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Saving for a first home is a great way for young adults to invest in their future. Conveyancing Expert bring you all the info you need about Lifetime ISAs and how they can be used for property purchase.

What Is A Lifetime ISA?

The lifetime Isa (LISA) is the newest member of the ISA family. It is a tax-free savings or investments account designed for people who are aged 18-39 at the time of opening it. The savings are supposed to go towards buying a first home or retirement.

The government launched the Lifetime ISA in 2017. You can deposit up to £4,000 a year into it after which the government pays an annual ‘bonus’ of 25% on the contributions you have made. This means you could earn as much as £1,000 worth of bonus a year for free.

Anyone can open a Lifetime ISA as long as they are:

• Between 18 and 39 years old
• A UK resident (or a military service member based overseas or their spouse/civil partner)

Account holders can continue adding money every year until the age of 50, after which, no more payments can be made but the account can stay open.

You can open more than one Lifetime ISA, but you can only open one per tax year and pay into one per tax year.

Any contributions you make towards your Lifetime ISA count towards your overall ISA limit, which is the maximum amount you can save into all of your ISAs combined, in any given tax year. For the 2020/21 tax year, for example, the overall ISA limit is £20,000.

Claiming Your Bonus

Your bonus, which can also generate interest, is based on payments you make into your account from the 6th of the month to the 5th of the following month. A government bonus will be claimed by your Lifetime ISA manager and added into your account each month. You don’t need to do it yourself.

Using Your Lifetime ISA To Buy Your First Home

When your account has been open a year or more, you can withdraw funds to buy a home costing up to £450,000.

The property you’re purchasing must:

• Be in the UK
• Be the first, and only, home you own
• Be where you intend to live (not a buy to let)
• Be purchased with a mortgage.

If the above criteria are met, your withdrawal will be exempt from charges.

You shouldn’t just withdraw money from your Lifetime ISA for any old reason because this will incur a charge. Work closely with your residential conveyancing solicitor and your Lifetime ISA provider. You will have to sign an investor declaration form which you can obtain from your ISA provider. You’ll then submit your completed form through your conveyancer, permitting you to withdraw from your Lifetime ISA to buy your home. Your money is usually transferred within 30 days from when your ISA provider receives the completed forms.

If you are looking for a conveyancer in Manchester to assist you with buying a property with a lifetime ISA Get in touch today for a hassle-free quote.

Using Your Lifetime ISA To Buy A Home

Your Lifetime ISA funds can be used at any stage of property purchase. Home can put the funds towards the deposit in which case, the purchase must be completed within 90 days of your residential conveyancing solicitor receiving the funds.

In some cases your conveyancer can write to HMRC for an extension if it takes longer than 90 days to complete your property purchase.

If you’re purchasing with another first-time buyer with a Lifetime ISA, both of you can use your ISA and bonus towards the sale. If the other person IS NOT a first-time buyer, you can still use YOUR Lifetime ISA, just not theirs.

Lifetime ISAs can also be used towards buying shared ownership properties but the total price of the property must still be under £450,000.

Using A Lifetime ISA For Other Purposes

If you don’t want to use your Lifetime ISA to buy your first home, you can only withdraw funds without incurring a charge for the following:

• If you become terminally ill
• You are over the age of 60

In any other circumstance, your withdrawal will incur a large 25% fee.

If you need a conveyancer in Manchester Who can help you with all aspects of a Lifetime ISA Get in touch today

Lifetime ISAs V HelpTo Buy ISAs

Lifetime ISAs are similar to Help to Buy ISAs since they’re both designed to help first time buyers and they offer government top up bonuses of 25% on certain limits. However, Help to Buy ISAs are now closed to new applications. Existing Help to Buy ISA account holders can still save in their accounts until November 2029 and claim their bonus for an additional year after that.

Further differences between Lifetime ISAs and Help to Buy ISAs include:

• Savings Amounts – With a Lifetime ISA, you can save up to £4,000 a year. With a Help to Buy ISA, the maximum savings £2,400 a year (£3,400 in the first year).

• Payment Times – With a Lifetime ISA, your top up bonus is paid monthly. With a Help to Buy ISA, your bonus can only be collected between exchange of contracts and completion and can be used towards your overall or mortgage deposit, but not at exchange.

• Withdrawal Charges – With a Lifetime ISA, withdrawing before the age of 60, except for a first home purchase or terminal illness, incurs a 25% charge. With a Help to Buy ISA, there are no extra charges on withdrawals but bonuses are only paid for first home purchases.

• Property Purchase Price – With a Lifetime ISA, the maximum property price is £450,000 anywhere in the UK. With a Help to Buy ISA, you can only spend up to £250,000 (£450,000 in London).

You are allowed to transfer your Help to Buy ISA into a Lifetime ISA, though those funds will count towards your yearly Lifetime ISA limit.

For a hassle-free conveyancing quote, call us today. Our services are always high in quality, value for money, and we utilise the most effective case management systems to ensure smooth transactions and happy clients.

The long-held expectation that people will be mortgage-free by their planned retirement date isn’t realistic for many of today’s homeowners. In previous generations people bought a house in their twenties or thirties and paid it off by the time they retired. This is no longer the case. Generations later and we are marrying, having children and buying homes later on in life. We are also generally living and working for longer.

As a result of changing lifestyles, more people of retirement age need to borrow for longer, which means paying a mortgage until much later in life. However, many lenders have until now,  been wary about lending into retirement, even where someone has plenty of equity in their property, has never missed a mortgage payment, is still earning well, and has a good credit score.

Older borrowers have always had a limited choice when it comes to standard borrowing, and even when they are able to get a mortgage, they often find repayments soar, due to the reduced term offered. Hwew, we take a look at Retirement Interest-Only Mortgages and examine the pros and cons.

Conveyancing Expert are conveyancing solicitors based in Manchester. We offer the highest quality conveyancing services. For your free, no obligation conveyancing quote just CLICK HERE.

Retirement Interest Only Mortgages

More recently, retirement interest-only mortgages (or RIO mortgages) have become a thing. They are aimed at older borrowers who are unable to completely pay off their mortgage by the time they are ready to retire. These are specialist mortgages that enable borrowers to make interest-only payments throughout their retirement, then using the sale of their property to repay the outstanding debt. 

What Is A Retirement Interest-Only Mortgage?

A retirement interest-only mortgage is only available on your main residence. It is very similar to a standard interest-only mortgage only with two key differences.

1. The loan is usually only paid off when you die, move into long term care, or sell the property.

2. You only need to prove you can afford the monthly interest repayments.

There are no minimum age requirements but RIOs are generally aimed at older borrowers, such as the over 55s and pensioners who might find it easier to qualify for than a typical interest-only mortgage.

In a sense, they are similar to some types of equity release schemes, like a lifetime mortgage, where you pay-off the original capital and any interest when you die or move into long-term care.

However, with a lifetime mortgage you will either:

• Have a larger sum to repay at the end as there are no monthly repayments, meaning the interest gathers and is then added to the total loan value, 

or

• Make monthly interest payments and capital repayments whenever possible during the term of the mortgage. This would reduce or halt the interest gathering but would mean higher monthly repayments.

If you are looking for quality conveyancing services, Conveyancing Expert are here to deliver an excellent and efficient service, ensuring your property transaction is completed with expert legal advice.

Why Take Out An ROI? 

ROI mortgages can be useful if you currently have a mortgage deal that is coming to an end as they can help to keep your monthly outgoings low into retirement.Rather than using savings or your pension to pay off the balance of your mortgage, you use your money to enjoy your retirement, pass it on to your family or simply keep it in savings for the future. 

The repayments on ROIs are much lower than those on a standard repayment mortgage as you’re only paying the interest on the outstanding sum, rather than trying to reduce the overall debt.  You also don’t have to worry about trying to save to repay the outstanding debt as this will be taken care of with the sale of the property when it is no longer needed.

If you’re coming towards the end of your current interest-only mortgage, talk to your lender to see if they will extend your mortgage term / remortgage you into retirement. You can also talk to an independent mortgage broker about the next steps you could take.

How Do Retirement Interest-Only Mortgages Work?

• There’s no minimum age requirement, however, they are mainly aimed at the over 55s.

• Just like any other mortgage, you must pass the affordability checks to ensure you can make the monthly interest-only repayments.

• ROIs are only available on your main residence.

• You only pay the monthly interest on the outstanding balance.

• Some providers offer these mortgages to the over 55s, others have a higher minimum age.

• Deals often come with a maximum 60% loan-to-value (LVT), meaning you need to own at least 40% of the property outright.

• The loan is usually only paid off when you die, move into long term care or sell the house.

 

Pros And Cons Of A Retirement Interest-Only Mortgage.

 

Pros

• Cheaper repayments

• Available for older borrowers

• No need to demonstrate a suitable plan for repaying the mortgage.

• More likely to have something to pass on as inheritance.

• Avoid having to downsize to a smaller property.

• The loan term is not fixed.

• Generally cheaper when compared to most Lifetime Mortgages.

• You can unlock some of the equity in your home to pay off outstanding debt.

• The capital is only repaid when you die, move into care or sell your property

• The interest isn’t compounded as it is with equity release

• Some lenders give you the option to repay some of the capital each year

 

Cons

• You will need to pass the mortgage affordability checks

• Your home will be sold off to repay the loan when you die, enter long-term care or sell your home. Thi will affect your family’s inheritance.

• Your home is at risk if you do not keep up the repayments.

• The amount you can borrow is based on your retirement income and your loan to value ratio.

• Loan to value is lower compared to other mortgages

• The interest rate is only fixed for a number of years so your payments could increase

 

Conveyancing Expert are a team of solicitors based in Manchester who offer the highest quality conveyancing services. For your free, no obligation conveyancing quote just CLICK HERE.

 

Conveyancing Expert are conveyancing solicitors based in Manchester. We offer the highest quality and most trusted conveyancing services. For your free, no obligation conveyancing quote just CLICK HERE.

The residential conveyancing process can usually take anywhere between 8 and 12 weeks from the point at which an offer is accepted. The time that it takes to complete your conveyancing transaction will depend on many factors including whether you’re part of a chain, if you are buying, selling, or both, and the conveyancing solicitor you use. Our conveyancing experts act on behalf of both buyers and sellers. We also carry out conveyancing for the transfer of equity and Commercial Properties Leases.

Your conveyancing expert should be instructed as soon as the sale/purchase of a property has been agreed. The process lasts until completion, when the keys for the property are exchanged. We are your trusted conveyancing services provider and can help you every step of the way.

Stages Of The Conveyancing Process

Here is a summary of the main steps in the residential conveyancing process. Time scales are approximate:

1.Pre-Contract Work –  Around 2 Weeks

The conveyancing process begins once an offer on a property is accepted. You need to appoint a conveyancing expert as soon as possible so we can start working on your transaction, whether you are the buyer or seller. 

We will obtain and review the legal documents to provide you with the appropriate advice on your purchase or sale.

Buyers will usually need to arrange a survey of the property. You can usually get your survey report within a day or two but it can take as long as 1 month depending on how busy your local surveyors are. 

2.Mortgage Offer – Around 4 Weeks

Before you made an offer on the property you will have acquired a Mortgage Agreement in Principle. After your offer has been accepted, your mortgage lender will begin turning that into a definitive mortgage offer. This takes about a month from application to offer. 

Draft Contract – Around 2-10 Weeks

Your conveyancing solicitor should be working on your draft contract whilst step 2 is taking place. This involves collating all the necessary information from the land registry, the seller and the seller’s conveyancer.

Searches and surveys returned at this time can sometimes raise issues that need to be resolved. The draft contract phase of the conveyancing process can therefore take anywhere from a very straightforward 2 weeks to a more complicated 10 weeks, perhaps longer.

4.Exchange Of Contracts To Completion – Between 1-2 weeks

Once your official mortgage offer is in place, your pre-contract enquiries have been answered, and the survey and searches complete, you are ready to exchange contracts and set a completion date. There is usually one week between exchange and completion but it can be adapted to whatever date suits all parties.

On completion day you will exchange keys and own your new home. All the funds will be transferred via the solicitor and properties will usually need to be vacated by midday. 

Conveyancing Expert are your local conveyancer in Manchester offering high standard yet low cost conveyancing for all clients looking to buy, sell, re-mortgage and transfer equity in England and Wales. 

What Causes Delays In Conveyancing?

Many factors can delay conveyancing, the most common being either the buyer or seller, or their legal representatives, taking a long time responding to enquiries.

Other reasons are:

• Problems with the property title
• Surveys revealing problems
• Missing information from the seller
• Issues with mortgage applications
• Seller buying a new build property that isn’t ready
• Probate sales
• Local authority is slow to respond to search requests

How Long Does Conveyancing Take With No Chain?

Conveyancing with no property chain should take approximately 8-10 weeks from the point of the sale being agreed. Delays in the usual conveyancing process usually arise from other transactions in the onward property chain. If you’re lucky enough to be chain free, your conveyancing process should, in theory, be shorter.

Although you won’t experience the delays that come with being in a chain, conveyancing with no chain will still come with some hold ups. You’re still at risk of unfortunate survey results or delays in receiving search results.

What If I’m In A Chain?

If you are in a property chain, you are reliant on others keeping the same timescale as you. This does not always go to plan and can have a significant impact on how long conveyancing takes. A problem with one party can delay everyone involved. 

How Long Does Conveyancing Take For Cash Buyers?

If you are buying a house without a mortgage, you should be able to complete the transaction quicker.  

Also, you also don’t HAVE to have a survey but it may be wise to get one done anyway.

How To Avoid Conveyancing Delays

A lot of conveyancing delays are avoidable. Always keep in close contact with your conveyancing expert as we are behind you every step of the way.

We pride ourselves on a personal service which utilises the latest innovations in electronic communications. Conveyancing Expert is strongly committed to speeding up the conveyancing process through our investment in technology and an extensive, customer focused staff training programme.

How To Financially Prepare For A Mortgage

After a year of lockdowns, job losses, furloughs and businesses closing, many people are feeling anxious about their finances. Throughout the duration of the pandemic, this uncertainty has made mortgage borrowing more difficult for certain groups. In fact the whole understanding surrounding mortgages as a whole is having an impact on many, the self-employed in particular.

Conveyancing Expert are your trusted residential Conveyancing solicitors in Manchester. We offer the highest quality services and pride ourselves in offering the best level of customer care from initial contact, through to completion

How Do I Qualify For A Mortgage?

There is no one single thing you can do that will ensure your eligibility to borrow but when thinking about buying a property, you’ll definitely need to ensure your finances are in order ahead of speaking to a mortgage lender or bank. Below we outline the fundamental things you can do to boost your chances when it comes to applying for a mortgage.

Register To Vote

This is one of the ways that lenders verify your identity and address. If you are not already on it, register on the electoral roll online. Also make sure you’re not still registered at a previous address.

Save A Deposit

The bigger your deposit the better mortgage rate you could get. You’ll also have more choice when it comes to mortgage deals. A deposit of 5% of the property price is usually the minimum you’ll need, but it is more likely to be 10% or more. 

Consider Your Credit History

You must demonstrate you will be a responsible borrower and not stretching yourself too thin. 

So you should:

• Pay debts on time
• Pay all bills on time
• Close old, inactive accounts
• Do Not apply for additional credit, definitely not payday loans
• Avoid using or going over your overdraft
• Close any out-of-date joint current accounts that you hold with another person in case they weren’t responsible with their money. If you’re still linked to them, their bad credit record can negatively impact yours

Records remain on your credit file for around 6 years. Bear in mind that since 2011, any payday loans you’ve taken out will be listed on your credit file – even if you paid them off on time. They make lenders think you can’t cope with having a mortgage.

Maintain Job Stability

It’s not a good idea to look to change jobs too close to applying for a mortgage. Most lenders will feel more comfortable lending you money if you have been in your job for at the very least 3 to 6 months.

Check Your Credit Record

Credit reports provide an insight into your payment behaviours and lenders use them in their decision-making process. Check your credit record and correct any errors that you come across.

You won’t know what lending criteria lenders will score you against since these are not publicly available but each lender will probably have a different way to score customers and if one doesn’t want to lend to you, it doesn’t mean that all won’t.

There are 3 main credit reference agencies in the UK whose reports lenders will have access to: Experian, Equifax or Callcredit/Noddle. All three agencies are required to provide you with your credit report for £2, and you can access this online or by asking for a written copy. You may be able to register for a free trial with these companies and see your file for no extra cost. Just cancel before the trial period is up or you might get billed.

Collect Financial Documents

Lenders need a good picture of your financial situation and will typically ask you for the following:

• Proof of income / at least 3 months’ payslips 
• Last 3 months’ bank statements
• Proof of current UK address (eg: council tax bill or a utility bill from the last 3 months)
• Proof of bonuses/commission
• Your latest P60
• Your last 3 years’ accounts or tax returns if you’re self-employed
• Your Self Assessment tax return if you’re self-employed
• Proof of deposits (e.g. savings account statements)
• Proof of ID (passport or photocard driving license)
• A gift letter if you’re getting help with your deposit 

Know Your Spending Habits

Mortgage lenders will need to understand your spending habits so they can recommend an appropriate mortgage for you. In order to do this, you’ll have an interview that could take anywhere between 1 and 3 hours. Although this happens later in the process, you should familiarise yourself with the things you’ll be asked about. These include:

• Essential expenses, like food, utility bills, petrol etc
• Basic quality of living costs, like clothes, holidays, household goods and childcare
• Repayments and other commitments

Understanding what you spend also means that if there are any areas where your spending is higher than you would like, you can take some steps to get on track.

If you are considering moving house, make sure you have a residential conveyancing solicitor ready to be instructed to act on your behalf. This will demonstrate your keenness and commitment to the purchase..

Mortgages And The Self Employed

It’s a common myth that those who are self-employed won’t be approved for a mortgage: Around a third of Brits believe they may not be able to get a mortgage due to their self-employed status. Around a quarter of those are unsure if they would be able to acquire a mortgage and 12% said they wouldn’t qualify. It’s true that the self-employed have often faced a more difficult process when applying for a mortgage. They usually must prove at least two years of work, an especially arduous task during the pandemic. However, some lenders are open to directly working with self-employed people.

In recent years, the UK mortgage market has expanded for freelancers and self-employed workers. Some lenders may be cautious, especially for those who work in specific sectors and rates are usually higher for self-employed workers.

While lenders require self-employed borrowers to fulfil extra criteria to secure a residential mortgage, the rules for approving buy-to-let mortgages were relaxed at the beginning of 2020. It became possible to apply for a buy-to-let mortgage as a self-employed person without two years’ worth of accounts making it easier to invest in rental property. Since the number of self-employed people is increasing across the UK, lenders are likely to further adapt to this with more products being brought forward for this growing consumer base. 

Becoming aware of the above can help you understand mortgage borrowing and what a lender is likely to lend to you. Knowing your credit score and ways to improve your mortgage application can help you better prepare and make more informed decisions. The mortgage market is currently offering a range of products with varying incentives, fees and rates. Always seek professional financial advice before making any financial decisions. 

If you are moving house, make sure you have a residential conveyancing solicitor lined up and ready to go. This will put you in a really good position with sellers and demonstrate your commitment to the purchase. Conveyancing Expert are a Conveyancing solicitors in Manchester. We believe that the highest expectations of our clients should be met and pride ourselves in offering the best level of customer care from initial contact, through to completion

In what has been the busiest year in property since 2007, with demand by far outstripping supply, buyers are finding themselves fighting to be chosen from a selection of other buyers in one of the most competitive markets in years.

If you are hoping to make a move in the near future, you will no doubt find yourself against some stiff competition so here are our top tips for making sure that your offer is the one that’s accepted.

For a free conveyancing quote, contact Conveyancing Expert today. Our team is available to answer any questions you have and to guide you through the conveyancing process. We are your dedicated solicitors on hand for all your needs when moving house.

How Do I Get My Offer On A House Accepted?

There are a number of things you can do to make yourself the most appealing buyer to people wanting to sell their homes. Here are the most important. They are all things that you can prepare well in advance so take a look and see how to be in with the best chance of netting your dream home.

Have A Clear Budget

Before you consider making an offer on a house or flat, it’s important to know what your exact budget is. In fact, you should really do this before you even start looking at property. This will show you are a well prepared, realistic prospect to sellers. Too many buyers fall in love with a property they simply cannot afford, which only leads to disappointment and wasted time. 

Make sure you know exactly what you are able to spend before entering the market. Speak To a mortgage adviser as they will be able to assess your affordability more accurately and give you a guideline on your borrowing status prior to beginning your search. A good broker will tell you how to improve your credit score and if you’re a first time buyer, lots of sellers will take a 10% deposit.

Get Your Mortgage Agreement In Principle

Make sure you have a good deposit as that will help to open up the best mortgage products. Also, if a seller has two bidders and one has a 20% cash deposit and another has a 30% cash deposit, they may choose to go with someone who seems more financially sound.

Furthermore, if you’re able to put down a 20% deposit, the rates are much better and the range of products available is massive.

Buyers who have secured a mortgage agreement in principle, or AIP, are usually considered more serious buyers and are usually favoured by sellers. The perception is that they are in a better position to proceed and less likely to pull out.

Know The Market

Take a look at the local market. This will give you an insight into whether or not your prospective new home is fairly priced. Look at similar properties within the area, are they in the same ballpark as the house you want to make an offer on?

Currently listed properties will give you a great idea on what the market is doing right now, but don’t forget to look at completed sales as well. Many of the major property portals will allow you to search for recently sold properties.

Do your homework on the location and surrounding area if you aren’t familiar with it. It can show your appreciation of the property and its surroundings to the agent and seller and can help you to work out what questions to ask, making your viewing more productive. 

Speak To Local Estate Agents

Speaking to local estate agents selling the properties you like is a must, too. While they are of course working for the seller and not you, there is a lot you can do to make yourself a favourable prospect without the agent compromising their client.

It is not always necessary or even advisable to simply use the solicitors the estate agents suggest for moving house. Conveyancing Expert offers high standard yet low cost conveyancing for all clients looking to buy, sell, remortgage and transfer equity in England and Wales. 

Ask your estate agent questions such as:

• Why has the seller put the property on the market?
• Are there many interested potential buyers?
• Has the property attracted a lot of interest?
• How long has the home been on the market?
• Are there any offers on the property?
• How long is the chain?
• How fast are the sellers looking to move?
• Are they reliant on a purchase themselves?
• Is the seller open to offers?

Knowing these things before you even view shows how interested you are and that you have gone to the effort of finding out all you can.

Also, explain to the agents who you are and tell them your reasons for moving, that will help them understand you and will come across well. Showing that you’re in a good position financially is vital too. It’s important to highlight the strong position you are in and why you are the ideal purchaser. 

Whether you’re buying or selling, speak with local estate agents to get expert market advice.

Find A Conveyancing Solicitor Now.

It is always a good idea to get a conveyancing solicitors in place for moving house, so you are all set and ready to go. This will ensure there are no hold ups when you are ready to go and will show sellers that you are serious about getting started with the sale.

Conveyancing Expert are your local conveyancing solicitors in Manchester. We can give you a completely obligation free conveyancing quote today,

In An Ideal World…

The best buyers have:

• Sold their home already or are chain-free
• Instructed a mortgage broker 
• Have instructed a solicitor
• Their paperwork in order
• A good cash deposit
• Done all the relevant affordability checks
• Done their research

How Conveyancing Expert Can Help

• As a team of legal professionals, we are dedicated and honest and work in accordance with our culture statement, to ensure that every client benefits from our expertise, and is delighted with the legal service provided to them.
• Our services are always high in quality, value for money, and we embrace the most effective case management systems to ensure smooth transactions and happy clients.
• Whether you’re buying or selling, speak with your conveyancing Expert today to get more expert market advice.

Have a Question about residential conveyancing? Here at Conveyancing Expert, we are more than happy to discuss any queries you may have. We are an experienced team of expert solicitors and conveyancers in Manchester, willing to share our knowledge and help you through the conveyancing process.

Whilst our FAQs page might tell you all you need to know, here are a few other questions we get asked on a regular basis.

How Long Does Conveyancing Take? 

The answer to this question will vary from client to client. However, the general consensus is that residential conveyancing will normally take between 6 to 12 weeks in a standard purchase/sale. The amount of time can be longer or shorter though, depending on the individual circumstances of the seller or buyer.

It’s difficult for any conveyancer to offer an exact time scale as to how long the transaction will take since many factors can affect the length of the process. The time it takes will also depend on the length of time required by conveyancers to acquire all the correct documents from other conveyancing solicitors.

If you are in a property chain, the conveyancing process will take longer than if you’re not. If another transaction in the chain is experiencing delays, then this will slow down your conveyancing process too.

Other hold ups can be caused by

• Survey Results – Your property survey could return adverse results which will alter things. It will take extra time to see if you can negotiate a new offer, get further expert advice or pull out of the purchase.
• Mortgage Delay – If everything is in place but you’re still waiting for your mortgage offer to be issued, this can delay the conveyancing process. The same goes for if your mortgage offer has expired. Mortgage offers will usually last between 3 and 6 months.
• Delay In Search Results – Your conveyancer will organise property searches from the relevant authorities. Depending on how busy the local authority is, the searches could take anywhere between a few days and a few weeks to be completed.

What Are Searches And Do I Need Them?

The role of property searches is to make sure that homebuyers have all the facts about a property before they buy it and do not find out about serious problems afterwards when it is too late. It is normal practise for us to order searches on your behalf from a variety of sources.

These searches will include information held by your local authority on a variety of matters such as planning applications and road information; environmental search company data on issues such as ground movement, contaminated land and flooding; water company information about mains supplies, pipe work and drains. There may also be specialist searches on coal mining, chancel repair liabilities for the local church roof, a new housing development two miles away that will stretch local infrastructure

In addition there may be restrictions that your mortgage lender will apply in respect of certain issues or risks, and this may cause a problem with the purchase. For example, if a property is in an area that is rated as a high flood risk, it may limit the ability to obtain buildings and contents insurance which is always a condition of lending.

How Long Does It Take To Exchange Contracts?

Contracts are exchanged when a Seller and a buyer are about to commit themselves legally to the transaction – “the point of no return”. All searches and enquiries must have been carried out and the mortgage offer received (if applicable) prior to committing yourself to an exchange of contracts. 

If you are taking out a mortgage, we will also require your full mortgage offer from your mortgage company before contracts are exchanged. If you are selling property, we will not exchange contracts unless you authorise us to do so and are able to complete on the completion date. If you are synchronising the sale of your property with another purchase we will only exchange contracts on your sale when you have everything you need on your related purchase (i.e. search results, mortgage offer and replies to all pre-contract enquiries).

Are There Any Hidden Costs?

Absolutely Not. There are no hidden costs associated with our residential conveyancing service. We will provide you with a fixed conveyancing quote to cover the work we do. We will only ever increase the fee, if, during the transaction, something comes to light which was unforeseen such as with Leasehold properties, the Landlord or their managing agents may have a charge for registering the change of owner.

However, this does not affect our actual fees as we do not charge more unless you ask us specifically to do additional work. Conveyancing Expert are your local conveyancer based in Manchester. We offer the highest quality conveyancing services. For your free, no obligation conveyancing quote just CLICK HERE.

What Is The Difference Between Leasehold And Freehold Properties?

When you buy a freehold property you also buy the property and the land on which it is built.  With a Leasehold property, you own the property for a fixed term, but you do not own the land. You would usually pay an annual ground rent to the Freeholder and at the end of the term, the land reverts back to the Freeholder.

When Do I Need To Get Building Insurance?

Under most Contracts, the purchaser is liable to insure the building from exchange of Contracts. Therefore, you will need to ensure that the insurance policy can begin immediately upon exchange.

If you are looking for quality conveyancing services and a conveyancer based in Manchester, Conveyancing Expert are here to deliver an excellent and efficient service, ensuring your property transaction is completed with expert legal advice.

Common Conveyancing Hold Ups And How To Avoid Them

If you are buying or selling property, ideally your transaction will go without a hitch and you will be in your new home in no time. That is certainly our plan for you! However, conveyancing is a somewhat fragile process and there are a few things you can prepare for, just to be on the safe side. Here is our list of the most common problems that homebuyers encounter during the conveyancing process and how to avoid them where possible.

Contact Conveyancing Expert today for a free online residential conveyancing quote. We are an established Conveyancing Solicitors based in Manchester. Get your no obligation free conveyancing quote today.

What Can Go Wrong During Conveyancing?

Not Instructing Solicitor ASAP

When you buy or sell a property you should instruct a conveyancing solicitor as soon as an offer has been accepted. Conveyancing solicitors carry out the legal process involved in the property transfer. This should be done once an offer has been accepted. By doing this, we can get the ball rolling as soon as possible. 

Conveyancing often takes time as there is complicated paperwork to be completed and reliance on outside parties to respond quickly. We will be sending out for searches, dealing with the paperwork between all parties, liaising with your buyer/seller’s solicitor and your mortgage lender, as well as many other important tasks. So make sure you get in touch as soon as you know the sale is going ahead.

Seller Accepts A Higher Offer

This is known as ‘gazumping’ and is a nightmare for the people who miss out. And whilst it is frustrating, until contracts are exchanged, the property transaction is not legally binding which means the seller is allowed to accept a higher offer from another buyer. What can you do? Well you can match the new buyer’s offer, attempt to negotiate a price somewhere in between, or drop out of the sale altogether. Depending on how far down the conveyancing process you are, the seller may be willing to accept your slightly lower offer as you may be able to complete faster as the conveyancing process is already under way.

Conflict Between Buyer And Seller

When offers have been accepted, both sets of conveyancing solicitors start the legal process by exchanging a series of letters (missives) to agree terms. These terms include the price, date of entry, and fixtures and fittings amongst many other things. Occasionally, one or more of the conditions will not be agreed on. If this happens, we will negotiate on your behalf and discuss what you are prepared to compromise on (or not).

Paperwork Issues

Incomplete paperwork is a common obstacle in the conveyancing process. When completing a property transaction, especially one in which a mortgage is involved, there are numerous documents that need to be signed by both buyers and sellers, some of which need to be witnessed. Organising this can sometimes cause delays so to ensure that you don’t hold up the conveyancing process, make sure you are available to sign contracts, and return documents as quickly as possible. We will keep on top of all paperwork issues and let you know as soon as we need your signature.

Time To Complete Mortgage Valuations And Surveys

Mortgage valuations don’t take long to complete (usually around 15-20 mins) and are a necessity. Unfortunately, it can take a while for your lender to arrange one. Other, more in-depth surveys that you might need or choose to have can also hold up the process. When a valuation and survey have been carried out, there is also the time it takes to write up their findings to take into consideration. To avoid delays, start looking into surveys as soon as an offer is accepted.

Problems With The Property

If your survey highlights a problem with the property, whether you are buying or selling, this is likely to cause delays to the conveyancing process. The extent of the problem must be fully examined, and decisions will have to be made about any work that needs to be carried out, specifically who is going to organise it and pay. We will advise you on the results of the survey and its implications. It might be necessary to renegotiate the price with the other party.

Breaks In The Chain

Many delays in the conveyancing process result from the actions of other people. The longer the chain is, the more complex everything becomes. Whilst this is something you cannot control, you should remain aware. We will monitor the chain closely and inform you straight away if a problem occurs as breakdown in chains can be costly and very upsetting. 

Mortgage Offer Expiring

Mortgage offers will normally last between three and six months. If the Conveyancing Process goes smoothly, this should be plenty of time, but if there are significant delays, you may have to apply for a new mortgage offer.

There may be circumstances when this is unavoidable, due to delays caused elsewhere in the system. However, instructing a Conveyancing Expert with plenty of experience and a sound track record will make this less likely to happen.

For a hassle free conveyancing quote, call us today. We are an experienced team of conveyancing solicitors based in Manchester and can help you with all your residential conveyancing needs.

 

There is no rule saying that you must use a local solicitor or conveyancer. In fact both local conveyancing and online conveyancing have their benefits – which is why we offer both. Conveyancing Expert take a look at the benefits of local and online conveyancing, why it matters, and whether it’s right for you.

Local Conveyancing

Local conveyancers, as opposed to online conveyancers, use an office space or shop front, typically located on the high street, like us. We host face-to-face meetings, and assign specific conveyancing professionals to work with buyers or sellers. Each client gets a personal point of contact with a qualified legal representative.

Many online conveyancers don’t have physical office locations as we do. They also often operate at higher volume, so it’s unlikely that you would work with one specific conveyancer throughout the process. You’ll sometimes find that most of the work is actually done by assistants and paralegals – one of the reasons why online conveyancing is generally cheaper, when you don’t use an experienced team such as ourselves.

Local Conveyancer Vs Online Conveyancer?

Choosing a conveyancer

• Communication

Technology has made our lives easier in many ways but it can also complicate things for some people. This is why we cater for all home-movers, local or otherwise. Using us for our local conveyancing solicitor services in Manchester means the level of your technological literacy won’t affect the speed of your property transaction.

However, we are equipped to assist clients nationwide who are buying and selling property across the UK. At Conveyancing Expert we believe in being at the forefront of technology for our conveyancing services. We commit to keeping you updated throughout the whole process to ensure we minimise any potential stress. After all, moving house or buying a home is one of the most stressful things you can do.

• Fees

The fast, communicative online conveyancing at Conveyancing Expert will ensure your sale and purchase is completed as quick and as smoothly as possible. Rest assured that we provide a free residential conveyancing quote and competitive fixed fee legal fees for buying and selling property. We will draw up purchase and sale contracts and complete all the legal aspects of house sale/purchase. We will also respond to any other questions raised by each party’s solicitor. Contact Conveyancing Expert today for a free residential conveyancing quote.

• Fewer options

It pays to shop around to ensure that you’re getting the best service available at the right price. That is probably how you found us. Plus our ratings and testimonials speak for themselves.  

• Office Visits Welcome

Whether you are a local client or an online client our doors are always open. Most conveyancing matters nowadays can be handled by phone, email or post. Whatever suits you is fine by us.

How Much Does Conveyancing Cost?

Whether or not you use a local or online conveyancing solicitor, the average cost usually ranges from £600 to £1800. Leasehold transactions can cost slightly more than freeholds and you should expect to pay more if you are buying a property than if you’re selling as there is more work involved on this side of the transaction. Buyers will also need to take into account the Stamp Duty Land Tax. Our services are always high in quality, value for money, and we embrace the most effective case management systems to ensure smooth transactions and happy clients.

Here at Conveyancing Expert we provide a quick and simple online residential conveyancing quote so you know exactly what fees and disbursements you can expect to pay when buying a new home. Get your no obligation free conveyancing quote today.

Here at Conveyancing Expert our team of Conveyancing solicitors in Manchester get a number of enquiries from customers exploring whether equity release is an avenue they should pursue during retirement.

The equity release market appears to be holding steady during the first quarter of this financial year with statistics released by the Equity Release Council showing that the first three months of 2021 saw £1.14bn released.

This article aims to explain a little about equity release and how it operates.

What Is Equity Release?

Equity Release is a way of unlocking some of the equity in your property whilst you still reside there provided you are over the age of 55. So, it is a means of staying in your home while taking out a lump sum or a monthly income, from the money tied up in it. 

How Does Equity Release Work?

Equity release is a way to turn the value of your property into a cash lump sum or monthly income. There are a number of policies which allow you to do this by releasing the equity (or cash) tied up in your home. You don’t need to have fully paid off your mortgage.

Equity release is like a type of lending. Your lender (new or existing) will release either the lump sum or regular amounts from the equity in your home. When you sell your home, die or require paid care, your lender will claim back the amount they lent you from the property. Interest is added to the amount taken from the property when it is sold, or it can be paid monthly.

Here are the two main ways in which Equity Release is done:

1. A Lifetime Mortgage. 

A lifetime mortgage is the most common way of releasing equity from your home. It simply means you borrow against your property, paying it back when you die or need paid care. The interest accumulates and there are no monthly repayments. Some mortgage providers will let you pay interest monthly though rather than facing a huge payment at the end. 

This is the most popular Equity Release Scheme. The loan does not have to be repaid until you pass away or move into alternative accommodation. Interest is usually at a fixed rate, compounded monthly and added to the outstanding loan so that the debt increases as time goes by.

Some Equity Release Schemes are portable, meaning if you want to sell your move house it may be possible for you to transfer the loan to the other property.   Remember though, the lender will need to agree to the loan being transferred. This will be subject to their lending conditions at that time and whether the property you wish to purchase is suitable to secure their monies. You should also note that if you are considering downsizing at that time you may be asked to repay part of the loan you have borrowed.

The Equity Release Council builds protections into every approved provider’s plans. For example, they include a no negative equity guarantee, meaning that you will never owe more than the value of your home. You may also be able to protect a percentage of the equity in your property so that you are still able to leave a lump sum to your beneficiaries. A Financial Advisor can advise you on this in more detail.

2. A Home Reversion.

A Home Reversion means selling either the entire or part of your property to a lender. If you do this you will only get between 20%-60% of the value of your home but are allowed to remain in the property for the rest of your life, or until you move into long-term care. Again, this money can be a lump sum or a regular income. There is no interest since you are selling your home at a much lower rate.

What is the difference between a ‘Lifetime Mortgage’ and a ‘Home Reversion’?

• Value – A home reversion means you effectively sell your property but live there rent-free. You won’t benefit from any increase in its value. With a lifetime mortgage, you still own your home. If the value increases you will benefit and can use this to pay off the mortgage.
• Interest – There is no interest on a Home Reversion because you receive less than market value as the lender assumes it will be worth more in the future. With a lifetime mortgage, the interest ‘rolls up’ over the years, though in some cases, you can pay off the interest monthly.

Main points to consider for both ‘Lifetime Mortgages’ and ‘Home Reversions’:

• Are there age limits?
• Are there borrowing limits? With a lifetime mortgage you normally get around 60% for a or 20-60% of the value of your property for a home reversion. This depends on the value of your home, as well as your age and state of health. 
• Interest rates must be fixed. If they are variable, there must be an upper limit on how much the repayment can increase.
• Ask your mortgage provider what happens if you decide to move. 
• Check whether there is a ‘no negative equity’ guarantee. This would mean that if your debt increases beyond the value of your property, you will not need to pay anything.
• Ask whether you can choose to take out a lump sum, smaller sums when you need them, or both and the interest implications.
• Can you ‘ringfence’ some of your property? This would protect a certain amount of your money. 

Who qualifies for Equity Release?

You usually have to be 55 or over (usually older for home reversion) to release equity. Also, there may be limits on how much of your home you can borrow against. 

Your property needs to be your main residence, and you will have had to pay off your mortgage though in some cases, you could use an equity release to pay off the remainder of your mortgage.

Are there any risks to Equity Release?

If you start releasing money quite early, or take a large sum, it would be easy to accrue huge interest. If the amount of released equity plus the interest is worth more than your property then when you die you will leave behind a large debt. Some equity release schemes have a ‘no negative equity’ clause. This caps the amount of the total value of the property. Some allow you to ring-fence some of the value of your property.

If equity release is done too early and you wish to move home, you might not have enough equity left in your home to buy a new property to buy a new one.

If you are on means-tested benefits, they may be affected by equity release. If you are on reduced council tax, income support or other benefits, they may be reduced.  

Are there advantages to Equity Release?

The obvious advantage is more money in your account whilst enjoying your current home. It might save you from downsizing or going into rented accommodation. 

Are there other options to Equity Release?

• If you just want a one-off lump sum, a loan might be easier. 
• If you are looking to alter your property to accommodate later life or a disability, there could be grants available. 
• If you are looking to free up some money from your property, downsizing is an option, though take into account the costs associated with moving, including conveyancing solicitors,, surveys, and stamp duty etc. 

What are the costs of Equity Release?

There are four possible costs when it comes to applying for equity release:

• Conveyancing Fees
• A financial advisor
• Lender’s application fee
• Valuation fee

If you are interested in equity release and setting it up, talking to a conveyancing solicitor who specialises in equity release. When you are ready to go through with the process, the conveyancing solicitor will be able to get the process in motion. Home reversions can take slightly longer than lifetime mortgages. In general, the process can take around 6-8 weeks.

Do I need a Residential Conveyancing Solicitors For Equity Release?

Taking out an equity release plan is a big step and so it’s vital that you have expert impartial financial advice. The Equity Release Council (ERC) rules stipulate that to take out an Equity Release plan you must consult a conveyance solicitor.

They must be independent of the lender’s solicitor and rules state you must have at least one face-to-face meeting with them.

Your Residential Conveyancing Solicitor will:

• Check your identity (to comply with Money Laundering Regulations). 
• Meet with you face to face 
• Check your ID documents during this meeting.
• Ensure that all your property paperwork is in place, such as title deeds, buildings insurance etc.
• If you are paying off your existing mortgage with your equity release funds, your conveyancing solicitor will also take care of that for you.
• Agree your completion date with your lender and arrange for the transfer of the money to your bank account. 

And Finally

Another important part of the process is that you also have independent legal advice so much so that it is part of the Equity Release Council’s ‘rules and regulations’. Conveyancing Expert are a team of conveyancing solicitors based in Manchester and can offer you impartial expert conveyancing advice.

Conveyancing Expert are a team of legal professionals who are dedicated to efficiency and honesty and ensure that every client benefits from our expertise. We continually educate ourselves and guide our clients, excelling at customer service.

Our services are always high quality, value for money, and we employ effective case management systems to ensure smooth transactions and happy clients.

Please contact us here, give us a call on  0161 794 7799 or email: enquiries@conveyancingexpert.co.uk

Buying your very first home can be fairly daunting; after all it’s likely to be the biggest purchase you have ever made. Where do you start? What do you need to know? Conveyancing Expert have a wide range of advice and information to help you get started.

Conveyancing Expert are a well established and highly trusted Conveyancing Solicitors Manchester. If you are looking for the best Solicitors for moving house give us a call and let us see how we can help.

First of all, it might be wise to check that you are , actually in fact, a first-time buyer.

How Do I Know If I’m A First Time Buyer?

A first time buyer is someone who has never owned a home or had a mortgage taken out in their name at any point previously. However, qualifying for first time buyer status is a bit more complicated than that. Different lenders have their own guidelines as to who qualifies whilst the Government also has its own rules as to who receives the stamp duty exemptions associated with being first time buyers.

If you think you fit into this grey area and aren’t sure whether you are classed as a first time buyer or not, we will explain who exactly qualifies below. Then you can take a look through the information we have compiled to help you with your first property purchase.

Who Qualifies For First Time Buyer Status?

Being a first time buyer is a very desirable position to be in in the property world because first-time buyers have no chain of course and their position is usually far less complicated than those who do. It can take away a lot of the stress for both buyers and sellers of property. Here are the ways in which you can qualify for first time buyer status:

• You are a single person who has never owned a home before (this includes a home in any other country), you will be regarded as a first-time buyer. 
• You are a couple wanting to buy a house together and NEITHER of you have ever previously owned a home in any country.

• You have owned a commercial property before but not a dwelling you qualify as being a first time buyer. Sos technically, yes, you own or have owned a property in , however, the rules about first time buyers involve properties that have been used as homes. So if you own a commercial property such as a shop/salon/office etc, you are still a first time buyer.
  • Be aware though, if the commercial property you own, or have owned, has living quarters attached/included in the building, you are NOT a first time buyer.

Who Is Not A First Time Buyer?

You are not a first time buyer if:

• If you own or have owned a dwelling/home that you inherited. The rules involve who has owned property, not necessarily bought property.
• You own a home that has been given to you as a gift. Some people are given houses by kind relatives; these people are no longer first time buyers.
• You are part of a couple who want to buy a house and one of you falls into either of the two categories above, you will not qualify as first time buyers on your purchase.
• You have never owned a home but plan to buy one as a landlord (ie: buy-to-let) then you are unable to take advantage of the Government’s stamp duty exemption rules.

Budgeting

Before you go house hunting, it is essential to know how much you can spend before you get carried away. Arrange an appointment with a mortgage adviser who will have access to the entire mortgage market. Initially this should not cost you anything and will provide you with how much you can afford as well as a useful insight into the process and requirements of obtaining and repaying a mortgage.

There are various types of mortgages available and your adviser will discuss the differences between them and, by taking various details from you, will be able to help find the right type of mortgage for you.

Furthermore, running a home is expensive and it’s easy to overlook something. These are some costs to be mindful of.

• Deposit
• Monthly mortgage payments
• Survey costs
• Legal fees for buying a house
• Removal costs
• Building and contents insurance
• Furnishing and decorating costs
• Mortgage arrangement and valuation fees
• Stamp Duty (Land and buildings Transaction Tax in Scotland/Land Transaction Tax in Wales).

The most important part of purchasing a home is making sure you can afford all your costs and repayments. It is essential that you put together a budget and assess the affordability before you start looking for a property and applying for mortgages.

Here are a few further things to bear in mind.

• Budget

It is always tempting to look at houses you might not be able to afford… just in case. However, it is very important that you don’t overestimate your affordability or you could lose your home due to not being able to keep up with the repayments. Don’t forget to consider the legal fees for buying a house and other costs

• Finance

Once you have budgeted, organise your finances and apply for a mortgage in principal. Shop around for the best deals and make sure you have a good credit rating.

• Location

Do you know what area you want to buy in? Town or rural, new build or victorian semi? Location is everything. If you are not that familiar with the area you are moving to check out transport links, schools, shops and of course, pubs!

• Keep An Open Mind

Don’t write off potential homes on first glance or you might miss out on what turns out to be your dream home. Maybe it has peeling paint and an overgrown garden. But just think about how it will look with your belongings and new decor.

• Ask Questions

Is there a service charge? What is parking like? How old is the boiler? What are the neighbours like? Why are you moving? How often is the rubbish collected? Is it a high speed broadband area? Make a list even as you are bound to forget something.

Conveyancing Expert are your local and online Conveyancing Solicitors based in Manchester. If you are looking for expert Solicitors for moving house drop us a line and let us see how we can help.