Buying a house can be a daunting experience to the uninitiated. This is compounded by the fact that the homebuying and selling system in England and Wales is one of the most complex and archaic in Europe. However, by breaking down each stage of the process – and employing a little confidence, patience and pragmatism – your own experience doesn’t have to be the nightmare we have all come to expect.

Stage one: Know how much you can borrow

Before you start looking for a home it is crucial to have an idea of how much you can borrow. You can do this by going to a mortgage lender and obtaining a mortgage in principle. Typically you will be lent around 3.5 times a single salary or 2.75 times joint – although your monthly expenses, such as credit card and loan payments, will probably be deducted from this. The final borrowing figure – with your deposit, if you have one – will amount to the value of the property appropriate for your budget.

Remember, you will also need several thousand pounds to cover the costs of homebuying. The biggest expense will be Stamp Duty, a property tax that is charged at between one and four per cent of the property purchase price. Only when these sums have been completed will you find it easy to decide what and where you can buy.

Stage two: Register with estate agents in the area

Once you know what kind of property and area you are looking for, you will need to visit some local estate agents. As UK estate agents are not yet regulated, try to use one that is a member of the National Association of Estate Agents (NAEA), which is a voluntary scheme. It’s better still if they are also a member of the Ombudsman for Estate Agents (OEA). You can check membership online or simply by asking in the branch.

After discussing your needs, requirements and preferences with the agent, you will be added to their mailing list and kept informed of relevant properties by telephone and email. It’s important to be clear from the start about your property specifications as well as your budget. Remember, estate agents are keen to sell property whether if fits your criteria or not. Also, if you are a first-time buyer, make sure you flag this up to the agent. This puts you in an advantaged position as, with no property to sell, you are able to move quickly.

Stage three: Finding the house you want to buy

If you are introduced to a property you like the look of, the agent will arrange a viewing, on which he/she may or may not accompany you.  It is important to keep a practical head on when looking around a property and the area and situation in which it is located. Check out how well the neighbours maintain their drives or front gardens. You can even knock on doors and make practical enquiries – a great excuse for checking out who lives next door, which after all is a crucial factor.

When looking at the property itself, try to ignore the contents of the home and any appealing smells – deliberate or otherwise. Keep in mind that décor is easily changed – it may even warrant a discount from the asking price. Arm yourself with a tape measure and a torch to check out dark cupboards and lofts. Don’t be afraid to turn on the taps to check for water pressure and clock the number of radiators or even plug sockets in each room. Most importantly – especially when you are looking at a number of properties – take organised notes that you can refer to later when it’s all likely to have  become a blur.

Theoretically, you can arrange as many viewings as the seller’s patience will allow. According to the NAEA, the average property has 12 individuals go to view it before it is sold, although this incorporates people in the same party and those that make more than one visit.

Stage four: Making an offer

When you are certain you have found the property you want, you can make an offer to buy it via your estate agent. The offer price is expected to be lower than the asking price. How much lower will depend on the condition of the property, whether it is a buyer’s or seller’s market, how long it has been up for sale and, ultimately, how much you want it.

If your first offer is not accepted, you can re-assess these factors and make another one, or ask the seller to make a counter-offer. If the offer is accepted you can request that the property is no longer shown to other potential buyers - although this is not legally binding. The offer will also be subject to survey. At this point you should contact your chosen lender with details of the property.

Stage five: Commissioning a survey

After contacting your lender with details of the property, you will need to commission a survey. As this could cost hundreds of pounds, be as certain as possible that the seller is serious. Until the point of exchange, they are still legally entitled to pull out. You have several options.

Lender’s valuation

This won’t help you learn about the condition of the property – contrary to popular belief it is not a survey. Its purpose is purely to verify to the lender that the bricks and mortar represent adequate security on which to lend. The cost of a straightforward valuation will be in the region of £100.

Homebuyer’s Report

This is a survey that comments on the condition of visible parts of the property and may include recommendations for further investigation. Unsurprisingly, a homebuyer’s report is more expensive than a lender’s valuation. The cost will depend on the property price but is typically in the region of £250 to £350.

Full structural survey

This is often recommended for pre-war or unusual property, such as a converted barn or lighthouse. It is both the most detailed and most expensive survey. It makes a detailed assessment of everything from drains to electrical installations. A structural survey will cost in the region of £400 to £500.

The benefit of commissioning a proper survey is that you will be made aware of potential costly repairs. If any come up on your survey, you can then either insist the seller pays to rectify them pre-sale, or try to negotiate a deduction of the cost of repairs from the price. 

Stage five: Working towards exchange

By now you will have found a solicitor, property lawyer or licensed conveyancer to carry out the legal part of the buying process on your behalf. Otherwise you will not be able to obtain a mortgage. It is a good idea to fix legal fees before proceedings begin. However, this could be subject to change if complications arise, such as leasehold issues if you are buying a flat.

Legal fees will largely relate to the property price. As a benchmark, a £150,000 property may cost £500 (plus VAT). However, don’t necessarily opt for the cheapest deal – when buying a house a good solicitor is priceless. Look at the Law Society’s website for more information (www.lawsociety.org.uk).

When you have kick-started proceedings with your appointed solicitor, grit your teeth and resign yourself to the fact that buying this house will take a front seat in your life for the next few weeks, or even months.

Your solicitor’s first job will be to contact the seller’s solicitor to obtain the property contracts. He will also commission a search with the local authority, which will cost in the region of £60. Don’t expect this to disclose adjacent developments that may be taking place in the future – it will only reveal existing planning permissions and the history of that particular property.

Any additional documents relating to the property, such as leases and title deeds, will be checked by your solicitor and potential problems should be ironed out. This – in addition to the fact that your solicitor is still likely to correspond by post! – is often what holds up the conveyancing process. It is important to remember that you are paying good money for the solicitor’s services and expertise. As long as ‘reasonable patience’ is exercised, you are therefore entitled to chase enquiries and even micro-manage the proceedings. The government estimates that 30% of all property sales fall through each year – a statistic you don’t want to contribute to.

At some point during this stage of the conveyancing process you will receive the seller’s proposed list of fixtures and fittings. This will list the goods to be included in the price – carpets, curtains and white goods, for example – and the goods that will be taken away. Although it is important to encourage the seller to leave what they can (these items would cost a lot to buy new, when money is already at its tightest), it’s also not worth breaking the deal for the sake of petty principles.

Your solicitor will also send pre-contract enquiries to the seller’s solicitor, in which their client must legally disclose everything you as a buyer should know about, from boundary disputes to noisy neighbours.

Land Registry searches may also start to be carried out at this stage leading up to exchange. If the property is already signed to the Land Registry, a Land Certificate will need to be obtained from the seller. If, unusually, the property is not yet logged by the Land Registry, it will take some time to record the change – although this should be no longer than two months. A straightforward Land Registry search fee will cost in the region of £150.

Stage six: Exchange

This means, quite simply, that property contracts are exchanged. In England and Wales it is only after exchange that the agreement becomes legal, so this is the point that both parties are aiming for. At the point of exchange:

Stage seven: Completion

This really is D-Day. At the point of completion, the balance of the purchase price is handed over to the seller from the mortgage lender via the solicitor. The property deeds – alternatively known as title deeds – are also obtained. At completion any disbursements are also payable. These are charges paid on your behalf but that do not form part of the solicitor’s own fees. For example, Stamp Duty, which is currently set at one per cent of the purchase price for properties up to £250,000. Levels of Stamp Duty change can vary with each tax year. To keep up-to-date, log onto the HM Revenue and Customs website (www.hmrc.gov.uk). Land Registry fees will also be payable for the transfer of land ownership, as well as the legal fees charged by the solicitor.

Most people try to arrange for completion and moving day to coincide. No one can deny that the experience is stressful, but being organised and knowing what you are doing in advance makes life a lot easier.

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