If you're buying or selling a home from 1st August 2007 you need to know about Home Information Packs (HIPs). They have been introduced with the dual aims of improving the home buying process in England & Wales and helping reduce carbon emissions from homes. Bringing vital information to the front of the process will help to reduce the estimated £350 million wasted each year on transactions that fall through.
Sellers
You will be responsible for the contents and accuracy of the HIP, whether you sell privately or through an estate agent. You will need to order a HIP before marketing can commence. The EPC (see below) must be provided before contracts are exchanged, although there is currently no set time limit on when the rest of the HIP should be provided.
If you are marketing a property from 1st June 2008 onwards, the HIP including the EPC must be available to anyone interested in the property from the time it is first placed on the market.
A HIP will contain the following documents: -
Index
Sales Statement
Land Registry Title & Plan
Energy Performance Certificate (EPC)
Copy of the New Homes Warranty
Local Authority Searches
Drainage and Water Searches
Leasehold Information (where applicable)
Optional Documents i.e. Home Condition Report (survey)
Buyers
The Pack will offer you essential information about the property you wish to buy, for free.
How do I order a HIP and how much will it cost?
You can order a HIP by calling Complete Mortgages on 0845 658 6060, or fill in our online enquiry form and we will contact you with your HIP quotation. We can order your HIP online within minutes and book an appointment for your Energy Performance Certificate to be carried out.
The cost of your HIP will vary according to the property and way that it is presented. The cost of a typical HIP for an average 4 bedroom property is likely to be in the region of £425.00 including VAT, payable by credit or debit card when you order your HIP. We will tell you the exact cost when you contact us.
Will some Estate Agents be offering free HIPs?
We understand that some estate agents will be offering 'free' HIPs, however nothing comes for free and it is likely that the cost of the HIP will be recouped through increased agency fees. In addition, should you wish to switch agents you will undoubtedly be liable for the cost of your 'free' HIP.
If I order a HIP through Complete Mortgages will it be accepted anywhere?
Yes. We arrange our HIPs through Hipstar, who are one of the leading HIP providers in the UK. Hipstar adheres to the HIP Code and is regulated by the Property Codes Compliance Board.
How long will it take to get my HIP?
In most instances a HIP will take 5-7 working days to be compiled for freehold properties. Due to the additional detail that is required for leasehold properties they may take longer. You will be able to track the progress of your HIP online and you can be sure that the information included will be of the highest standard, with accuracy guaranteed.
What does a HIP look like?
In most cases potential buyers will access your HIP online. Our standard HIP package includes 2 bound paper copies of your HIP (160 - 260 pages approx) and a unique online link to your HIP.
You will be able to order further bound paper copies and USB's of your HIP for an additional cost. Please note you will not be under any obligation to provide a paper HIP to prospective buyers and can charge anyone for a copy should they insist upon one.
Will I still need to get a valuation carried out on the property that I am buying?
Yes - assuming that you are getting a mortgage. Lenders will still need to value the property that you are buying and, in most cases, you will have to pay for this. Even if the seller provides a Home Condition Report this will not contain a property valuation.
Properties that are genuinely on the market before the commencement date (i.e. 1st August 2007 for sales of homes with four or more bedrooms) will not need a HIP. This exemption will apply for as long as marketing continues but the Government may appoint a date at which all properties on the market will be subject to the HIP duties, regardless of when they were first marketed.
Home Information Packs are not regulated by the Financial Services Authority.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
IMPORTANT - Please download and print our Initial Disclosure Document (IDD)
Complete Mortgages is a trading name of Complete Mortgages Limited. Registered in England & Wales 05537384. Registered Office Wey Court West, Union Road, Farnham, Surrey GU9 7PT.
Complete Mortgages Limited is an Appointed Representative of Network Data Ltd, which is authorised and regulated by the Financial Services Authority. Network Data Ltd is entered on the FSA Register (http://www.fsa.gov.uk) under FSA reference 300391.
The guidance and/or advice contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.
