Seven steps to buying your home

When you purchase an affordable home, it is important that you make informed decisions so that you can enjoy long term sustainable home ownership.

There are seven steps to the conveyancing process which starts when you have had written confirmation and clear instructions from the housing association to proceed with the purchase of a property. But first, a word of caution - please do not make an offer on a property, confirm a mortgage offer, or part with any money before the housing association confirms to you clearly and in writing that you are eligible to proceed.

Before you get started you should take independent mortgage advice and get a clear idea of the costs involved and how much you can afford.  We offer a short list of independent mortgage advisors to help you with mortgage matters.

It is your own choice if you wish to accept mortgage advice from one of these advisors.  We accept no liability for their performance or their actions.

List of independent mortgage advisors:

You will also need to appoint a solicitor to act on your behalf.
We have listed some solicitors below.  These solicitors will explain the legal process to you at each important step. They are experienced in all the legal matters associated with HomeBuy - this makes a big difference to how smoothly your purchase proceeds.  Most of the dealings with your solicitor will be carried out over the phone, by post, or by e-mail; it isn’t usually necessary to visit or meet your solicitor in person unless you want to.

Please note that we can accept no liability for the performance or actions of any of these solicitors.

The Parry Sharratt Partnership
31 Watling Street, Canterbury, Kent, CT1 2UD
Tel: 01227 812715
Email:  HAenquiries@psp-law.co.uk

Lamberts solicitors
1 The Shambles, Dorset Street, Sevenoaks, Kent, TN13 1LL
Tel: 01732 460565
Email: jgb@lambertsolicitors.co.uk

Fosters solicitors
28 Cavendish Street, Ramsgate, Kent, CT11 9AL
Tel: 01843 851185
Email: andrew.theoff@fosters-law.co.uk

Bankside Property
Thames House, 58 Southwark Bridge Road, London SE1 0AS
Tel: 020 7654 7500
Email: sheila.glen@banksidelaw.net

Mayo & Perkins
6 Clanricarde Gardens, Tunbridge Wells, Kent, TN1 1PH
Tel: 01892 557030
Email:  abb@mayoandperkins.co.uk

We suggest that you contact one of the above solicitors – tell them that you are purchasing a property through HomeBuy.

These solicitors are instructed to progress sales as quickly as possible so that you can move into your new home as soon as possible without unnecessary delays.  If you are buying a brand new home, most housing associations aim for a period of six weeks from the date you reserve the property to the date of completion. When the process runs smoothly, you can move in soon after that!

Step 1: Getting started

Your solicitor will contact the seller’s solicitor and ask for information such as:

• Property information form – a questionnaire giving details of boundaries etc

• Details of fixtures, fittings and contents telling you what is and is not included in the sale e.g. carpets, white goods etc.

• Title deeds – showing that the person selling the property owns it and advises of any rights or obligations that affect the property eg a lease

• Contract – this is drawn up by the seller's solicitor. It sets out the terms of the proposed agreement including names and the price.

Step 2: Searches

Your solicitor will carry out a number of searches. The local authority search outlines proposed changes to the local area and whether any planning applications have been made on the property. If the property is in a mining area, then the solicitor will also carry out a mining search. There are also environmental and drains searches.

Step 3: Survey

Your mortgage lender will have instructed a survey/valuation of the house. At this point you should ask your mortgage lender to arrange a homebuyer’s report, if applicable.

You need to agree the contract based on the searches and surveys you have carried out.

Step 4: Mortgage offer

If you are buying with a mortgage, you need to get the mortgage offer on the specific property from the lender (not just an “agreement in principle”). Once you have received the offer, send your housing association a copy so that it can be approved by them.

Step 5: Exchange of contracts

You are now ready to agree an exchange of contracts and a completion date (the date when the property becomes yours). At exchange of contracts you will need to put down a deposit, if appropriate. If you withdraw from the sale, the deposit is not refundable. The minute you exchange contracts, the sale is set in stone – you must buy it at the price stated and the seller must sell.

Step 6: Completion

Your solicitor now draws up a purchase deed and sends it to the seller’s solicitor and requests the mortgage funds from your lender. They will also conduct a final search at the Land Registry.

If there is any outstanding balance, you will need to pay this to your solicitor at this time. This includes:

• Stamp Duty, a government tax levied on the purchase price of all properties above £120,000. On shared ownership purchases, buyers have two options regarding payment – ask your solicitor to explain these to you. If you buy under a HomeBuy scheme, you must pay stamp duty based on the full cost of the property.

• If you purchase the property under a shared ownership scheme, you will need to pay rent in advance to your housing association. This will include rent for the remainder of the month in which you complete plus one month’s rent in advance. Your direct debit payment will then commence on the first day of the following month.

You will also need to make arrangements for a removals van, contact the local authority to register for payment of council tax, contact the utility companies to arrange for connection of gas, electricity and telephone supplies, get your mail re-directed, etc.

Step 7: Moving day

Your solicitor hands over to the seller’s solicitor the remainder of the purchase money (buying price less the deposit) and in return your solicitor receives:

• The stamped transfer document, which shows that the home is now transferred to you. This is sent to the Land Registry.

• The title deeds, which are proof that you own the property. These are forwarded to your lender if you have a mortgage. If you don’t have a mortgage, you must keep the deeds in a safe place such as your bank.

Congratulations! You can now collect your keys and move in!

Please be aware that the market value of properties can go down as well as up.

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.