How to buy: Understanding what everyone's talking about

Welcome to the first in our series of ‘How to Buy’ blogs, aimed at helping you understand the home buying process. This first blog looks at the words and phrases commonly used, helping you decipher what everyone’s talking about.

Conveyancer

A licensed conveyancer or solicitor is the person who does all the legal work involved in selling and buying property, otherwise called conveyancing.

Exchange of contracts

This is the exciting bit, it’s the point where the property sale becomes legally binding meaning you’ve just become a brand new home owner.

Interest

Interest is the money you are charged by your lender (usually a bank or building society) for borrowing your mortgage.

Legal completion

This is the point where the home buyer becomes the legal owner of the property. Legal completion occurs when solicitors from both sides complete the transaction on behalf of the buyer and seller, usually on the date of moving in.

Lender

The bank or building society with whom you have your mortgage.

Mortgage

This is simply a loan from the bank or building society that you use to buy a property. The property acts as security for the loan and so can be repossessed and sold if the mortgage repayments are not made – that’s why it’s important to keep up with your repayments.

Stamp duty

Stamp duty is a tax charged by the government for owning a home in the UK. It’s payable on homes that cost more than £125,000 and the amount payable depends on the value of your property. For more information click here.

Survey (lender’s survey)

A map or plan made by a licensed surveyor on behalf of the purchaser. The survey will show various details about the property, as well as the land around it. A survey is often required by the lender in order to prove that a building is actually sited on the land according to its legal description.

Valuation

Each lender will inspect your new home to determine whether it has been valued correctly and therefore whether it is suitable for a mortgage.

Don’t forget that our sales teams are always on hand to answer your questions and help you through the buying process so, if you want to know more, simply give them a call.

For more information about St. Modwen Homes visit www.stmodwenhomes.co.uk or click here.