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Legal and Financial FAQ
What is Stamp Duty?
Stamp Duty is payable on all homes with a purchase price of over £125,000. The amount you will have to pay will be based upon the selling price of your home. Currently the scale charges are as follows:
Up to £125,000 = nil
£125,001 to £250,000 = 1%
£250,001 to £500,000 = 3%
More than £500,000 = 4%
NB - these figures are set by the Government, and are subject to change.
I need a solicitor. Where do I start?
The solicitor's main job is to ensure a smooth transfer of the property and any fixtures and fittings agreed in the sale. He or she prepares the 'conveyance', which transfers legal ownership to you.
You should ensure that your solicitor is on the approved Law Society list, a copy of which can be obtained from your Town Hall or Citizen's Advice Bureau, or at http://www.solicitors-online.com
Often the best way of choosing a solicitor is to ask friends or relatives for recommendations. Alternatively look through Yellow Pages. Your Sales Negotiator may also have a list of local solicitors. However please note that we are not able to make specific recommendations.
Before you instruct a solicitor to act for you, we recommend that you ask for a written estimate of all fees (including VAT) and details of all disbursements payable such as Local Authority searches, Land Registry fees and Stamp Duty.
What is a valuation survey?
Prior to making a mortgage offer your lender will have the property valued for mortgage purposes. A small fee will normally be payable.
Please note that the value the lender puts on the property is a valuation for loan purposes and may not reflect the open market value of the house. If you order a lot of optional extras for your new home the full value of these may not be reflected in the value the lender puts on the property.
What are Local Authority Search Fees?
This will establish if your new home is likely to be affected by any planning decisions or other proposals.
What is the difference between Leasehold and Freehold?
Leasehold:
Land held under a lease for a specified number of years on which a ground rent (usually a nominal sum) is paid.
Freehold:
The full ownership of both the property and the land on which it stands.
When does the sale of the house become legally binding?
Your solicitor will arrange for you to sign a binding purchase contract. At this time your agreed deposit will need to be paid. Jackson Levy will also sign their copy of the contract and send it to their solicitors.
Once these contracts are exchanged the transaction becomes legally binding.
If you are selling your present home, the timing of the exchange of contracts is finely worked out. It is up to your solicitor to ensure that both sets of contracts - the sale of your existing home and the purchase of your new one - are exchanged simultaneously and a suitable moving day arranged so at no time are you 'homeless'.
Sometimes it is not possible to co-ordinate the sale of your existing property and the completion on your new Jackson Levy home for the same day. If this is the case you may have to consider staying with friends or family or living in rented accommodation.
I need a mortgage. Where do I start?
There are many different types of mortgages available from a wide variety of lenders - including banks and building societies. Some mortgages can even be arranged over the phone or via the Internet. With so much choice you may feel that you need to seek some expert advice.
All financial representatives are bound by law to give the best advice for your needs. They must operate within the terms of the Financial Services Act (FSA) whether independent or tied.
Tied agents can only offer the products of the company with which they are linked, which in turn must be regulated by the FSA (Financial Services Authority).
Independent brokers can offer products from a variety of lenders. They must be authorised by the FSA (Financial Services Authority).
What are Land Registry Fees?
This fee is to register your ownership of your property with the Land Registry. The fees are set by the Government.
There are 'Common Areas' on the development. What does this mean?
These are the areas within a development which do not form a plot to be assigned to an individual proprietor. They include play areas, landscaped areas, roads and footpaths that are not intended for adoption by any of the relevant local authorities.
Within flatted areas on a development, this may include parking areas, street lighting, and communal stairways, which are not intended for adoption by the local authority.
Jackson Levy normally appoint a Managing Agent for the upkeep of these.
How much can I afford to spend on a home?
In theory, you can afford a property costing no more than the combined total of the deposit that you saved (or can save) plus the amount you can borrow on mortgage. Typically, this is three times the principal income plus one times the second income. But some lenders will lend more, and some less.
House Buying Process FAQ
How much of a deposit will I have to pay?
You are expected to pay a deposit when you exchange contracts on the property (usually 14 day after reservation in Scotland and 28 days after reservation in England). The deposit will vary, it is usually between £1,000 and £2,000 in Scotland and approximately 10% of the property value in England.
How much money is required as a reservation fee and is it refundable?
We generally require £500 as a reservation fee. The reservation fee is not refundable.
What happens if I have a house to sell?
If you are selling your present home, the timing of the exchange of contracts is finely worked out. It is up to your solicitor to ensure that both sets of contracts - the sale of your existing home and the purchase of your new one - are exchanged simultaneously and a suitable moving day arranged so at no time are you 'homeless'.
Sometimes it is not possible to co-ordinate the sale of your existing property and the completion on your new Jackson Levy home for the same day. If this is the case you may have to consider staying with friends or family or living in rented accommodation until your new home is ready.
How long will our property be reserved for?
The property will normally be reserved for 14 days in Scotland and 28 days in England as this is when conclusion of missives / contract exchange is expected to take place.
How do I reserve a new home?
Contact Jackson Levy about the development you are interested in purchasing a property on. The sales representative will confirm the price of the property and advise whether it is still available for purchase. The sales representative will ask you a few questions to ensure you are in a position to reserve a property.
Your reservation fee reserves your new home.
During this reserved period your new home will be withdrawn from sale and it will not be subject to any price increases. We will then ask you to exchange contracts and pay a deposit on exchange (usually between 14 and 28 days after reservation). This reservation fee and deposit are then deducted from the price of your home.
Meeting deadlines:
If you have any problems meeting deadlines please inform us immediately. We will do our utmost to accommodate delays but regrettably we may have to put your home back on the market. However we can sometimes arrange for you to have first choice of future releases.
When should I insure my new home?
Your new home is insured by Jackson Levy until the moment of legal completion. From then on you are responsible for the insurance of both the buildings and its contents. However if you have arranged with us to put any items into your new home prior to legal completion you will be responsible for insuring them.
Your mortgage lender will insist on building insurance. They may recommend an insurer but you should also be able to shop around for the best deals - please check with your lender on the type and amount of cover required.
Contents insurance can in many cases be included within the building insurance policy. However you can have separate insurance providers for buildings and contents. It is your choice whether to insure your contents or not.
What is the earliest date you can reserve a property?
The earliest date you can reserve a property is when it is first released for sale. The on site sales representative can keep you informed of plot release dates.
When do I officially own my new home?
Legal completion is the actual moment when you become the legal owner of your new home.
At legal completion your mortgage advance is transferred to Jackson Levys' solicitor and your solicitor will receive the title deeds to your new property, which are then forwarded to the lender with whom you have your mortgage.
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