Edinburgh Estate Agents, Scotland.

Buying your own home – things to consider

Buying your home is probably the biggest financial decision you will ever make. So take time to consider whether it is the right choice for you. For example, if you are a tenant who uses the Right to Buy scheme you will become responsible for all the costs of maintaining your home, including major structural repairs, routine repairs and improvements.

What costs are involved?

You also need to take the following costs into consideration:

mortgage repayments

mortgage protection insurance for if you fall ill or lose your job

life assurance to enable your family to pay off the mortgage if you die

contents insurance against the risk of theft, fire, flood or other accidents

council tax and water charges

gas, electricity, telephone, etc

ground rent and service charges may apply

The process of buying a house is also costly, as you may need to pay for:

a solicitor or licensed conveyancer

an independent survey

the mortgage to be arranged

the Land Registry fee

Stamp Duty

As a tenant, you may be able to claim housing benefit to help with the rent. As an owner-occupier, you will not receive any housing benefit to help with your mortgage costs. You may be entitled to income support to assist with housing costs, but this is not usually payable for nine months after you first claim it.

If you are elderly and own your home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care.

First time buyers

Over the past few years, the property market has been moving very fast and has led to significant increases in property prices. This has made it very difficult for many people to afford to buy a home. This is a problem particularly faced by first time buyers, as although they may be able to raise a mortgage, this will often fall far short of the cost of a property.

Getting on the ladder

It is, however, still possible for first time buyers to get onto the property ladder and there are actually some advantages to being a first time buyer:

interest rates are at their lowest for more than 30 years

first time buyers are more appealing to sellers because they are not in a chain (that is they are not part of a long list of people all dependent on each sale in a chain going through on time)

first time buyers are much sought after by mortgage lenders

For more advice on how to get on the property ladder as a first time buyer visit:

Channel 4 homes: information for first time buyers (opens new window)

BBC watchdog guide for first time buyers (opens new window)

Affordable housing

The government also runs various schemes to help people get on the property ladder, particularly those who are key workers. Two of these schemes are; The Key Worker Living programme which aims to help people working in front line roles for key public services to buy or rent a home and Shared Ownership, introduced to help people who cannot afford to buy a home outright.

Viewing a property you are thinking of buying

One of the key stages of buying a house is the viewing. However, it is not always easy to know how to prepare for this, what to look for, what questions to ask and how to ensure you have the full picture. Here is some advice which you might find helpful and a checklist of things to look out for and questions to ask about the property and its location.

Preparation

Before you go to view a house, try to do as much background research as you can on the property and the area so that you do not waste time seeing something that does not meet your needs.

When you are ready to view, if you can, take someone else with you, preferably someone with different tastes who may spot things that you miss.

Make sure you view the property during the day when you will be able to see better and spot problems.

If you really like a property try to arrange to view it again at a different time of the day to give you a different perspective.

Remember, its your money you are spending so don’t be afraid to ask direct and blunt questions about the property. Take your time, be nosy and don’t be pressurised by the estate agent or vendor into making an offer.

Try not to view too many properties in one day.

Find out more from Direct.gov.uk

Solicitors and conveyancing

Conveyancing is the legal process by which ownership of a property is transferred from the seller to the buyer.

Whether you are a buyer, seller or both, in most cases you will want to hire a solicitor or licensed conveyancer as it can be complicated process.

The Law Society is the professional body for solicitors in England and Wales and they are bound by their code of practice. You can find a solicitor in your area that specialises in conveyancing on the Law Society website. You can also read its guidance about how to use a solicitor and what to do when things go wrong.

E-conveyancing

Many people are dissatisfied with the present house buying system which can be plagued with delay and anxiety. The government wants to introduce 'e-conveyancing', an electronic system for the buying, selling and registration of land and property in England and Wales to improve the process.

E-conveyancing will give open access to conveyancing information online. It will also provide a way for all payments relating to the transactions in a chain to be paid simultaneously, with automatic registration on completion. It is designed to help reduce the delay and anxiety often experienced in the house buying process.

A large number of projects are underway to help develop systems for e-conveyancing. During 2004 some applications will be electronically delivered and it is anticipated that the full set of e-conveyancing services will be piloted in 2005.

Finding and using a solicitor (opens new window)

The Law Society (opens new window)

Building Surveys

When you are buying a home it is important to get a surveyor's report about the property's overall condition. A surveyor is a qualified building inspector who can identify any problems or weaknesses with your prospective purchase.

Types of survey

There are three main types of survey:

valuation: this will be carried out by your mortgage company if you need a mortgage to buy the property

homebuyer: this is a basic survey that will give you a general overview of the property

full structural: recommended for older properties and those in need of work, or simply for peace of mind. Although expensive, it is worthwhile

You can contact the Royal Institute of Chartered Surveyors (RICS) to find a suitable surveyor in your area.

New properties

If you buy a house that is less than 10 years old, it may be covered by the National House Building Council (NHBC) Buildmark Scheme or some other warranty. The warranty will transfer to the new owner and will only cover some defects that appear after the house has been sold.

Moving to your new home

There is so much to organise in just packing for the move that often important things are understandably over-looked. Use this checklist a couple of weeks before you move to make sure you’ve got everything covered. But beware - don’t notify anyone of your change of address until the contracts have been exchanged, as the sale can still fall through leaving you with the chore of contacting everyone again.

Change of address service

You can tell many different organisations of your new address, including gas and telephone companies and government offices, by using the website 'I am moving'.

'I am moving' change of address service (opens new window)

Have you contacted your council tax office?

Contact your local council’s council tax office to let them know the date you move out of your current property and when you move into your new one so they bill you correctly.

Find your local council

Have you redirected your post to your new address?

Have you told the utility providers (gas, water, electricity)?

Have you updated your details on the Electoral Register?

Have you told the TV licensing?

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