The conveyancing process explained for property investors

Instructing a solicitor

Once your offer is accepted, the first step is instructing a solicitor (or licensed conveyancer) to act on your behalf. Do not use whoever the estate agent recommends without independent research - some agents have referral arrangements that benefit them, not you.

For buy-to-let purchases, use a solicitor with experience of investment property transactions. They will know what to look for in leasehold titles, limited company purchases, and title insurance situations. A generalist high street conveyancer may miss issues that an experienced BTL specialist would catch.

Get quotes from three solicitors before instructing. The cheapest is rarely the best choice. Look for: - Fixed fee structure (not hourly rate) - Clear communication (dedicated point of contact, not a call centre) - Experience with BTL, and with limited company purchases if applicable - Realistic timeline expectations

When you instruct, you will need to provide: - Photo ID (passport or driving licence) and proof of address - Source of funds documentation (important for money laundering compliance - you will need to show the origin of your deposit funds) - Details of your mortgage broker / lender if applicable

The solicitor will then request the draft contract and title documents from the vendor's solicitor, and begin the searches process.

The searches

Property searches are enquiries made to various authorities to uncover information about the property that does not appear in the title deeds. They are a standard part of every conveyance.

Local authority search: The most important search. Reveals any planning permissions (or enforcement notices), local land charges, road adoption status, and proposed schemes affecting the property. If there is a compulsory purchase order or road widening scheme near the property, this is where you find out. Cost: £150-£300 depending on the council. Turnaround: 5-20 working days (council-dependent).

Drainage search: Confirms whether the property is connected to public water and drainage infrastructure, and whether any public sewers run through the garden (which restricts what you can build). Cost: £30-£60. Turnaround: 1-5 days.

Environmental search: Checks for contaminated land, flood risk, ground stability, radon levels, and landfill proximity. Properties near old industrial sites may be flagged. Cost: £25-£60. Turnaround: 1-5 days.

Water and property search: Checks the location of public water mains and sewers relative to the property boundaries. Relevant if you are planning extensions. Cost: £30-£50.

The total searches bill typically runs to £300-£600. They are not optional if you are buying with a mortgage, as the lender will require them.

Reviewing the title

The title to a property is the legal proof of ownership and the rights and obligations that come with it. Your solicitor will review the title documents provided by the vendor's solicitor.

For freehold property, this is relatively straightforward: confirm who owns it, check for any restrictive covenants, easements (rights of way), or other registered matters.

For leasehold property, the title review is more complex: - Lease length: How many years remain? Below 80 years is problematic for mortgages and resale. Below 70 years is a serious issue. The cost of extending a lease rises as it shortens. - Ground rent: What is the current level and does it escalate? Escalating ground rents (doubling every 10-25 years) can make a property unmortgageable and unsaleable. - Service charge history: The last 3 years of service charge accounts should be disclosed. Look for significant increases, large sinking fund deficits, or major works planned. - Freeholder consent: Some leases require freeholder consent to let the property. If letting requires consent and the freeholder is difficult to deal with, this creates ongoing hassle.

Restrictive covenants: These are legally binding restrictions on what you can do with the property, often dating back decades. "Not to use for commercial purposes" is common and usually irrelevant. "Not to subdivide without consent" is highly relevant if you plan to convert to an HMO. Your solicitor will flag these.

Exchange of contracts

Exchange of contracts is the legally binding moment in any property purchase. Before exchange, either party can withdraw at any time with no legal liability (though they may lose survey or legal costs). After exchange, both parties are legally obligated to complete the transaction on the agreed date.

At exchange: - Both solicitors confirm the contract terms are agreed - The buyer pays a deposit (typically 10% of the purchase price) to the vendor's solicitor, held in escrow - A completion date is set, usually 2-4 weeks after exchange

If you withdraw after exchange, you lose your deposit. If the vendor withdraws after exchange, they must return your deposit and may be liable for your additional losses.

For auction purchases, exchange of contracts happens at the auction on the day - the moment the hammer falls, contracts are exchanged and you are legally bound to complete within 28 days (or whatever the auction conditions specify). There is no "subject to contract" period for auction purchases.

Before exchanging, ensure: - All searches are back and reviewed - Your solicitor is satisfied with the title - Your mortgage offer is in place (if buying with a mortgage) - Your survey is complete and any renegotiation has been resolved - You have reviewed and understood all the lease terms (if leasehold)

Completion and what happens on the day

Completion is when the purchase funds are transferred and ownership legally changes hands. It is typically set for midday.

On completion day: - Your solicitor transfers the purchase funds (deposit already held plus mortgage advance) to the vendor's solicitor - The vendor's solicitor confirms receipt and notifies the estate agent - The estate agent releases the keys to you - Your solicitor registers the change of ownership at HM Land Registry - SDLT is paid to HMRC (your solicitor handles this on your behalf, typically within 14 days of completion)

The process usually takes several weeks to complete from instruction to completion, but can range from 3 weeks (cash, simple freehold, motivated parties) to 6 months (complex leasehold, chains, slow searches).

What can go wrong: - Mortgage offer expires before completion (if the process takes longer than expected) - A search reveals an issue that needs resolving - The vendor's solicitor fails to obtain management company information on a leasehold property - Chain collapse (the property below yours in a chain falls through) - Down-valuation by the lender (their surveyor values the property below the purchase price, reducing the mortgage advance)

Having a solicitor who communicates proactively and chases issues promptly is worth the slightly higher fee. Silent solicitors who do not update you are a significant cause of delays.

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