First time buyer: What you need to know before purchasing a home

While buying your first home is an exciting time, it can also be a daunting experience. Our Residential Conveyancing experts are here to help you by providing valuable insights and practical advice.

Ask yourself: what is my financial position?

• Committing to a mortgage and home ownership is a big step.   As well as committing to a mortgage for the purchase itself remember that post purchase you will need to cover maintenance costs, insurance, council tax and utility bills.   There are lots of online calculators that can help you plan a long-term budget.  
• Understanding your credit score is vital and you can check this easily online for free.  The better your credit score the more chance you have of obtaining a mortgage offer and at a better interest rate.  If your credit score is poor there are ways to improve it such as paying bills on time, reducing debt and not having too many credit cards.  
• The bigger the deposit you can put forward the better, so start saving early.  You may have saved into a Help to Buy ISA or Lifetime ISA but you should be aware that there are certain restrictions on using these so check the terms and conditions carefully before settling on a property.  
• Make sure that you are financially ready by speaking with a mortgage broker and obtaining an ‘offer in principle’ so you know at the outset how much you can borrow.  They will also guide you on whether a fixed rate, a tracker or a variable loan is best for you.  When working out what you can afford to buy, don’t forget to consider the additional initial outlay of survey and mortgage application costs.  Additionally, you will have to pay Land Registry fees, searches, stamp duty, and legal fees.  

At Tees, we are more than happy to provide you with a quote for the legal aspects so you can see how those additional legal extras might add up.

What type of property should I buy? 

Freehold 

When you purchase a property that is freehold, you are buying the complete ownership of both the land and the building on it. You become the outright owner of the property.

Freehold properties have an indefinite ownership period. Once you buy a freehold property, you and your heirs will typically own it for an unlimited period and be solely responsible for its maintenance and repair. 

Leasehold 

When you purchase a leasehold property, you are essentially buying the right to live in or use the property for a specific period (the lease term). However, you do not own the land itself, and once the lease term expires, ownership returns to the landowner or the landlord.  

Leasehold properties come with a fixed lease period, which typically ranges from 99 years to 999 years. Once the lease term is over, the property reverts to the freeholder's ownership. You may not be able to take a mortgage on a property that has less than 80 years left to run.  

Maintenance of the property will  generally be carried out by the freeholder or a management company and you will be required to pay a service charge to cover these costs.  

Shared ownership 

Shared ownership properties are sold as leaseholds.  Shared ownership allows you to buy a portion of the property and pay rent on the remaining share.  You can generally purchase further shares by staircasing as and when you can afford to do so. 

How do I find the right property? 

• Consider matters such as proximity to schools, amenities and transportation links, as well as affordability.  
• Look carefully at the property as it may be obvious there is structural damage or repairs that could be required.  If major repair works or renovation are required, make sure you factor the cost into your budget.
• Before you make an offer use online house sale websites such as Rightmove and Zoopla to see what similar properties in the area have sold for and don’t be afraid to negotiate.  Any offer at this stage should be made subject to survey so if unexpected repairs are revealed by survey, you can re-negotiate further.  

What happens during the purchase process?

• You will need to instruct a solicitor to act on your behalf to ensure that the legal title to the property is sound and that all the right paperwork is in place.  The solicitor will carry out the necessary legal searches, investigate the title and report to you on it and then complete the transfer into your name following completion.  

At Tees we are used to acting for first time buyers and will guide you through the process and answer any questions you may have as clearly as possible.  

• Once you have settled on a property your lender will want to ensure that they are happy that it represents a sound investment for them and will carry out a valuation before issuing a formal offer.
• Whilst it is not a requirement to have a survey it is always advisable.  A property purchase is likely to be the biggest investment you will ever make so it is important to have a skilled professional check for issues you may not have noticed.  In the long run a survey can save you money if issues are found as you can use the report to renegotiate.    

Consulting with property law specialists at Tees ensures you receive expert guidance tailored to your needs.

Buying your first property can be a smooth and rewarding experience with the right support and preparation.

Our specialist lawyers are based in:

• Cambridgeshire: Cambridge
• Essex: Brentwood, Chelmsford, and Saffron Walden
• Hertfordshire: Bishop's Stortford and Royston 

But we can help you wherever you are in England and Wales.

Independent financial advice for home buyers and homeowners