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PROPERTY

Stage 1 of Buying a
House | Your Welcome Pack

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IN THIS BLOG

WHAT IS CONVEYANCING?

Conveyancing is the process by which ownership of property or land in England and Wales is transferred from one person to another. Your conveyancing teams will act on your behalf throughout your journey of buying property. They will help you to complete all your forms, provide context and understanding around each milestone, and help you with anything that you need throughout your purchase.

 

WHAT IS IN MY WELCOME PACK?

When you instruct Lyons Bowe, your New Instructions Team will be opening your file and getting you set up on our system. As part of setting up your account, we will equip you with the Lyons Bowe Welcome Pack, complete with comprehensive guides, Terms of Business and all the documents that we need you to sign and return to us to proceed with your purchase.

If you choose to use our app, it’s at this point that we will set up your account and pre-load your documentation onto your app, ready for you to sign from the comfort of your own phone.

If you prefer a more traditional experience, we can send you your documents via email or the post. You will need to sign and return all the documentation to us before we can continue with the next stages of your purchase.

Regardless of whether you choose to use our app or not, your New Instructions Team is on hand to help you out should you need any support or assistance in completing your documentation.

TERMS OF BUSINESS

The Terms of Business is a legal document that you must sign for us to proceed with your matter. It covers the overall service you will receive from us, what we will need from you throughout your purchase and other legal notifications and disclosures. The document also covers information about our Abortive Pledge and other services. Please note, all buyers will need to sign the document.

We are legally required by the Solicitors Regulation Authority (SRA) to notify our clients of our Terms of Business and obtain your agreement to them prior to proceeding with your purchase. By signing our Terms of Business, you will be agreeing to the terms and conditions set out in the document. It also ensures that both you and Lyons Bowe are protected throughout your matter.

HOW TO SIGN YOUR TERMS OF BUSINESS

You can sign the Terms of Business very easily, in a way that best suits you.

  • Securely via our app
  • By post
  • Visit any one of our offices
  • By email

Please note that all parties of the purchase must sign the Terms of Business.

YOUR FEE ESTIMATE

The Fee Estimate confirms the fees that we estimate you will incur throughout the purchase of your property. We also include a complete list of additional fees that might, in certain circumstances, be incurred by you as your purchase progresses. Whilst we will always aim to estimate your fees as accurately as possible at the beginning of your instruction, until we receive the seller’s contract pack and have reviewed the pack, it is not possible for us to guarantee the fees that you will incur.

For example, it may transpire that the property that you are purchasing has multiple registered titles or a flying freehold which would incur additional work. Neither you, or we, may have been aware of the need for that additional work when providing you with an estimate at the outset. We will, however, always discuss any additional fees with you before proceeding with that additional work so that you are always in control.

WHY DO I NEED TO SIGN YOUR FEE ESTIMATE?

We need you to sign and return this document as it confirms that you agree to your estimated fees and are comfortable instructing us on this basis.

HOW DO I SIGN MY FEE ESTIMATE?

You can sign your fee estimate in a way that suits you best.

  • Securely via our app
  • By Post
  • Visit any one of our offices
  • Via email

ID VERIFICATION

What is ID Verification?

We are legally required to run ID checks and proof of address checks to ensure that you are who you say you are and that you are not purchasing your property under illegal pretences. To verify the ID of all buyers in the purchase, we will need you to provide copies of the documents listed in the ID Verification Form provided to you in your Welcome Pack. Please do not hesitate to get in touch with your New Instructions Team if you are unsure or have any questions. They will be happy to help you to find the correct forms of ID and proof of address if needed.

WHY IS ID VERIFICATION NEEDED?

Whilst it may seem intrusive, the obligation to check our client’s ID is there for the protection of the general public as it helps to fight property fraud. We are legally required to run ID checks on all our clients, however whilst we work hard to protect our clients and the public from fraud, we also try our best to make sure our procedures are as smooth and efficient as possible.

HOW DO I COMPLETE MY ID VERIFICATION?

  • Securely via our app’s biometric system
  • Visit any one of our offices
  • ID Verification Tip

Make sure that you have two valid forms of ID in date and ready to go before you purchase a property. This will significantly speed up the process.

SOURCE OF FUNDS

WHAT IS A SOURCE OF FUNDS CHECK?

Every person buying a property is required by law to be provide evidence of how and from where they have accumulated the money that they will be using to purchase a property.

We need to ensure that your general income and wealth is consistent with the value of the property you are purchasing. The question that we need your help in answering is why and how do you, as our client, have the amount of wealth that you are using to purchase your property.

WHY IS A SOURCE OF FUNDS CHECK NEEDED?

The UK Government has placed an obligation on us and you, to provide this information when purchasing a property in order to help combat money laundering and property fraud.

Please note: We may need to ask you further questions about your source of wealth and source of funds. Please do talk to your New Instructions Team if you have any questions.

HOW CAN I COMPLETE MY SOURCE OF FUNDS?

  • In app
  • By email
  • Visit us
  • By post

GIFTOR’S VERIFICATION

WHAT IS GIFTOR’S VERIFICATION?

In the same way that we have an obligation to undertake checks on your identity and your source of funds and wealth, we also have an obligation to apply these checks to any individuals that are gifting you money that you will use to purchase your new property.

The Giftor Verification form includes, Anti Money Laundering checks and Source of Funds checks. We will need two forms of ID and six months’ worth of statements as proof of funds. The process may be more or less complicated depending upon the circumstances of the gift.

WHY IS A GIFTOR’S CHECK NEEDED?

Whilst we understand that your giftor’s may feel that the requirements being placed on them are intrusive and they may not want to provide private information, the need to do so is a legal requirement. We will, however, do our best to make this process as smooth as possible.

MEMORANDUM OF SALE

WHAT IS A MEMORANDUM OF SALE?

The Memorandum of Sale confirms the basic details about the property you are purchasing. We will request this from your Estate Agent. The document is completed by the estate agent and notifies us of:

  • The address of the property that you are purchasing
  • The purchase price that you have agreed with the seller
  • The seller’s name(s) and current address
  • The seller’s solicitor’s name(s), address and contact details
  • Any other terms that you may have agreed with the seller’s
  • Why do we need a memorandum of sale?

The Memorandum of Sale allows Lyons Bowe to request the seller’s Draft Contract Pack from the seller’s solicitors. We will check that the contents of the pack match the terms that you have agreed with the seller. For this reason, we cannot proceed to the next stages of your purchase without the Memorandum of Sale.

OUR TO DO LIST

  • Help you and any giftors complete your welcome pack documents and tasks
  • Request the Draft Contract Pack from the seller’s solicitors
  • Prepare your file for your Legal Team

YOUR TO DO LIST

This is everything you need to be doing at this stage to help move your matter forward (don’t worry, we will cover how to do all of this):

Sign and return:

  • Terms of Business
  • Fee Estimate Document
  • ID verification
  • Source of Funds
  • Giftor’s ID and source of funds
  • Help to Buy ISA Form (if applicable
  • Make your payment on account

That’s everything you need to know about your Welcome Pack! The Welcome Pack is the most intense and work heavy stage for you as a client. From here, your lawyers and teams will do the majority of the work. Next, we will take a look at the Draft Contract Pack, what it means, why we need it and what happens next.