Buying and selling property: frequently asked questions

What searches do you conduct?

Searches are undertaken at various stages in a house purchase.

• Local authority searches: these cover matters which fall within the knowledge of local councils, and include checks on planning permission, maintenance and future development of roads and breaches of local authority regulations. The local authority search is a set of standard enquiries that your solicitor raises with the local council and relates solely to the property itself. It would not, therefore, reveal proposals to develop or extend neighbouring land or property. The local council charges a fee, which your solicitor collects from you and pays to them when the search is done.
• A Land Registry search: this enables us to check whether the property has a registered title. The search will provide you with a copy of the Land Registry registered title including ownership details, date of registration, last change of ownership/sale, purchase price (not all have this registered), details of charges, mortgages (not amounts), restrictions and covenants, and title number. When the transaction has completed, we will register the new purchaser's interest with the Land Registry. The Land Registry fee varies depending on the purchase price of the property.
• Environmental searches: these cover things like old mine works and industrial uses, which may represent potential risks to the property, such as the threat of subsidence or contaminated land.
• Drainage search: this checks that the property is connected for foul and surface water, and for mains water. In addition it will uncover whether there are any public or private sewers running through or under the property, which might restrict further development.
• Bankruptcy search: if the transaction involves a mortgage then we may be asked by the mortgage lender to undertake a bankruptcy search against the prospective purchaser/purchasers. In addition we undertake searches against the title of the property to discover any charges against it or if the seller is bankrupt.

How do I find out if there are plans to build nearby?

We will need to make enquiries with the local planning office to check whether planning permission has been granted for any developments in the area.

How long will the process take?

Conveyancing transactions can take days, weeks or months depending on a number of different factors, such as whether your transaction is part of a chain and how long the searches take, but most transactions will complete in about six to eight weeks. However, we understand that sometimes things need to move much faster, and try to accommodate our clients’ timescales as best we can.

How much Stamp Duty will I pay on my property purchase?

Stamp Duty is charged at a variable percentage of the purchase price of a property and is payable after the transaction completes. We can provide advice on Stamp Duty in relation to your specific situation.

Will I be liable for Capital Gains Tax on my property sale?

You won’t be liable for Capital Gains Tax if you are selling your main residence. If you own more than one property you can choose which property carries this exemption. However, you are advised to take legal advice on your specific circumstances. Our solicitors are experienced in providing effective tax planning advice and can recommend the most efficient tax structures for your investments.

Can someone be added to the deeds and the mortgage after the purchase is completed?

Subject to the mortgage lender’s approval, a transfer of title document can be prepared for you transferring ownership of the property from a single name into joint names.

If I am abroad how can I sign the contract and transfer if I have not granted a Power of Attorney?

If you are contemplating going abroad for an extended stay prior to the sale of the property then ideally you should grant someone Power of Attorney so that they can act on your behalf. If a Power of Attorney has not been executed then we will need a professional, such as a doctor, lawyer or consular official, to confirm your identity. We could then courier the contract and transfer documents to you.

Can I let the property?

If you require a mortgage to buy the property then the lender will need to agree to the property being let. In addition, if your property is leasehold then you will need to check the terms of the lease. You will also need to consider your legal obligations as a landlord and ensure that you have a suitable tenancy agreement drawn up.

Can I extend my property?

Sometimes restrictions in the title deeds prevent extensions or require the consent of another landowner. Larger extensions will also require local authority planning permission and any structural work will need approval under the building regulations. If you are interested in developing your property then we have specialist planning lawyers who can advise you.

What are the legal implications relating to buying in a conservation area or buying a listed building?

Where property is listed or is located within a designated conservation area, special planning restrictions apply. These often prevent extensions and can place substantial obligations on the owner. Our experienced planning solicitors frequently carry out background checks on this type of property to ensure that any potential issues are identified before you commit yourself.

Can you advise me about putting my property investment into a Self Invested Personal Pension? (SIPP)

We regularly advise clients on the most appropriate tax structures for their investments. There are two main elements involved in putting property in a SIPP. The first is setting up the SIPP and the second is the conveyancing and report on title for the SIPP trustees. Our experienced solicitors can help you with both stages, providing a seamless service. We can also provide advice on putting foreign investments or commercial property into your SIPP.

What is a Home Information Pack (HIP) and do I need one if I am selling my property?

Under current legislation, a seller will need to commission a Home Information Pack before going on the market. The HIP must include an Energy Performance Certificate and documents such as a sale statement, searches and evidence of title. HIPs are intended to improve the house-buying experience for purchasers by providing much of the information they need to make a decision.

Click here for more information about obtaining a HIP from Cripps Harries Hall.