Frequently asked questions

How long will it take?
Why are legal costs so high?
Why does it take so long?
How long does it take to get a mortgage?
Do I really need life insurance?
What is an endowment life policy?
Can I do anything to speed things up?
Can we exchange and complete on the same day?
Can I do my own conveyancing?
What is a Licensed conveyancer?
Why use a Licensed conveyancer?
Are there any advantages to using a solicitor?
Do I still need a solicitor if I use a conveyancer?
Will I have any problems if I buy or sell without an estate agent?
What fixtures and fitting can I take?
Do I really need to arrange a survey?
What is a mortgage guarantee premium?
Do I really need all these searches?
Can I do my own search?

How long will it take?

This is a bit like how long is a piece of string but government statistics show that the average time to reach exchange of contracts where no chain is involved is 4-6 weeks, but can be a great deal longer if there is a chain. Even a short chain can add 2-3 weeks to this time. If there is no chain and no mortgage is required the whole procedure may be completed in a few days.

Why are legal costs so high?

Most of the expenses incurred in moving house are not in fact legal costs. The biggest expense in buying a property is usually stamp duty which is a government tax. On the sale of a property the biggest expense is estate agents fees. The conveyancer will have to pay these expenses on your behalf but gets no benefit from this.

As far as your conveyancer's costs are concerned these are much less than they used to be. Forty years ago a typical solicitors fees on the purchase of a property would be one or two per cent of the purchase price Competition has greatly reduced prices and unfortunately standards have also been reduced. At today's prices conveyancers are frequently pressurised to cut corners and the standard of service provided by cut price conveyancers leaves a lot to be desired.

Why does it take so long?

If a buyer does not require a mortgage and is willing to proceed without a survey, if the title deeds are with the seller's conveyancers and if the buyer is prepared to pay extra for a personal search, then the legal formalities can be carried out in a day or two (provided no problems are encountered), and occasionally this does happen. However, in practice, most people require a mortgage, the seller's conveyancers will need to apply to the lender for the title deeds, and a proper search is normally considered essential. Each conveyancing transaction involves a large number of firms and individuals who will all need to correspond with each other, and if any one of these creates a delay then inevitably this will have a knock-on effect.

In approximately 90% of transactions the legal formalities are completed before the mortgage offer is made. If the chain is a long one then it will almost certainly be held up until the last person gets his or her mortgage offer.

How long does it take to get a mortgage?

Estimates of time scale by the lender or broker are always optimistic and should be ignored. You may be told that you will receive your mortgage offer in 7-10 days. This is unrealistic since references will normally have to be taken up and a survey carried out, and in practice these will nearly always take longer than this. Letters requesting references may go astray or the person who needs to reply is on holiday, etc. Surveys frequently discover faults which require a specialist report and this delays matters further.

Do I really need life insurance?

Some lenders or brokers will insist that you take out life insurance to the value of the mortgage. If there are two of you this is a good idea, but if you are single then it is a waste of money and should be avoided. If it is a condition of the mortgage then go elsewhere, as the majority of lenders will not insist that you take out life insurance. Large amounts of commission are paid out when a new policy is taken out and this is a huge incentive for bad advice. Be especially wary if you are sold an endowment policy with even larger commissions. Very few reputable lenders or brokers are now recommending endowment policies.

What is an endowment life policy?

An endowment policy is a life insurance policy with a savings element and hence is much more expensive than a straight life policy. Now largely discredited since they do not guarantee to pay out the sum insured at the end of the term.

Can I do anything to speed things up?

In most cases there is little point in trying to speed things up since you will still be waiting for someone else in the chain. However, if you are a first time buyer buying a repossessed property for example, then you may be in a position to move more quickly than usual. If you regularly chase your lender to ensure that they are not waiting for references etc., you may get your mortgage offer through more quickly. Some lenders are much quicker than others.

We can arrange a personal search which would be carried out by a specialist agency, but this is expensive and some lenders will not accept this kind of search or will insist on the usual search being carried out as well. Most local authorities only take one to two weeks and it is rare to have to wait for a search before exchange of contracts can take place.

With regard to the time between exchange and completion this can safely be reduced to ten days if necessary, provided there are no complications such as the need for a further inspection by the lender after certain work has been carried out.

Can we exchange and complete on the same day?

Yes, but it is not usually a good idea as any party in the chain can withdraw from the transaction at any time and for any reason, even on the anticipated completion day, and if you have made all your moving arrangements this can be fairly disastrous! However it may be advantageous if there is no chain and a last minute change in moving date is not too serious, e.g.. if the property is empty and you do not need to book removals.

Can I do my own conveyancing?

Yes, but the lender will still appoint a conveyancer to represent them and the saving is not worth the aggravation. It should never be contemplated if you are buying a flat as you need an expert to examine the lease. You also need a lawyer to check that all planning permissions and building regulations approvals have been obtained. You will also find problems in dealing with the other lawyers who cannot accept your undertakings to send money or title deeds.

What is a Licensed conveyancer?

In 1985 the Government passed a law to end solicitors' monopoly in conveyancing. The profession of Licensed Conveyancers was created and rules drawn up to ensure that all members of this profession conform to the highest standards of care and efficiency. A statutory body, The Council for Licensed Conveyancers, was created and rules laid down to protect the public. All Licensed Conveyancers must have indemnity insurance to protect the public against any errors or omissions and they must contribute to a compensation fund to ensure that funds are available in the event of any default. A Licensed Conveyancer will have many years of experience in conveyancing and will have passed examinations at or above law degree standard.

Why use a Licensed Conveyancer?

A Licensed Conveyancer is an expert in property law, specialising in conveyancing, who will always be up-to-date with the latest changes in the law.

Another advantage is that your conveyancer will nearly always be available if you need to contact him or her, and may therefore be able to expedite the overall process of conveyancing. They will not be "in court" at a vital time, just when your buyer or seller has issued an ultimatum to exchange contracts by the end of the working day.