Buying a house comes with its share of apprehensions. Yet, it is one of the most worthy endeavours of a person’s life. A house of your own means stability, especially in the turbulent times we live in. Scotland is increasingly becoming an attractive prospect for real estate. Whether you are a buyer, investor from or out of Scotland wanting to own a share of this beautiful land or a Scottish buyer learning about the legal property process in the property market, we are here to explain the correct steps that lead you to your dream home.
Working out a budget
It is practical to know what you can afford. It includes what you can put in for the house with your current capital/savings/income and how much you can borrow from a mortgage lender. A mortgage ‘in principal’ plays a vital role in making a successful bid for a property.
Find a solicitor
When you find a property you like, a solicitor or a licensed conveyance needs to make the offer on your behalf. If your solicitor is on your lender’s panel of solicitors, it makes the transaction much smoother.
Viewing and Home Report
After viewing a house, you might want to buy, request the Home Report from the estate agent or the seller. The Home Report contains a single survey that outlines the property’s condition & price valuation, the energy report, and the property questionnaire with information on the Council Tax band and alterations made to the property.
Note of Interest
When you want to buy a property you viewed, a note of interest should be registered through your solicitor with the buyer’s agent. It keeps you updated with changes to the purchase price, offers made, and the closing date for offers.
Making an offer
Your solicitor will make your offer in a formal letter and negotiate the terms with the seller’s solicitor. Properties are advertised as fixed price, offers over, or offers around. Fixed Price properties are usually sold to the first person who offers the advertised price. Offers Over, properties are sold to the highest bidder, and Offers Around properties are open for negotiation.
If the offer is successful, the vendor’s solicitor informs your solicitor with a ‘qualified acceptance’ letter. It follows an exchange of formal letters, known as missives. These hammer out the final terms of the offer. During this period, either party can still pull out. The final contracts are signed when the missives are concluded.
Completing the mortgage
You can now agree on a suitable mortgage deal and complete the application. If the mortgage valuation in the Home Report is more than three months old, it needs to be refreshed. Meanwhile, the seller’s solicitor will send the title deeds and certificates of the property to your solicitor, who will check for any ‘title burdens’ with local authority plans that can adversely affect the property.
The solicitors for the buyer and seller will respectively draw up the Standard Security and the disposition. Once the full purchase price is received by the seller’s solicitor, the estate agent will release the keys to the property.
Benefits of purchasing a property with GS Brown Construction
Our homes are built to last. And, that isn’t just a fancy statement. From the kitchen worktop material to the brand of satin chrome sockets, quality prevails throughout the home. We offer a 10year NHBC warranty and support your buying process from the beginning to the end. We have been building homes since 1970 and have garnered expertise and specialist inside knowledge. Our developments range across a wide gamut of prices and designs suitable for all homeowner hopefuls.
Help to Buy Scheme
What is it?
It is a Scottish Government-backed that aims to help first-time buyers and existing homeowners buy an affordable new build home. The government offers up to 15% of the purchase price for homes with a maximum threshold price of £200,000.
What are the eligibility criteria?
It is open to first-time buyers and current homeowners. First, you will have to contact a participating home builder. In the majority of instances, they let you see homes at their new build development. You will then need to speak to a lender directly or to an independent financial adviser to discuss your current financial status and the possibility of obtaining a mortgage. After this, you should reserve a property and obtain a full reservation agreement. You can apply for funding through the administering agent for your area. They will assess your application and let you know if you’re eligible.
Deposits and other requirements
The scheme offers an interest-free equity loan of up to 15% of the value of a new-build home. You are expected to pay a minimum of at least 85% of the home’s total purchase price. Your mortgage lender requires you to contribute a deposit of around 5% with your mortgage and deposit covering a combined minimum of 85% of the total purchase price.
Interest Rates and other fees applicable
You will own at least 85% of your home’s equity. You can increase your share at least 5% each time, all the way up to 100%. If you sell your home while the Scottish Government still owns equity, you’ll have to pay their share of the sale price.
Buy your new home with the Help to Buy scheme from GS Brown Constructions, and transform your life.