Buying your first home is exciting, but it can also feel overwhelming – especially when legal terms like “conveyancing” start appearing in the process. If you’re considering Shared Ownership, that comes with its own nuances, so having a general understanding of conveyancing is important. Here’s what it means and why it matters
What Is Conveyancing?
Conveyancing is the legal process of transferring property ownership from the seller to the buyer. In the UK, this involves several key steps to ensure the transaction is valid, your rights are protected, and any risks are identified before you commit.
A qualified solicitor, licensed conveyancer or legal executive generally with admin support will handle this process on your behalf. Their role includes:
- Checking the property title documents and plans
- Conducting searches with local authorities to uncover any issues such as planning restrictions, flood risks or disputes
- Reviewing the contract, lease and negotiating terms
- Managing funds – including sourcing your deposit and obtaining mortgage money.
- Registering ownership with HM Land Registry once the purchase completes.
Why Is Conveyancing SO Important?
Property transactions involve significant sums and legal obligations. Without proper conveyancing, you could face unexpected costs, legal disputes, or even lose your home. Your conveyancer ensures everything is compliant and that you understand what you’re buying.
Conveyancing and Shared Ownership
Shared Ownership is a tenure designed to make homeownership more affordable.
You buy a share (usually 25% to 75%, although in the latest form of lease shares can start from as little as 10%) of a property and pay rent on the remaining share to a housing association.
Later, you can increase your share through a process called staircasing.
While Shared Ownership aims to reduce upfront costs, it can add complexity to conveyancing because:
Leasehold structure: Most Shared Ownership homes are leasehold, meaning you own the property for a fixed term (often 125+ years) rather than outright.
Housing association involvement: The association must approve the reservation based on affordability and may impose conditions, such as restrictions on subletting or resale.
Additional costs: There may be future fees for staircasing, rent reviews, and service charges. Your solicitor will confirm these obligations before you sign.
The Process in Brief
Instruction: You appoint a conveyancer and provide details of your mortgage and your deposit.
Legal Checks: Your conveyancer reviews the contract and lease, conducts searches, and raises enquiries with the housing association’s solicitors.
Exchange of Contracts: Once all the checks are complete and your mortgage offer is approved, contracts are exchanged. At this point, the agreement becomes legally binding.
Completion: Funds are transferred, and you officially become the owner of your share. Your conveyancer registers your interest with HM Land Registry.
Tips for First Time Buyers
Choose an experienced and specialist conveyancer, especially one familiar with new build or Shared Ownership schemes where relevant.
Make sure you budget for fees. Conveyancing costs typically range from £800 to £1,500, plus disbursements!
Remember to ask questions. Make sure you understand lease terms, rent obligations and any restrictions.
Conveyancing is the backbone of a secure property purchase. For buyers, it ensures you know exactly what you are committing to – protecting your investment and giving you peace of mind as you step on to the property ladder.
Shared Direction Conveyancing is the only law firm in the UK dedicated solely to acting for purchasers of new build and Shared Ownership properties.
If you are buying a new build or Shared Ownership property, Shared Direction Conveyancing is your ideal choice of law firm to share your journey into homeownership, as we have the experience and expertise to guide you through the process as quickly and simply as possible.
For further information visit www.sdc-legal.co.uk or for an instant quotation call 0808 273 0273
First Time Buyer is an exciting bi-monthly glossy which takes a stylish and comprehensive look at all the options available, setting them out in an entertaining and informative way, and helping potential customers navigate their way through what is often a daunting and complex process. We dispel the myths, reinforce the facts and arm the reader with the tools necessary to make their homeownership dreams a reality.
