The Housing Market in the UK is ever-evolving, though the process of buying a property is an uphill one. The purchase of property might seem challenging but if the processes are well understood and planned, things can be smooth sailing. An estate specialist can well guide you in your journey, contact estate agents in Gravesend for detailed guidance and advice.
Common Problems people face while buying a property
The excitement of buying a house is often accompanied by challenges and hiccups on the way. There might be several issues with the property you want to buy, this may lead to additional costs and difficulty in obtaining mortgages.Â
Following are some of the difficulties faced by a potential home buyer-
Acquiring a Mortgage
It’s not as simple a process as any buyer would hope it to be. The Lenders work on strict lending criteria. The lower the deposits the higher the interest rates.Â
There are some properties which do not find lenders easily.
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Short lease propertiesÂ
Properties which have lease terms lower than or equal to 80 years, tend to pose a problem for getting mortgages on it.
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New Properties
The lenders often want a higher deposit on a newly built property as they put its value lower than what is being asked by the seller.
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Flats built on top of Commercial spaces
These properties are usually easy to access for anyone. It’s difficult to put a value on its worth, as the security threshold is low.
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Restricted Land Property
Any property built over an Agriculturally restricted area has a very limited market. Authorities often restrict selling these properties to only those people whose occupation is related to Agriculture.
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Built on Industrial LandÂ
Unless a decontamination certificate is obtained, the lenders are not keen on such properties. The biggest challenge is the amount of deposit and financial eligibility to obtain a required mortgage.
Choice of LocationÂ
Another challenge is choosing the property for purchase. Do a thorough exploration of the area you want to invest in.Â
The viability of a property is assessed if the following amenities are present in the area-
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Schools & Commute linksÂ
The presence of distinguished and high-rated schools & easy-to-access commute routes will increase the property rates of the surrounding areas.
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Crime level in the neighbourhood
Security in and around a property is prime enabler of a property’s worth.
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Flood risks
Low flood risk zones should be verified and checked for building insurance before investing in a house in that area. Usually, the properties that fall under frequent risks of the flood are priced low than other properties.
House Survey: Why do you need it?
After you have chosen a property, hire a surveyor who would thoroughly run checks on all aspects of the house, so that you can offer a price, or bargain with the seller for a lower sum than the asking price if there are repair costs.Â
Check whether the boiler is new or old, and enquire about the electrical wiring or if any renovation was done. You can make an assessment based on this survey that how much you should offer, deducting the repair charges, if any.
Avoid being gazumped, you can assure the seller that you will move quickly with the payments and contracts and that you will not backtrack. A gazumping sale occurs when a seller accepts your offer but later backtracks for a higher price from someone else. Be on good terms with the seller.
What potential buyers need to know
A buyer should maintain a clean credit record because the lenders want to ensure that he will not default on his payments. Try to save and increase the deposit as it would help you in getting lower interest rates from the lender. Do your research!Â
Check whether you are eligible for any government schemes. First-time home-buyers get some benefits from the government, for example- stamp duty/taxes are waived on properties worth up to the sum of GBP 500,00.
It is advisable to keep a check on all the additional costs you will have to incur. This will prevent you from putting all your eggs in a single basket. The cost of moving, Lawyers fees, Conveyancing charges, home insurance etc.
Buying a property is a substantive financial move. Make sure you do a lot of research and calibration to avoid any pitfalls, rather it’s better to leave it to professionals. You can hire an estate agent that can guide you throughout the buying process & ensure you don’t encounter any hiccups while purchasing a property
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