Buying & selling your home

The process of buying or selling a home is one of the most significant transactions in most people’s lives. It can also be one of the most stressful. At Harper Macleod we work hard to alleviate this through good client care and regular contact with our professional staff. This guide sets out the processes involved in identifying and buying a property in Scotland.

Step one: What can you afford?

Unless you are fortunate enough to have sufficient cash to buy your home outright, you will have to apply for a mortgage with either a building society or a bank. It can save you money to shop around to find the right lender for you and your circumstances.

Calculating both your monthly and annual outgoings will help you decide how much you will have available for your mortgage payments without having to completely change your lifestyle.

Remember when calculating monthly payments, you must consider the implications a higher interest rate would have on you and your ability to meet your mortgage payments comfortably.

You should consider using the services of an Independent Financial Adviser with experience in the mortgage market to ensure you obtain the best mortgage and insurance products to suit your needs.

The additional costs that need to be taken into consideration at this point are:

l deposit;l legal fees;l survey fees;l stamp duty;l insurance; andl removal and decorating costs.

Step two: Finding the property that’s right for you

Make a list of the qualities your ideal home must have, what you would like but could do without and what you definitely don’t want.

Some things you may wish to think about are:

l do you want a house or a flat?l do you want a garden?l how many bedrooms and public rooms?l which town and which parts of the town do you like and dislike?l local amenities and services including schoolsl journey time to work

You should take the time to look at as many properties as you can.

Try not to be swayed by décor and furnishings, instead study the design of the rooms and the general condition of the property. Examine the width of the doors and the style of the staircase, if any, to determine whether your existing furniture will fit.

View the property at different times of the day, and on different days of the week. It can often be helpful to drive around an area before committing to buy there.

Buying & Selling your Home

Enquire as to the method of heating and determine which goods, furniture and fittings are included in the sale.

On new build properties, it is worth enquiring if the builder has any completed houses on their development as sometimes they may be keen to discuss incentives with you to sell a stock house as opposed to you awaiting the build of a particular property on the development.

Step 3: instructing a Solicitor

Once you have located the property that meets your needs, you will need to instruct a solicitor that specialises in conveyancing (the legal term for transferring ownership of property). Your solicitor will then inform the seller’s solicitor that you are interested in the property. This is called ‘noting interest.’ At this stage you would be advised to ask your solicitor to provide you with clear statement of the fees and costs you will be responsible for and when these will be payable.

Step 4: Home report

After 1st December 2008, any new property brought onto the market will be required, by law, to be marketed with a Home Report. The duty to provide the Home Report resides with the person who is responsible for marketing the property, therefore any seller will incur the cost of producing the cost of the Home Report which will be distributed to prospective buyers of the property.

The Home Report will be a tripartite document, consisting of 1. A Single Survey 2. An Energy Report and 3. A Property Questionnaire. The

Step 6: offer

On new build properties, the price is likely to be fixed as shown on the builder’s price list. The builder may well ask for an initial reservation fee to hold the property for you until a legal offer has been issued and accepted. It is worth noting that there is usually a tight time limit between reservation and the builder expecting an accepted offer.

Failure to comply with these time limits may result in your reservation fee being lost and the builder selling the property to another purchaser if demand is high at that time. Check with your solicitor to find out if a further sum is due to the builder when your offer is accepted as some builders ask for a further deposit, which is normally non-refundable, to be paid which ultimately will be deducted from the total amount you have to pay on the day you buy your house.

Step 7: Conclusion of missives

Your solicitor will then conduct various property searches. These searches will define the precise boundaries of the property you intend to purchase and reveal any related disputes.

Your solicitor will also check that the seller has the legal right to sell the property, and carry out all the necessary paperwork to transfer ownership to you. If you are taking out a mortgage your solicitor will arrange for funds to be made available in time for your date for moving you’re your new home.

Home Report documents must be prepared prior to the property going on the market and potential purchasers of the property should receive a Home Report within 9 calendar days of requesting it. Since the ultimate buyer of the property can contractually rely on the seller’s Single Survey, the purchaser will have a statutory right to damages if the survey fails to meet legal requirements and if there is any negligence in the preparation of the report. Exemptions are in place regarding properties that fall outside the realms of having to produce a Home Report – most notably, new builds, newly converted premises, right to by homes, seasonal and holiday accommodation, a portfolio of residential properties, ‘mixed sales’, dual use of a dwelling house, unsafe properties and properties which are to be demolished.

Step 5: Survey

If no Home Report is available, i.e. if the property is on the market prior to 1 December 2008 then it is vitally important that an expert carries out an examination of the property, known as a survey, so that you know precisely the condition of the home you are buying. It is usual to carry out a survey before making an offer, although in some cases it is possible to make an offer ‘subject to survey.’ In any event, if you are obtaining a mortgage to assist with your purchase, your lender will insist on a survey being carried out on the property.

You should take the time to discuss the survey results with the surveyor who will probably have further knowledge of the area and the local amenities.

Buying & Selling your Home

If you are purchasing a new build property builders generally retain the right to be flexible as to your entry date and delays do sometimes occur due to adverse weather and other factors over which the builder has no control. Any date you are given in advance of the house being built will normally be indicative only and you should check progress at regular intervals with the builder and ask for an update on the likely completion date.

Step 8: Settlement

In anticipation of settlement, your solicitor will issue a state for settlement. Cleared funds must be in the hands of your solicitor in advance of settlement. These funds have to be sufficient to cover all sums as per the state for settlement, which includes the purchase price, stamp duty, if applicable, and registration dues on the Title. In Scotland, settlement is still by way of a solicitors’ cheque and not by means of telegraphic transfer, as is the case in England. It is worth noting that if you are selling your house in Scotland but purchasing in England, you may require a bridging loan due to the fact that you are buying a new house before the finance becomes available from the sale of your existing property.

Once the seller’s solicitors receive payment for the property on the date of entry the seller will hand over the keys to you. In a new build case the Builder would normally complete a handover inspection with you to identify any “snagging” items which may be required to be attended to. At the same time your solicitor will have received from the seller’s solicitor all necessary legal documentation.

Removal costs will be based not only on what is being moved but also the distanced travelled and the day and time of year you are moving. As many property sales are concluded on a Friday this tends to be the most expensive day for a removal. Summer is the busiest season for removals, partly because of school holidays and partly because people try to tie in their removal with their annual leave from work. According to BAR, Tuesday is the quietest day to move house.

We will be delighted to help you on this journey. We have one of the largest teams in Scotland and more than 25 years’ experience of helping people buy and sell their homes.

Call us on 0141 227 9409 to speak to one of our team.

Step 9: insurance

You will need to ensure that you have arranged suitable insurance, and if appropriate that the policy is acceptable to your lender, for your new property which takes effect from the date on which you get the keys. You should ensure you have suitable contents insurance as well as buildings insurance.

Step10: moving in

You may require the services of a professional removal firm and you will need to organise a removal firm well in advance of your proposed move date. You can find local removal firms listed in the Yellow Pages, or you can contact the British Association of Removers (BAR).

Why use Harper macleod?

For a free quote call our team on

0141 227 9409

l More than 25 years’ experience of the local marketl Full service – we take care of it all from start to finishl Selling a property and buying another? We can help with bothl A personal, relationship-led service - our quality of customer care and responsiveness ensures clients and their families keep coming back to us

glasgow45 Gordon StreetGlasgow G1 3PEt: +44 (0)141 221 8888

invernessAlder HouseCradlehall Business ParkInverness IV2 5GHt: +44 (0)1463 798777

edinburghCitypoint, 65 Haymarket Terrace, EH12 5HD t: +44 (0)131 247 2500

ThursoNaver HouseNaver RoadThurso, KW14 7QAt: +44 (0) 1847 630 930

Contact usinfo@harpermacleod.co.ukTwitter: @HarperMacleod

www.harpermacleod.co.uk

Harper Macleod LLP is a limited liability partnership reg-istered in Scotland. Registered number: S0300331. Regis-tered office: The Ca’d’oro, 45 Gordon Street, Glasgow G1 3PE. Regulated by The Law Society of Scotland. A list of the members of Harper Macleod LLP is open to inspection at the above office.

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