Buying a £1 million property is a significant legal and financial commitment. Before exchanging contracts, it is essential to understand exactly what you are purchasing and to identify any legal issues that may affect the property or your future plans.
If you are dealing with a complex or high-value transaction, you may benefit from advice from residential conveyancing solicitors experienced in high-value property purchases, particularly where title, funding or contractual issues require closer examination.
Check the Property’s Legal Title
A solicitor should check the property's Land Registry title. This confirms who owns the property and identifies any important points to note, including whether the property is currently subject to a mortgage, and whether there are any rights, restrictions or covenants you need to be aware of.
It will also be confirmed whether the title documents match the extent of the property you are looking to purchase. Examples of this include the inclusion of the garden and any additional land and outbuildings.
Check for Planning Permission and Building Regulations Approval
If the property has been extended or altered either recently or in the past, your solicitor should check whether the required Planning Permissions and Building Regulations approvals were obtained.
This is particularly important for higher-value properties, where alterations such as extensions and major renovations are more common.
If you are aware of any alterations being made to a property, you should notify your solicitor as soon as possible so the required documentation can be requested from the seller’s solicitor.
Understand any Restrictive Covenants
Restrictive covenants are restrictions that run with the land limiting what you can and cannot do with a property.
Examples of these covenants include a property only being used as a private family home and not as a place of business. There may also be restrictions on constructing extensions/ completing alterations without the consent of a third party or changing the use of the property.
If restrictive covenants are present in the title documents for your property, your solicitor should explain the presence of any covenants and how these could affect your use and enjoyment of the property following completion of the purchase. If you are planning alterations or changes that could breach a covenant, you should inform your solicitor as soon as possible.
Confirm Rights of Way and Access Arrangements
When buying a property, you should find out whether anyone else has a legal right to use part of the property. An example of this is a neighbour having a right to use a shared driveway or pathway.
It is important you establish who is responsible for maintaining shared driveways, private roads, walls, and other areas.
If concerns about rights of way, restrictive covenants or other property rights develop into a dispute, specialist advice may be required to establish the parties' respective rights and obligations.
When purchasing a million-pound property you must carry out comprehensive property searches
Your solicitor will normally arrange searches covering matters such as local authority information, drainage and water, and environmental risks.
These searches can reveal issues that may not be obvious when viewing the property, including proposed developments, planning matters, connections to mains water and sewage systems or contamination/ flood risks.
Review Leasehold Obligations and Estate Charges
If the property you are purchasing is leasehold, the Lease should be reviewed to ascertain the remaining term and whether any restrictions are present. It is also important to check whether any service charge or ground rent is payable per annum, and what the estimated figures for this will be.
Some newer freehold properties are subject to estate management charges for shared areas within a development. It is important to confirm whether any such charges apply, how much you will be expected to pay, and how often, so you can be fully advised on your liabilities before completion.
Property Valuation
Whilst a mortgage valuation can be useful, it is carried out primarily for the lender's benefit rather than yours as the buyer. It is not intended to provide a detailed assessment of the property's condition.
Particularly when you are purchasing a high-value residential property, it is important to consider arranging a detailed RICS survey. An independent RICS survey can identify structural issues, defects, maintenance concerns and other matters that may not be apparent during viewings. This information can help you renegotiate the purchase price or budget for future works before committing to the purchase.
Source of Funds and Anti-Money Laundering Checks
When purchasing a high-value property, buyers should expect detailed source of funds and source of wealth enquiries. Your solicitor will need evidence showing where the purchase monies originate, such as savings, investments, gifts, inheritance, or proceeds from a property sale. Providing this information promptly can help avoid delays in the transaction.
Review the Contract Documentation Carefully
Before exchanging contracts, a solicitor should make sure that the contractual documents accurately reflect the agreed price, what is included in the sale (including any contents) and any special arrangements. All personal details such as names and addresses should also be inspected.
Once contracts are exchanged, the purchase is considered legally binding, so if you notice any issues these should be addressed prior to exchange, not afterwards.
Buying a property worth £1 million?
Buying a property of significant value requires careful legal due diligence. From reviewing title documents and searches to investigating planning issues and restrictive covenants, identifying potential problems before exchange can save significant time and expense. Aaron & Partners' residential property team advises on high-value and complex residential conveyancing matters, including the legal issues that can arise before a purchase completes.
If you require advice about a high value property, please don't hesitate to contact our team.
Key Contact
Andrew Hazeldine
Real Estate Partner
Andrew is a Partner in our Commercial Real Estate team.
Need to Talk to Someone?
Use the form to send us some details about your matter and one of our experts will get in touch, or you can call us using the number below.
