The current home buying and selling process is wasteful, fraught with delay and gives consumers a raw deal. The big problem is that buyers do not have access to key information when making their initial decisions.
2007 has seen the introduction of the The Home Information Pack, which aims to make the buying and selling process clearer by ensuring the key information is available from the beginning and reduce the number of sales that fall through. Whilst many have been negative about the introduction of HIPs we welcome any change that will speed up and make transactions less stressfulSince 1st August 2007 the law has required that anyone selling their home with 4 bedrooms or more would need to provide a Home Information Pack to potential buyers. Since 11th September 2007, 3 bedroomed properties were introduced and now the government has announced that Home Information Packs (HIPs) and Energy Performance Certificates (EPCs) will be rolled out to the rest of the market from 14 December 2007 - Including leasehold properties!
Housing Minister Yvette Cooper said: “HIPs and EPCs are already helping consumers to save hundreds of pounds off their fuel bills and are cutting search costs too. All home buyers will be able to benefit from energy efficiency advice, with those receiving low green ratings of ‘F’ and ‘G’ especially targeted for support and grants to make improvements to cut their costs and carbon emissions.”
The government has also stated the following:
Given the higher number of leasehold properties amongst one and two bedroom homes, it will temporarily amend the HIP regulations so the lease document itself must be included, but other leasehold information will be introduced as a requirement in six months’ time.
It will publish guidance in December on access and charging for local authorities and personal searchers.
It will extend the temporary first day marketing provisions for an additional six months to allow for full flexibility (from 1 January to 1 June)
Anyone wishing to sell such a property will need to have commissioned a HIP (albeit it does not need to be available) before marketing their property. After the end of 2007 a HIP will need to be available prior to marketing.
From 14th December 2008 all buyers will be able to view a property, and check important legal documents before making an offer. Buyers will then be able to negotiate with all the important facts that previously only became available later in the process.
Sellers will be more confident that an offer will lead to completion without the worry of what the survey will bring up.
Solicitors will be able to advise their clients quicker as the key information will be available from the start and this should also reduce the time needed to completion.
The aim of Home Information Packs is to make the process more affordable for first time buyers since they will receive all this information without having to pay for it and to reduce the time its takes to reach completion.
A Freehold HIP will contain the following documents:
A leasehold HIP will also contain a copy of the Lease. In six months Management Company Information will also need to be included.
Click here to view our sample freehold report
Here at Metcalfes we will be providing HIPs on behalf of Clients and Agents. We aim to provide a completed HIP within 7-10 working days so as to ensure prompt compliance and hopefully leading to early exchange of contracts.
If our clients instruct us to prepare a HIP, and subsequently in the sale of the property, then a reduction in our normal charges for conveyancing will be offered.
We also provide a service for potential buyers. We can advise you on the content of the HIP to assist a buyer in making an informed decision. If we are instructed to act on a purchase there will be no charge for this initial advice provided you instruct us in the matter.
We are offering all clients the ability to collate relevant information on their property and we will hold this on their behalf pending a potential sale in the future.
Please do not hesitate to contact Julia Smart or Dimple Chudasama for and initial consultaion on 0117 929 0451 or email hips@metcalfes.co.uk