I understand things are done differently when buying property in Scotland vis-à-vis England.
Can anyone, please, in simple words, explain? :-)
Thanks
Steve
Printable View
I understand things are done differently when buying property in Scotland vis-à-vis England.
Can anyone, please, in simple words, explain? :-)
Thanks
Steve
The differences are not as great as people like to think and mainly around the fact that "Offers over" and closing dates asking for final bids are commonly used and the way the market consequently operates in favour of sellers unless the market is very flat. This is balanced in part by the way solitiors operate in the market handing a small advantage back to buyers, who can pull out of deals more easily than sellers up until contracts (missives) are signed
The process is controlled by mainly solicitors who also act as "estate agent" and they definitely disapprove of any gazumping, but nevertheless it is not impossible to pull out of deals as people are fond of making out is the case.
https://www.mov8realestate.com/2011/...-need-to-know/
Thanks.... a very interesting read.
So you're saying that properties go on the market for a predefined period of time and in that tame various offers are fielded. At the end of allotted date then the offers are browsed over by the seller and they decide which one to proceed with - yes? So it could be weeks/months before you know if your offer has been accepted? Or have I got this wrong?
The time before closing date isn't usually predetermined. Unless they're in a hurry sellers usually wait until they've had enough "Notes of Interest" to create a small bidding war group then set a closing date.
Once closing date arrives people interested would instruct their solicitor to submit their best offer. You can accept any of the offers. e.g. if someone's a cash buyer you may prefer them
No-one has to wait for a closing date, but in the same vein, you;d rarely wait months to set one. Once you have all the offers and made your decision (which could even be that you're going back to market) your solicitor informs the winners/losers
There's nothing to stop a seller simply accepting an offer without using a closing date if it's high enough for them
You are legally allowed to swap Haggis for property.
Just to add. If the market is buoyant it becomes tough for buyers because EVERYONE is doing closing dates. You can easily lose lots of bids unless you add a good chunk above the asking price. Good for sellers, like I said.
The other significant difference that closing dates create is that very few people will countenance a conditional bid - they'll simply accept one that has no conditions. Therefore "chains" almost never exist. You have 3 choices:
- Sell your house beforehand so that you have the cash
- Sell you house immediately your offer is accepted so that you can also complete in time to have the money
- Get a bridging loan
In a hot market, people generally have to sell their house first. This again feeds house prices because if you're living in rented in a rising market you become desperate enough to offer more money to get a house while you can still afford one. Offers of 25%+ above asking price were not uncommon in the housing boom, Bear in mind lenders will only lend against the market valuation, not the money you're paying "on top" to get it, so you can't just plonk the money on your mortgage unless you have significant equity
I was lucky, I bought a fixed price property just after the crash and moved house recently when the market is reasonably good selling it on "offers over". We took a chance and went for option (2) above :)
Bl**dy 'ell. Thankfully I'd be a cash buyer but it still doesn't look like much fun. Strange thing is I was under the impression that buying/selling was easier in Scotland - seems not true :-(Quote:
Originally Posted by Scepticalist
A couple of clarifications:
If there are notes of interest already lodged - a solicitor will not, in general be happy if you say you are accepting a deal from someone. They will insist that a closing date for offers is provided to allow all the interest-noters to submit an offer.
It isn't a bidding war, because any prospective buyer does not know the number of IPs or what offers are on the table.
Contracts (missives) are exchanged much earlier in the buying process, thus preventing last minute shenanigans by either party (like rest of UK). Once missives are signed - either party who pulls out, is legally responsible for all the expenses of the other party. Those expenses can be considerable.
In a burgeoning market - there will be predominantly 'offers over'
In a stagnent market - many more will go to 'fixed price'
There was a case a few years ago, where an offer of almost double - was received for a house in Morningside. The media got hold of the story (before missives had been signed) - and in the ensuing publicity, I believe the purchaser pulled out because of embarrassment. (see report below)
Quote: The boom hit the headlines when David and Josephine Nicholson received a cash offer for their Nile Grove home of £850,000 - almost £500,000 more than the asking price.
Particulars of the deal were revealed within 24 hours of the deadline for offers passing, leading to calls for confidentiality clauses.
Well - you don't get the last-minute gazzumping/gazzundering that prevails south of the border.Quote:
Originally Posted by solwisesteve
Less chance to get caught up in a chain. How many stories do we hear of a chain collapsing in rest of UK?
Al
Yes, it really is swings and roundabouts. Some things work better, some don't. Neither works perfectly.
Right now the Scottish market is ok but not superheated and therefore it's actually quite painless in practice as your solicitor will often have a pretty good idea of where the offer will need to be to stand a chance of winning. Really nice properties will though - as ever - atttract high bids.
Just come back from the NC500 so SWMBO is really hot under the collar about moving up there and, tbh, I can't blame her at all. So looking at a nice building plot and then planning on self-build in a few years time.
If you are thinking about the NW of Scotland - don't forget it's winter (for 8months a year)
Actually I like the winter :-)Quote:
Originally Posted by blackal
I hope you like 4 wheel drives too if you intend driving anywhere :)
Seriously though, pick the right place and you can live in an amazing landscape for relatively little cash. Good luck with your plans
ex landrover guy so love them 4x4's.... already been reading the reviews of various pickups - okay a little premature maybe ;-)Quote:
Originally Posted by Scepticalist
Just in the middle of a house buying transaction in the north west of Glasgow. 27% above the "offers over" price and only just got it.
Read that as 2% initially and thought...... well done!Quote:
Originally Posted by alanm_3
That would appear to be a fair chunk of change!
You must be Scottish - you use 'house' rather than 'property' ;-)
Al
No, I am Scottish but there’s a distinct difference between a house and and a property. One is to live in, the other isn’t [emoji106]
Sent from my iPhone using TZ-UK mobile app
This is were the scare mongering comes in, the offers over is generally well below the valuation and is meant to get punters to bid. I bought my house in the boom, offers over 299k, I won it with a bid of £430k but it was valued at £425k so it was only 5k over valuation. It's a really good system
My son is selling his house located in a small town on bank of River Forth, west of Edinburgh.
He’s hoping to then buy a house in Totnes so I’ll share his experience when done.
Good luck OP. You’ll love it up here.
Jim
That's absolutely not true for all areas.Quote:
Originally Posted by Chewitt13
Edinburgh sales start at the valuation price or *maybe* £5k below and are selling for 10% above if they're nice. This is with a fairly average market now. Putting a price £125k below the valuation is simply wasting the time of people who can't afford the valuation price - there's only one agent in Edinburgh who does that kind of thing and everyone knows them - even then they'd undervalue by £30k, not 30% of the house value.
That's my appreciation, also.Quote:
Originally Posted by Scepticalist
I agree, Glasgow is exactly the same. The "property" my son has just purchased was advertised £5k less than the home report estimate.Quote:
Originally Posted by Scepticalist
The reason it went for mich more was due to its structurally sound but relatively poor decorative condition, hence there were 10 firm bids at closing date, with 2 very close, my sons being the higher by a few hundred pounds and in that note, if you are ever considering bidding in an offers over situation, bid an uneven amount and don't stick to predictable, rounded, amounts.
Where are you planning to build Steve?Quote:
Originally Posted by solwisesteve
The NC 500 has been superb for the area.
Looking at the Lochinver/Ullapool locale but basically anywhere that's not TOO far north ;-) SWMBO wants a sea or loch view though, personally, I'm not 100% keen on somewhere too close to the sea because of the weather. SWMBO is a very keen gardener and I'm not convinced being in the blast of the sea is good for a pretty garden.Quote:
Originally Posted by Chukas
Yes I can see how the NC500 must be brilliant for the local tourist industry. Everyone (that is that caters for tourists) was VERY OTT about it. Not 100% sure the locals like it as much - quite a few moans about congestion/road accidents etc... even in the local papers.
I've always liked Ullapool - it has a bit of a buzz about it, and some stunning scenery around. Lochinver - not so much.Quote:
Originally Posted by solwisesteve
Have a look down around Argyle (loch Melfort, Conan Bridge etc) - I was always a fan of the rugged NW highlands until I spent some time around Oban. You get the ruggedness with more vegetation, and still benefits from the Gulf Stream.
Loch Rannoch area also has some stunning locations, but lots of heating required in the winter.
Al
Thanks for the pointers. :-)
NC500 is a gorgeous road trip.
Findhorn is a beautiful village/town and we saw seals and dolphins while we were there. It's a short trip to the cairngorms national park which is possibly my favourite place in Scotland.
East rather than west tho and close to Inverness/nairn.
I live in Inverness but also have a holiday house in Dundonnel, between Ullapool and Gairloch, looking over little loch broom.Quote:
Originally Posted by solwisesteve
Ullapool is a busy place, but it was always busy before the NC500 anyway.
If you need any specific advice, give me a shout and ill do my best to help, i'm at work at the moment so if i don't get back straight away, that will be why!!
Cheers.... just need to get her-indoors to focus on the issue. I'll get on rightmove and get a load of potentials printed off and then see which sort of thing she likes. At least then I know what I'm working toward ;-) If I need some advice I met well give you a nod - thanks.Quote:
Originally Posted by Chukas
Certainly the NC500 allows you to visit many idyllic places, however, having spent a week working in Applecross in November, I can quite categorically say, it ain't no picnic in the winter!
Drove through there :-) I think it's one of the areas SWMBO is looking at ;-)Quote:
Originally Posted by alanm_3
It’s not for the faint hearted and out of season, nothing happens, so unless you have an income that isn’t reliant on local or passing tourist trade, you may want to be cautious.
Sent from my iPhone using TZ-UK mobile app
This is as holiday and then retirement... tbh it might turn out to just be a holiday thing.... you know, you come back from somewhere and really loved it so decide you want to buy somewhere there.... ;-)
It's the pass to get to it that gives me the whiteys!Quote:
Originally Posted by alanm_3
Quote:
Originally Posted by verv
You bet C. I drove it at night, horizontal rain, fog and stags standing in the middle of the road, daring me to drive at them!
Quote:
Originally Posted by verv
Actually I had no issues with 'the pass' and tbh myself and SWMBO were a little deflated by it. I mean she'd read all these reports of how frightening it is etc.... and not for faint hearted but we had no issues with it at all and, yes, it was thick mist and VERY windy rain. In fact SWMBO wanted to go back the other way the next day but I was all for pushing on to Inverness. We put this down to the fact that we frequently visit the NYM and also the lakes so we're probably more used to tiny twisty roads where you have to bip your horn as you come to the bends. I can see how it would be a lot less fun for anyone attempting it whilst driving a big white fridge (camper van)!
Have moored at Plockton, Ullapool and here http://badachroinn.filmdesign.org.uk/ a few times over the years, rarely a day goes by when I don't find myself wishing I'd moved to Scotland years ago.Quote:
Originally Posted by Chukas
Its a lovely part of the world up here, feel lucky enough to have it on my own door step.Quote:
Originally Posted by number2
I know a bit about the West of Scotland market having worked in it for 40+ years.
Right now anything £500k+ is torture to sell and has been for a while.
Owners of estate agencies seem to feel it's a combination of uncertainties relating to Brexit and Scottish independence plus, most significantly, Poor Mad Nicola's enormous LBTT uplift which currently adds £23350 to a 500k dwelling and £48350(!!!) to a 750k purchase.
Our own house has just gone under offer (which isn't the 'done deal' it once was) and having put a toe in the water the market felt a bit uncomfortable so we're just going to rent for a while instead.
Buying property that's at least an 8 hour drive away is a bit of a nightmare. Does anyone know of a respectable property finding company that operates in the north of Inverness area? I'm talking about a company that can search and locate suitable properties (land) and suggest these to us and then perhaps negotiate purchase - obviously for a fee!
I've been using rightmove to search and the choice is HUGE. Then I went to one of the agents (solicitors) that was on rightmove and searched their site and there were half a dozen more suitable (on paper) properties! So it looks like the agents only put a small selection of what they have onto rightmove. So the searching process is a nightmare. Compounded by not knowing the areas and pitfalls-dangers-etc.
What I'd like is a company that can search the market and help us to whittle this down to perhaps half a dozen so when we go an view we know we aren't wasting our time.
There are a couple of such companies on google but I wondered if anyone had a recomendation or suggestion AND what sort of fees are we talking about here?
HELP!
Thanks
Steve
Summer/Autumn in the North of Scotland can be majestic . The long dark cold winter days are something else. If I was you, I'd do a little more research, maybe spend a bit more time in the area you want to live during winter, I cetainly wouldnt be rushing in to buy a property.. sorry house , where the climate, topography, roads and even public services will be sigificantly different to what you are used to. There's a reason the Highlands and North West coast of Scotland are the most rural part of Western Europe.
Yep.... wilco :-)
Given this is a big decision, why not take most of the risk out of it and just plan to rent for 12 months? You can then make sure its the right thing for your family and you can take your time choosing a property since there seems to be an abundance of choice.
Still need to go to work every day so renting and moving to Scotland for a year isn't really on. ;-)Quote:
Originally Posted by mondie
Is it not viable to use Rightmove plus the best of the independants' websites - as a regular search on your browser (and also put in alerts for the areas you are interested in - on Rightmove?)Quote:
Originally Posted by solwisesteve
I managed to find the right place in the Borders on the internet - largely.
Rightmove and local solicitors websites
Then google earth and streetview of the area and facilities
Narrow it down using the above.
Then a look round the area personnally if deemed viable.
Only viewed 4 houses in 18months as the above process narrowed it right down.
Most solicitors will e-mail you new listings if you send them your requirements, though.
Good luck with it.
Al
Yeah that could be an issue :) Why do you need to buy a year before you move. If anything there must be downward pressure on house prices after Sturgeons tax changes and the uncertainty of Brexit, might be a good time to sit on your hands?Quote:
Originally Posted by solwisesteve
Well we're only, at this stage, talking about a nice building plot and I rationalised (maybe wrongly) that the good plots tend to go up up in price with rarity. Certainly this has happened in England anyway; have you seen what they're charging now for a 0.1 acre plot in some scruffy location? In our village the local lord put a dozen plots up at about 0.1 to 0.15 acre each. The cheapest went for £125K :-( So we were thinking buy a plot whilst there's plenty to choose from at a fair price. Sit on it for a couple of years and then see about a self build.Quote:
Originally Posted by mondie
Steve try HSPC (Highland Solicitors and property centre), Galbraith, Strutt and Parker.
Most of the smaller independent estate agents advertise through HSPC and Rightmove.
Cheers.
Steve