Selling a home in Scotland

In Scotland, a solicitor or conveyancer takes a more prominent role in the process of selling a home than their English and Welsh counterparts. The most noticeable difference is that many Scottish solicitors also double as Estate Agents meaning that they will also be involved in marketing the property as well as dealing with the legalities of the sale.

The majority of solicitors’ firms that also act as Estate Agents, are members of Solicitors’ and Property Centres. These Centres not only have property showrooms much like Estate Agents but they also have newspapers in which they display and advertise the properties of all their members.

Although Estate Agents do exist in Scotland, they have a far smaller share of the overall housing market than conveyancing solicitors. It is common practise in Scotland for the solicitor to be the first point of contact for someone intending to sell their home.

The system of contracts in Scotland is very different to that in the rest of the UK. Because of the expectation in Scotland for an early conclusion of a contract, having a conveyancing solicitor on board early is imperative. The majority of conveyancing solicitors in Scotland work on a fixed-fee so there is no cost implication to involving them at an early stage of proceedings.

In Scotland, once you have accepted an offer, you are almost home and dry. It is very rare for anybody to pull out before things become official. Once instructed, your solicitor will need to prepare the following:

•    Market the property: After first checking the title of the property

•    Offers: Deal with any conditional or firm offers

•    Paperwork: Collating all of the documentation relating to the property

•    Contracts: Negotiating the contract with the buyer’s solicitor on your behalf

What is the difference between a conveyancer and a solicitor?

Contract Completion

Your Conveyancing Solicitor will deal with everything involved in finalising your contract:

•    Title deeds: Your solicitor will obtain your title deeds and check them during the course of the transaction
•    Land registry: Carry out a search of the land register to check that there are no barriers to the sale of the property going through
•    Missives: In Scotland, the term ‘missives’ refers to the letters of negotiation between the buyers’ and sellers’ solicitors. These go towards making up the contract.

•    Agreed Entry date: Agreeing a fixed date of entry (known as a completion date elsewhere in the UK) when the property formally changes hands, which both parties work towards
•    Paperwork: Following the agreement of “missives” and subsequent contract, the solicitor will finalise the paperwork involved in the legal transfer of the property from the seller to the buyer.

Buying a home in Scotland

Conveyancing solicitors are as central to the process of buying a home in Scotland as they are to selling one. Because of the amount of money involved and the complexity of contracts entered into, most buyers instruct a solicitor early on in the process. Another reason for employing a professional, is that in Scotland, once both parties have agreed on all of the details of the offer, which usually doesn’t take long, the missives are said to be ‘concluded’. At this point it is deemed that both parties have now entered into a legally binding contract, withdrawal from which can incur a hefty compensation bill running into many thousands of pounds. On that basis, you want to be 100% sure that searches and negotiations have been thoroughly carried out and the contract meticulously checked.

The key role of a conveyancing solicitor acting on behalf of the buyer is the negotiating and checking of the contracts and handling the transfer of the payment and Title.

•    Finding a mortgage: It is important that a buyer has an agreed mortgage in place before making an offer on a property, solicitors with their links to brokers and lenders are often involved in this process
•    Making an offer: Once you have found a property you want to buy and wish to make an offer, your solicitor will ‘note interest’ on your behalf

Noting an offer

In England and Wales, when putting a property on the market, the seller traditionally gets the property valued by two or more estate agents and will typically set the asking price at, or marginally above the average valuation. They will then expect potential buyers to come in with offers either matching or below the asking price. To those selling homes in Scotland, this would seem like a backward way of doing things.

In Scotland, the seller will, in consultation with their solicitor, set a price and invite offers over and above that price. This is known as the upset price. The buyer is unlikely to consider any offers below that set. In times of rising house prices or in areas of high demand, it is not uncommon for properties to end up being sold for ten, twenty, or even thirty per cent more than the initial asking price.

These are the steps you can take when making an offer on a property:

•    Conditional offer: You may make what is known as a conditional offer with a proposed date of entry (moving in date). Subject to certain conditions being acceptable to the seller. This would often include a favourable outcome of any survey commissioned by the buyer
•    Survey first: Some buyers consider having a property surveyed prior to making an offer but more often than not, buyers nowadays make an offer first and only instruct a surveyor once an offer has been accepted.

Formalising the contract

After receiving a formal offer from a buyer’s solicitor, agreeing the missives and contract, the seller’s solicitor sends the buyer’s solicitor the title deeds to the property, search report plus any other documents requested and agreed in the missives. The seller then signs the transfer of the title deed, known as the ‘disposition’.

•    Mortgage: Arrangements are made for the mortgage to be paid over on the agreed Entry date and the seller’s solicitor prepares the Land Transaction Return for you to sign

•    Payment Request: The seller’s solicitor will request the funds from your lender to cover the agreed price of the property plus any other associated fees in preparation for the date of entry
•    Stamp Duty Land Tax: Your solicitor will then complete the transaction by paying the Stamp Duty Land Tax and arrange for the signed title deed to be registered with the Land Registry

The property has now changed hands.

Use our free Conveyancer Comparison service to find the best conveyancer for you

Finding a suitable conveyancing solicitor for your conveyancing needs can be a lot harder than you might think. Some mortgage advisors  and estate agents will only recommend property solicitors or conveyancers that offer them the highest commission for referring them. Whilst the service they recommend might well be perfectly adequate for your needs, it probably won’t be the most competitive since they will have to cover the cost of the commission they pay out.

Other estate agents and mortgage advisors prefer not to recommend anyone as should you receive a poor service from a conveyancing firm they recommend, it would reflect badly on themselves or their company.

Taking this into account it can be difficult to find an experienced, proactive and efficient solicitor at a competitive price. In fact even knowing what a competitive price is can be problematic.

What is the difference between a conveyancer and a solicitor?

Important points to consider when hiring a solicitor

•  Communication is a key part of the conveyancing process. You need a solicitor who will communicate with you regularly and in plain English, not in a legalistic manner which may cause some misunderstanding.
• Does the firm or individual specialise in conveyancing or do they specialise in other fields and offer conveyancing as an added service? If the firm’s speciality is conveyancing, then they will more likely always be available to be contacted. If your solicitor also deals with other legal services such as criminal law for example, they might be out of the office for long periods at court hearings or interviewing clients in prison etc.
• Does the conveyancing solicitor have a case management system that can keep you up-to-date at all times? If so, is it directly linked to the case management system used by the firm, or is it a separate system that requires manually updating? More advanced Case Management Systems(CMS) will update you in real-time as the conveyancing team are actually working on your file keeping you informed at all times, regardless of where you are. Having access to real-time updates of your case is very reassuring and often results in cases reaching a quicker conclusion.
• Do the conveyancing solicitors work alongside mortgage brokers or estate agents, and if so who? Estate agents and mortgage brokers are often an excellent source of work for solicitors and therefore solicitors that don’t have a good professional manner are not usually used. The estate agents and mortgage brokers want the conveyancing solicitors to reflect favourably on them, for that reason they ensure that the conveyancers they work with are fast and efficient. As a rule of thumb, solicitors working with large nationwide estate agents are more efficient and resourceful to the client and their requirements.

The fees charged for the conveyancing process can vary enormously. For that reason we have put together an online conveyancing comparison system that will compare over 180 conveyancing quotes across the UK, ensuring that you get the best deal on the market.

The benefits of using our online conveyancing comparison service

• Your solicitor will not charge you a legal fee if your sale, purchase or remortgage does not complete.
• All solicitors agree to rigorous service standards and the service they give is rated by every client. This means solicitors are constantly working to give the best service possible.
• You don’t have to waste time attending meetings or sending letters of appointment.
• You can choose your solicitor and instruct them to start work immediately.
• Your solicitor will keep econveyancer updated so you can track your case anytime online and receive email updates as soon as progress is made.

Follow this link to our online conveyancing comparison service

Moving Yourself

If you have decided not to use a professional removal company but do the work yourself, these are some of the things you need to consider. What size van do I need? I the move is a long distance you certainly don’t want to have to make more than one trip so making sure the van you rent is big enough is important. What is access like? If access to your existing or new home is restricted, then too big a van can also cause you problems. Not being able to park adjacent to the property could mean you carrying boxes far further than necessary.

If you are able to move in a day, our advice is to move during the week. Van hire companies often close on Sundays and will charge you for two days if you rent on a Saturday and don’t return the van before they close. Conversely, if your move is going to take two days, weekends can prove cheaper as many rental companies offer a special two-day rate at weekends.

Although your rental company will insure you to drive the van, they won’t insure your contents. It’s advisable to check with your existing home contents insurance provider to see if you are covered. Some insurers will only include removals carried out by professionals as part of their standard package, so it’s best to check.

Packing

Moving house is a great opportunity to sort out your possessions. Throw away your rubbish and separate things that you don’t want, but that someone else may want into what can be given to friends/family or charity shops. Start collecting boxes well in advance of your move from local shops or supermarkets, and start saving newspapers for wrapping all breakable items.

Plan ahead

Don’t leave everything until the last minute. Start packing early, packing those things you won’t need before you move first. Pack boxes with items from the same room and mark the box so you know which room to put it in when you arrive at your new property. Also make a brief note of which items are in each box. You never know, you may need to find something urgently and don’t want to have to search through every box.

Packing tips

• Collect boxes in a variety of sizes. make sure you have plenty of packing tape, bubble wrap, and self-seal bags for keeping small things like nuts and bolts together.
• Don’t completely fill large boxes with heavy items, as they will be too heavy to move, or will break through the boxes.
• Use only the sturdiest packing boxes for heavier items.
• Put all hazardous materials, such as paint, bleach and aerosols, into a separate box and keep them away from the rest of your belongings.
• Pack an ‘essentials’ box for the first night in your new home and carry it with you. Think about what you’ll need for your first night. Your kettle, tea, coffee, cups, plates cutlery and tools for assembling items.
• Put together an overnight bag for everyone in the family to include toilet roll and toiletries for everyone.
• Mark as ‘fragile’ any boxes containing breakables. This will help when positioning boxes on the van.
• Always pack heavier items at the bottom of the box with lighter items on top.
• Bedding, pillows and blankets are great for packing delicate valuables and for protecting corners and legs of furniture from scratching.
• Keep important documents together such as passports and birth certificates and store them in a safe place.
• Don’t forget items that are outside your property such as satellite dishes if you are intending to take them with you

Using a removal company

Calling in the professionals to help you move house will certainly make your live easier. They will help relieve some of the stress of the big move. Removal companies will do as much or as little as you want. If you want everything done for you they’ll turn up, and pack everything for you and deliver it to your new home. If you want to pack yourself, they will come along and simply move you.

Read our tips on using a removal company

Removal Service Tips

• Hire a removal company at least two weeks before you move to make sure they are free on that date.
• We recommend that you use a removal company who are members of the British Association of Removers
• Cost will vary, so get at least three quotes before deciding which company to use
• If you’re moving on a weekday, check top see if the company offers a discount.
• Always thoroughly check the fine print in your moving insurance
• Agree the exact time you want the removal team to arrive
• Agree how many people will make up your removal team
• Give them clear instructions and directions to both where you’re moving from and to
• Make sure there is sufficient parking space for their van or vans
• Let the removal team know in advance of any furniture that won’t fut through your doors at either end
• Plan where you want your furniture to go in your new home to avoid you having to reposition it yourself

When moving home there are a number of people you need to inform. Our checklist will help you not to forget anyone

Financial Services

• Banks/building societies
• Credit card companies
• Council tax
• Home/building insurance
• Hire Purchase/rental
• Savings Bonds
• National Savings/premium bonds
• Pension companies
• Employers
• Inland revenue
• Social security
• Solicitor
• ISA’s
• Child benefits office
• CSA (child maintenance)
• Catalogues
• Post office – redirection

Utilities and services

• Water
• Gas
• Electricity
• Landline telehone
• Cable/satellite and internet service providers
• TV Licencing
• Mobile phone
• Council tax
• Electoral register

Health

• Doctor
• Dentist
• Optician
• Vet
• Health Insurance
• Pet insurance

Motoring

• DVLA
• Car insurance
• Breakdown cover
• Vehicle registration

Others

• Friends/family
• Subscriptions
• Milk/paper deliveries
• Schools
• Libraries
• Gyms/sports clubs
• Club cards
• Landlord
• Unions

Finally

The last thing you need to do is read the meters for both your electric and gas. At the first opportunity, let your gas and electic suppliers know what the final readings were so they can send you your final bill. That way you won’t end up paying any more than you should.

Viewing properties can be the exciting part of the home-buying process. But, viewing  a property that isn’t right for you geographically or financially, could end up clouding your judgement when you do find a property that’s right.  After a while viewing properties can become tedious, time-consuming and even a little bit overwhelming. House-hunt efficiently and effectively and make finding your dream home a pleasurable experience.

Here are our top tips on finding a house

Before you start looking, be sure in your own mind what it is you are looking for, taking all these into consideration:

The Area

No matter how nice the house is, if it’s in an area that’s not right for you, you won’t be happy. Before you start looking you might want to consider these points:

1. Are there shops and services within walking distance or would you have to drive everywhere?
2. What sort of commute would you have?
3. If you have a dog, is there an area close by you can go for walks?
4. If you have children, what are the local schools like?
5. Is there sufficient parking space in your road?
6. What council tax band will you be in?
7. t’s always a good idea to revisit the area you are looking to buy in, late a night to see if it’s too noisy.
8. Take an overview of the are using google earth and see everything from a birds eye view right down to a street view.

The Cost

When considering the type of house you want, you of course need to first set yourself a budget. When doing that don’t forget to add in al the extras that go along with buying a house which we’ve listed

Stamp Duty Land Tax

SDLT replaced Stamp Duty in December 2003 and is a tax on the purchase price of land and buildings. When you buy a property or take on a lease you may have to pay SDLT.

Stamp Duty Land Tax rates as at Dec 2011

Conveyancing Costs

You will need to instruct a solicitor or conveyancer to deal with the legal aspects of buying a property. There is no standard fee so it is a good idea to shop around for the best rate. Use our conveyancer comparison to compare up to 180 quotes making sure you get the best deal across the market.

Arrangement Fees

An Arrangement Fee is a fee charged by some lenders to cover the cost of arranging the mortgage.

Lenders Valuation Costs

All lenders will require a valuation of the property to check that it is worth the price you are offering for it. This is arranged by your mortgage lender but you must cover the cost, normally before the valuation takes place. This is not a survey, but a basic valuation. Costs vary dependant on the cost of the property, for example, approximately £200 for a house costing £160,000, approximately £250 for a house costing £350,000. Not all lenders charge this fee as an incentive for you to take out a mortgage with them.

Land Registry Fee

The Land Registry is a government department which maintains the registers of all registered properties in England and Wales. The fees they charge are for changing the register to recognise the new owner.  This fee is charged according to price of the property.

Local Authority Search Fees

Your solicitor/conveyancer will carry out the require local searches. The purpose of these searches is to find out if there are any plans in place or being considered to build new houses or extend existing houses in your immediate vicinity. They will also check to see if any new roads or road widening works are planned. The costs for these range from £50 – £100 depending on the area.

Survey Fees

You should never purchase a property without having a survey carried out first. Excluding the very basic valluation survey normally carried out by the lender, there are two main types of survey.

Homebuyers Report

Buying a property is probably the biggest investment you will ever make. Get an experts view of what you’re buying and protect your investment.

At first glance the property may look fine, but beneath those carpets or floorboards,  behind the wallpaper and in the attic, it could well be a very different story. A Homebuyers’ Report will give you a fully qualified property specialists view of your prospective new home and highlighted any potential problems there may be.

Remortgaging is the transaction or process of transferring your mortgage from one product to another. A remortgage can be with your existing lender, where you are moving to a different rate or deal, or perhaps borrowing more money to pay for a loft conversion for example. Alternatively, you may wish to move to a new lender entirely, to take advantage of better rates.

If you are considering remortgaging let our qualified mortgage advisers do the work for you.

Get a Quote – Request a callback call now on 01844 265403

If you have decided to go ahead with a remortgage, your next step will be to instruct a qualified conveyancer.

Use our free Conveyancer Comparison service to find the best conveyancer for you

Below is a step by step guide as to what happens in the remortgage process.

Firstly, chose a mortgage product and instruct a conveyancer.

Your conveyancer will then request your property title deeds from your existing lender. They will also request a redemption statement. This will establish exactly how much is left outstanding on your existing mortgage.

Your mortgage provider will then carry out a valuation on your property. Assuming all goes well, they will then send you (and your conveyancer) a formal mortgage offer letter. This will include any special instructions which may be required in order for the transaction to be completed.

Your conveyancer will carry out all the appropriate searches, such as Local Authority and Land Registry.

Once the mortgage deed has been drawn up, your conveyancer will send it to you for your signature.

Thereafter a completion date is agreed, which is when the funds are received from the new lender and used to pay off the original lender. It is at this point that your conveyancer will deduct their fees. If there is no excess of funds after the original lender has been repaid, you will have to cover that cost yourself. If indeed there are surplus funds, they will be used to pay your conveyancers costs with the remainder being paid to you into an account of your choosing.

Finally, a new Land Certificate is produced by the Land Registry. This will show that the new lender now has the First Legal Charge over your property, and confirms that the previous lender’s details have been removed. The original of this document is sent to your new lender, with a copy going to you.

Use our free Conveyancer Comparison service to find the best conveyancer for you

Find out about the Mortgage Application Process

Read our Mortgage Comparison Tips for more advice and help.

Do I have to use a solicitor?

Remortgaging, buying or selling a home isn’t something we do very often. For that reason it’s not unusual that most of us don’t already know a conveyancer. Traditionally, where people have them, family solicitors have been used for conveyancing work. Conveyancing is largely an administrative task and as such you don’t necessarily require a fully qualified solicitor to represent you.

A fully qualified conveyancer is equally able to fulfil the role, and you will usually find that they are cheaper than solicitors. Having said that, many firms of solicitors now employ qualified conveyancers to carry out their conveyancing work and can therefore compete with specialist conveyancing firms.

Do I need a local conveyancing solicitor?

Local knowledge isn’t a requirement to be able to successfully carry out conveyancing. As most of the work involved in conveyancing is secretarial, all that’s required is a PC, a phone and access to a postal service. It is not a requirement to actually meet your conveyancer or solicitor for them to represent you in the process of conveyancing. Having said that, if you expect that your transaction may involve things like splitting a property, moving a boundary or changing a  right of way, then it would be useful if your conveyancer was local enough to visit the property if required.

Conveyancing Fees

With the difficulties people are experiencing in getting mortgages, it’s worth knowing that even if you accept an offer, or have your offer accepted, it’s by no means certain that the sale will go through. This can often be the fault of someone totally unrelated further down or up the chain that is forced to, or chooses to, pull out of their transaction. With this in mind we advise that when getting a price from your conveyancer or solicitor, you get two prices. One assuming that the transaction goes through as expected, and another in case the transaction doesn’t complete.

Bad Conveyancing

As in any walk of life, there are good conveyancers and solicitors and not so good ones. With the buying or selling of a property involving such large sums of your money, it’s imperative that you are well represented. Failure to read important documents properly could leave you owning a property with planning issues. Taking too long could put the success of your move at risk, both of which will cost you money.

As we have already vetted our pool of almost 200 conveyancing solicitors, why not use our free conveyancing comparison tool to find the best service for you.