Simplify Your Real Estate Processes with Frequently Asked Questions
We answer the most common questions about property buying, selling, and mortgage processes. Here, you can find the basic information to assist you when buying or renting property.
Freehold
1. What does Freehold mean?
Freehold means that a property and the land it sits on are completely owned by you
indefinitely.
2. Are there fees for Freehold properties?
Freehold properties typically don't have additional fees like ground rent or service
charges. However, maintenance costs are your responsibility.
Leasehold
1. What is a Leasehold property?
Leasehold means that you have the right to use a property for a set period, but the
land it stands on belongs to someone else.
2. What are service charges and ground rent?
Service charges are used for maintaining shared areas, while ground rent is the fee
paid to the landowner.
3. Can the lease term be extended?
Yes, leaseholders can extend their lease term, but this process can be costly and
varies depending on the remaining lease duration.
Mortgage
1. How does a mortgage work?
A mortgage is a long-term loan taken to buy a house or property. The property is
mortgaged until the loan is fully paid.
2. How are mortgage interest rates determined?
Interest rates can be fixed or variable. A fixed rate remains the same for a set period,
while a variable rate changes based on market conditions.
3. What documents are required for a mortgage?
Required documents include income statements, credit reports, ID, and property
information.
Agreement in Principle (AIP)
1. What is AIP?
AIP is a pre-approval from a mortgage provider indicating they are willing to lend a certain amount. It helps in budgeting.
2. Does AIP mean a credit approval?
No, AIP is not a full credit approval, but it can show property sellers that you are a
serious buyer.
Exchange of Contracts
1. What does Exchange of Contracts mean?
It refers to the exchange of signed contracts between the buyer and seller, making the agreement legally binding. After this stage, the buyer cannot back out.
2. What is paid during the Exchange stage?
Typically, a deposit of 5-10% of the sale price is paid.
Completion
1. When does Completion occur?
Completion is when the property is legally transferred to the buyer, and the remaining
payment is made.
2. What happens on Completion day?
The keys to the property are handed over to the buyer, and ownership is officially
transferred.
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