Timeframes, Shared Equity & Missives - Buying in Scotland

ahlsilva

Hi all

Hoping someone form Scotland or knowing the Scottish system can help me.

We've just reserved a flat (new build) and we're in the process of waiting for our mortgage to be approved. It's approved in principle and all the documents sent off yesterday.

Question 1 - How long should it take form this point to getting missives completed?

Question 2 - We were asked by the constructor to pay £2000 on completion of missives even though we're doing their shared equity scheme (25% / 75% split). We can do this but I wondered is this normal for shared equity? I thought the point was that we didn't have to put up any equity?

Question 3 - when we pay it, does this come off the value we either owe the constructor (the 25%), the mortgage, or what happens to it?

Hubby has the reservation form with him as he dropped in to the broker when he was on his way to work away from home for a few days; so i don't have it here to check exactly what it says on the form sorry!

Thanks for any help you can give me until I get hubby home with the reservation form!

googler

1. In theory, for a straightforward new-build purchase, conclusion could be very quick; days, even. But that will depend on your solicitor and the solicitor acting for the developer.

2. If that's what's in the developer's SE scheme, and you were made aware of this at time of reservation, then that's the way it is.

3. Again, this depends on the SE scheme; I would hope the £2000 is deducted from the purchase price that you've been quoted, and you pay less, rather than it being deducted from the developer's share of the equity.

The answers to 2 and 3 have nothing to do with the Scottish system of buying and selling, but everything to do with the developer, his terms and conditions, and his shared equity scheme - and I feel the answers to these should have either been outlined to you at time of reservation, or you should have asked them of the developer or his sales staff at that time.

ahlsilva

Thanks googler. Answer to the first is by far the one making us most anxious as we need to move out as soon as possible.

I'll give the developer a call tomorrow to ask. They did say that we would have to pay the £2000 when we resrved and we have the money to do this. I just never asked at the time where it goes. (first time buyer schoolboy error. Hopefully we won't learn the hard way...)

Questions have only arisen as we know other people who have gone through other shared equity schemes and not had to pay anything on completion of missives. However I guess every scheme is different so as long as the £2000 goes somewhere sensible (preferably off our mortgage)we're happy to pay it.