Christopher Harris is a Trainee Solicitor at Delaney Graham and has recently been through the process first-hand.
Buying property is stressful. Buying for the first time can seem overwhelming. However, with the right solicitor, the process can end up being far smoother than imagined.
Last year, I was lucky enough to buy my first property whilst also having the privilege of helping other first-time buyers to do the same. These experiences brought with them invaluable lessons about buying as both a solicitor and buyer, especially the unique experiences of a first purchase:
Your first mortgage
Getting a mortgage can seem like a daunting prospect, especially if you’ve never taken out a loan or had other regular payment schemes set up. However, in most cases you will be able to work with a mortgage broker or advisor who can help. The most important consideration, in my view, when setting out your mortgage position is this: how much will you reasonably be able to pay back monthly, given the cost of food, bills, household expenses and comforts.
Funding your purchase
As a first-time buyer, you won’t have the financial boost of selling a property and using the proceeds. Instead, your own funding may include savings from regular income such as wages, or gifted funds from a family member. It’s important to ensure you have documentation for this, as your solicitor will ask to see it, as might your mortgage broker or lender. However, don’t be concerned – your bank will have most of what you need, either from a branch, or digital or online banking.
The Missives
The missives are the documents, exchanged between your solicitor and the seller’s solicitors, which constitute the contract of your purchase. This begins with your offer, which is then accepted by the seller with some conditions – each solicitor then submits further letters to each other altering these conditions, until terms are reached which satisfy all parties. At this point, the missives are concluded. Missives need to be concluded before you can move in, and you will need to have all of your funding, including a mortgage offer, in place before this. It is a common misconception that you will need to sign the missives personally – in Scotland, your solicitor will sign these on your behalf!
Behind-The-Scenes
Your solicitor will carry out lots of work behind the scenes in addition to the missives. Part of this will relate to the missives – for instance, analysing your title deeds, home report and other relevant documents to determine which points must be covered in the missives. Other work will address different aspects of purchasing – for instance, completing a tax return for relevant taxes, or checking the source of your funds. This all means that, when the missives are concluded, everything should be ready for the transaction to go through.
There are also of course, more practical matters you will need to consider when buying, such as:
Budget Realism
Remember that there will be other costs involved beyond just your deposit that you will need to consider! Solicitor fees, mortgage broker fees, and potentially higher first-month mortgage payments are among costs that people can fail to consider when buying, not to mention having to arrange insurance. The first month or two after moving can be more expensive than most, given the need to sort these matters out. Be sure to check, when arranging your funding, that you’ve accounted for these costs (plus, of course, general living costs such as bills and food) and, if you’re getting a mortgage, be sure to check that you’ll have sufficient funds after your deposit to cover these things.
Most conveyancing solicitors do not deal with litigation. Therefore, if it is worth pursuing, buyers can raise their own Small Claim in the local Sheriff Court although we are always happy to refer clients to an appropriate litigation solicitor.
Moving Times
Consider how much time you want to give yourself to move – will you want to move everything in one day, or would you prefer to stretch this out over a slightly longer period? This is worth considering in light of your existing living situation – if you’re living with family, discuss your timescales. If you’re renting, consider what day you will notify your landlord of – it may well be worth giving yourself a few days of wiggle room!
Chains
Just because you don’t have a property to sell, doesn’t mean your seller won’t have somewhere they need to buy – for most sellers who are moving home, they will want to buy and sell on the same day, which will impact your moving date.
Don’t forget that this is an incredibly exciting new chapter, and that however concerned you may feel, there are people on hand to help to ensure that this huge step is one you will look back on proudly!
