Your structural survey is completed, so what are the next steps in the home purchase process? Understanding who the key players are and how to make the moves to completion is a good start - Words Sandra Haurant

You have found the right house and your offer has been accepted, and then came the scary part: the survey. We’ve all heard tales of disappointed buyers whose charming character home turned out to be riddled with rot or sliding down a hill with subsidence.

Fortunately, this is not always the case – the majority of surveys throw up little in the way of true horrors and are simply an important stage in the process of knowing just what it is you are buying. Since this is likely to be the biggest investment you ever make, it is better to be certain you are getting what you expect.

The survey
As your survey is completed, you should be aware that the amount of detail that shows up in your survey will depend on the type of survey you chose. The minimum requirement for mortgage lenders is generally a valuation – this basic report is really to confirm the price is right and that the property is adequate security for a loan.

The next level up is a HomeBuyer’s Report, which will tell you of major issues that could affect the value of the property, and may insist more specialist reports need to be carried out, for example for woodworm or damp. The most comprehensive report is a building survey or full structural survey, which involves an in depth examination of the house and should uncover any issues that are likely to need your attention, including the need for more special reports.

Surveys are a key part of the buying process and can potentially make or break a deal. If repair costs are too high, the lender may refuse the loan, or may retain a chunk of the funds until repairs are done. For example, if fixing a roof will cost £5,000, the lender may retain that amount from your mortgage until the work has been done. Often in this case the buyer would negotiate with the vendor to reduce the price by the amount of the retention.

THE KEY PLAYERS
The middleman
The estate agent may be paid by the vendor, but they need to work with you too to make sure their client’s interests are protected and that a good agreement can be reached. The agent should be your first stop when it comes to negotiating on price and striking a deal.
 
The money
In these days of stricter lending criteria, it is important to research the best mortgage deals for your circumstances. You’ll need to provide your lender with all the information needed to make sure the process goes smoothly, and be ready to chase if getting your formal offer takes longer than expected.

The groundwork
The surveyor’s main role is to assess the physical state of the property you plan to buy. The depth of detail you receive will depend on the level of service you choose. “The survey is not just something to get through,” says London and Country’s Hollingworth. “It is a key part of the process.”
 
The brains
The solicitor or conveyancer commissions detailed searches to make sure there are no dark secrets lurking in the property’s past, legally speaking. This may relate to restrictive clauses in the lease of a leasehold property, rights of way or contamination due to previous use of the land the property is built upon, or any number of other problems with a property’s title.

Ironing out problems
Jeremy Leaf, housing spokesman for the Royal Institution of Chartered Surveyors, says: “The first step when you get your survey back is to try to speak to the surveyor so that you fully understand the implications of what is written.” Once you have discussed the matter, get quotes from local tradesmen, and go back to the vendor’s agent armed with the knowledge to negotiate a new price.

If the cost is a few hundred pounds, you may choose to pay up, but for unforeseen repairs running into thousands you probably want to stand your ground and insist on a lower price. And you may need to, especially if the lender refuses to approve your loan until you do.

Leaf suggests you negotiate through the estate agent, even if you get on well with the vendor. “Have as much information as possible and use the agent as an intermediary,” he says. It will help to keep procedures professional and keep emotions out of it. You may not reach an agreement to deduct the whole cost of repair, but you could meet somewhere in the middle.

The legal side
While the surveyor takes care of the building, your solicitor or conveyancer takes care of the paperwork, which can be equally troublesome. He or she will carry out vital searches, such as local and environmental searches to check the land is not in an area at risk of flooding and has not been contaminated by previous use. There may also be a chancel repair search to make sure the property does not come under an ancient and peculiar law that makes it liable for the cost of church repairs. In some areas, mining searches will be carried out to make sure there is no mine shaft nearby and no mining activity has gone on near the property’s foundations. Then there is the drawing up of the contract.

All of this takes time. Julia Posener, partner and head of property at solicitors Goodman Legal in Liverpool says: “The legal work is very comprehensive. It takes six to eight weeks on average, but it can be longer.” Posener says it is in everybody’s interest to get the job done as swiftly as is practical, but adds: “Trying to dictate speed doesn’t help.”

Your end of the bargain
If you have reached the survey stage, you will probably already have applied for a mortgage, and now need to obtain a formal offer from your lender. This may hang on the survey results, subsequent negotiations, and a heap of paperwork from you. “Getting a formal offer can take a good two weeks, and perhaps longer,” says David Hollingworth, of mortgage broker London and Country.

“The lender may request evidential documentation relating to the forms you have filled in, such as proof of income in the form of payslips and your P60. You will also need to provide proof of identity in line with money laundering regulations.”

Your lender will also demand you have buildings insurance in place when you buy – it’s not a legal requirement, but it will almost certainly be a contractual one, says Malcolm Tarling of the Association of British Insurers. “Start looking into the insurance you will need on your property early. Get quotes early on, as it will make the process easier,” he says.

The end of the road
Only once all the vital elements have come together can you get to the magical point of exchanging contracts, after which all parties are bound to go through with the sale. This used to involve physically swapping contracts, but is now usually done over the phone. You may also have to pay a 10 per cent deposit at this stage, although this depends on the contract.

Often there will be around a week between exchange of contracts and the final goal, completion, the point where you can finally get the keys to your new home. However, it is possible to exchange and complete in one day, and similarly to exchange further in advance of completion if everyone agrees.

All the money needs to go to the right place at this stage – the solicitor will request the telegraphic transfer of funds from the lender, which costs around £30, and you will need to pay any balance, plus stamp duty and any other costs, to the solicitor. Once everyone is ready, and all the funds have gone through for every link of a chain, you can expect to receive a phone call from the estate agent to tell you the keys are ready for collection and you can finally move in and break out the bubbly.