Making House Moves Faster

Where are we now?

Despite government efforts over a number of years since 1997, selling a property has become more complex, more costly, and increasingly time-consuming and there are many reasons for this.  The overall cost of moving has risen significantly.  Estate agents’ fees reflect  a percentage of the sale price, and conveyancing costs have increased only modestly whilst other expenses—such as removals and building work- and the cost of specialist reports have soared.

Ever Widening Data Capture

There are several contributing factors, many of which stem from additional steps have been added into the process.

Most estate agents now market properties through online platforms, which makes it easier for buyers to view listings, compare properties, and negotiate prices. But this is often just the start to ongoing negotiations, with prices shifting as transactions drag on or stall, and buyers engage with an increasingly complex set of investigations to satisfy the requirements of their lenders.

In London, we have a high number of leasehold properties.  As time has passed, the remaining number of years under a lease have become shorter and extension has been made easier whilst the scope and cost of service charges have increased dramatically.

Legislation has increased the amount of regulation and administrative work required by managing agents.  Those who self-manage blocks of flats often struggle to stay compliant with evolving rules or find the process extremely time-consuming.

Going Forward

Ongoing changes to legislation - such as those intended to make lease extensions easier and to promote energy efficiency - have made homes more individual or even unique.  Each property can now differ greatly from its neighbour, within the same street or development.

With this in mind, the government’s initiative requiring specific types of “material information” to be made available at the marketing stage of the process inserts another intermediate step.   This isn’t the first time the flawed process has been reviewed over the last couple of decades and it’s now expected that it can be applied constructively to spread some of the legal burden and reduce stress in the later stages of the sale.

All round Improvement

Instructing a solicitor at the marketing stage can help prepare the necessary documentation.   While the agent collects physical and visual information, the solicitor is able to assist the seller in completing the legal disclosures that the agent must then make available to potential buyers before they offer.

Below is a list of the types of information that should now be provided at the marketing stage. Some of this will be readily known by the seller, some can be gathered by the agent, and the remainder can be sourced or prepared by the solicitor.

Once a sale is agreed, the solicitor should then already have much of the information needed, to produce and deliver the contract bundle to the buyer’s solicitor.

The next important steps are at least then likely to be made speedier with less gaps in information and omitted documents.  Whilst no single change in itself will dramatically shorten the entire process.  Much will still depend on specific factors such as the length of the chain of transactions and the availability of mortgage funding but what this approach does is to allow for the seller to be able to assess with more confidence which buyer is the most viable.  

With the relevant information already in place, the seller can choose a buyer who is in a position to proceed quickly. In fact, the onus will rest with the buyer to be in a position to perform and overall this can increase the likelihood of a smoother transaction.

Anything that helps transactions track more closely to the original timetable agreed by buyers and sellers at the start of their journey is bound to be a welcome improvement and once positive experiences emerge, the front-end activities will become the norm and embedded practice. 

Material Information  -see https://www.nationaltradingstandards.uk/news/full-material-information-guidance-published

■ Council Tax / Domestic Rates ■ Asking price/rent ■ Deposits (lettings) / Tenure (sales; including detail of any inescapable costs, such as service charges, ground rents, estate rent charges etc.) ■ Physical characteristics - property type, materials used in construction/construction type and number of rooms ■ Utilities - electricity supply, water supply, sewerage, heating, broadband and mobile phone signal/coverage ■ Parking availability ■ Building safety issues ■ Restrictions, rights, easements, and wayleaves  ■ Risks to property – flood risk, coastal erosion, and proximity to mining ■ Planning Permission or developments in surrounding areas ■ Property accessibility adaptations.

Prepare your Property for Sale 

To get a head start to obtain the benefits our services can assist you and help you choose a selling agent and select a buyer? Call 0208 977 4433 or email to info@kmlawyers.online

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