Buying in Scotland:

The buying process in Scotland is different to the rest of the UK, hence it is vital that you take advice from a Mortgage Broker who understands the Scottish Buying System.

Smaart Associates is an mortgage broker arranging mortgages in Scotland. Our service is “Whole of Market” which means that we look at the entire mortgage market to find you the best deal possible.

If you're looking for a mortgage or remortgage in Scotland and want to make sure you are getting the best possible deal please contact us directly on 0800 756 9556.

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General Advice Where to find property Scottish guide to buying

Buying in Scotland:

When buying a property in Scotland, you should consider the differences between the English system and the Scottish house buying system. Under the English system property is offered for sale at a fixed price, the first party to lodge an offer at the stated price is generally successful. In Scotland the majority of properties are offered for sale on an 'offers over' basis. Purchasers are invited to offer for the property at a price above the offers over price. If there is competition for the property the seller will generally sell to the person who offers the most money.

Where to find property:

In England, the vast majority of properties are sold through Estate Agents. Estate Agents do operate in Scotland, however, many properties are sold by solicitors through 'Solicitors' Property Centres'. Solicitors may advertise themselves as 'Solicitors and Estate Agents' and often employ sales advisers for the purpose of selling property.

Scotish Guide To Buying:

In England, the vast majority of properties are sold through Estate Agents. Estate Agents do operate in Scotland, however, many properties are sold by solicitors through 'Solicitors' Property Centres'. Solicitors may advertise themselves as 'Solicitors and Estate Agents' and often employ sales advisers for the purpose of selling property.

As mentioned, many properties in Scotland are sold by solicitors through 'Solicitors' Property Centres'. Estate Agent style particulars are hung in the window, including the name of each individual solicitor handling the sale. The service is free to anyone looking to buy.

A list of Solicitors' Property Centres can be obtained from the Law Society of Scotland. There are a large number of Estate Agents in Scotland which operate very much in the same way as their counterparts in England and Wales.

Before making an offer:

• Let your solicitor know your intentions

  Found your ideal home? You should tell your solicitor straight away, who will then register your interest with the seller's solicitor or estate agent. This should ensure that the property will not be sold before you are given an opportunity to make an offer.

• Let your solicitor know your intentions

  In Scotland you must instruct and complete a survey before an offer is placed on the property (unlike in England and Wales when a survey is completed after an offer has been made and accepted). The mortgage lenders also insist the property has a completed and satisfactory survey before they will give you a mortgage loan.

  The solicitor acting for you will instruct the survey once he or she has been advised that you are interested in a property, and wish to proceed with an offer.

  The types of survey available are very similar to those in England and Wales i.e. basic valuation survey, homebuyer's report and full structural survey.

  Just as in England and Wales, if the survey uncovers serious problems with the property (for example, ongoing structural movement) or your offer is rejected by the seller, the full cost of the survey would have been wasted.

• Arrange finance

  The next part of the process is to arrange your mortgage with a bank or building society. You may have already completed an Agreement in Principal with a lender (a pre-agreed mortgage amount prior to finding a property), or you may be approaching a lender for the first time. Most lenders will confirm your borrowing limit quickly, and without cost. It is important to note that this normally involves a credit check, leaving a ‘footprint’ on your credit file. Therefore you should should complete your research regarding the best lender for you, before requesting your lending limit.

  This is where a mortgage broker can prove invaluable. A ‘whole of market’ broker works for you to check the entire market in relation to your specfic circumstances and requirements, and will make a recommendation on a mortgage tailored to these factors.

  It is also worth keeping in mind that most leading English mortgage lenders will be happy to offer mortgage finance for a Scottish property.

• Make an offer

  If you receive a positive survey and wish to formalise an offer, your solicitor will send the offer in writing to the seller's solicitor or estate agent.

  The letter of offer is a formal written document, detailing the conditions against which you are willing to purchase the property - this will include the offer price itself, as well as the intended moving in date, and any fixtures and fittings that are to be included in the offer. Further, the offer document states that the offer is on the condition that there are no adverse proposals by the local authority relating to the property. This is the equivalent of a local authority search in England and Wales, although in Scotland it is encumbant upon the seller to show that there are no local authority plans that could adversely affect the property.

  It is often common for more than one buyer to show serious interest in a property. Should this situation arise, the seller's solicitor will contact all the parties through their solicitors, and set a closing date by which sealed bids for the property must be received.

  The bid you make is sealed, and therefore unknown to the other parties involved. Therefore you may want to ask your solicitor, and mortgage broker, for advice on the amount you may wish to offer over the ‘upset price’. Ultimately, as the buyer, it is your decision how much the property is worth to you.

• Agreeing the offer

  Shortly after the closing date, the seller and their solicitor will examine all offers received. It is not always true that the seller will accept the highest bid. Other factors such as how quickly the buyer could move, may affect the sellers decision

  Initially, the winning bidder will receive a telephone call via their solicitor confirming the successful offer. At this stage, the offer is not legally binding.

  Within a short period of time, the buyers solicitor will receive a 'Qualified Acceptance' letter from the sellers solicitor.. 'Qualifications' are technical issues or other conditions of the sale. Written negotiations (known as the 'missives') can follow to finalise the qualifications. 'Conclusion of Missives' is the point where both parties solicitors reach agreement on all issues and conditions.

  At this stage, the transaction is legally binding on both the buyer and the seller. Neither party may withdraw from the agreement without the full consent of the other. Completing the house buying process in this way means gazumping (a third party offering a higher price to the seller causing the transation with the original buyer to collapse) can not happen in the Scottish system.

  As the ‘Conclusion of Missives’ is legally binding, the buyer should have the mortgage finance in place as there are heavy penalties for any party not able to complete the transaction.

• To instruct a conveyancer completing the purchase

  Shortly after the closing date, the seller and their solicitor will examine all offers received. It is not always true that the seller will accept the highest bid. Other factors such as how quickly the buyer could move, may affect the sellers decision

  Initially, the winning bidder will receive a telephone call via their solicitor confirming the successful offer. At this stage, the offer is not legally binding.

  Within a short period of time, the buyers solicitor will receive a 'Qualified Acceptance' letter from the sellers solicitor.. 'Qualifications' are technical issues or other conditions of the sale. Written negotiations (known as the 'missives') can follow to finalise the qualifications. 'Conclusion of Missives' is the point where both parties solicitors reach agreement on all issues and conditions.

  At this stage, the transaction is legally binding on both the buyer and the seller. Neither party may withdraw from the agreement without the full consent of the other. Completing the house buying process in this way means gazumping (a third party offering a higher price to the seller causing the transation with the original buyer to collapse) can not happen in the Scottish system.

  As the ‘Conclusion of Missives’ is legally binding, the buyer should have the mortgage finance in place as there are heavy penalties for any party not able to complete the transaction.

  After Cionclusion of Missives, it is not uncommon for the purchase to complete in days. Remember, the date has already been set in the missives.

  Your own solicitor will now receive the Title Deeds for careful examination, and also certificates from the seller showing that the property is not adversely affected by any local authority plans. Your solicitor also starts the conveyancing procedure to ensure that the 'disposition in your favor' (the legal document that transfers the property to you) is completed and ready by the moving in date.

  Your mortgage application should be well underway at this point. Your solicitor will deal directly with your chosen lender, preparing the title for the lender, and arranging the security documents. Finally, your solicitor will request the funds from your lender which, together with your deposit, are sent to the sellers solicitor to complete the purchase.

  On completion day, the following will happen:

  • Your solicitor will pay the seller's solicitor the full purchase price.
  • The seller's solicitor will give to your solicitor the title deeds, the disposition in your favor, and the keys to the property.

  Your solicitor will then finalise the entire process by:

  • Registering the disposition and the standard security in the General Register of Sasines or the Land Register of Scotland, depending on where the property is.
  • Pay stamp duty if applicable (Scottish purchasers pay the same rate as England and Wales).
  • Send you the final account for their fees plus any disbursements (e.g. the stamp duty paid on your behalf, registration fees) - if not already collected.

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