In the first quarter of 2017 we have seen as continuation of the general trends of last year where a shortage of properties available for sale has created a sellers market. As a result of this, across Scotland as a whole the average selling price of a property is £138,821, representing a 3.1% year-on-year increase. Property prices in affluent areas in Glasgow’s outskirts, East Renfrewshire and East Dunbartonshire, are set to rise by almost a quarter (23% and 22% respectively) over the next five years and across east central Scotland and Edinburgh the average property price is now £217,455, an increase of 5.7% from last year. Not only are house prices continuing to rise, selling times are continuing to decrease meaning that properties are remaining on the market for increasingly shorter windows of time.
The property market should of course not be viewed in isolation of current turbulence in politics and the economy; a climate of of uncertainty can translate into unpredictability in the housing market. With fierce competition between potential buyers and daunting market conditions, where does this leave house buyers in 2017? For first time buyers, long-term homeowners looking to move or for investors looking to purchase an additional property, the process should always begin by seeking legal advice from an experienced property solicitor. We will be able to advise you of the purchase process specific to your individual circumstances and suggest appropriate financial and mortgage advisers as well as other contacts relevant to the purchase process.
A Practical Guide to Buying Residential Property in Scotland
The following guide details the various steps involved in purchasing residential property in Scotland. Although the process involved in buying a house is often specific to the individual circumstances of the purchaser, these steps are characteristic in almost all property transactions:
- Financial Arrangements: before looking at properties, a budget should be set and guidance sought from a mortgage adviser. Ideally, an ‘agreement in principle’ should be established with an appropriate lender, this can often save time at the outset and is particularly important in light of increasingly shorter selling times for properties.
- Property Hunting: with so many online platforms available, finding the perfect home in your ideal location has arguably been made easier in recent years. Although searching online is a great place to start, the more ‘traditional’ methods of house hunting can also prove fruitful, particularly if searching online is yielding disappointing results. Speaking with estate agents and scouting out areas of interest can be effective in securing priority viewing opportunities in locations where demand for properties are high.
- Home Report: this is a useful portfolio of documents that will verify the condition of the property; it will also contain a valuation and a report on the property’s energy efficiency levels. All properties marketed for sale must have a Home Report, this can be requested from the estate agent or seller and made available to any interested parties. The onus for providing the Home Report rests with the seller, who will be responsible for the costs involved in obtaining the information required.
- Arranging a Survey: at a time when you are already spending a lot of money, a survey can seem like an unnecessary expense. However, it is far better to be informed of any potential issues before committing to buying a house to allow you to make an informed decision about how much you are willing to pay and if necessary, to determine a budget for any repair work that may be required. Although the Home Report provides an overview of the condition of the property, a more comprehensive and independent surveyors report is a sensible choice in light of the financial commitment involved when investing in a home, it may also be a requirement insisted upon by a mortgage lender. Most surveyors provide three types of survey: a simple mortgage valuation report, a more detailed Home Buyers Valuation Report or an extensive structural survey. We will advise you on the most appropriate type of report for the property you have chosen and can also instruct a surveyor on your behalf if you wish.
- Noting Interest: if you are interested in a property but not prepared to commit to making a formal offer, we can note interest of your behalf. This will serve to alert the seller and estate agent to your interest and you will accordingly be kept informed of changes or developments concerning the property and any potential closing dates etc. If a closing date is fixed by the seller, any interested party will be required to submit a final offer by the cut-off date established, at which point the blind bidding will close and the seller will chose their preferred offer. Closing dates are less common in the current housing market; the purchase price is normally negotiated through solicitors and estate agents prior to submitting a formal offer to purchase.
- Making an Offer: once you have found your ideal home and are satisfied with the Home and Surveyor’s Reports, a formal offer can be submitted by your solicitor on your behalf. The offer will contain the proposed purchase price, the date of entry and other legal qualifications, if accepted this will form a binding contract between the seller and purchaser known as ‘the Missives.’ Once there is a binding contract in place your solicitor will proceed with the necessary conveyancing formalities and perform the relevant checks. Your solicitor will also prepare the Title Deed in your favour and ensure that your title is registered in the Land Register.
- Completing the Purchase: On the agreed completion date your solicitor, who will have received your mortgage funds as well as any remaining balance from your own resources, will pay the price to the seller’s solicitor and the keys will be released to you.
- Fees and Outlays: upon instructions to act on your behalf in connection with a purchase, Miller Samuel Hill Browns’ Residential Conveyancing Department will provide a written quote of fees and outlays. Although this will be an estimate, provided that there are no complications or unforeseen challenges, the final fee should not vary from the initial quote provided. Land and Buildings Transaction Tax (formerly stamp duty land tax), recording dues for registration of deeds in the Land Register and search fees associated with reports and searches performed as part of the conveyancing process will be included in the quote as the outlays incurred during purchase.
Contact Miller Samuel Hill Brown for Property Law Advice
Buying a home can be a confusing and complex process, Miller Samuel Hill Brown solicitors offer efficient and personable conveyancing services to ensure that the purchase of your dream home is a memorably rewarding experience. If you would like more information or advice on buying and selling property in Scotland, call us on 0141 413 9168 or click here to get in touch.