Key differences between buying property in Scotland and England

Purchasing a property in Scotland is a very different process than the rest of the UK. Scotland has a separate legal system from England, Wales and Northern Ireland, which means there are distinctly different procedures for property transactions.

Preparing to sell a property

In Scotland, it is a legal requirement for a Home Report to be carried out prior to a property being placed for sale on the open market. The Home Report includes a Single Survey, an Energy Performance Certificate (EPC), a Property Questionnaire and a Mortgage Valuation. This report is available to all potential buyers before they commit to purchasing.

Marketing a property

In Scotland, properties are often marketed with either a fixed asking price or an ‘offers over’ price, with the aspiration of the final sale price to be up to 20% higher or more, depending on market conditions.

Making an offer

In Scotland, buyers must appoint a Solicitor to submit an offer on their behalf. They can either note their interest in the property to be kept informed about other offers and closing dates or make a formal offer through their Solicitor. Closing dates, where all interested parties submit their best offers, are more common in Scotland. The seller’s Solicitor then issues a qualified acceptance letter, getting the conveyancing process formally underway.

Paying Stamp Duty

In Scotland, Stamp Duty Land Tax was replaced by Land and Buildings Transaction Tax (LBTT) in April 2015. LBTT is charged proportionately to the property price with different rates for each price band. Properties priced at £145,000 and under are exempt from LBTT, with first-time buyers enjoying an exemption up to £175,000. An Additional Dwelling Supplement (ADS) may apply in Scotland for second homes.

The conveyancing process

In Scotland, Solicitors exchange a series of formal letters known as ‘missives.’ The missives are the contract. Once the missives are concluded, the sale becomes legally binding much earlier in the process. Failure to complete a sale or a purchase when missives have been concluded has legal and financial implications on the party who does not fulfil their obligation in terms of the missives.