The Legal Process
A step by step guide to buying your shared ownership home.
Buying a home is complicated, time consuming and likely to be the single biggest financial transaction you’ll ever make. This guide assumes that you have reserved a new build or resale shared ownership property and details the different stages
of purchasing a home.
In order to proceed, you will require access to savings of at least £3,000 to cover the cost of purchasing. You also will need additional savings towards a deposit, to obtain a mortgage.
The Conveyancing Process
This is the legal process of transferring ownership of and from one person to another. It’s a process and can take up to 12 weeks between the agreement of the sale and exchange of contracts. Our solicitors work to try to ensure 12 weeks is the maximum time you will have to wait. However, you must remember there are a number of solicitors involved, usually the sellers, the buyer, (representing you), and one acting for Clwyd Alyn Housing Association.
Once your application has been approved by us, you will need to tell us which solicitor you plan to use and which lender (if any) you will be arranging your mortgage with.
Don’t forget to instruct the solicitor straight away. We will then issue a Memorandum of Sale which is sent to all interested parties and gets the legal process underway.
Our solicitor will send your solicitor an information pack with details of the sale including replies to standard enquiries. This should speed up the process.
Other information will include:
Title deeds showing that the seller owns the property and advises of any rights or obligation that affect the property e.g. a lease.
The contract is drawn up by our solicitor and sets out the terms of the proposed agreement including your names and the price and arrangements for completion.
A lease which outlines any conditions, restrictions and responsibilities. Your solicitor should provide you with a copy of the lease and should explain it in detail to you.
Your solicitor will need to carry out a number of searches. The Local Authority
search will outline proposed changes to the local area and whether any planning applications have been made on the property. If the property is in a mining area, then the solicitor will also carry out a mining search. You may also need environmental and drains searches.
You will need to pay for a survey/valuation carried out by your lender.
If you are buying your home with a mortgage, you will need to get a mortgage offer on the specific property - not an agreement in principle. Once you have received the offer, we will need to see it so that we can approve it.
Exchange of Contracts
You are now ready to agree an exchange of contracts and a completion date (when the home becomes yours). The minute you exchange contracts, the sale is set in stone at the price stated.
Your solicitor will request the mortgage funds from your lender in advance of the completion date. They will also conduct a final search at the Land Registry. If there is any outstanding balance, including deposit monies, you will need to pay this to your solicitor at this time.
Please note Clwyd Alyn requires at least three days’ notice to arrange a completion date.
Other costs include:
You will also need to pay rent and service charges in advance to us. This will include rent for the remainder of the month in which you complete. After that, you will need to arrange a direct debit payment for the same date each month.
You will also need to book your removal van, contact the local authority to register for payment of council tax, contact the utility companies and get your post redirected.
Please don’t arrange a van or deliveries until you have a firm completion date just in case the date changes.
Your solicitor transfers the remainder of the completion money (purchase price less deposit) to our solicitor. Completion will not take place until the money has arrived in our solicitor’s account.
In return, your solicitor receives:
The transfer document showing that the home is now leased to you. This will be sent to the Land Registry.
The title deeds from the Land Registry prove that you own the property. These can be forwarded to your lender if you have a mortgage, or you can keep them in a safe place such as your bank or with your solicitor.
Remember at any stage you can approach the Leasehold and Sales Team - we are always available to give you an update on the process. Also remember to keep in regular contact with your own solicitor