Buying a house in the UK, properly

1. Mortgage in principle

A mortgage in principle (MIP) — sometimes called an agreement in principle or decision in principle — is a lender's conditional statement of how much they are willing to lend before you have found a property. Most estate agents will ask for one before accepting viewings on higher-priced properties, and sellers may request evidence before accepting an offer.

Lenders assess affordability against the FCA Mortgage Conduct of Business Sourcebook (MCOB 11), which requires a stressed rate test — typically checking whether you could still afford repayments if the rate rose by three percentage points. A MIP is not a mortgage offer and it is not binding on the lender, but it does give you a reliable ceiling for your search.

MIPs typically remain valid for 60 to 90 days. Most lenders perform a soft credit search at this stage, which leaves no footprint on your credit file. Some lenders perform a hard search — ask explicitly before proceeding. Multiple hard searches in a short window can reduce your credit score, so work with a whole-of-market broker who can recommend a lender without running unnecessary searches.

Factors that commonly reduce a MIP amount or cause a lender to decline include: high levels of unsecured debt, a recent change of employment, self-employment income that cannot be evidenced with two or three years of accounts, and poor credit history. Resolve these before applying — some lenders will not reconsider for six months after a decline.

When you find a property, the lender will commission a mortgage valuation — not a survey. A mortgage valuation satisfies the lender's security interest and confirms the property is worth what you are paying. It does not inspect condition. A separate RICS survey is always in your interest (see §7).

2. Setting a true budget

The purchase price is only the start. Before you set a search ceiling, add the following to your model so there are no surprises at completion.

Stamp Duty Land Tax (SDLT). England and Northern Ireland buyers pay SDLT on a tiered basis. In 2026, the rates are: 0% on the first £250,000 (£0 to £425,000 for first-time buyers on properties up to £500,000), 5% on £250,001 to £925,000, 10% on £925,001 to £1.5m, and 12% above £1.5m (HMRC SDLT guidance, 2026). Additional-dwelling surcharge adds 3% on each tier for second-home and buy-to-let buyers. Use the HMRC SDLT calculator to model your exact position before making an offer.

Solicitor fees.Conveyancing solicitor costs typically range from £800 to £2,500 for a straightforward freehold purchase, higher for leasehold or shared ownership. A leasehold purchase adds a deed of covenant fee, notice of transfer, and often a landlord's solicitor fee on top (Law Society Conveyancing Quality Scheme guidance).

Survey fees. A RICS Level 2 HomeBuyer Report costs approximately £400 to £700 depending on property value and location. A Level 3 Building Survey — appropriate for older, unusual or high-value properties — costs £600 to £1,500. A specialist inspection (e.g. drainage CCTV, structural engineer, Japanese knotweed assessment) adds further costs of £150 to £600 each (RICS Home Survey Standard 2021, fee guidance).

Mortgage product fee. Many competitive mortgage products carry an arrangement fee of £999 to £1,999. These can often be added to the mortgage, but you will pay interest on them for the term if you do. Factor this into your true rate comparison.

Land Registry registration fee. On completion, your solicitor registers the title transfer at HM Land Registry. The fee is set by the Land Registration Fee Order 2021 and scales with purchase price: £45 for properties up to £80,000, rising to £540 for properties between £500,001 and £1m.

Removal costs. Budget £800 to £2,000 for a local move with a reputable firm, more for long-distance or large volume. Storage costs vary significantly if completion dates do not align.

3. Listing red flags

Before booking a viewing, review the listing carefully for signs that a property may require more scrutiny. The National Trading Standards Estate Agency team publishes guidance on material information that agents must disclose (2024 Parts B and C requirements), but some indicators appear only if you know what to look for.

Missing EPC band. All marketed residential properties must hold a valid EPC under the Energy Performance of Buildings (England and Wales) Regulations 2012. A missing or expired EPC certificate warrants investigation before viewing.

“Cash buyers only.” This phrase typically means the property has a characteristic that makes mortgage lending difficult: severe structural defects, a very short lease, non-standard construction, or an unresolved planning issue. Occasionally it simply reflects an impatient seller. Either way, investigate before proceeding.

Non-standard construction.Terms like “steel frame”, “timber frame”, “pre-cast concrete” or any form of prefabricated post-war construction (PRC homes) restrict the mortgage market significantly and may indicate structural or insulation issues.

Short lease. Any lease under 85 years warrants attention. Leases under 80 years trigger marriage value in the statutory extension premium, adding substantial cost. Leases under 70 years will cause most high-street lenders to decline. Always check the unexpired term on the HM Land Registry title before making an offer (HM Land Registry, title register).

Recent price reductions.Multiple price reductions, especially within a short window, can indicate a structural defect discovered during a previous buyer's survey, a change in the local environment (new development, road scheme, flood event), or an overpriced initial listing. Use the HM Land Registry price paid data to cross-check asking prices against comparable sales in the same street.

Photography that hides angles. Listings that show no exterior rear view, no garden boundary, or no images of a specific room often have a reason. Ask explicitly during viewing.

4. Public-register due diligence

Before making an offer, run the following checks against named public registers. These are not hypothetical risks — each has caused buyers to lose deposits, face renegotiation, or take unpriced risks after completion.

5. Making an offer

In England and Wales, an offer on a residential property is not legally binding until exchange of contracts. Both parties remain free to withdraw at any point before exchange without penalty, subject to their own costs. This creates asymmetric risk for buyers who commission surveys and legal work before exchange.

Gazumping — where a seller accepts a higher offer after agreeing a sale with you — is legal in England and Wales. The Estate Agents Act 1979 requires agents to pass on any offer received before exchange, which creates the window for gazumping. To reduce your exposure: instruct a solicitor the day your offer is accepted, request that the property be taken off the market as a condition of agreeing terms, agree explicit target exchange dates with the seller, and consider a lock-out agreement where the seller agrees not to negotiate with third parties for a defined period.

Sealed bids occur when a seller asks all interested parties to submit their best and final offer by a fixed deadline in a sealed envelope. The seller is not obliged to accept the highest bid. You cannot know what others have offered. Basing your sealed bid on a clear ceiling — the maximum you would pay given all the due diligence you have already run — is more reliable than trying to outguess other bidders.

Conditional offers— for example, “subject to survey” or “subject to planning permission” — are common. Be clear in your offer letter about any conditions and the timescales within which you need them satisfied. Conditions can introduce uncertainty for sellers; a clean offer at a slightly lower price may be preferred.

Bear in mind that the listing agent acts in the seller's interest, not yours. Under the Estate Agents Act 1979, the agent owes duties of disclosure to you as a buyer, but their fee is paid by the seller and their primary obligation is to achieve the highest price. Do not rely on the agent for advice about whether to offer, how much to offer, or which solicitor to use.

6. Conveyancing

Conveyancing is the legal process of transferring property ownership. You should instruct a solicitor or licensed conveyancer the moment your offer is accepted — delays in instruction are one of the most common reasons for extended transaction timelines. Look for firms accredited under the Law Society Conveyancing Quality Scheme (CQS), which sets minimum service and competence standards (Law Society CQS, 2024).

Your solicitor will raise the following searches, which are typically required by your lender and protect your interests as a buyer:

Local Land Charges search (LLC1) and CON29. Submitted to the local authority, this reveals planning restrictions, enforcement notices, tree preservation orders, road adoption status, and any proposals affecting the property under local development plans. Some councils take four to eight weeks; your solicitor can use a personal search agent for faster results (Local Authorities (Land Charges) Act 1975).

Drainage and water search. Submitted to the relevant water authority, this reveals whether the property is connected to public sewers and whether public sewers cross the plot (which restrict development). An unconnected property reliant on a private septic tank carries ongoing maintenance costs and regulatory obligations under the Environmental Permitting Regulations 2016.

Environmental search. This covers historical land use, contaminated land risk, flood risk, and ground stability. For properties in historically industrial areas or near former gasworks, a more detailed Phase 1 desk study may be needed (Environment Agency, contaminated land register).

Coal or mining search. Required in areas with historical mining activity. The Coal Authority search reveals whether the property is in a coal mining risk area, affected by mine entries, or subject to a surface hazard (Coal Authority, mining information).

For leasehold purchases, your solicitor will also review the lease, obtain management information from the freeholder or managing agent (including service charge accounts, reserve fund, and any planned major works), and check for outstanding ground rent arrears. The Council of Mortgage Lenders Handbook (now UK Finance Mortgage Lenders Handbook) sets out what lenders require from solicitors on leasehold transactions.

7. Survey choice (RICS Levels 1–3)

The mortgage valuation commissioned by your lender is not a survey. It is a brief inspection whose purpose is to confirm the property represents adequate security for the loan — it is not designed to protect your interests and will not reveal most defects. A separate RICS survey is always worthwhile, even on apparently modern properties.

The RICS Home Survey Standard 2021 defines three levels:

Level 1 — Condition Report. The most basic RICS survey. Records the condition of each element using a traffic-light rating (1 = no repair needed, 2 = defects requiring attention, 3 = urgent defects). No advice or detailed investigation — suitable only for new-build or very recently built properties in good condition. Rarely recommended for purchases.

Level 2 — HomeBuyer Report. The most widely used survey for standard properties. Includes the condition rating plus: a market valuation (optional), advice on defects visible at inspection, and recommendations for further investigation. Does not cover hidden areas (behind fitted units, under floors) or elements requiring specialist investigation. Appropriate for conventionally built properties from the 1930s onward in reasonable condition (RICS Home Survey Standard 2021).

Level 3 — Building Survey. A comprehensive investigation of construction, condition and defects, including accessible hidden areas where possible. The surveyor provides an opinion on likely cause and extent of defects and recommendations for remediation. Appropriate for: properties built before 1930, properties showing signs of movement, unusual construction (timber frame, thatched roof, stone), or any property you intend to materially alter. The additional cost is almost always recovered if defects are found (RICS Home Survey Standard 2021).

If the survey reveals defects, you have three options: renegotiate the price to reflect remediation costs, ask the seller to carry out remediation before exchange, or proceed on the original terms with full knowledge of what you are taking on. A survey does not give you an automatic right to renegotiate — that depends on the commercial position — but it does give you the information to make the decision deliberately.

8. Reading the TA6 Property Information Form

The TA6 Property Information Form is completed by the seller and provided to your solicitor as part of the pre-contract pack. It covers the seller's knowledge of the property across twelve categories. Reviewing it carefully — and questioning your solicitor about any ambiguous answers — is one of the most important checks a buyer can make (Law Society TA6 Property Information Form, Edition 4, 2024).

Question 1 — Boundaries. Who owns each boundary? Any boundary dispute, even a historic one, should prompt further investigation. Shared driveways, party walls and rear access routes are common sources of ongoing dispute that can significantly affect amenity and future sale.

Question 4 — Planning. Has the property had any works carried out? Were those works subject to planning permission or building regulations approval? If works were carried out without the necessary consents, you may inherit the enforcement risk. Ask your solicitor to request indemnity insurance if consents are missing for material works.

Question 7.8 — Japanese knotweed.Sellers must state whether they are aware of Japanese knotweed on or affecting the property. Non-disclosure of known knotweed can give rise to a misrepresentation claim under the Misrepresentation Act 1967. If the answer is “yes, treated with a management plan” — request a copy of the plan and verify with a specialist that the plan is from an approved contractor and is transferable to you.

Question 8 — Guarantees and warranties. Any existing guarantees (damp-proofing, window installation, roof works) should be transferable to you on completion. Check the age and remaining term of each guarantee and whether the original contractor is still trading.

Question 10 — Disputes and complaints. The seller must disclose any formal or informal disputes with neighbours. This includes disputes about boundaries, rights of way, parking, noise or anti-social behaviour. If the answer reveals a dispute, investigate the current status carefully before proceeding.

Be aware that the TA6 relies on the seller's honest disclosure and their knowledge at the date of completion. Sellers can only disclose what they know. A seller who purchased the property without commissioning a survey may have no knowledge of subsidence, knotweed, or historic flooding — the absence of a disclosure is not the same as the absence of a problem.

9. Exchange and completion

Exchange of contracts is the point at which the transaction becomes legally binding on both parties. Before exchange, your solicitor will report to you on the title, searches, and TA6 and ask you to confirm that you are satisfied to proceed. Read this report carefully — it is the document you will rely on if anything goes wrong later.

Deposit.On exchange you pay a deposit — typically 10% of the purchase price — to the seller's solicitor. This deposit is at risk if you fail to complete on the agreed date without good reason. If the seller fails to complete, you may rescind the contract and recover your deposit plus interest (Law of Property Act 1925, §49).

Buildings insurance from exchange. From the moment of exchange, the risk in the property passes to you as the buyer in most standard contract conditions. Your buildings insurance must be in place from exchange, not completion. Arrange cover to begin on the exchange date and ensure the policy covers the rebuild cost (not the market price) as recommended by the RICS.

Completion date. The date agreed at exchange is the date on which the balance of the purchase price is transferred and you receive the keys. The average gap between exchange and completion is one to four weeks, but longer periods are sometimes negotiated where the seller needs more time to move. On completion day, your solicitor will transfer the funds, receive the title deeds, and notify you when the transaction has completed.

SDLT filing deadline. Your solicitor will file your SDLT return and arrange payment. The filing deadline is 14 days from completion (SDLT Manual SDLTM62000). Late filing incurs a fixed penalty of £100 for delay up to three months, rising to £200 thereafter, plus interest on unpaid tax. Your solicitor should handle this automatically — confirm with them before completion day.

Land Registry registration. After completion, your solicitor must apply to register the transfer at HM Land Registry. For electronic applications via the Land Registry portal, registration typically completes within two to five working days. Until registration, your title is protected by a priority search your solicitor will have lodged in advance of completion (Land Registration Act 2002).