First-Time Buyer’s Legal Guide: A Simple Step-by-Step Approach

1. Get Your Finances in Order (The Preparation)
Before you even book a viewing, secure your financial footing.

• The Deposit & Costs: Your deposit is the cash down payment (minimum 5%, ideally 10%+). Crucially, budget for completion costs (legal fees, surveys, mortgage arrangement fees), which can add up to 5−10% of the property price.
• Mortgage in Principle (MIP): Obtain an MIP (or Decision in Principle) first. This is a written estimate of what a lender will offer, proving to estate agents you are a serious buyer.
• Stamp Duty (SDLT) Relief: As a first-time buyer in England/Northern Ireland, you pay 0% SDLT on the first £300,000, and 5% on the portion between £300,001 and £500,000. If the price exceeds £500,000, the relief is lost.

2. Make the Offer & Hire Your Experts
Once your offer is accepted, you must act fast.

• Offer is ‘STC’: Your offer is Subject to Contract (STC), meaning it is not legally binding yet, and the sale could still fall through (or you could be ‘gazumped’).
• Instruct a Conveyancer: Immediately hire a Solicitor or Licensed Conveyancer. They handle the legal work (conveyancing), searches, and money transfer.
• Full Mortgage Application: Convert your MIP into a full mortgage application. Your lender will arrange a basic valuation survey (for their benefit).

3. The Checks: Surveys and Searches
This stage is crucial for avoiding costly surprises down the line.

• Get a Detailed Survey: Do not rely on the lender’s valuation. Hire an independent surveyor for a HomeBuyer Report (Level 2) or a Building Survey (Level 3, for older/non-standard homes). You can use this report to renegotiate the price if major issues are found.
• Legal Searches: Your conveyancer runs checks:
o Local Authority: Checks planning, road schemes, and building control.
o Environmental: Checks flood risk and contaminated land.

4. Exchange Contracts (The Legal Commitment)
This is the point of no return.

• Review and Sign: Once all searches, surveys, and legal enquiries are satisfactory, your conveyancer sends you a final report. You sign the contract and send your deposit (usually 10% of the price) to your solicitor.
• Exchange: Your solicitor exchanges the signed contracts with the seller’s. The sale is now legally binding.
• Insurance: Buildings Insurance must be in place starting from the moment contracts are exchanged. A fixed Completion Date (moving day) is agreed.

5. Completion and Handover
Moving day!

• Final Transfer: On the Completion Date, your solicitor transfers the remaining funds (your mortgage plus any final cash) to the seller’s solicitor.
• Keys: Once the money is confirmed as received, the seller’s estate agent releases the keys. You own the property!
• Post-Completion: Your solicitor handles the final paperwork: paying any SDLT due and registering you as the new legal owner with HM Land Registry.