Getting on the Ladder
Last time, I wrote about the process of buying a property. I tried to distill the noise online into a clear path to follow (but realise I may have actually perpetuated said noise - whoops). Anyway, nothing beats real life experience - something I very clearly do not have! Luckily, what I do have, is some very snazzy friends that are on the ladder, ready to give me (and you) some words of wisdom.
Rachel L began house hunting in May 2020, as COVID lockdowns began to lift. She had completed on a house in Wimbledon by September.
Nat bought her first house in Rayleigh towards the end of the stamp duty exemptions introduced during COVID. This meant the market was “crazy” and her experience was “chaotic”. Regardless of the state of the market, she feels buying a house is a pretty stressful experience.
Laura bought her flat in Peckham around the same time.
Fast forward a few years to early 2024, when Dan completed on his flat in Hackney, having had an offer accepted back in August 2023. He was “fed up of having to move between rented flats and looked to take advantage of the havoc wrecked on the mortgage market by the fateful Truss-Kwarteng ‘mini-budget’, which seemed to have temporarily limited some of [his] competition.”
Likewise, Rachel W completed and moved into her house in Nunhead just a few weeks back!
On planning
As mentioned in my previous post, the planning stage is about the £££.
Nat, Rachel L and Rachel W all emphasise the importance of budgeting for additional costs along the property buying process - fees for a solicitor, mortgage advisor / broker, building insurance etc. Whilst everyone’s costs will be different, Nat’s ended up being between £5k and £6k, including stamp duty.
Whilst usually a DIY person, Dan opted to use a mortgage broker and thoroughly recommends this, especially when the market is volatile: “there’s already plenty to think about and paperwork to complete, so this helped to lighten the load.”
On exploration
The exploration stage is about seeing what is out there.
Here, Laura suggests viewing a range of property types: “I thought I wanted a period conversion, but actually the issues associated such properties meant that I went for a flat in a purpose built block.”
Rachel L had also viewed a few properties on a casual basis before knuckling down. This was helpful for setting expectations and getting a sense of what was important - “for me: a decent room in which to host dinner parties. For my partner, James: a garden in which to practise cricket shots.”
However, they didn’t really know what you ‘should’ look for in a house, more generally. Luckily, their parents were very experienced and sent over a handy list of things to consider - questions like, are there any big trees in the garden that might need maintenance and is there access to an outside tap. Indeed, for Rachel, a highlight of the property buying process was “asking the estate agent about the credentials of the nearest hospital and observing her perplexed expression”.
Dan reaped the rewards of getting to know the estate agents in the area he was looking: “though the vast majority of estate agents I’ve dealt with are slippery and relatively amateurish characters, getting to know a few and showing that you’re serious can prove fruitful. Following a couple of other viewings, I was taken to view the flat I ended up buying before it went on market.”
And once you think you’ve found ‘the one’, Rachel L suggests visiting the property at different times of the day / week - “we ended up buying on a busy road, having visited on a Saturday morning when things were relatively quiet. Luckily it's not much of an issue, but it was a bit of a surprise waking up to the sound of irritable drivers on our first morning there.”
On taking action
The taking action stage commences when you make that all important offer.
If things are looking a little bit competitive, Rachel W suggests writing the sellers a short letter to give them a bit of context about you and what you like about the house. Whilst it is unlikely to trump any cash offer, it may give you an edge by personalising the experience.
What’s more, she notes the importance of getting eyes on the chain as soon as you can - “estate agents are often quite vague about it, but the chain has big implications on your timeline for moving and the risk of things falling through”.
Following your offer being accepted, Dan advises not to skimp on the survey, explaining that “in the context of the overall value of the transaction you’re undertaking, it is not a big cost” and can you give you peace of mind, especially when buying an older property. “At the very least it will give you an idea of costs to fix any issues identified and if it does reveal something more significant that will need remediating, this can be used to negotiate a lower price (or help you safely dodge a bullet entirely.”
Once the survey is complete, don’t ask too many people for advice, says Rachel W - “everyone has a different angle and it can end up making you feel more worried that you need to be!”
But do read the paperwork and speak to your lawyer if you don’t understand anything. Dan notes, “there are a few reasons I didn’t end up being a lawyer (to my mum’s disappointment) but one of the key ones is that I find it difficult to be particularly intellectually stimulated by legalese. That said, you really ought to read as much of it as you can bear and be diligent (for most of us this is the single biggest investment we will ever make). A good lawyer can help draw your attention to the important points, so don’t be afraid to ask.”
Another place not to skimp on is the solicitor, as they are the ones that control the speed of the process and you get what you pay for. Nat went for a “high-churn, call centre set-up” which did make things cheaper but meant there wasn’t really a consistent point of contact or someone to chat through over the phone / in person.
From there, it’s all about the chase, Nat continues: “ultimately, doing this is what keeps the process moving. Make sure you’re following up with everyone, weekly if you can. Don’t rely on them getting something done just because they said they would. This means your estate agent, mortgage broker, surveyor but most importantly your solicitor! The whole transaction going smoothly stems on the regular communication between all parties, so don’t be afraid to have weekly check-ins to see where things are at. You can even let everyone know right from the beginning that you’ll be doing this to set expectations and show you mean business!”
And after that?
If you’re planning to do renovations before you move in, Dan suggests setting an ideal completion date and lining up tradespeople in advance: “tradespeople, especially good ones in London, are in high demand and often need weeks / months lead time, so the earlier you can get in contact with them, the better.”
And if there are furniture / fittings in the house that you love, Rachel suggests asking if they can be included in the sale - you never know!
Lots of sage advice from my very wise friends. Obviously, buying a property is a lengthy process and just about everyone talks about feeling like they don’t know much at all. But is it worth it when you get there? I hope to find out!
