Home Information Packs
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At the end of 1998 the Government published a consultation document The Key to Easier Home Buying and Selling which included proposals for updating the way we transact property making it quicker and more certain. A pilot scheme was undertaken in Bristol and a bill was included in the Queens Speech in December 2000. The Housing Act 2004 (Part V) includes HIPS and they were introduced in August 2007 on a phased basis. It will be mandatory for the vendor to produce a pack prior to marketing. The pack will contain searches, property information and an energy performance certificate, all of which can be relied upon by the purchaser.
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How Much Are You Worth?
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The first step is to ascertain your potential buying power. This is the sum of savings/cash, equity in existing property and borrowing capacity. Spare capital in the bank or shares etc is reasonably easy to quantify however the other items require professional guidance.
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At the outset you need to obtain a professional opinion of the value of your home from an Estate Agent. The estimated sale figure less outstanding mortgage equals the equity you have in your property.
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The Agent will also be able to give an estimate of your potential costs in moving including his own fees, survey and conveyancing fees, removal expenses and stamp duty.
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Most property is bought by granting a mortgage to a bank or building society. The amount lent will be restricted by their opinion of your ability to repay the loan. If you are self-employed you will need to show previous years accounts and possibly an accountants projection.
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You can obtain an initial assessment from a bank or building society however over half of house buyers use the services of a broker. An Independent Financial Adviser or Mortgage Broker can check the whole market for the best product for your circumstances and aspirations and give advice on repayment terms, pension payments, health and employment insurance.
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You should therefore
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a/ Check your savings/investments
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b/ Get an Estate Agent to value your existing home
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c/ Find out how much you can borrow by mortgage
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