In mid summer 2007 everyone who wants to sell a property will have to prepare a Home Information Packs before they put it on the market. This article explains what the Packs will have to include what they'll cost - and whether we expect them to work!

Mortgages. Big changes in the buying and selling of houses.

On June 1 st 2007, the law concerning the buying and selling

And if you don't? You're in the frame for a £200 fine! It's also probable that estate agents will also insist on you having the Pack ready by the time they put your home on the market. Certainly, buyers' solicitors won't do a thing until you provide the Pack. All in all, you don't have an option - you'll have to go along with the law.

So what has to go in the Pack?

The Government has yet to confirm the final details but at the moment, it proposes that your Pack must include the following information:

• Search results from H.M. Land Registry
• Replies to anticipated initial enquiries - these are the currently raised by the buyer's solicitor
• Copies of any planning, listed building and building regulations consents and approvals. If you don't have these, you'll need copies from your Local Planning Authority
• And for new properties, copies of building warranties, electrical test certificates, and any other warranties or guarantees attaching to the property.
• A draft sale contract

It is also proposed that the Pack should contain two items currently obtained by the buyer:

• A professional independent survey of the property called a Home Condition Report. This is expected to be mid-level survey like the current Homebuyer Survey and will offer far more information than a lender's valuation report - but the Government has yet to announce the details. However, it seems likely that the Report will have to comment on the property's state of repair, it's energy conservation efficiency, the number and type of rooms and parking arrangements. Both buyers and sellers will have a legal right to rely on this Report and there'll be no need for buyers to obtain their own reports or surveys.  We expect lenders to make their own valuations as they do now, but they'll want to maximise the use of the new Home Condition Report to improve their valuations and cut costs to consumers.
• Replies to searches made of the Local Authority
  

In addition, if the property is leasehold:

• A copy of the lease
• The most recent service charge accounts and receipts
• Details of the building's insurance and receipts for the premiums paid.
• And finally, any regulations made by the management company or landlord

And how much is all this going to cost? The Government believes that the Pack is likely to cost sellers around £825 including VAT. But they claim these are not additional costs.

Click here for part 2

Did you know?
Secured loans always attract the lowest interest rates. That's because the lender is protecting his risk by taking a legal charge against your property. Then, if there is a default, the lender can call in the loan and, in the final event, sell the property in order to recover the money you owe.

Did you know?
Unsecured loans tend to attract higher interest rates. That's because the lender is taking a bigger risk by lending without taking a legal charge against your property. Then, if you default, the lender must resort to the Courts to recover the money you owe.

Did you Know?
The concept of medical insurance was proposed in 1694 by Hugh Chamberlen. In the late 19th century, early medical insurance was actually disability insurance, in the sense that it only covered the cost of emergency care for injuries that could lead to disability. This insurance model continued until the early 20th century when patients were expected to pay all other health care costs out of their own pocket under what is known as the fee-for-service business model. Modern medical insurance programs emerged mostly after the 2 nd World War.

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Did you know?
Secured loans always attract the lowest interest rates. That's because the lender is protecting his risk by taking a legal charge against your property. Then, if there is a default, the lender can call in the loan and, in the final event, sell the property in order to recover the money you owe.