Purchasing your first home is an exciting milestone, but it can also feel overwhelming especially when navigating the legal and financial aspect of this. The Scottish property system is unique and differs greatly from that of England. For example some things to consider include:
- The Property Market: In Scotland most homes are listed with an ‘offers over’ price. This means that the seller is inviting offers above that figure. It can be common for the final price to exceed that which is advertised, particularly if the property is popular. At Thorntons we have an experienced team who can guide you through the offering process as well as the local property market.
- Financial: It is always a good idea to approach a mortgage broker sooner rather than later when looking to buy a property. This will help you to understand your price range, how much your repayments will be and whether you will be likely to be accepted for a mortgage.
If you have any sort of ISA you should also look over the terms and conditions of drawing down the savings to ensure there are no delays.
If you are receiving a gift or help from family, your solicitor will likely require proof of where that money has come from so it can be useful to prepare that, again so there is no delay later down the line.
- Noting your Interest: A Note of Interest can be lodged by your solicitor for properties you are considering. This informs the Estate Agent and Seller that you are seriously considering the property in question. It can also mean that you will be notified of any Closing Date (where applicable).
- Offering: When you’ve found your dream home and know what price you would like to offer, your solicitor can formally do this for you. It is important to know that once an offer has been submitted/accepted, you cannot ordinarily view the property again, so make sure you’ve seen everything you want to in the property. It can also be helpful to go over the Home Report to make sure there are no hidden surprises as you are otherwise deemed to have accepted the content on offering. It is also a good idea to think about when you would like to move in to your new property. The average turn around time for a purchase in Scotland is six to eight weeks. You should think about if you have notice to give on a rental or if you can be flexible with the sellers on this.
- Missives: Once an offer is made and accepted in principle, the legal process begins, this is known as the conveyancing. Part of this is to start the exchange of formal letters known as ‘missives’. The missives serve as a contract between you and the seller, and once they are concluded, the bargain is legally binding. This process is handled by a solicitor or paralegal.
- Outlays: Whilst we offer a fixed fee for the conveyancing, there are third-party outlays. These include Land and Building Transaction Tax (LBTT). For First-Time Buyers there is a higher threshold before having to pay LBTT and this is a purchase price of below £175,000. Above this price, LBTT will be due according to the property’s value. There can be other outlays incurred such as Registers of Scotland fees but we would discuss these with you at the outset.
If you are looking to purchase your first property a reliable and knowledgeable solicitor is key to making the process as stress-free as possible. Contact Thorntons conveyancing team on 03330 430150 and a member of the team will be happy to guide you through the process.
