Richard Addington offers some advice on how to smooth the passage of the buying and selling process
Rather to the surprise of many commentators in the early part of last year, the property market has enjoyed a mini-boom over the summer and autumn of 2020. The number of sales agreed in the third quarter of 2020 in the 8 West Country offices of Jackson- Stops was nearly 3 times higher than the third quarter of 2019. This spike of activity has put the conveyancing process under a huge strain, with each component of the process from lawyers and lenders to surveyors and valuers being tested to the limit. Consequently, the time taken between agreeing a sale and exchanging contracts is getting longer, especially if a long chain of related transactions is built up. Frustrations and anxieties consequently rise.
So what can those involved in the buying and selling process due to minimise possible delays?
Here are a few pointers on what preparations can be made to help me minimise delays later on.
If you are a seller...
1 Make sure your agent fully understands your property and fairly and accurately represents it to buyers. This starts with the basics such as details of provision of services, room sizes, orientation, amenities and acreage, but should also include more detailed items such as compliance with planning permissions/building regulations, access arrangements, listed building issues, and currently most topically compliance with septic tank regulations.
2 At an early stage ask your solicitor to prepare a draft contract of sale and send you standard property information and fixtures and fittings forms to fill out. The replies to these should help identify any areas that might cause concern to a buyer’s or lender’s lawyer and suitable measures can be put in place to meet these concerns (such as indemnity policies or statutory declarations). It is also worth asking your solicitor to apply for Local Authority searches. Some local authorities have been taking up to 8 weeks to process applications so time savings can be made if an application is made by the seller at an early stage.
3 Before an offer is accepted consider the timescale and ability of your intended purchaser to proceed, not just the amount they have offered. Buyers in long chains are more likely to be subject to delays than those in a short or no chain. Buyers with large borrowing requirements may also find they are becoming increasingly subject to the tight criteria being demanded by lenders and that too can cause delays.
4 Make sure you have plans to move once the sale is completed. This means having a plan what to do if a buyer wants early possession. If you are reliant on buying your next house before you move, it is worth considering whether you can find temporary accommodation to break an onward chain as this will give you far more flexibility and choice.
5 If your move (or the sale) is dependent upon the agreement of third parties (for example a probate sale or a in a relationship breakup) make sure there is agreement from all relevant parties before marketing rather than trying to sort out any differences during the sale or having to wait until the grant probate.
If you are the buyer...
1 Make sure your finances are securely in place. If you are relying on the sale of your existing property ask your agent to be prepared to give full details to the agent handling the sale of the house you wish to buy. If you are reliant upon borrowing, progress your application as far as possible and get an agreement in principle from your lender. Remember some properties such as those with large acreages, holiday cottages or even just an annexe might not immediately meet the criteria for all lenders. Ask your broker to advise before you make an offer on a property.
2 Be prepared to be flexible about timing. This can be very attractive to some sellers especially those where there is a chain of transactions.
3 If you are having your property surveyed, make booking a surveyor one of the first things to do after agreeing a sale. Some surveyors have been working on a five-week diary before being able to make an appointment. Likewise, ask your solicitor to apply for local authority searches immediately a sale has been agreed as stated above some local authorities are taking a long time to process applications.
4 Be prepared to start all the required processes (that is survey, mortgage application and legal enquiries) at the same time rather than waiting for a sequence of one to finish before starting the next.
5 Finally avoid last minute panics by trying to arrange removals well in advance.
Moving house should be an exciting and happy time and by making some simple early preparations and being prepared to invest a little in the actual process, it should be possible to retain the joy of moving into your new home.
