Home Information Packs - Cheap Mortgage Deals

After a history of stop start, stop start, the government was supposed to push through the latest legislation required to help buyers speed up the lengthy home buying process.

The idea stems from the need to arm the buyer with a set of facts and information about the home they would like to buy. Although the contents of the pack have not been finalised it is expected to contain some if not all the following;

  • Evidence of title
  • Terms of sale
  • Replies to local searches
  • Planning consents and approvals
  • Replies to preliminary enquiries made on behalf of buyers
  • Guarantees for any work carried out on the property
  • A home condition report (HCR) for new properties
  • Copies of warranties and guarantees

For leasehold properties it may contain the following;

  • A copy of the lease
  • Recent service charge accounts and receipts
  • Buildings insurance policy details and any payment receipts
  • Regulations made by the landlord or management company
  • Memorandum and articles of the landlord or management company

The idea is that once the buyer has made an offer on a property and it has been accepted, the necessary paperwork that can hold up a sale has already been filled in searches have been carried out. Currently this information is available once the offer has been accepted and so a potential buyer does not have all of the relevant information on which to base that offer.

Estate agents are the most likely people to put the pack together although estate agents may prefer it if a solicitor draws them up.

Sellers will have to foot the bill for the HIPs and the cost is expected to be between £600 to £1000. The packs will speed up certain areas of home buying but the breakdown of a chain with a buyer or seller pulling out will still be a problem.