- Thinking of selling a house, but don't know anything about Home Information Packs (HIPs)?
- Confused about Energy Performance Certificates, local searches and Sale Statements?
- Need to know how much a Home Information Pack (HIP) costs?
- Then read on, because Peter Ambrose, author of Lawpack's DIY Home Information Pack Kit , gives you the not-to-be-missed nine things that you must know about Home Information Packs and Energy Performance Certificates.
What is a Home Information Pack (HIP)?
The government has now introduced the final stage of Home Information Packs (HIPs) in England and Wales. Since the end of 2007, if you're selling your house or flat, whatever its size, you must commission a Home Information Pack (HIP) before you can market it.
Home Information Pack (HIP)s have been introduced to speed up the home buying and selling process, as well as to help highlight the energy efficiency of our homes. They contain much of the legal documentation that is currently obtained by solicitors, as well as an Energy Performance Certificate which shows how well you use energy in your home.
It's first-time buyers who will benefit the most from these changes, as it's now the person selling a house or flat who has to pay for some of the legal costs instead of them.
Can I get by without a Home Information Pack (HIP)?
Although a Home Information Pack (HIP) takes only about a couple of weeks to put together, if you want to market your home quickly, this delay could potentially mean lost buyers. And since June 2008 you can no longer market your property even if the Home Information Pack (HIP) hasn't been completed. There is now no escape! You need a HIP to market your property - and for this, you also need the energy ratings for your home for an Energy Performance Certificate.
Most homes that have one or two bedrooms are leasehold flats and previously the complete documentation about the property had to be included in a Home Information Pack (HIP). This meant obtaining details such as service charges, management accounts, ground rent, details of recent works being carried out, as well as the lease. However, this requirement has been relaxed and now you only need to include the lease within a Home Information Pack (HIP), which will make the process of putting a Home Information Pack (HIP) together far quicker and more cost effective than before.
The property I'm selling is rented to a tenant. Do I need a Home Information Pack (HIP)?
If the tenant is not moving out, then you will not need a Home Information Pack (HIP).
When should I organise a Home Information Pack (HIP)?
As near to the time when you plan to start marketing the property as possible, to avoid the searches going 'out of date'.
How long is a Home Information Pack (HIP) valid for?
Although there are no time limits on the validity of a Home Information Pack (HIP), solicitors may need to update the local authority searches after approximately three to six months.
How much does a Home Information Pack (HIP) usually cost?
A basic Home Information Pack (HIP), that is compliant with the regulations and uses personal local authority searches, will typically cost between £300 and £350 plus VAT. However, for a more useful one, with authorised local authority searches, expect to pay around £450 to £500. Lawpack's DIY Home Information Pack Kit explains how you can make your own Home Information Pack (HIP), for a fraction of these prices. And it's really not that hard!
What documents have to be included in a Home Information Pack (HIP)?
Although there is huge scope for documents to be included in a Home Information Pack (HIP), at the absolute minimum, you need the following:
- Index
- Sale Statement
- Title documentation
- Local authority and drainage searches
- Energy Performance Certificate
- Copy of the lease (if appropriate)
What is the Energy Performance Certificate?
The Energy Performance Certificate gives a rating for the building, showing its energy efficiency and its environmental impact on a scale from A to G. The most efficient homes, which should have the lowest fuel bills, are in band A. The Energy Performance Certificate also includes recommended ways to improve the building's energy performance.
The Energy Savings Trust (EST) produce a range of resources to help householders in England and Wales cut down on energy bills and inform them of the financial support available for implementing energy efficiency measures in their homes. They also include useful information to help you act on recommendations in an Energy Performance Certificate.
Who can provide a Home Information Pack (HIP)?
There are many companies on the market offering reduced priced Home Information Pack (HIP)s, or alternatively, you can contact your solicitor to obtain the documentation for you. Or you can take the smart route and do-it-yourself with a DIY Home Information Pack Kit .
Good luck with selling your house!
Peter Ambrose is a director of The Partnership, an independent Home Information Pack provider and author of Lawpack's Home Information Pack Kit .
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