The legal system in Scotland is geared to a fast moving exchange of formal letters, known as missives. The purchaser’s
solicitor makes an offer including a price, date of entry, and a series of conditions covering, e.g. common burdens, rights of way and a host of other practical
points. The seller’s solicitor replies, accepting some conditions, rejecting some, and qualifying others. The exchange of letters goes on until differences have
been settled, at which point the magic words are used “we hold the bargain as concluded”. From that moment there is a binding contract. The whole process can be
completed within a few days but normally will take a number of weeks
The speed and finality of the Scottish system imposes responsibilities on both buyer and seller. Unless both parties agree otherwise the date of entry in the
offer is the date on which the seller must make his property available, and the buyer must have the price ready.
The seller has the responsibility of exhibiting local Searches and providing that his title is good, although he may try to shift some of this responsibility in
the missives. It has to be remembered that what is not covered in the missives does not form part of the contract. It is vitally important therefore to either
party, buyer or seller, that they check the terms of the missives being prepared in their name, and discuss them fully with the estate agent and their solicitor.
The buyers’ principal responsibility is to ensure that they have made arrangements for the price to be available on the date of entry. This is relatively
straightforward where there is no other sale involved, or the other sale is through the Scottish system. If however a person is selling in England and buying in
Scotland this should be drawn to the attention of the estate agent and solicitor acting in Scotland so that suitable arrangements can be made.
For most people buying and selling a house is one of the biggest transactions they will ever undertake. Nobody can say that the process will be problem free; no
two people will see things in quite the same way! It is nice to know however that by buying your house the Scottish way you cannot be gazumped, or stuck in a chain,
or have the other side pull out day before the furniture van arrives because contracts have still not been exchanged. What the Scottish legal system offers is peace
of mind.
Buying Scottish Property & stamp duty
Information on
buying property in Scotland for Letting
As house prices go up property rentals
usually remain the same, it is normally found that when house values
are in decline the rental value will increase this is mainly due to
confidence in the housing market as families will choose to rent
rather than risk purchasing a property that will fall in value so the
situation of supply and demand comes into force i.e. demand for
rentable property increases thus raising the asking price for those
properties.
Purchasing your property
When costing your property purchase you should take into
consideration the following.
Stamp Duty in the UK
is the term used for the tax payable at the time of purchase
The amount charged depends on the purchase price of the property. The
list below provides the present rates chargeable.
|
Purchase price of property |
Stamp Duty Payable |
|
Up to £120,000 |
£0 |
|
£120,001 to £250,000 |
1% |
|
£250,001 to £500,000 |
3% |
|
£500,001 plus |
4% |
In some areas of the
UK properties worth up to £150,000 do
not attract stamp duty due to the deprived nature of the economy or
property market. Non residential property is no longer liable to stamp
duty since the budget of 2002
As most property purchases involve the
purchase of non fixtures & fittings e.g. carpets you can apportion
the stamp duty to keep the purchase price of the property below the
stamp duty fresh holds, which will require an agreement with the
vendor to purchase those items separately.
