What Do I Do When My Offer Has Been Accepted?

Congratulations! Having your offer accepted is an exciting step, but the property is not officially yours yet.

You now need to arrange your mortgage, appoint a solicitor, have the property checked and complete the legal work. Here is what normally happens next.

1. Ask the Estate Agent to Take the Property Off the Market

Ask the estate agent to mark the property as sold subject to contract and stop arranging further viewings.

The seller does not have to agree, but they are more likely to do so when you can show that you are ready to proceed.

The estate agent may ask you for:

  • Proof of your deposit
  • Your mortgage agreement in principle
  • Your mortgage broker or lender's details
  • Your solicitor or conveyancer's details
  • Proof of your identity and address

2. Complete Your Full Mortgage Application

A mortgage agreement in principle is not your final mortgage approval. Once your offer has been accepted, contact your mortgage broker or lender and complete the full mortgage application.

You will normally need to provide documents such as:

  • Recent payslips
  • Bank statements
  • Proof of your deposit
  • Identification
  • Details of your income and regular spending
  • Information about the property

The lender will check whether the mortgage is affordable and will usually arrange a valuation of the property.

Important: A Mortgage Valuation Is Not a Home Survey

The lender's valuation is mainly for the lender. It helps them decide whether the property is suitable security for the mortgage.

It may not identify problems such as damp, roof defects, movement or expensive repairs. You should consider arranging your own survey as well.

3. Choose a Solicitor or Conveyancer

You need a solicitor or licensed conveyancer to handle the legal side of buying the property. This process is called conveyancing.

Your conveyancer will:

  • Check the property's legal title
  • Review the seller's paperwork
  • Order property searches
  • Raise questions with the seller's solicitor
  • Check the mortgage documents
  • Explain the contract to you
  • Arrange exchange of contracts and completion
  • Register you as the new owner

Check that your chosen conveyancer is accepted by your mortgage lender. Using a conveyancer who is not on the lender's approved panel could cause delays or additional costs.

4. Arrange a Survey

A survey helps you understand the condition of the property before you become legally committed to buying it.

The appropriate survey will depend on the property's age, condition, construction and whether it has been altered.

Common Survey Options

RICS Home Survey Level 1

Basic traffic-light ratings, no advice or valuation. Commonly called a Condition Report

RICS Home Survey Level 2

This is commonly chosen for conventional houses and flats that appear to be in reasonable condition.

RICS Home Survey Level 3

This is a more detailed inspection. It may be suitable for older, unusual, altered, poorly maintained or visibly defective properties.

Try to arrange the survey early. If it identifies serious defects, you may need time to obtain quotations, ask more questions or reconsider the price.

5. Let the Legal Checks Begin

The seller's solicitor will send a contract pack to your conveyancer. Your conveyancer will examine the documents and carry out searches.

These searches commonly include:

  • Local authority searches
  • Water and drainage searches
  • Environmental searches

Other searches may be recommended depending on the property's location. These could cover matters such as flooding, mining activity, contaminated land or ground stability.

Your conveyancer will also raise enquiries. These are questions about the property, its legal title, boundaries, alterations, guarantees, services and other matters affecting the purchase.

6. Read the Survey Results Carefully

Do not panic simply because the survey identifies defects. Most properties have some maintenance or repair issues.

Pay particular attention to:

  • Urgent repairs
  • Safety concerns
  • Structural movement
  • Damp or timber problems
  • Roof defects
  • Drainage problems
  • Alterations that may need further investigation
  • Repairs that could be expensive

Ask the surveyor to explain anything you do not understand. You may also need quotations from builders or specialist contractors.

7. Decide Whether to Renegotiate

If the survey or legal checks reveal a serious problem that you did not know about when making your offer, you can discuss it with the estate agent.

You might decide to:

  • Continue at the agreed price
  • Ask the seller to arrange a repair
  • Renegotiate the purchase price
  • Request further inspections or reports
  • Withdraw from the purchase

Renegotiation should normally be based on new and meaningful information, particularly where the likely repair cost is significant.

If the price changes, tell your mortgage lender and conveyancer immediately. The lender may need to amend the mortgage application or offer.

8. Receive Your Formal Mortgage Offer

If the lender is satisfied with your application and its valuation, it may issue a formal written mortgage offer.

Read the offer carefully and check:

  • The amount being borrowed
  • The interest rate
  • The mortgage term
  • The monthly payment
  • Any product or arrangement fees
  • Any special conditions
  • The date on which the offer expires

Do not make major financial changes while the purchase is progressing. Taking out new credit, missing payments or changing employment could affect your mortgage application.

9. Arrange Buildings Insurance

Your mortgage lender will normally require buildings insurance to be in place from exchange of contracts.

Ask your conveyancer exactly when the cover must begin. The arrangements can be different when buying a leasehold flat because the building may already be insured by the freeholder or management company.

10. Review Everything Before Exchange

Your conveyancer should report to you when the legal work, searches and enquiries are sufficiently complete.

Before exchanging contracts, make sure:

  • You have received your written mortgage offer
  • You are satisfied with the survey
  • You understand the search results
  • Your conveyancer has answered your important questions
  • You know which fixtures and fittings are included
  • You have enough money for the deposit and other costs
  • Your buildings insurance is ready
  • You have agreed a suitable completion date

You may also wish to visit the property again before exchange. Check that its condition has not changed and confirm that you are still happy to proceed.

11. Exchange Contracts

Exchange of contracts is the point at which the purchase normally becomes legally binding.

Your conveyancer will ask you to sign the contract and transfer the required exchange deposit. The buyer's and seller's conveyancers then exchange the signed contracts and agree the completion date.

Do Not Exchange Until You Are Ready

Withdrawing after exchange can have serious financial and legal consequences. Make sure your mortgage, survey, searches, deposit and other important arrangements are in place before you authorise exchange.

12. Prepare for Completion

Between exchange and completion, you should:

  • Arrange removals
  • Confirm your buildings insurance
  • Prepare the remaining purchase funds
  • Arrange utilities and broadband
  • Redirect your post
  • Check the property before completion where possible

Your conveyancer will request the mortgage money from your lender and prepare the final completion statement. This statement shows the remaining amount you need to pay.

13. Completion Day

On completion day, your conveyancer sends the purchase money to the seller's conveyancer.

Once the money has arrived, the estate agent will normally be authorised to release the keys to you.

You can then move into your new home.

Costs to Keep Money Aside For

Your deposit is not the only cost involved in buying a home. You may also need money for:

  • Mortgage fees
  • Solicitor or conveyancer fees
  • Search fees
  • A property survey
  • Buildings insurance
  • Stamp Duty Land Tax, if payable
  • Removal costs
  • Immediate repairs or essential purchases

Your conveyancer can tell you whether Stamp Duty Land Tax is payable and whether you qualify for any first-time buyer relief.

Your Immediate Checklist

  1. Ask for the property to be taken off the market.
  2. Send your documents to the estate agent.
  3. Complete your full mortgage application.
  4. Appoint a solicitor or conveyancer.
  5. Arrange an appropriate property survey.
  6. Prepare money for the survey, searches and legal fees.
  7. Respond promptly when your lender or conveyancer asks for information.

Remember

An accepted offer is an important step, but it does not usually mean that you are legally committed to buying the property.

Take the time to complete the mortgage application, legal checks and property survey properly. Buying your first home can feel complicated, but your mortgage adviser, conveyancer and surveyor each have a different role in helping you make an informed purchase.