1,231,260 was the total number of residential property transactions completed last year in the UK. Sadly not all property purchases make it to this stage, Property Wire report that over 36% of UK home sales fall through and last year more than one in three house sales in the second quarter failed to reach completion. On any purchase there are fees involved and that expense will be wasted if the purchase falls through.
Survey, Valuation and various Search fees are just some of the costs that you may encounter when deciding to buy and can amount to a further £1500 on top of the purchase price for the property. These fees will have to be incurred before an exchange of contracts and will be wasted if the purchase falls through. When you find another property the process begins again but with your wallet £1500 lighter!
This begs the question; why do we need all of these additional costs? Are they necessary? The short answer is yes, but we thought we’d provide a little more insight around what these fees actually cover for you. A Survey and Valuation will be needed by your mortgage lender to ensure the mortgage value you wish to borrow against is the true representation of what the property is worth. A Local Authority Search provides information on a property and the surrounding areas, whether there are any proposals in place to build further housing or roads nearby, are there any preservation orders on the house or garden whether the appropriate planning permissions or building regulations approvals have been obtained etc. A drainage search provides information about the connection to the mains, the routes of water and sewer pipes as well as the location of the water meter. An environmental search provides information about the likelihood of flooding and whether there is any ground contamination either under the property or nearby.
Here at Powellslaw we recognise that £1500 is a lot of money to lose which is why we include Abortive Transaction Insurance for FREE in our conveyancing package to cover the cost of these fees should the purchase of your property fall through. This then allows you to have a little more peace of mind when you are beginning your purchase, knowing that should the worst happen, we are here to help get you back on track.
Visit our website for full details on what is included in this cover. For any other queries or further information please call us on 01934 623 501 or pop in to our office for a FREE initial assessment.