You’ve had an offer accepted on a new home, what happens next?

You’ve had an offer accepted on a new house, and now you’re wondering what happens next? This is common question for first-time buyers, and even those who have purchased a property before but not for several years.

Firstly, congratulations on having an offer accepted! This is an exciting time on your purchase journey as you start to dream about moving in. However, this is just the first step, and there still many stages to go through ahead of moving day.

Your offer is not legally binding

Whether you’ve had an offer accepted verbally or via written communication with an estate agent, it is important to note that it is not legally binding until exchange of contracts. As a result, either the buyer or the seller can withdraw from the agreement without legal consequences.

This can add a great deal of stress; for buyers there is the risk of another prospective owner making a higher offer (known as ‘gazumping’), and for sellers the risk of the buyer having issues with their mortgage application or the survey unearthing concerns about the property. Of course, on the opposite side this can be advantageous – as a buyer if your survey shows the property you are looking to buy has serious issues, you don’t necessarily want to be committed by virtue of your offer.

Despite these potential concerns, once you have had an offer accepted, you’ll need to take some steps to progress your purchase.

Instruct a solicitor to handle the legal work

Buying a property involves a large amount of legal work. A solicitor will guide you through the process, ensuring all legal aspects of the purchase are completed correctly.

Your solicitor will carry out a series of checks and searches to ensure there are no legal issues with the property. These include:

• Local authority searches - to identify any potential planning or environmental issues that could affect the property

• Land Registry checks - to confirm the seller legally owns the property and that there are no disputes over ownership

• Drainage and water searches - to check how water and sewage services are connected to the property

• Environmental searches - to assess any risks such as flooding, land contamination, or subsidence.

  
  

Your solicitor will also review the contract provided by the seller’s solicitor to ensure that all terms are fair and that there are no hidden clauses that could cause problems later. If anything needs clarification or amendment, they will negotiate with the seller’s solicitor on your behalf.

If you are buying with a mortgage, your solicitor will also liaise with your lender to ensure all necessary legal requirements are met before funds are released. They will check the mortgage offer, confirm the lender's conditions, and arrange for the transfer of funds on completion day.

Once all searches and checks are complete, your solicitor will prepare the contracts for exchange. At this point, you will be legally committed to the purchase. Before signing, they will explain the terms in detail, ensuring you fully understand your obligations.

Submit the full mortgage application

If you are purchasing with a mortgage, you will need to submit your full mortgage application. While you should have already obtained a mortgage agreement in principle, this is not a final offer.  This can take place alongside the solicitor’s work, although not before you have instructed a solicitor as their details will be needed for the application.

By using a mortgage broker, this step should be straightforward as they will have already collected your documents and assessed your financial position and circumstances to identify the right lender for you. They will also complete the application process on your behalf. There may be some further checks or documentation required once the application is submitted, particularly if there has been a long gap between obtaining an agreement in principle and having an offer accepted.

The lender will carry out their own checks, including verifying your credit history, affordability assessment, and conducting a mortgage valuation to ensure the property is worth the agreed purchase price. This valuation is primarily for the lender’s benefit and is not a detailed survey.

Once your application has been reviewed and approved, the lender will issue a formal mortgage offer. Your solicitor will then receive a copy and ensure all conditions are met before proceeding to exchange contracts.

Instruct a surveyor

Although the lender will carry out a mortgage valuation, this is often a basic assessment that does not highlight potential structural issues. For this reason, it is important to consider instructing a surveyor to carry out a more detailed inspection of the property.

There are different types of surveys available, depending on the level of detail required. This is an area where we are unable to offer you direct advice, as it’s important you choose the level of survey you feel is appropriate, understand any limitations, and can interpret the report you are issued.

Your surveyor will assess the structural integrity of the property and highlight any concerns such as damp, subsidence, or necessary repairs. If significant issues are identified, you may wish to renegotiate the purchase price or request that the seller carries out repairs before proceeding.

Having a professional survey conducted can provide added reassurance and helps you make an informed decision about your property purchase before committing to the exchange of contracts.

In summary

Once you’ve had your offer accepted you will work with your solicitor, alongside your mortgage broker and surveyor should you choose to use these, to complete the purchase of your new home. The seller’s estate agent will look to coordinate this process to ensure a smooth transaction.

Remember though that the estate agent acts for the seller, so whilst they want the transaction completed, they are not necessarily going to support you through the process. By choosing DLi Mortgages, we will guide you through the entire buying process, giving you access to an expert who can advise you during what is usually a stressful time before you move in!

Your home may be repossessed if you do not keep up repayments on your mortgage.

Approved by The Openwork Partnership on 3/3/2025.