Planning to buy or sell real estate in England and Wales?
Conveyancing Process
In England and Wales, neither the buyer or seller are legally bound to the transaction until exchange of contracts has taken place. The buyer and seller and then legally bound to buy and sell the property in question. A completion/moving date is then set.
It is therefore critical that all parties are satisfied and all legal issues have been dealt with prior to exchange of contracts.
Acting for a Seller
The seller’s lawyer is responsible for obtaining title documents, drafting the contract and sending these across to the buyer’s lawyer for review.
The seller’s lawyer will also respond to any enquiries that the buyer’s lawyer raises and deal with any legal issues.
As well as legal fees, costs for the seller include any agents fees and satisfying any mortgages or charges.
Acting for a Buyer
It is up to the buyer to carry out all investigations and clarify any legal issues with the seller’s lawyer before they commit to the purchase. The buyer buys the property at their risk so it is advisable that the buyer arranges for a survey o be carried out.
The buyer’s lawyer will review the title deeds and conduct the standard conveyancing searches. They will also raise further enquiries with the seller’s lawyer to clarify any legal issues or anything that is unclear.
Once they have all the required information, the buyer’s lawyer will report to the buyer on all the paperwork. If the buyer has mortgage funding in place, their lawyer will report to their lender to ensure their interest is also protected.
As well as legal fees, costs for the buyer will include search fees, Land Registry fees, Stamp Duty Land Tax (in England) or Land Transaction Tax (in Wales) and surveyors fees.
The Residential Property market in England and Wales.
According to HM Land Registry’s index, UK house prices rose 3.3% in the 12 months to November 2024.
The Bank of England have also reduced interest rates again in February 2025 with the base interest rate now at 4.5%.
This some confidence and resilience, particularly with the uncertainty leading up to the Labour governments budget in October 2024.
However, those that purchased with a five year fixed rate mortgage during the COVID-19 pandemic in 2020 when interests rates were at their lowest will see a potential increase in their monthly payments when these deals come to an end in 2025.
Stamp Duty Land Tax in England is changing from 1 April 2025 meaning there will be an increase in tax to pay if you complete your purchase after this date. The increase will lead to increased costs for buyers which may cause a reduction in transactions.
On a positive note, there is some much needed legal reforms coming for leasehold properties/apartment blocks with the Leasehold and Freehold Reform Act 2024 due to be implemented.
Exchange and Completion
Prior to exchange of contracts, the buyer or seller can withdraw from the transaction at any time and for any reason, with no financial recourse to the other party.
Once all parties are in a position to proceed, contracts are exchanged and a date for legal completion is set. The buyer’s lawyer pays the deposit (usually 10% of the purchase price) to the seller’s lawyer.
On the date of completion, the buyer’s lawyer sends funds to the seller’s lawyer and once funds are received, completion has taken place.
How we can help
Our lawyers are experienced in all types of property in England and Wales from properties in towns and cities to those in the country and on the coast.
Contact us:
David Ludlow
Moore Barlow LLP
The Oriel, Sydenham RoadGU1 3SR Guildford, Surrey
Phone: +44 1483 729933
www.moorebarlow.com