House Purchase

House purchase is something that the majority of the UK public eventually get around to doing - after all, predominantly we are a nation of homeowners. However, house purchase can be fraught with difficulties as, unlike in most other countries - including Scotland - buying and selling parties are only financially committed at the point of exchange of legal contracts rather than when an offer on a house purchase has been accepted.

This means that those looking into house purchase can often waste hundred of pounds on surveys and valuations that they don't need because the deal falls through. However, Home Information Packs (HIPs) , that became law for three and four bed homes in the autumn of 2007, are supposed to put paid to this common house purchase problem. A HIP will detail all the information upfront that someone interested in house purchase will need to know.

However, a survey on the property is not included in a standard HIP. This means that, even if the house purchase is a first-time success, there will still be costs involved. Anyone entering into house purchase - whether for the first or tenth time - will want a survey carried out on the property before they buy. This is to ensure that there are no structural defaults with the property such as subsidence, damp or dry rot that would mean the eventual house purchase leaves you out of pocket.

Providing you are taking out a mortgage to fund your house purchase, there will also be lender costs involved such as an arrangement fees - otherwise referred to as booking, reservation or administration fees - and legal and valuation costs. Once the house purchase has come through successfully however - which can take in the region of three to four months - homeownership is a rewarding experience. This especially becomes the case when you have paid off your mortgage and your house purchase of 25 years ago is now your own home, which is hopefully worth a lot more than you paid for it.

See also:

• Mortgage calculators
• Buying your home

Last Updated: November 2007 © Moneyextra.com

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