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Buying process in Scotland
Hauzen
Posts: 76 Forumite
I believe the way you buy houses in Scotland is slightly different to in England, but I would appreciate it if someone could clarify exactly what is different.
If I find a house I like, do I have to arrange the mortgage first before making an offer? That would mean I would have to note my interest in the property with the owner (or their solicitor) to arrange for the lender to survey the property, right? Then when the survey comes back and the lender confirms the size of mortgage, then you make your offer?
So in a nutshell the steps would be:
1) Talk to lenders/brokers about the amount you're likely to be able to borrow
2) Find a property
3) Tell lender and get them to survey the property
4) Get the mortgage offer from the lender
5) Make an offer on the property
6) Conclude things if offer accepted
Is this right for Scotland? Thanks
If I find a house I like, do I have to arrange the mortgage first before making an offer? That would mean I would have to note my interest in the property with the owner (or their solicitor) to arrange for the lender to survey the property, right? Then when the survey comes back and the lender confirms the size of mortgage, then you make your offer?
So in a nutshell the steps would be:
1) Talk to lenders/brokers about the amount you're likely to be able to borrow
2) Find a property
3) Tell lender and get them to survey the property
4) Get the mortgage offer from the lender
5) Make an offer on the property
6) Conclude things if offer accepted
Is this right for Scotland? Thanks
0
Comments
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If I find a house I like, do I have to arrange the mortgage first before making an offer?
Yes.
You absolutely must arrange a mortgage in principle first, as offers are legally binding if accepted, although most solicitors will insert enough "subject to survey" clauses, etc, to give some wiggle room.That would mean I would have to note my interest in the property with the owner (or their solicitor) to arrange for the lender to survey the property, right? Then when the survey comes back and the lender confirms the size of mortgage, then you make your offer?
Not exactly. All Scottish houses must now come with a valuation as part of the home report, which the seller pays for. These are usually available online to registered users of the SPC (solicitors property centre) websites for each area. If the valuation is less than 3 months old, and done by a reputable surveyor, then most of the high street banks will accept it without a second survey being done, which is great for the buyer as less costs.
If the property is listed as "offers over", it means exactly that. The price is lower than they expect to get offered.
If listed as "offers around", then the price on the box will be close to what they expect, and probably close to the valuation.
If listed as "fixed price", then chances are you could offer below that price, and it may be above the valuation price.
Confusing, I know, but we are a bit different up here.;)So in a nutshell the steps would be:
1) Talk to lenders/brokers about the amount you're likely to be able to borrow
2) Find a property
3) Tell lender and get them to survey the property
4) Get the mortgage offer from the lender
5) Make an offer on the property
6) Conclude things if offer accepted
Is this right for Scotland? Thanks
Not quite.
1) Apply for a mortgage in principle from the lender you decide to use.
2) Find the solicitor you want to use for your side of the purchase, and who will make the offers on your behalf. Usually a fixed fee for the whole process, including making offers on your behalf, is common.
3) Find a property.
4) Check with the bank that the survey valuation contained in the home report will be acceptable to them.
5) If so, instruct your solicitor to offer, taking their advice on recent SPC sales price data for the area, which will be more current than RoS data.
5) When the vendor accepts, you are locked in, in most cases.
6) Conclude and move-in, usually within 30 days.
Where in Scotland are you looking to move to? I can give you links to the most current actual sold price data for that area.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thanks for the above, it's really informative.
Is it possible to arrange a generic mortgage agreement in principle, or do you have to approach the lender with a specific house in mind? Can I go to a lender and ask for an agreement in principle for £100,000 (for example), or do I have to go along and say "I want to purchase 123 Main Street and need £100,000"?0 -
HAMISH_MCTAVISH wrote: »Where in Scotland are you looking to move to? I can give you links to the most current actual sold price data for that area.
I am looking at the South side of Glasgow, properties in the Pollokshields/Shawlands/Rutherglen area. I was interested in the West End but it's pretty pricey out that way
0 -
Thanks for the above, it's really informative.
Is it possible to arrange a generic mortgage agreement in principle, or do you have to approach the lender with a specific house in mind? Can I go to a lender and ask for an agreement in principle for £100,000 (for example), or do I have to go along and say "I want to purchase 123 Main Street and need £100,000"?
No, a generic offer in principle is the standard thing to do. You would go to your bank, and apply for a mortgage for up to the amount they are comfortable lending to you. You then go out and choose a property at a price up to this limit.
Most people use a local bank or building society, as the personal touch is important in a system where offers are binding. You don't want a faceless person on the other end of an internet connection somewhere withdrawing your offer half way through!!!! They will also know the local surveyors, and be more comfortable with the reports in the home information packs, without requiring a second survey.
By taking the time to shop around for the best mortgage deal first, it also removes the temptation of falling for the (usually less good) mortgage offers of the estate agents, etc.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
The Home Reports aren't just available to "registered users of the SPC (solicitors property centre) websites for each area".
Any agent with a property for sale, whether SPC member or Estate Agent, should provide interested buyers with a copy of the Home Report for any property they're seriously interested in.
There's life outside the SPCs, you know....0 -
I am looking at the South side of Glasgow, properties in the Pollokshields/Shawlands/Rutherglen area. I was interested in the West End but it's pretty pricey out that way
You're in luck then, as Glasgow is the only major area still showing price stagnation or even small falls in parts. Everywhere else is up massively this year.
Check the price reports on www.gspc.co.uk and also www.ros.gov.uk
The quarterly reports should also break it down by local area within glasgow.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
The Home Reports aren't just available to "registered users of the SPC (solicitors property centre) websites for each area".
Any agent with a property for sale, whether SPC member or Estate Agent, should provide interested buyers with a copy of the Home Report for any property they're seriously interested in.
There's life outside the SPCs, you know....
That is correct, but the home reports are usually available online to registered users of the SPC's. And you get all the info in one place, versus having to log onto numerous different estate agents websites, or getting things sent out on request.
Rightmove has very little penetration into Scotland. A recent search for Aberdeen showed only sixteen 3 bed terraces listed, versus over 400 on the ASPC website, as an example.
The SPC system is the dominant one, and is convenient. Of course estate agents do exist as well, and some people use them quite happily.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
That's my area! Or at least, it was until last month.
I don't know how well you know the area but have you considered East Renfrewshire? Parts of it are minutes away from Shawlands - some very desireable areas such as Newton Mearns. I may be wrong about this, but my understanding is that prices dropped much lower out that way and they're recovering more slowly. It might be worth a look.0 -
Proximity to the centre of Glasgow is one of my main considerations at the moment, which is why I'm favouring the areas I am at the moment. Will check out a few places in East Renfrewshire though, so thanks for the recommendation.
I've also noticed the differences between Rightmove and the SPC sites with the latter being a lot more comprehensive and up-to-date in Scotland. That said, I've seen some estate agents who update house info on one site and not the other, which is very confusing! There was one I had on my shortlist on both sites that was listed at "under offer" on Rightmove last week but is still down as available on GSPC...0 -
apart from rightmove and GSPC also have a look at remax-scotland.com and s1homes.com0
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