Buying Your First Home in London: A Solicitor’s Guide

Buying your first home in London is both exciting and stressful. The process involves multiple stages and professionals, and it is easy for first-time buyers to underestimate the legal complexity involved once a solicitor is instructed. London presents particular challenges, including high property prices, intense competition and a large proportion of leasehold properties, which often involve additional legal considerations.

No two property transactions are the same. Even small differences between properties, parties or circumstances can significantly affect timescales and expectations.

Being well informed and understanding both the practical and legal process is key to avoiding delays, surprises and unnecessary costs. Clear knowledge helps manage expectations from the outset and reduces the risk of relying on inaccurate or unrealistic information.

With so much information available online, it can be difficult to know what to rely on. This guide sets out the key stages of buying your first home in London, what is involved at each step and how long the process is likely to take.

What is the first-time buyer process step by step?

A typical first-time buyer transaction in London takes around 10 to 14 weeks, although this can be shorter or longer depending on the circumstances. With steady progress, most transactions complete within around three months.

The first step is obtaining an Agreement in Principle (AIP) from a lender. This indicates how much a lender may be willing to lend based on your income, credit history and financial position. It is not a guarantee, but it helps you focus your property search. A formal mortgage offer is issued later, once you have found a property and submitted full details to your lender or broker.

The next step is finding a suitable property. London offers a wide range of options, and online searches can help narrow results by price, location and features. Once you have found a property and your offer is accepted, you should instruct a solicitor quickly to begin the legal process.

Not all solicitors offer the same level of service or expertise. It is important to instruct a solicitor who is suitably experienced, responsive, and is on your lender’s panel. If they are not, you may need to change solicitors, which can cause delays.

Once instructed, the estate agent will issue a memorandum of sale to both parties’ solicitors. Your solicitor will then begin legal due diligence, including ordering searches, reviewing the contract documentation and raising enquiries. This stage often takes the longest, as information must be obtained, reviewed and clarified, sometimes involving third parties such as managing agents or lenders.

Once enquiries are close to being resolved, exchange and completion dates are agreed. On exchange of contracts, the transaction becomes legally binding and you commit to completing on the agreed date. Completion is the day you receive the keys and become the legal owner. Your solicitor will then deal with post-completion formalities, including registration at the Land Registry.

Mortgages: what first-time buyers need to know

Many buyers choose to work with a mortgage broker, who can assess your circumstances, explain mortgage options and approach suitable lenders. Alternatively, you can apply directly to banks or building societies.

An AIP outlines how much a lender may lend, subject to conditions. A mortgage offer is issued only after an offer on a property has been accepted. The mortgage offer will include conditions that must be satisfied before funds are released. Some are dealt with by your solicitor, while others, such as arranging insurance or setting up payment instructions, are your responsibility.

Your solicitor cannot exchange contracts until the mortgage offer has been received and its conditions satisfied. Delays or expiry of a mortgage offer can therefore impact timescales. Any changes to your financial position must be disclosed promptly, as they may affect the offer.

Deposits, gifted funds and first-time buyer schemes

Saving for a deposit is often the longest part of the process. Most buyers need a deposit of at least 10% of the purchase price, payable to your solicitors client account before exchange. For a £500,000 property, this means £50,000, in addition to legal fees, disbursements and Stamp Duty.  

If part or all of your deposit is being gifted by family, your solicitor must be informed. Gifted deposits require formal declarations and anti-money laundering checks, particularly where a mortgage is involved. These checks must be completed before exchange and should be addressed early to avoid delays.

Shared ownership schemes allow buyers to purchase a percentage of a property and increase their share over time. These properties are usually leasehold and involve both mortgage payments and rent until full ownership is achieved. Further information on shared ownership can be found online, or with a solicitor.

The true cost of buying your first home

Using a £500,000 London flat as an example, costs typically include legal fees, searches, surveys, Stamp Duty Land Tax and Land Registry fees.

Legal fees generally range from £1,000 to £2,500 plus VAT and disbursements for this value property, depending on complexity. Leasehold properties are usually more expensive due to the additional work involved. Lower quotes may exclude key items which may be added on later, or rely on high-volume caseloads, which can affect drastically affect service levels.

Searches typically cost between £350 and £450 (regardless of property value), depending on the local authority. Stamp Duty may be reduced by first-time buyer relief, subject to eligibility. Land Registry fees depend on the property value. For properties between £200,000 and £500,000 the fee is £150. For properties between £500,000 and £1,000,000 the fee is £295.

Searches and surveys: why they matter

Conveyancing searches provide information about planning, environmental issues, drainage and other matters affecting the property. Lenders require these searches to protect their security, and ensure that the property has “good and marketable title”.

A survey is a physical inspection of the property carried out by a surveyor. It identifies defects and potential issues and should not be confused with legal searches. Survey findings may influence negotiations or prompt further legal enquiries.

Leasehold vs freehold

Freehold ownership means owning the property and land outright. Most houses are freehold, while most flats are leasehold. Leasehold ownership involves paying service charges and sometimes ground rent to a landlord.

Leasehold transactions are more complex and often take longer due to additional documentation and reliance on managing agents. Particular attention is paid to service charges, lease length and major works notices. High-rise buildings may also fall under the Building Safety Act, adding further legal considerations.

Common legal mistakes first-time buyers make

Common mistakes include underestimating timescales, relying too heavily on informal advice and budgeting incorrectly. Arranging removals or committing to dates before exchange can also cause difficulties. Early discussions with your solicitor can help avoid these issues.

How a property solicitor supports first-time buyers

A solicitor’s role is to identify and manage risk, ensuring that the property title is sound and that both buyer and lender are protected. This includes reviewing contracts, raising enquiries, checking compliance and managing the transfer of funds.

Buying your first home is a major milestone. With early legal advice and a clear understanding of the process, common issues can be avoided, allowing the transaction to progress as smoothly as possible.

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