The Process of Buying a New Home

This information outlines the reservation process through to settlement

Your Reservation Fee

Your reservation fee, along with your solicitor details and identification, reserves your new home for a period of 28 days (unless otherwise advised). Thereafter you will be expected to conclude a missive. If you have not concluded missives by the required deadline, your reservation will expire.

On conclusion of missives, a further payment will be required (see Concluding a Missive below).

During this period from reservation to settlement, your home will be withdrawn from sale and it will not be subject to any price increases.
The reservation fee and the further payment on missive form part of the deposit on your new home and will be deducted from the purchase price at settlement.

The sales adviser will explain your cancellation rights to you.

Land and Buildings Transaction Tax

Land and Buildings Transaction Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) in Scotland from 1 April 2015 LBTT is a progressive tax payable on all property purchases over a certain price threshold. Revenue Scotland will administer LBTT with support from Registers of Scotland (RoS).

As at November 2015, LBTT is payable on all homes with a purchase price over £145,000. The amount you will have to pay is based upon the purchase price of your home.

Currently the scale charges are as follows:
£0 - £145,000 = No LBTT
above £145,000 to £250,000 = 2%
above £250,000 to £325,000 = 5%
above £325,000 to £750,000 = 10%
over £750,000 = 12%

If the purchase price is above £145,000, LBTT is charged at the appropriate rate on the amount of the chargeable consideration within the relevant bands.

For example, a house bought for £280,000 is charged at:
0% for the first £145,000,
then 2% for the next £105,000
5% for the next £30,000
therefore, £3,600 must be paid in LBTT

Consideration genuinely attributable to moveable property is not included within chargeable consideration. Moveable property includes fixtures and fittings eg. curtains and furniture. Please visit www.revenue.scot for the most up to date information available.

Mortgages

If you do not have your own adviser, your sales adviser can assist you in engaging an independent financial adviser or mortgage broker.

Valuation Survey
If you are taking a mortgage, your lender will require to have the property valued. Your lender may charge you for this service and you should check this with the lender or intermediary.

Concluding a Missive

Your solicitor will arrange for you to sign the copy of the missive. At this time you are usually required to pay a further deposit.

Once missives are concluded the transaction becomes legally binding.

Settlement

Settlement is the actual day when you become the legal owner of your new home.

At this time, the purchase price will be transferred to Queensberry Properties’ solicitor and your solicitor will receive the Title Deeds to your new property. After completion of the registration procedure, the Title Deeds will be forwarded to your mortgage lender (if applicable).

Insurance
Your new home is insured by Queensberry Properties until the day of settlement. From then on you are responsible for the insurance of both the building and its contents.

If you have a mortgage, your lender will insist on building insurance. Please check with your lender as to the type and amount of cover required. If you have purchased a flat, it is likely that the block building insurance will be administered through your factor and payable as part of your regular management charges.