In this edition of "secrets of a conveyancer", 30+ years qualified solicitor Celia Perry shares five things to think about if you are planning to buy a property with your partner
Love or loathe?
What matters to you most about your new home?
You have found your life partner and want to move on to the next stage of committing to the relationship by buying your first home together. Here are some questions to discuss:
Question 1: where do you want to live?
Location, location, location. One of the questions that is likely to need the most thought.
Here are starting points to consider when trawling estate agent's websites and sales boards:
Transport links: how do you want to travel to work and how do you prefer getting around in your spare time? Could you, or would you want to, drive or use public transport? Is there easy parking? Would you like your children to be able to walk to school?
Local services/amenities: what do you need to have and what would you like to have within easy distance of your new home? Supermarket or farm shop? Gym or yoga studio? Woodland or parks to walk your dog? Coffee shop? Library?
Feel-good factor: what would make you happiest in your new home? A real wood fire or a log burner? A big garden to play in? A view, sunrise or sunset?
Future value: short of painting the entire interior of your new home in a neutral shade of magnolia, what decisions can you make in choosing your property that will appeal to other people and potentially secure a buyer in the future? Is there potential to extend? Is there potential to fit a new kitchen or bathroom?
Question 2: do either of you own another property?
If you are both first time buyers: you will be entitled to a stamp duty land tax discount of up to £5,000 if the purchase price of your new home is £500,000 or less.
If either of you own another property: if you intend to keep that property it will significantly increase the amount of stamp duty land tax you will have to pay when you buy your new home.
Question 3: what is your budget?
You will need to work out how much you have saved, your outgoings and income and then work out the monthly mortgage payments you can afford.
As a general rule, the larger the amount of money you are able to put down on the property from your own resources (the deposit) the lower the mortgage interest rate becomes.
A lower mortgage interest rate means you will make higher capital repayments giving you more equity in the property when you come to sell in the future.
Question 4: will you own your home equally or will you own different shares?
In either case you should consider asking your solicitor to prepare a declaration of trust to record your interests in the property.
No-one goes into a property purchase with someone else thinking things won’t work out, but if the worst happens it is better to have a properly drawn up document which you both thought about when times were better, setting out what would happen in the event of relationship breakdown.
Question 5: if one of you dies, should the survivor be able to stay in the home?
Without wishing to be morbid, the time to think about this is before you buy not afterwards when it may be too late. Anticipate, plan for and deal with this scenario now so that the bereaved person is not even more distressed by the fear of losing their home.
Celia Perry
30+ years qualified residential property solicitor
Choosing your solicitor
There is plenty to think about when you are buying a property, some things are obvious, some not so obvious.
You need to make sure that you appoint a solicitor who has the ability to advise you properly and the capacity to make sure you are never left in the dark. A good solicitor will always be there to talk things through with you.
It is a good idea to get your solicitor on board at an early stage so they are available to you to offer guidance and reassurance through each stage of the process of buying your new home.
The solicitors in our team at Julie West Solicitor have many years of experience working with clients like you who are looking to take the next step and buy a property with their partner.
In order to work with us all you need to do to get started is give us a call on 01372 383273 or drop us an email info@juliewest.co.uk.