Buying a home

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1. Overview

Buying a home takes about 5 months on average. The process can take longer if you鈥檙e part of a chain of buyers and sellers.

If you鈥檙e also selling a home, read the guide to selling your home.

This guide is for England and Wales. There are different rules for and .

To buy a home, you鈥檒l need to:

An offer is not legally binding until contracts are exchanged.聽

You may be able to get financial help from the government through an affordable home ownership scheme.

If you鈥檙e buying property with someone else

You can own a home with up to 3 other people. Find out more about the different types of joint property ownership.

Protecting yourself from fraud

There鈥檚 a risk of fraud when buying a home as this involves transferring large sums of money. It鈥檚 important to check that you:

  • are speaking to or emailing the person or business you think it is
  • transfer money to the correct bank account/s聽
  • do not reveal too much personal information on social media

You can also speak to a legal professional for help and advice about property fraud.

2. Preparing to buy

When you decide you want to buy a home, you may need to get a mortgage to buy it. If so, you need to work out how much you can afford to borrow.聽

When deciding how much to lend you, a mortgage lender will consider:

  • the total amount you can borrow
  • whether a deposit is needed
  • how affordable your monthly mortgage payments will be

How your mortgage affordability will be worked out

The mortgage affordability assessment will take into account:

  • your income
  • your current outgoings, for example, utility bills, insurance and Council Tax

It will also consider any changes that might affect whether you would be able to afford repayments (for example if interest rates change, or if you were made redundant).

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Additional costs

Other costs you may need to consider when buying a home include:

Property running costs

There will be extra costs to run your home when you buy it. For example:

  • Council Tax
  • cost of heating the property
  • other bills such as water and broadband

If you鈥檙e buying a leasehold property

You may also have to pay:

  • services charges (this usually covers building insurance)聽
  • ground rent聽

Find out leasehold service charges and expenses.

Credit score

Your credit score can affect whether you can get a mortgage and the kinds of deals you鈥檒l be offered. The higher the number in your score, the more likely you are to be offered a mortgage.

Find more information about .

Identity checks

You鈥檒l need to prove your identity to your:

  • estate agent
  • solicitor
  • mortgage lender

Find more information about .

3. Deciding on a home

There are different ways to own a property.

Leasehold and freehold properties聽

If you鈥檙e buying a home, you can choose between:

If you buy a freehold property, you own the house and the land it鈥檚 built on. There are no leases and you do not have to pay ground rent or any maintenance fees. You鈥檙e responsible for maintaining your property and land, so you鈥檒l need to budget for these costs.

Read more about .

Energy Performance Certificate

If you鈥檙e thinking of buying a property, the seller must have a valid Energy Performance Certificate (EPC). This tells you the energy efficiency rating of a property.

4. Making an offer

Before you make an offer, check:

  • what the property is worth聽
  • the number of years on the lease (if relevant)
  • what鈥檚 included in the sale
  • what will be fixed or inspected before completion (boiler service for example)

Make an offer on a property

Once you鈥檝e decided on a property, you can make an offer, usually through an estate agent.聽

An offer is not legally binding in England and Wales until you exchange contracts.

If you make an offer 鈥榮ubject to contract鈥�, this means the price can still be negotiated (for example, if a survey finds a problem with the property).

You鈥檒l need to find a legal professional to handle the legal work involved in buying a home.聽

This could be a:

  • solicitor
  • licensed conveyancer
  • chartered legal executive
  • Chartered Institute of Legal Executives (CILEX) practitioner

Read more about .

Searches and valuation

Once your offer has been accepted, your solicitor or conveyancer will organise local authority searches on the property.聽

This usually includes a:

  • local authority search
  • water and drainage search
  • environmental search

You usually have to pay for the searches up front.

Your mortgage provider will carry out a valuation of the property before they approve your mortgage.

Surveys

You can get a homebuyer survey to check the condition of the property. Read more about .

Recommendations from estate agents or mortgage lenders聽

Some estate agents and mortgage lenders might recommend legal professionals, mortgage brokers or surveyors to you.

You must be told if the estate agent or mortgage lender gets a payment (a 鈥榬eferral fee鈥�) from the company they鈥檙e recommending.

You do not have to use the company that鈥檚 been recommended to you.

5. Transferring ownership (conveyancing)

Once the offer is accepted, the seller is responsible for drawing up a legal contract to transfer ownership.聽

The contract contains details about:

  • the sale price
  • the property boundaries
  • which fixtures and fittings (like carpets and kitchen units) are included
  • any legal restrictions or rights, like public footpaths or rules about using the property
  • any planning restrictions
  • services to the property, like drainage and gas
  • when the sale will complete

If the seller has hired a solicitor or conveyancer, they will:

  • draft the initial contract
  • answer questions from your solicitor or conveyancer (with the seller鈥檚 help)
  • negotiate the details of the contract if necessary

Exchanging contracts

When you (the buyer) and seller are happy with the contract, both sides sign final copies and send them to each other.

The agreement to sell and buy is legally binding once this happens. Usually neither of you can pull out without paying compensation.

Completion

Once you exchange contracts and the seller deals with any remaining checks you鈥檝e asked for:

  1. Your solicitor or conveyancer will transfer your money to the seller.聽

  2. You鈥檒l be sent the legal documents needed to transfer ownership.

  3. The seller moves out and leaves the property in the state agreed in the contract.

  4. You get the keys to the property from the seller or estate agent.

  5. You now own the property.

6. Tax

You may need to pay:聽聽

  • Stamp Duty Land Tax (SDLT) when you buy a home in England and Northern Ireland
  • when you buy a home in Wales

Stamp Duty Land Tax

You pay SDLT if the property is worth 拢250,000 or more.

If you鈥檙e buying your first home, you do not have to pay SDLT if the property is 拢425,000 or less.

There were different thresholds and rates for residential properties before 23 September 2022.

7. Making a complaint

You can make a complaint to a company involved in the sale if you鈥檙e unhappy with their service. Follow the company鈥檚 complaints procedure.

If they do not respond or you鈥檙e not happy with their response, you can complain to the relevant ombudsman service or scheme.聽

That ombudsman will investigate the complaint for free.

Complain about an estate agent

You can complain to one of the following:聽

Ask the estate agent which scheme they belong to.聽

聽has more advice on how to make a complaint about an estate agent.聽

颁辞苍迟补肠迟听.

has more advice on how to make a complaint about a solicitor or conveyancer.

Complain about a mortgage lender

颁辞苍迟补肠迟听.

Complain about a valuer or surveyor

Contact the if the valuer or surveyor is a member.

has advice on how to complain about a surveyor.聽

Complain about a new home

Contact