The system in Scotland is different from the rest of the UK. You start off just like you would if you were looking to rent a place. You find adverts, in papers, on line, through word of mouth, or just by spotting a sign in the window. Unlike renting, though, there are sometimes set viewings (say, on a Sunday afternoon or a Thursday night). You should be able to make other appointments as well.
(Before you get too serious, though, it’s important to sort out how your going to pay for all this. For most of us, that means getting a mortgage.)
When you go along to a viewing, you’ll usually get a schedule which is just the details of the rooms, the asking price, and usually some photos. You get to poke around, and there’s usually someone there who can answer your questions about the place. As this is obviously a much bigger commitment that just renting a place, make sure you have a good look around. Try not to focus on the décor but think of the room sizes and the possibilities. Also, make sure you look at the outside of the building. If there are any repairs to the structure of the building, you will have to contribute and it can cost tens of thousands of pounds – no joke.
Now’s when things get trickier. If the flat’s price is listed as ‘Offers Over’, read on, if it is listed as 'Offers Around' you may need to read on. If it’s ‘Fixed Price’, it means just that. The economic downturn gave rise to the term 'Offers Around'; sellers are more likely to accept an offer closer to this point rather than exceeding it massively. The first person to come in with the money they’re asking for gets the flat. The bits below about surveys and missives still apply, but you don’t have to worry about making a bid.
If you decide you’re interested, ask the owners how long it’s been on the market, when the closing date is, and if they’ve had much other interest. This will give you an idea of how quickly you have to act. Next, get in touch with your solicitor – if you don’t have one already, you’ll need one. Your solicitor will handle all the actual buying bits – for a fee, of course. Let your solicitor know that you want to put in a ‘note of interest’. This officially lets the owners know that you are seriously interested.
At this point, some people would have chosen in the past, to have the property surveyed. This involves getting a surveyor out who will go over the property with a fine tooth comb. They’ll point out any problems, any damp or structural flaws, and give you an idea how much the place is actually worth.
As of 1st December 2008 it became law that houses for sale have a Home Report undertaken on the property. A Home Report contains 3 documents a Single Survey, an Energy Report and a Property Questionaire.
The Home Report will be made available on request to prospective buyers of the home. The Single Survey contains an assessment by a surveyor of the condition of the home, a valuation and an accessibility audit for people with particular needs. The Energy Report contains an assessment by a surveyor of the energy efficiency of the home and its environmental impact. It also recommends ways to improve its energy efficiency. The Property Questionnaire is completed by the seller of the home. It contains additional information about the home, such as Council Tax banding and factoring costs that will be useful to buyers.
Once you’ve put your interest in, sit back and wait until the sellers set a closing date. At that point, their solicitor will contact your solicitor, and your solicitor will contact you. You’ll decide on a bid, and your solicitor should help you with this, usually by checking what other similar properties in the area have gone for. Your solicitor will put your bid in, and then the sellers decide which bid they are going to accept. It doesn’t have to be the highest, although it usually is.
If your bid is accepted, survey done, and everything is fine then your solicitors do the paperwork and the ‘missives’ are exchanged. The money needs to be in your account when this happens, or you’ll have one massive overdraft. Make sure your mortgage is sorted well in advance! Once that’s done, both the buyer and the seller are legally bound and you can’t back out without penalty. You’ll get a moving in date and the keys. You’ll still have to pay your solicitor's fees, and you might have to pay Stamp Duty as well.
So that’s how it works, but there are still loads more aspects to buying a house.
The Scottish Government introduced a shared equity scheme for first time buyers across Scotland in 2009. The aim of the scheme is to help people who would normally be unable to buy to do just that. The buyer normally pays between 60 and 80% of the price of the home, with the remainder paid by the Scottish Government.
The scheme has been very popular and has gone through a number of developments.
Shared Equity Scheme
This scheme is administered on behalf of the Scottish Government by registered social landlords (housing association or housing co-operatives). The Scottish Government is no longer providing funding for this scheme but there are still some shared ownership homes available. The available homes are ones which were already in the process of being built when the scheme closed. You can find out what homes are still available on the Scottish Government website.
The scheme is open to people who are rent from a housing association or a local authority, members of the armed forces, veterans who have left the army within the past year, widows, widowers and other partners of members of the armed forces who have been killed recently whilst in service.
New Supply Share Equity (NSSE) scheme 2010/11
Under this scheme, the Scottish government gave registered social landlords (a housing association or housing co-operative) a grant to help them build or buy new homes to sell. These properties were then made available for sale on a shared equity basis. This means that you don’t have to fund the whole of the property price. You usually pay 60-80% of the price and the Scottish Government pays the rest.
There are still some homes available under this scheme. To find out what homes are available visit the Scottish Government NSSE page. You can also download the Leaflet on the right side of this page for more details about how the scheme works.
New Supply Shared Equity with Developers Scheme (NSSE with Developers scheme) 2011/12
This scheme is similar to the original NSSE scheme expect the Scottish Government works with Developers instead of social landlords. First time buyers will pay 60-80% of the price of the house and the Scottish Government and Developers will split the remaining cost. Those eligible for the scheme are:
The significant different between this scheme and previous schemes is that it is a 10 year shared equity scheme. This means that by the end of the 10 year period the buyer must either:
To find out more about the scheme contact an independent mortgage advisor for a consultation. For up to date information take a look at the Link Housing website for more details on the scheme or check out the Scottish Government website.
Published on 07/07/2010
Last modified on 06/02/2012
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