Occupying a house either from buying one or by renting, can easily become a cumbersome ordeal when the precepts to doing so are ignored. As herculean as the task of securing a house can be, there are certain important steps that will ultimately reduce the burden when taken. What you do not want to do when buying or renting a house is “unprepared”.
It is not enough to just have the money for a house and neither is it enough to sort of have an idea of the financial implication. In the same vein, knowing a bit of legal stuff by your own standards and possessing a reasonable comprehension of contracts might not be enough. Below are some tips to help you.
Have a Budget Before Making an Offer on a House.
More often than not, people actually make the mistake of searching for a property without a budget. They either get carried away, become enthusiastic or downright desperate in some cases. This inevitably sees them launching towards or even, unfortunately, owning a house or renting one that isn’t cost friendly. To resolve this, you have to take a critical look at your numbers. Questions like; by virtue of my current income, how much can I spend on a house? What are my mortgage payments like right now? Are questions that would enable you to arrive at a reasonable budget offer.
Note that arriving at an intellectual estimation is not completely critical until you’re able to make financial provisions for subtle payments. Remittent like mortgage fees can go up to £2,000 depending on the property. However, other expenses such as duty stamps can hit upwards of £100,000 and this is without even dwelling on the initial deposits. This is why it remains paramount to check your credit report accurately before setting the ball in motion. When you have succeeded in doing all of these, you can then proceed to put forth an offer through an estate agent which is commonly for free of charge.
Legal Implications, Fees and Consequences
One of the most sovereign actions to take when buying or even selling a house is hiring the services of a professional solicitor. The implications of progressing without one are nigh grave. Any agreement made without a solicitor is practically illegal and all documents therein will be rendered inadmissible even in a court of law.
In purchasing a house, renting one, leasing one or letting one, the need for a solicitor cannot be overstated and even so for good reason. They usually request for a percentage of their total fee, which is usually about 10%. Obtaining a solicitor costs anywhere from around £500 – £1,500 and that is VAT inclusive at a rate of 20%. Nonetheless, this is relatively an amenable fee to part with, considering that a solicitor will be the one to help you do local searches and prevent you from obtaining a problematic property. The assistance of a surveyor will also come in handy. The solicitor will also investigate local plans including current/pending neighbourhood issues that may devalue the property. These checks and follow-ups are priced at £250 – £300 and you’ve got to be prepared to take them on.
A budget cannot be shoved aside and your legal fees must be handled to ensure a seamless process.Tags: budget, dynamics, house, housing, legal, legal fees
Categorised in: property
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