Timeline for purchases of new builds and existing properties

Article reviewed: 2013/01/20 | Next review due: 2014/08/08

New Builds

Day 1 - Agree purchase price

  • Make sure you have at least an agreement in principle for a mortgage that you need for the price

Week 1

  • Pay £1,000 reservation fee to reserve the plot, ensuring no one else can put an offer on for it.
  • Instruct Conveyancers
  • If you do not already have an Offer Letter from your mortgage provider, begin working on your agreement in principle with the mortgage provider to turn it into a formal Offer Letter.

Between 2 weeks - 6 months

  • Conveyancing searches returned, deeds finalized, contracts signed. (most exchange within 2 months)
  • Before exchanging contracts, you will have to provide your conveyancor with the DEPOSIT money for the property. This is usually 10% of the agreed sale price and is held my the solicitors of the developers until completion.
  • Exchange of Contracts. You are now legally bound to buy the property.

After Exchange of Contracts

  • Nothing then happens until the property is finished and ready to move in.
  • Once the property is finished, they will contact you and advise that they are ready for Completion.
  • New build property finished
  • You pay the remaining 90% of the agreed sale price in conjunction with your mortgage funds.
  • Any conveyancors fees, Stamp Duty etc are also paid to the conveyancor upon completion.
  • You now own the property!

Existing Properties

Day 1

  • Agree purchase price.
  •  Make sure you have at least an agreement in principle for a mortgage that you need for the price.

Week 1

  • Instruct Conveyancers
  • If you do not already have an Offer Letter from your mortgage provider, begin working on your agreement in principle with the mortgage provider to turn it into a formal Offer Letter.

Between 2 weeks - 6 months

  • Conveyancing searches returned, deeds finalized, contracts signed.
  • Exchange of Contracts (most exchange within 2 months).
  • You are now legally bound to buy the property.

After Exchange of Contracts

  • Completion. This is completion of the sale.
  • The buy provides their deposit money and draws all the funds on their mortgage to pay the full amount of the property to the sellers.
  • Any conveyancors fees, Stamp Duty etc are also paid to the conveyancor upon completion.
  • You now own the property!

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