How to Buy a Property in Scotland
We understand that buying a property – whether for the first time or otherwise – can be a stressful time but if you recruit the right legal team with the right experience and expertise it needn’t be! Using experience and knowledge, our Solicitors have created a Five Step ‘Buying A Property in Scotland’ guide which you can view below. We hope you find this useful.
Step by step guide
Before you begin looking at property you need a clear idea of how much you can afford to spend. Working out a budget helps ensure you do not fall in love with a property that is beyond your means and makes sure your offer is credible
Estimate your borrowing – Use a mortgage calculator or speak to a mortgage broker to get an idea of what a lender may offer you. MoneySavingExpert advises getting an agreement in principle (AIP) to demonstrate to sellers that you are serious
Save for a deposit – In the current market you’ll need a deposit of at least 5 % of a property’s value. The bigger your deposit, the better the mortgage deals you may be offered
Budget for upfront and ongoing costs – Aside from the purchase price you will need to pay survey and valuation fees, Land & Buildings Transaction Tax, solicitor’s fees, removal costs and final bills. Ongoing costs (insurance, council tax, energy bills) should also be factored into your monthly budge
In Scotland you must use a solicitor or licensed conveyancer to buy a home. They will submit the formal offer, handle the legal paperwork and advise you through the process.
The solicitor will check the Home Report and arrange surveys, draw up and negotiate the offer (missives), check the title deeds and complete the conveyancing
Choose a solicitor/conveyancer – Ask for recommendations, obtain quotes and ensure the fee is a fixed price that includes Land & Buildings Transaction Tax, search fees and registration fees
Check they’re on your lender’s panel – Some lenders will only work with solicitors on their panel
Understand what they do – The solicitor will check the Home Report and arrange surveys, draw up and negotiate the offer (missives), check the title deeds and complete the conveyancing
Once your finances and solicitor are in place you can start looking for a property. In Scotland properties must have a Home Report, and most are marketed at ‘offers over’ a certain price
Search for homes
Check the Home Report – Ask the selling agent or solicitor for the Home Report; it includes a single survey, energy report and property questionnaire. Review the survey’s condition ratings (1 to 3) and any urgent repairs
Consider a separate survey – Even with a Home Report you may commission an additional survey (full structural, homebuyer or snagging survey) if the property is old or unusual
Investigate risks and neighbourhood – Ask your solicitor to check flood risk (SEPA flood maps) and planning issues
When you find a property you like, your solicitor will note your interest with the selling agent. This does not oblige you to buy but ensures you are kept informed about closing dates
Understand pricing methods – Properties may be advertised as offers over, offers in the region of or fixed price; know what this means for bidding.
Decide on type of offer – Choose between an unconditional offer (binding immediately) or a conditional offer (subject to survey, mortgage or inclusion of certain items)
Set the price and terms – Your formal offer must include the price, preferred date of entry and any fixtures/fittings you want included. The offer forms one leg of a contract and will refer to standard Scottish clauses
Once your offer is verbally accepted, the missives (legal letters) are exchanged. When both parties agree the terms, the missives are concluded and you are legally bound to complete the purchase
Check the qualified acceptance – The seller’s solicitor will send a qualified acceptance; your solicitor will negotiate any changes and advise you.
Exchange missives – Your solicitor and the seller’s solicitor exchange letters until all conditions are agreed, forming a binding contract
Title and legal checks – Your solicitor will inspect the title deeds, check for burdens or unusual conditions and ensure all alterations have necessary consents
Understand deposit requirements – For expensive properties, a deposit (often 10 %) may be payable within 14 days of concluding missive
You must prove the source of funds and transfer your deposit and purchase money to your solicitor before the date of entry. Anti‑money‑laundering regulations require solicitors to verify your identity and the source of funds
Provide identification – Supply a verified passport or driving licence and recent proof of address. As per the Law Society guidelines, the auditors require us to have on file evidence from you to confirm who you are and where you live.
Gather source‑of‑funds evidence – Show bank statements or contract notes covering the previous 90 days for all accounts used, including any gifted deposits. If you are moving funds from one account to another we must have a bank statement showing the money leaving one account and corresponding with a statement showing the money going into the other account. In other words we need an “audit trail” showing where the cash has been starting from 90 days ago.
Consolidate funds – Transfer money into a nominated account well before completion and send statements to your solicitor
Transfer funds to Neilsons – Pay by cheque (five working days before entry) or CHAPS transfer (one working day before) and provide evidence of the transfer
Completion happens on the date of entry when your solicitor pays the purchase price and you receive the keys. There is no fixed time; it depends on when funds clear and the seller vacates the property
Sign the deeds – Attend your solicitor’s office a few days before the entry date to sign the disposition and mortgage deeds
neilsons.co.uk
Prepare for moving day – Hire a removal firm, arrange insurance and take meter readings when you get the keys
Pay final bills and council tax – Your solicitor will settle council tax for the sale; check that the seller’s solicitor does the same for your purchase
Register to vote and update utilities – Contact the electoral roll office and your energy suppliers once you move in
After completion, your solicitor must register your ownership with the Registers of Scotland and ensure Land & Buildings Transaction Tax is paid
Pay Land & Buildings Transaction Tax – Your conveyancer must submit the return and payment within 30 days of the entry date
Register the title – Your solicitor registers the disposition with Registers of Scotland; registration fees depend on the property price
Receive the title deeds – Once registration is complete, the title deeds will be sent to your mortgage lender or to you if you bought without a mortgage
First Time Buyers
Buying your first home can be confusing. You are entering into a strange new world with its own processes and terminology – mortgages – loan to value ratios – closing dates – missives – where do you start?
Our role in the transaction is to act as your pivotal guide. You can count on us to give you expert and impartial advice and guide you through the process in a friendly and informal manner.
You are on first name terms with us and throughout the transaction you can rest assured that we will be able to keep you right on what you should be doing and when.
Relax – we have been helping first time buyers for over 40 years.
The first thing we have to do is establish what is affordable. We do this by looking at what size of mortgage would be available to you and the funds that you have access to from your own savings (or your kind parents!).
Free no obligation purchase consultations
Our free no obligation purchase consultations are held with a fully qualified and experienced Solicitor based in Edinburgh and are designed to take you through the full process of:
At the end of this meeting we aim to have provided you with enough information in order for you to make an informed decision about what to do next.