|Real Estate Information|
Buying a House in Scotland
Buying a house in Scotland is slightly different from buying a house in other parts of the UK. It's not particularly complicated, and buying north of the border can often be quicker, but for those relocating from England and Wales there are a number of points you need to bear in mind.
Agreement in principle
Before you begin house-hunting in Scotland you need to have an agreement in principle for your mortgage. An agreement in principle takes the form of confirmation from your lender that, subject to various conditions, they are prepared to give you a mortgage up to a certain amount. This amount will be based on your income in much the same way as it is in the rest of the UK. Without an agreement in principle in place, any offers you make on properties are unlikely to be taken very seriously.
In England and Wales, houses are normally advertised at a given price and the vendor accepts that he may well have to settle for a price that is lower than the original asking price. Under the Scottish system, the vendor sets a price and invites offers in excess of this via a sealed bids system. Although this type of secret bidding is sometimes seen in the rest of the UK, it is normally only in cases where the property is particularly expensive or desirable.
When you buy a house in Scotland, if your offer is accepted, you are immediately under an obligation to buy that property. This is why an agreement in principle is required before you go house-hunting. By contrast, in England and Wales, you can pull out of buying the property without penalty up until the time when contracts are exchanged.
The Scottish vendor is also committed to the deal as soon as he accepts the buyer's offer. Hence the risk of gazumping (where the vendor later accepts a higher offer from someone else) is removed.
Because of the earlier commitment to buy, solicitors play a much greater role in the buying and selling of homes in Scotland. In many cases the solicitor will act as the selling agent for a property rather than an estate agent.
The actual house-hunting process in Scotland is much the same as anywhere else. But don't forget, when you are looking at properties, that the advertised price is the minimum you will have to pay, and is not a starting point for bargaining downwards.
As a buyer, you will need to appoint a solicitor before, or as soon as, you see a property you want to make an offer on. Once you are ready to make an offer, your solicitor will contact the selling agent and ask them to "note interest".
Finalising the mortgage
After this, you will need to finalise your mortgage application by going back to your lender and providing details of the specific property you are planning to buy. Once this is done, the lender's valuation and your own survey can be carried out.
Arranging a survey
Although your own survey is not compulsory, it is strongly recommended that you have one done before making an offer.Because you are legally committed to buy the property once you make your offer, it is important to know as much as you can about its condition. The results of the survey will help you as well when it comes to deciding how much to offer.
Of course, at this stage, there is no guarantee that your offer will be accepted, and so it is not uncommon to end up having to pay for surveys on more than one property. This is, unfortunately, one of the disadvantages of the Scottish system.In England and Wales, where you can make your offer and then pull out before contracts are exchanged, buyers normally only have to pay for one survey.
Making an offer
After the seller's solicitor has received notification of interest from two or more buyers, he will announce a closing date by which all of the offers must be received. Because a sealed bids system is used, no-one knows what anyone else has bid. Also, each buyer can only bid once, so it is important to think very carefully about what size offer to make and get it right first time.
Your solicitor will make the offer on your behalf and will also advise a "date of entry". This is the date when you will be given the keys to your new home, and is the equivalent of the completion date used in England and Wales.
Once the closing date for offers comes, the vendor will accept the highest bid and from this point on both parties are committed. There are no deposits involved unless you are buying a new property, but if either the buyer or the seller pulls out from here on, they are liable for any losses the other party may have incurred.
Concluding the missives
After the offer is accepted, the buyer's solicitor will "conclude the missives". This is similar to exchanging contracts under the English system. Once all the details of the sale have been agreed via this procedure, you as the buyer are responsible for the structure of the building and need to make sure you have adequate buildings insurance in place.
All the funds to buy the property, together with all the fees, need to be ready for forwarding to your solicitor about two weeks before the date of entry. These monies will be transferred to your solicitor the day before your date of entry, and you will then need to sign the title deed to the property.
Finally, the vendor's solicitor will hand over the keys and the "disposition document" which legally transfers ownership of the property to you.
Copyright 2004 David Miles. You are welcome to reproduce this article on your website, so long as it is published "as is"(unedited) and with the author's bio paragraph (resource box) and copyright information included. In addition, all links to external websites must be left in place.
David Miles is the editor of a number of mortgage and personal finance websites including Scottish Mortgages - a website that contains a range of useful information on mortgages, remortgages, and house-buying in Scotland.
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
The Rent's Too Damned High: 15000 words on the ways real-estate speculation and inequality have killed NYC - Boing Boing
No-commission real estate agents sell your home at a fraction of the cost - The Mortgage Reports (blog)
Purchase Online Tenancy Agreements
Buy an on-line Tenancy Agreement now. As a landlord and also as a tenant it is important that there is a comprehensive tenancy agreement in place to protect both parties.
Kings Bay Georgia Real Estate - Be Picky When You Choose your Realtor!
I have been a mortgage lender for many years and have seen a few transactions go sour. When problems arise after a contract is signed, it can be stressful for everyone involved.
Fixtures, related to real estate, are items that were originally personal property but are now attached to the property itself. This becomes the toughest issue when tenants attach fixtures to a property.
Should you Sell your Home yourself?
Should you sell your home yourself? Yes and no. Yes, you should leave the option of selling on your own open and no, you shouldn't rule out using the services of an agent to help you sell.
Real Estate Investing - The First House Purchase
Real estate investing usually begins with the purchase of a house, rather than raw land or commercial property. The purchase of a relatively inexpensive house for rental or fix-up purpose is usually lower risk than any other type of real estate investment.
Real Estate Values or Just Bad Habits
There are several small businesses that retain hundred year old traditions. Hand-dipped chocolates, fresh flowers and cloth napkins on every table in a restaurant, or mints and roses on a guest's pillow at a B&B.
Rehab Your Way to Wealth: The Quick Way to Fixer-Upper Success
Completely rebuilding a house is not necessary to make money in investment real estate. Most times, if you have bought smart, you won't have to make a huge improvements on your investment property.
Tax Assessment/Appraisal: How Do I Know What My Home is Worth?
If you are in the home buying or selling market, it's important to understand the difference between tax assessment and appraisal value. Concentrate on the appraisal value because this determines your asking price.
How To Best Negotiate A House Deal
Whether it's selling your home or buying a home, more often than not you'll come across a stage where you'd have to negotiate. Negotiation is the art of getting what you want at your terms and conditions.
Finding the Right Buy to Let Mortgage for Your Investment Property
Finding the right buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy-to-let property is likely to be borrowed.
Searching for CLUEs: What Homebuyers & Sellers Need to Know About Homeowners Insurance
Homebuyers and sellers should be aware about issues involving homeowners insurance and the C.L.
Where is Florida Investment Property
Florida Investment Property - Why Investing is a Wise DecisionThere are many reasons to purchase investment property in Florida, the foremost being value appreciation. Property values generally rise while debt decreases; making real estate purchases a good investment.
Farm Expired Listings For Big Commissions
Many real estate agents begin and sometimes sadly end their careers without a plan. And as the saying goes, failing to plan is as good as planning to fail.
Raising Money For Property Development
In addition to finding the right property, one of the most difficult aspects of property development is being able to fund the purchase and re-development of the property before putting it back on the market.Many would-be property developers have the skills and flair for property development, but lack the financial clout to put these into practice.
The Letting Agents Role
Letting agents play an important role in the buy-to-let industry and a good agent can help make or break your lettings experience. So what should you expect from your letting agent?Professional reputationTo attract good tenants, the agent needs to be well established in the local area and have a good reputation.
What is a Foreclosure?
A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons.
Nobody Loves A Landlord
The typical landlord starts off life as a lighthearted real estate investor. The investor isbrimming with enthusiasm and is determined toacquire some single family homes that will beattractive to renters.
Top Ten Suggestions for Selecting a Real Estate Agent
In order to find a real estate broker or agent who meets your needs and makes your buying or selling experience a positive one, Century 21 Real Estate Corporation recommends you:DO NOT blindly walk into or call a neighborhood firm and ask for an agent at random.Ask friends and family for recommendations.
Are You Profiting From O.P.P.?
Are you profiting from O.P.
Are You Tired of Tenants, Toilets, and Trash?
Wouldn't you rather go to Tahiti? Are you a landlord with rental property whose value has significantly appreciated? Are you ready to cash in those profits and take that trip to Tahiti?Before selling your property, check with your accountant whowill tell you that you will be paying $60,000 in CapitalGains Tax to Uncle Sam. Your accountant will also tell youthat adding another $20,000 to your income by that sale iscalled recaptured depreciation.
|home | site map|
|© 2006 TIGER MEDIA|