Buying a House

House owners in the United Kingdom move house on average once in every seven years.
Surveys have shown that the first item moved into a new house is normally the kettle, ready to make a cup of tea, such is the British way of life!
Moving house is generally accepted as being one of the most stressful activities ever likely to be faced.
Moving house in the UK is very expensive. The headline costs as given by an Estate Agent will be around Ł1,000 to Ł2,000 but the true costs involved when buying and selling average properties will easily exceed Ł5,000 and can approach Ł10,000 (Estate Agency fees, Solicitors fees, Survey fees, Removal costs, Mining search, Land Registry, Other Search fees, Mortgage set-up fees, essential repairs upon moving in, etc). Many people absorb most of these costs by increasing the size of their mortgage when moving.
Most houses in the UK are purchased on a mortgage, typically over a 25 year period. Deposits can be as low as Ł500 but 5% - 10% of the purchase price is generally expected. The mortgage market is at present very competitive and mortgages are easy to obtain, subject to normal checks. Most building societies, banks and estate agents have their own mortgage advisors. These advisors are often tied to one lender and so it pays to shop around.

The agencies which sell properties in the UK are known as "Estate Agents".
In the boom times of the 1980s many Estate Agents in the UK indulged in various unscrupulous practices (including gazumping) which earned them a very poor reputation. Although they have worked hard to improve their image they are still one of the least trusted professions in the United Kingdom.

Estate Agents are agents for the seller. They charge the seller approximately 1% - 2% of the sale value when selling a house. This may be on top of their direct costs such as advertising. Sellers also incur substantial legal fees.

Buyers do not pay anything to the Estate Agents, but incur many other fees, for solicitors, land registry, mining searches, surveys etc. etc. etc. (The etc. list can be very long!)
The whole process of buying and selling is fraught with difficulties. The sale and purchase is not legally binding until a long legal process has been completed. It is very common for sales to fall through and for everyone to lose considerable amounts of money in the process (well not everyone actually, only the buyer and seller and possibly the Estate Agent, as the the solicitors, surveyors etc. still get paid!).

One term you will hear about when buying a house is "The Chain". This is the situation where no-one can buy a house until they have sold (and obtained the money for) their old house. The chain may involve as many as ten buyers, although typically 3 or 4 buyers will be involved. It is the solicitor's job to tie up all the sales so that everyone hands over the money at exactly the same time on the same day. This is not as easy as it sounds (and it does not sound very easy!).
No-one can actually move until the whole chain is completed. It is then necessary to vacate your house by (typically by mid-day) on the day concerned and only then is it possible to start moving your furniture into the new property.
For years British governments have talked about simplifying the buying and selling process. It has been suggested that every house should have a 'log book' which would be a legal document. It has also been suggested that the seller should be responsible for having the surveys carried out prior to offering the house for sale. To date little has come of these proposals.