Buying Guide

It is important that you contact your solicitor as soon as you decide you want to purchase a flat or a house. Your solicitor is the only person who can guide you through all the problems such as arranging mortgages, instructing surveys, advising on content of any available Home Report submitting offers and settling the purchase. So the best advice is - see your solicitor first.

First Steps

The first step in buying a house is to review your financial situation and work out what price you can afford to pay for your new property. Not just how much you can afford now, but how much taking into account the further increases in interest rates that are likely to take place in the coming year. You will also have to take into consideration some house buying costs such as-

• Stamp Duty
• Mortgage Arrangement Fees (charged by your lender)
• Valuation/Survey Fees (If Home Report not available)
• Solicitors Fees and Outlays

Frequently Asked Questions

Q. When do I need confirmation that my mortgage is in place?

A. It is preferable that you at least have a mortgage agreed in principal before submitting an offer for a property. When you know your date of entry contact your financial advisor/mortgage provider to make sure that loan funds are available in plenty of time for the entry (settlement) date. We prefer to have your loan documents 2 weeks prior to the date of entry.

Q. When is the contract binding (missives concluded)?

A. It is a misconception that in Scots Law as soon as an offer for a house is verbally accepted then it becomes binding. This is not the case. It depends on an exchange of letters on the parties behalf between their solicitors. You will be advised as soon as the contract is concluded i.e. becomes binding. This may take some days or weeks and either party is entitled to pull out of the deal before then without penalty.

Q. After having an offer accepted for a property could I re-negotiate through you a lower price if I regard the valuation as being too low?

A. No. We cannot accept instructions to withdraw the original offer without a valid reason for example an unforeseen problem with the title deeds or the survey report highlights issues with the condition of the property. A low valuation is not a valid reason. .

Q. I want to buy a house with my girlfriend but we don’t want to marry. Can both our names go on the title deeds?

A. Yes they can. There can be future complications if you fall out and want to sell but again that can usually be provided for on a simple agreement when you buy.

Q. How far ahead is the realistic date of entry?

A. Always allow yourself sufficient time to get everything organised. Although conveyancing transactions do sometimes settle faster than 6 to 8 weeks from the date of the first offer keep in mind that you may have a mortgage to arrange, removals to arrange, notice to give to uplift money and that any one of these or a host of other unforeseen difficulties can prevent a conveyancing transaction happening as quickly as you would like.

Q. Can I settle my sale and purchase on the same day?

A. If we are acting for you in both transactions and provided we can settle the transactions by cheque it is possible that you will not need a bridging loan. However we would always recommend that you do not arrange sale and purchase on the same day. If such arrangement is made we would strongly recommend that it is prudent to arrange a bridging loan to ensure that the purchase can take place even if a sale does not. We would be happy to help you arrange a bridging loan. There are costs involved and we make a separate charge for arranging a bridging loan. If you are selling in Scotland and purchasing in England or you are using one solicitor for one transaction and another solicitor for the other the answer is almost certainly that you cannot buy and sell on the same day without a bridging loan.

Q. How much is stamp duty and when should it be paid?

A. Stamp duty (which is a government tax) is payable at 1% on prices over £125,000 up to £250,000, 3% at prices over £250,000 up to £500,000, rising again to 4% at prices over £500,000. It is payable to the inland Revenue before the buyer registers the title in the land register – so effectively it must be paid to the buyers solicitor before the transaction is finalised. However the latest budget announced that first time buyers are exempt from stamp duty on purchases up to £250,000

Q. Do I need to sign anything?

A. The simply answer is that you may require to sign relevant documents. We will let you know in due course when this needs to be done.

Q. When and what time will I get the keys to my new house?

A. We expect you to get your keys on the date of entry. We must stress there is no time specified, however it is often around 12 noon.