Communication
Finding the right property can sometimes be the sole cause of a stressful move. Consider exactly why you are buying and how much you have to spend. Talk to an Independent Financial Advisor (IFA) and make sure that you can afford it even before thinking about searching for that dream home.
Most properties will be involved in a chain but, unfortunately, one in three chains will fall apart, often at the eleventh hour. Chains fall apart for various reasons, perhaps one party has not got their finances in order or there may have been an unpleasant surprise in the survey or simply because someone has changed their mind.
England and Wales currently possess one of the slowest home buying and selling systems in Europe and it is estimated that as many as 28% of transactions fall through after an offer has been accepted.
In 2004 a Home Seller's Pack was introduced, whereby the necessary surveys, searches and the subsequent paperwork is arranged in advance by the vendor. The seller's pack is intended to speed up the house-buying process and so reduce the risk of gazumping. This compulsory pack has to be available to buyers before they visit. Currently, this is still being tested and is due to be rolled out across most parts of the UK in 2007.
The pack should include: ownership documents, local authority searches, details of any relevant planning or listed building regulations, details of warranties and guarantees, a draft sale contract and a survey report.
(Leasehold properties would require: details of the lease service charge, details of the building insurance policy and regulations made by the landlord)
The estimated cost of the seller's pack is about £500. Some estate agents already offer a seller's pack as part of their overall service to sellers. They include the cost of the pack in their fee or defer the fee until completion.
Home buyers will be encouraged to get a preliminary mortgage offer to ensure that the sale can be completed within three weeks. They will also have to pay for a building society or bank valuation and might have to undertake a wider structural survey.
Lenders, local authorities and other service providers will be expected to adopt service targets, which means that buyers and sellers receive a fast and efficient service. Better use of information technology will also speed up the process. Mortgage lenders will also be asked to provide title deeds more quickly than at present and to examine the scope for developing 'chain-breaking' loans which would suit a wider range of people than current bridging loans.
However, the most important way to ensure a chain progresses smoothly is through communication. Buyers and sellers should stay in regular contact with both their solicitors and estate agents to make sure that everything possible is being done. It may even help if you stay in touch with each other. Things are much less likely to go wrong when you are speaking to each other rather than through a third party. Remember that all parties involved, are actually part of a team, to make the sale happen. This can sometimes get forgotten and ends with one party blaming the other when things get fraught.
Regular prompting can help to remind and encourage those who might need a nudge to speed things along. This should also highlight any potential problems as early as possible. It also helps to stay as flexible as possible. Be prepared to move in with your family or rent for a short while if it means that you can keep your chain together. Sometimes, however, you may be asked to move more quickly than you would have ideally liked, so make sure that you are ready!
Make sure that you ask for at least two weeks between exchange of contracts and completion. Not knowing when your moving day is until a few days before you are due to move in, will ensure that things go wrong. Not being able to book the removal company in time will cause no end of problems, not just for you but for everyone else in your chain. And make sure that everyone knows what is happening!
Few people ever get to know the other people and properties which make up their chain, or just how many properties are involved, so don't hold anything back. Make sure that any problems are ironed out at the start, and NOT a few days before exchange of contracts.