Can you afford to pay the monthly mortgage repayments but you don’t have the money for a deposit of more than 5%? If that’s the case then you might want to consider taking advantage of the Help to Buy scheme available in Scotland.
Most homes in Scotland are sold on what’s called a ‘blind bidding’ system. This means rather than a house being sold at a fixed price, you can make offers over or around a minimum price. Therefore, the price you end up paying depends on how many other people make an offer too.
Here’s an outline of the legal process for buying a house or flat in Scotland.
Once you’ve found the house for you, ask for a Home Report. This is a document that tells you everything you need to know about the house you’re interested in buying. For instance, a survey and valuation, a property questionnaire and an energy report.
If you’re happy with the Home Report, let your solicitor know and they’ll note your interest with the seller. If several other people also note their interest in the house, the seller might set a closing date which means nobody else can make an offer after this date.
If there’s no closing date, this could indicate that there isn’t anyone else interested, which puts you in a strong position to negotiate a price that suits you.
If you’d like to make an offer, your solicitor will write a letter on your behalf, to the seller. The letter will include:
If your offer is successful, the seller’s solicitor will write to you with a ‘qualified acceptance’ letter. Following this, any letters to negotiate conditions will happen between your solicitor and the seller’s solicitor. These are known as ‘missives’.
This is the final stage where you pay the whole purchase price in exchange for the keys to your new house!
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances.
The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.