Yesterday I promised to post information and advice for the first time buyer in the UK Property Market
Well today has almost finished and here I am writing when everyone else is thinking of going home
It appears to me that generally the first time buyer is the most uninformed of all people involved in the property market and therefore the most likely to be open to all kinds of pressures from so called property experts who have little or no experience in the marketplace . The result of this is that they are prone to all the stress that this type of transaction can bring.
Typically the first time buyer is purchasing leasehold property that is full of pitfalls for the unwary . It is also one of the most complicated forms of property purchase because invariably not all of the documentation is in one place and rarely will it be contained in the HIP (Home Information Pack) that is provided by the seller of the property. It is my experience that a higher than average proportion of these type of transactions fall through either because of lack of information or defective leases.
So having said all this what is the best time for the buyer to instruct a property lawyer?
It is usually best to discuss the proposed transaction with a lawyer before becoming involved in any negotiations for the purchase as advice can then be given as to cost ,projected timescales and most importantly of all assistance with the negotiations. The earlier you instruct the easier you will find the process as only your lawyer has your best interests at heart.
In the present property market there is a degree of uncertainty both as regards whether the property values will continue to fall and also whether the first time buyer can borrow sufficient to proceed with the purchase. It is my belief that now is a good time to buy as what you pay in rent can be used instead on a mortgage however because property values can fall as well as increase the purchase has to be viewed long term and on the basis that it is a home for you to live in . Lenders have varying criteria but certainly at the moment first time buyers must have a minimum of a 10% deposit in order to be able to proceed.
Tomorrow I will answer a few questions as to how long will it take and what happens if you do not complete on the purchase