Frequently Asked Questions about Buying Property in Scotland

If you are planning to buy a new home in Scotland, we understand that you may have many questions. From understanding the unique aspects of the Scottish property market to navigating offers and legal requirements, knowing what to expect can help you feel more confident through the process. This comprehensive guide answers your potential buyers’ most common questions about navigating the Scottish property market.

Financial and Legal Aspects

How is buying property in Scotland different from other parts of the UK?

• You work with a Scottish solicitor who acts as your conveyancer.
• The legal process (called “missives”) is more formal and binding earlier in the transaction.
• Home reports are mandatory, providing upfront property information to potential buyers.

What additional costs should I budget for when buying property in Scotland?

Expect to budget for:

• Land and Buildings Transaction Tax (LBTT). While there is no tax on properties under £145,000, for properties over £750,000, the graduated rates range from 2% to 12%. There is an additional 4% surcharge for second homes or buy-to-let properties
• Solicitor fees (typically £800-£1,500, plus VAT)
• Property survey costs (£250-£800)
• Registration fees with the Land Registry
• Potential mortgage arrangement fees
• Home report costs (£500-£800)

What mortgage and government support options are available for first-time buyers?

First-time buyers in Scotland have access to diverse mortgage options, including fixed-rate and variable-rate mortgages, with the Scottish Government providing targeted support through initiatives like the Low-cost Initiative for First Time Buyers (LIFT). This scheme assists those on low to moderate incomes by offering two primary paths to homeownership: the Open Market Shared Equity (OMSE) scheme, which helps buyers purchase homes on the open market, and the New Supply Shared Equity (NSSE) scheme, designed to facilitate the purchase of new-build homes from councils or housing associations. 

Are there specific mortgage considerations for Scottish properties?

Key points include:

• Some lenders have specific Scottish property criteria
• Home reports can impact mortgage valuations
• Potential for more stringent surveys due to older Scottish housing stock

At Muir Home, we partner with Aries Financial to offer you free mortgage advice. The advisors at Aries Financial will discuss and understand your mortgage needs and provide a personalised mortgage solution based on your financial position, credit history, and risk preference.

What is the “Home Report” and why is it important?

A Home Report is a mandatory document in Scotland and provides buyers with in-depth information about the property they are interested in buying, such as how energy-efficient it is. The Home Report document includes:

• A surveyor carries out a single survey and valuation to provide an estimate of the property’s worth and offer guidance on repairs that will be needed. 
• The Energy Performance Certificate (EPC), is also completed by the surveyor, and provides an energy efficiency rating.
• The Property questionnaire, which consists of 16 questions about the property and the seller’s use, includes information about the Council Tax banding, parking arrangements, current utility providers, length of ownership, alterations made to the property, whether it is a listed property and responsibilities for common areas. 

If you are a prospective buyer, the report is vital as it offers transparency and helps you decide whether this is the right property for you. 

When is a Home Report not necessary?

Certain properties do not require a Home Report when sold. These include:

• Homes that have been on the market since before December 1, 2008.
• New builds that are sold off-plan or to their first owner.
• Newly converted homes that have never been occupied in their renovated state.
• Properties are used for both residential and non-residential purposes.
• Seasonal or holiday accommodations that can only be used at specific times of the year (note that this does not include second homes that are available for use year-round).

The Purchasing Process

How does the “offers over” system work?

In the Scottish system:

• Properties are listed with an “offers over” price, which is typically lower than the expected selling price
• Interested buyers submit sealed bids
• The seller chooses the most attractive offer, considering price and other conditions
• The highest bid doesn’t automatically win; sellers consider the reliability and completeness of the offer

What is the legal process for buying property in Scotland?

The typical steps include:

• Obtaining a mortgage in principle
• Instructing a Scottish solicitor
• Reviewing the home report
• Making an offer through your solicitor
• Negotiating and concluding missives (legally binding contract)
• Completing the purchase and registering with the Land Registry

How long does the property buying process typically take in Scotland?

The timeline depends on various factors, but buyers should expect six to eight weeks if it’s a straightforward transaction. 

Buying your new home in Scotland with Muir Homes

Buying a property with us is a straightforward process. We’ll take care of everything from start to finish so you can relax and enjoy your new home. Contact us today, and you could be moving into your dream home sooner than you think.