourself too far.
When is the best time to buy?
If you can wait until you have a reasonable deposit to put down, you may be able to secure a more favourable mortgage rate. Once you feel you are ready, then you can look at the market and gauge whether the time is right. For example, are you able to comfortably afford a property in your favoured area or would you have to compromise and live somewhere cheaper? If so, maybe you would prefer to wait and save more.
When should I instruct a solicitor?
You can speak to a solicitor once you start looking for a property to buy and they will be able to start carrying out the initial identity checks and opening a file on your behalf. They will let you know what they need from you and you can provide this in readiness so that once you have a property to buy, they will be able to start work quickly.
If you would like to speak to any of our property team about buying your first property, or any other queries relating to buying or selling a property, please contact Kelly Howe on k.howe@laceyssolicitors.co.uk or 01202 377800.
John Munro
Partner — Commercial and Residential Property
Direct dial: 01202 377839
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“John Munro was friendly and very approachable, advising me with a clear depth of knowledge and experience. I have since recommended him and will do so if asked in the future.”
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“Having dealt with Laceys on many a sale and purchase I’ve always found them to be efficient, knowledgeable and attentive. I wouldn’t hesitate in recommending them to family, friends and clients.”
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“We have always been very happy with the service provided by Laceys Solicitors, in both our business legal requirements and domestic property conveyancing.”
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“You are our solicitor Superhero! Very grateful. ”
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“Changing solicitors is not to be undertaken lightly. However really impressed with the way that John Munro and his associates have dealt with us over the last couple of years in a variety of complex property related transactions and on the commercial and personal front as well. We look forward to working with them going forward.”
John joined Laceys in 2001 on a training contract, having completed a Post Graduate Diploma in Law in 2000, and qualified as a solicitor in 2003. He is now the Head of the Commercial and Residential Property Departments.
He is also the firm’s Senior Responsible Officer under the Law Society Conveyancing Quality Scheme (CQS) with overall responsibility for the management of the property team and their delivery of the excellent service that our clients have come to expect.
John acts in his own capacity for a number of commercial property owners, developers and investors, but also allocates time to ensure his team are up to speed with changing law and professional regulations and clients are provided with members of the team who possess the right skills to deal with their individual requirements, delivering projects in the most time and cost-efficient manner.
Outside of work John seems to spend a great deal of time ferrying his children around but occasionally gets to put his feet up and listen to his eclectic collection of vinyl. He is also not averse to a good cheeseboard and a glass of IPA.
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