How to complete a private purchase?

[User434565888]

Our neighbour has approached us to buy her house privately. We are definitely keen and in a very competitive local market it could be a bit of a gem. It needs lots of work and she doesn't really know how much she wants. Nothing comparable has sold for years so it's hard to judge. It failed to sell two years ago at her asking price, but values have risen since then.

Anyone able to give me an idiots guide to completing a private purchase? We have the ability to deal with solicitors etc. directly but don't really know where to start. Any advice on paperwork etc. needed would be great!

[TheSilveryPussycat]

Kirstie and Phil's book on buying a house suggests that the potential buyer gets it valued, but this is in the case where the buyer has done the approaching. Am currently selling privately myself after just such an approach, but I got some valuations from EAs and went from there. Market here is stagnant, and value not changed much from Matrimonial Home Valuation 3 years ago.

Your seller will need an EPC. Just had mine done using an online company.

After we'd agreed the sale, I drew up a simple Memorandum of Sale with just names addresses of buyers and sellers, price agreed in figures and words, address of property, that it was freehold. Gave copies to buyers for them and their solicitors, gave one to my own solicitor.

After that, I think things proceed as they normally would.

[TheSilveryPussycat]

Should say, I googled for M of S template, which also included space for deposit and details of how purchase would be financed, but found these didn't actually need to be included on the M of S. Solicitor was happy with what I submitted.

[WookieCookiee]

Have you agreed a price?

Get your own survey done (structural if it needs that much work), and instruct a good solicitor with experience in your locality and that type of property.
memo of sale in writing as PP suggested
The solicitor will sort out the paperwork, if she marketed the property 2 years ago she should have an EPC as they last for 10 years. As a buyer there isn't a huge amount of paperwork for you to do and her conveyancer will take her through hers.

[TheSilveryPussycat]

oops MoS should include both sets of sols details. YY to survey, of course!

[TheSilveryPussycat]

and date agreed...

sorry for multiple posts

[DelphiniumBlue]

I would strongly advise not to do the legal paperwork yourself, too many pitfalls for the unwary, potential problems when you come to sell.
By" privately" I suspect she means without an estate agent, not without solicitors.

Not using estate agents will save her money, not you.

The house was presumably over-priced 2 years ago, that's why it didn't sell.

Think about what you can afford to pay, and get a survey, which will give you a ball park valuation in current condition.You could approach her and suggest that you jointly instruct a surveyor so that the cost is shared, if you are both going to be relying on it as far as value is concerned.

You'll also need to find out how much it is likely to cost to bring it up-to-date.

If you will be buying with the assistance of a mortgage, the mortgage company will insist on a valuation survey and solicitors - they may well have their own who would be prepared to act for you as well.

[SquinkiesRule]

We did this last spring.
I called my Solicitor and the seller called theirs, we had agreed on a price and the Solicitors walked us through the rest. It took 8 weeks start to finish as we were cash buyers.
Seller had to get an EPC certificate and find all her other paperwork, fensa for the windows and the boiler checks paperwork etc. It went very smoothly.

[User434565888]

Thanks all for your replies. Sounds reassuringly straightforward! The house was definitely over priced two years ago, but values have rocketed recently so I think coming to a price we're all happy with considering the amount of work to do will be the major hurdle. People seem to have high expectations of cashing in!