Homebuyers looking to purchase a new abode in the near future should consider these top tips from conveyancing experts as the Brexit deadline looms.
Jacqui Harley at JMP Solicitors said: “No matter your level of understanding around Brexit, it’s definitely a major factor when deciding whether to buy a home. Whilst there is no right or wrong answer as to whether now is the right time to purchase, there are a few tips for potential homebuyers to consider, and we have shared them in order to allow home buyers to make the right decision.”
1. Do you already own a property?
It’s normal to worry about getting a good price for your property, but if you have some patience a good sale will usually come to fruition. Don’t just panic and sell for a lower price than your house is worth, or you could be worse off when prices eventually rise again.
With a lot of people worried about selling, it could even be a good time to sell while the market isn’t over saturated. Ideally you want to sell when prices are high and buy when low, which is not possible for most people. However, for first time home buyers or those without a property to sell immediately, now could be the ideal time to purchase.
Prices are expected to drop the most in the London and the South East, providing a great opportunity for first time home buyers to buy property in an area which may have previously been unobtainable previously.
2. Are you looking to purchase a newbuild or second hand property?
With a new build property, it is likely you’ll pay a premium, which could be even greater following a no deal Brexit. Despite a record number of new homes being approved, there is also a worry around labour and material shortages after Brexit.
Consider going for a second hand property and you could be better off in the long run, as new builds could potentially go into negative equity due to prices generally dropping.
3. How long are you going to be in the property?
A property should always be a long-term investment, no matter the economic climate and it’s impossible to predict if housing prices will rise or fall immediately after Brexit. Over time house prices will stabilise and, in time, rise again. While the rate of growth may slow down, house prices will always increase eventually meaning investing in property is still worthwhile.
4. What type of mortgage can you get?
At the moment interest rates are at historic lows, and it is likely that after Brexit they will rise, so now is a good time to take out a mortgage. You can also consider re-mortgaging your property to lock into a new fixed rate. A fixed rate mortgage can start from just two years and go up to fifteen, allowing you to be certain with your mortgage rate at a time of economic uncertainty.
Jacqui Harley is a licensed conveyancing technician and a conveyancing executive at JMP Solicitors, heading up the Residential Conveyancing department. For further advice please call Jacqui on 0800 085 9966 or email firstname.lastname@example.org.