How To Buy a House UK in 2024 (Start to Finish)

Summary

In this video, property investor Samuel Leeds takes viewers through the 10 key steps to buying a house, from setting clear goals to completing the purchase. He emphasizes the importance of preparation—such as defining your buying purpose, securing a solicitor and mortgage broker, and understanding your finances—before diving into property searches. Throughout the process, Samuel stresses the importance of communication with your team and patience during sales progression. He also recommends an independent building survey and provides insights on making offers and negotiating with estate agents. This comprehensive guide helps simplify the complex home-buying journey.

Takeaways

• 😀 Define your goal before buying a house: residential or buy-to-let, and decide how you’ll finance it (cash or mortgage).
• 😀 🧑‍⚖️ Find a conveyancing solicitor early to handle the property transaction process.
• 😀 💼 Consult an independent mortgage broker to explore all available mortgage options and secure the best deal.
• 😀 💰 Secure your deposit, whether it’s from personal savings, gifts, or loans, to cover the required amount for the property purchase.
• 😀 🏡 Start searching for properties after you’ve set up your solicitor and mortgage broker, as this shows you are serious.
• 😀 👀 Physically or virtually view the property before making any offer to ensure it meets your needs.
• 😀 💸 When making an offer, negotiate for a lower price than the asking price to get the best deal.
• 😀 📄 After an offer is accepted, request a memorandum of sale, which confirms that the deal is moving forward.
• 😀 🕰️ Sales progression takes time. Your solicitor will carry out essential checks, such as title deed verification and property searches.
• 😀 🔍 Arrange for an independent building survey to thoroughly check the property’s condition and avoid any hidden issues.
• 😀 📝 Finally, exchange contracts to legally commit to the sale, then complete the transaction by transferring funds and receiving the title deeds.

Q & A

What is the first step in buying a house according to Samuel Leeds?

The first step is to have a clear goal in mind and understand what you're buying the house for. You need to decide whether it's for residential purposes (to live in) or as a buy-to-let (investment property).

Why is it important to know whether you are buying a house as residential or buy-to-let?

Knowing whether the property is for personal use or rental is crucial because it influences the financing options, mortgage rates, and legal considerations you will encounter.

When should you hire a solicitor in the house-buying process?

You should hire a solicitor as the second step, even before you start viewing houses. The solicitor handles the legal aspects of the property transaction and will help guide you through the process.

Why should you avoid getting a mortgage directly from a bank?

Instead of going to a bank, it's better to consult an independent mortgage broker who will compare multiple lenders and find the best mortgage deal for your situation, often with better rates.

How much of the house purchase can you typically finance with a mortgage?

For a residential property, you can typically borrow up to 95% of the house's value, while for a buy-to-let, you can borrow about 75%. This leaves you with a deposit to cover the rest.

What is the significance of finding the right deposit for your house purchase?

The deposit is the amount of money you need to pay upfront. It can come from personal savings or a gift from a family member, but it's essential to confirm its source with your mortgage broker.

How should you begin your house search after completing the first few steps?

Once you have your solicitor, mortgage broker, and deposit plans in place, you can start looking for a house. You can search online platforms like Rightmove or contact estate agents directly.

Why is it important to view the house before making an offer?

Viewing the house ensures that it meets your needs and investment goals. No offer should be made without a viewing, as this is required for both legal and practical reasons.

How do you make an offer on a property?

To make an offer, simply contact the estate agent and state your offer amount. It’s important to offer below the asking price to potentially secure a better deal.

What documents are needed to receive a memorandum of sale?

To receive the memorandum of sale, you'll need to provide proof of identity, your mortgage broker's details (including a decision in principle), and proof of funds.

What happens during the sales progression phase?

During the sales progression phase, your solicitor will conduct property searches and handle legal matters, while your mortgage broker finalizes your mortgage offer. This stage can take several months.

Should you get an independent building survey even if your mortgage lender is inspecting the property?

Yes, it's highly recommended to get an independent building survey. While your mortgage lender will conduct a brief inspection, an independent survey will provide a detailed check of the property's condition and uncover any hidden issues.