Problems with buying a home
Buying a house is the biggest financial decision you'll probably ever make, and it's also one of the most stressful. Here's why.
Buying a home is a complicated process and it can be daunting if you haven't done it before. You might run into problems with your mortgage, estate agents, surveyors or the property itself.
Problems with mortgages
You can run into problems getting a mortgage if you're not earning enough, you aren't in stable employment, or you haven't saved enough for a deposit. Different lenders have different rules about how much they'll lend and how big a deposit you need so it's worth shopping around.
You might also have difficulty getting a mortgage if you've had credit problems in the past. This might be because you have missed a loan repayment or haven't paid a bill on time.
The property you're buying could be another reason why you have problems getting a mortgage. Some lenders are reluctant to lend on unusual properties, flats in a tower block or those with a short lease.
When you apply for a mortgage the mortgage lender will do a valuation to check the property is worth what you're paying for it. If the valuer decides the house or flat is worth less than the purchase price then the lender might not lend you all the money you applied for.
Problems with estate agents
Estate agents are normally hired to act on behalf of the person selling their house. If you're buying a house or flat the seller's estate agent will show you round the property and act as a middle man between you and the seller.
As a buyer the main problem you might have with an estate agent is them not passing on your offer to the seller, although they are legally obliged to do this. They might also pressure you into arranging your mortgage through the estate agent's mortgage advisors, but you are free to arrange your mortgage independently.
The estate agent should give you a home information pack (HIP) that contains important information about the property.
Problems with surveyors
When you put an offer in on a property you should get a survey done to see if the property has any structural problems.
The surveyor's report will point out any issues you should be aware of before going ahead with the purchase. If the surveyor's report doesn't mention any concerns and you have problems with the property after you've bought it you might be able to claim compensation from the surveyor. If this happens you should get expert advice from somewhere like your local Citizens' Advice Bureau.
Problems with solicitors
When you buy a property you need to instruct a solicitor or conveyancer to do the legal work for you. Solicitors often appear to be taking too long to get things moving. If you think this is the case ask your solicitor why there's a delay and don't be afraid to call them regularly for an update.
When you instruct a solicitor you should ask for a quote for how much the legal work will cost. If you later get the bill and it appears too high you should check all the various costs are clearly itemised and ask the solicitor about anything you don't understand. If you are still not happy with the bill you can complain to the Council for Licensed Conveyancers.
Another issue with solicitors is negligence. If you discover after the purchase that there is something that may affect the property's value - for example, a new airport planned for nearby - and the solicitor didn't tell you then you might be entitled to compensation. In the first instance take this up with the firm concerned and if you're not happy with the outcome take your case to the Legal Complaints Service or Council for Licensed Conveyancers.
Problems with the property
When you complete the purchase you might be unhappy about the state of cleanliness the property was left in. Unfortunately there is little you can do about this but the seller should clear the property of all their belongings. If they've failed to do so you can arrange to have their possessions removed and try to recover the money from them.
During the sales process your solicitor should give you a fixtures and fittings list detailing everything the seller will leave behind such as carpets and kitchen cupboards. If something has been removed that shouldn't have been then your solicitor should be able to resolve the problem with the seller's solicitor.
If house prices fall where you live your property might fall into negative equity. This is where your mortgage is more than the flat or house is worth. This is only really a problem if you want to remortgage or move house and you should seek independent financial advice if this applies to you.
Thansk to CAB for help with this article.
By Emma Lunn
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