Why choose a new build home?

There are many advantages to choosing a new build home over an older property.

• Everything in the property is brand new. It should be in move in condition with no decorating and minimal DIY required
• You’re unlikely to need to make any repairs within the first few years
• Energy efficiency and fire safety standards will be high
• You may be able to choose fixtures and fittings while the property is being built, or negotiate with the seller on some items
• New build homes come with a 10 year warranty (guarantee)

Where do I find new build homes?

New build property developers advertise on s1homes.com. There are over 1200 new homes all over Scotland from developers such as Ogilvie Homes, County Estates, Barratt Homes, Stuart Milne and many more.

Viewing new build homes

For developments that are already built, the process is similar to any other type of property. You will contact the seller and arrange a time to visit and be shown round. However, if the development is in progress, or still in the planning stages, you may visit a show home – a property already completed that is similar to the one you’re interested in. There may be other people visiting at the same time and an appointment is not always necessary. You might also be able to see an artist’s impression of how the property is expected to look. It’s important to consider if building works will be continuing around you if you were to move in, or if there are further plans for the area surrounding the development you are interested in.

Buying a new build property

Some of the buying process is the same – you will need to work out what you can afford, arrange a mortgage and appoint a solicitor to make an offer. New builds are usually sold at fixed price, however, some new home developers offer incentives such as part exchange or a contribution towards your deposit. They may also participate in the Scottish Government’s Help-to-Buy Scheme. Each developer has different offers so it’s best to check what applies to the area or development that you’re interested in.

New homes are often advertised during the planning and building phases so there are different options:

• Buy a completed new home
• Buy a home that is in the process of being built
• Buy a home that has been planned but has not yet been started. This is known as buying ‘off plan’

Buying ‘off plan’ is where this purchase of a new build is particularly different from an older property. Because your property is not yet built you will need to get a completion date from the developer. If this is not written into your contract as a condition of the sale, there is the possibility that this may be delayed. Once contracts are agreed, a deposit will be paid and the agreement with the builder becomes legally binding. Your property will be inspected before completion to check that it meets the required standards and issue a note to your solicitor on satisfactory completion to allow mortgage funds to be released.

Inspections and snagging

It is a good idea to do a snagging inspection, or pay a professional company to carry this out for you. This is an inspection of the home and reports any flaws that the developer should fix. If you are doing this yourself make sure you have a checklist so you know what to look for and ideally carry it out before completion to allow time for repairs. It can still be done within the first two years of the warranty. There is more information at the NHBC website.

To search new build homes in Scotland, search s1homes.com

Types of property sold at auction

Most properties can be sold at auction, but there are some types that are more likely to be put to auction, rather than through more traditional methods.

• Properties with renovation potential – Developers looking for a property to modernise or refurbish often seek out opportunities at auction
• Land for building on – Plots and land for development (often coming with some planning permission) are sought after at auction
• Property selling for less than market value – Sellers looking for a quick sale or properties that have been repossessed
• Properties that have been left empty

Buying property at auction

For those of us who have watched Homes Under the Hammer, it’s clear that there is a buzz and excitement about buying property this way and there are certainly advantages.

• Property is often cheaper and you are aware of what the other buyers are offering, so it’s more transparent
• The sale also goes through quickly
• In some cases, the auction may accept offers before the event itself takes place

However, if you’re not familiar with the auction process, it can seem daunting and it’s best to do your research beforehand.

• Due to the increased speed of the transaction, your mortgage or finance should be in place before considering a bid. You should have discussed that you are looking at auction property with your lender as it can change the terms of the loan
• Be willing to take on a project. Often, the properties sold at auction will be in need of renovation. You can arrange to view the property and review the Home Report in advance of the auction. You may also want to arrange your own survey and get some estimates for work before you decide to bid
• Properties can be highly attractive to buyers so it can be highly competitive

The auction process

Auctions take place across the country regularly but you do not always have to be physically present on the day. You can bid over the phone or pay your solicitor to bid on your behalf. In some cases you may be able to bid online. The methods available to you will vary depending on the agent handling the sales auction so it is best to contact them directly. This is a good idea anyway, especially if you have never been to auction before. The agent will be able to offer advice on the process and what you should do – and allay your fears that you might accidentally sneeze and make a purchase! It’s also a good idea to go along and just observe the first time to get a feel for how it works.

Search auction properties at s1homes.com to find your next potential property.

For those pushed for time, we have chosen our top 5 conversion properties on s1homes.com this week.

1. Brown St, Newmilns. East Ayrshire.

As one of the world’s last traditional Scottish lace mills, there’s a lot of history behind this property. Added to that, it’s made up of interconnected buildings, making it ideal to split into smaller units if that appealed to the buyer – a good one for investors.

2. Isle of Soay, Broadford and South Skye.

This property is in a beautiful location on the Isle of Soay which is roughly four square miles – although not for everyone as it’s so remote. Normally accessed by boat and only seven houses on the island, this property is a project but will be worth all the effort for the right buyer.

3. The Crescent, Skelmorlie. North Ayrshire

Huge rooms, extensive gardens and retained period features are just a few details that make this property appealing – plus all the hard work has already been done for you!

An open fire and views out to the Firth of Clyde make this three bedroom conversion a dream home.

4. Bridge Castle House, Bridgecastle. West Lothian.

This luxurious 2-bedroom garden level apartment is within an exclusive B-listed castle conversion set in picturesque garden grounds. It is a unique country home with character, elegance and exuding charm and history.

5. Bridge St, Tradeston. Glasgow

Grand is one word that sums up this property. At one time, the property was The Glasgow Savings Bank but is now being advertised as the perfect venue for a club or restaurant. You might not want to snap this property up as a home but we couldn’t leave it off the list with its imposing interior features.

If these five have caught your interest, see all conversions currently for sale at s1homes.com

What is Land and Buildings Transaction Tax?

On 1 April 2015, Land and Buildings Transaction Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) in Scotland, under new devolved powers contained in the Scotland Act 2012.

How is this tax different to UK Stamp Duty?

At introduction, the Scottish Government said that 9 out of 10 taxpayers will be no better or worse off under this system. It is a graduated tax rate which works in a similar way to income tax and is designed so that the charge is more proportionate to the price of the property.

When is LBTT payable?

Residential properties under £145,000 will not be subject to the tax. Rates applied above this purchase price can be seen in the table below. The tax is only payable on the amount above the threshold.

E.g. If the property cost £150,000, 2% tax would be applied to £5,000.

Revenue Scotland has developed online calculators for reference.

How will LBTT be paid?

LBTT is usually paid on behalf of the seller by their solicitor, as part of the conveyancing transaction. The final responsibility lies with the buyer so check with your solicitor if they will do this for you. If not, you will have to submit the form online. Practical advice for buyers submitting a return can be found at Revenue Scotland.

Search properties for sale in Scotland at s1homes.com

You will have looked at the photos online or in a printed schedule, but it’s important to visit and take a thorough look around any property you are interested in buying. Here are our top ten tips for viewing properties.

Before the viewing

1.       Make an appointment with the estate agent or private seller to view the property. They will give you availability for a private appointment, or they may invite you to an open house where you will tour the property along with other interested parties.

2.       Take a walk or drive around the area. It’s important to make observations about the availability of parking and how well-kept the property and surrounding areas are. This is also a good idea if you are moving to a new area so you can see if it is the kind of place you want to live.

3.       Think of questions that you want to ask of the seller. It’s a good opportunity to ask about typical utility bills, factoring fees and the neighbours. This is particularly good advice if you are a first-time buyer and are not sure what you will expect to pay out in the month.

During the viewing

4.       Download and print our handy checklist. Taking this list along with you will help you remember what to look for. It will also help you remember the properties after the viewing – especially if you have seen lots.

5.       Take a friend or relative along. They might think of questions that you haven’t, or notice things that you don’t and it’s always good to have a second opinion.

6.       Ask those questions that you have prepared in advance. Others might occur to you during the appointment so ask them too. It’s in the seller’s interest to be helpful and offer this information.

7.       Be respectful of the seller.  Be aware that they might be shy or uncomfortable having viewers in their home or on the other hand, be overly keen.  In some cases, it will be the estate agent conducting the viewing and they will be much less emotional about the property.

8.       Don’t be put off by the décor.  Try and see past the furniture, paint and wallpaper that is not to your taste. Look at the shape of the rooms, the storage and the potential for you to make the space your own.

After the viewing

9.       Arrange a second look. If you liked the property and are considering making an offer, it is a good idea to return for a second viewing. Try to go at a different time of day to see any differences in parking, behaviour of neighbours and light in the property.

10.   Take learnings from the viewing. If a property wasn’t for you, it’s a good idea to note on your checklist what you liked about it and what put you off. This will help in your search and arranging further viewings to make sure you get what you are really looking for.

Search property across Scotland at s1homes.com 

Image credit: www.flickr.com/pawelbiernacki

Once your offer has been accepted and your entry date has been agreed, it’s time to think about moving. It can be stressful, but making lists is key to keeping you as organised as possible.

Here’s our moving house checklist of what to do and when, in the weeks leading up to your move – and on moving day itself.

Preparing for moving day

1. Clean out your cupboards. Try to use up the contents of your cupboards, fridge and freezer – it’s less to pack and allows you to defrost your appliances.

2. Start packing

• Collect boxes for packing and bubble wrap to protect fragile objects
• Have a clear out and donate unwanted items to charity
• Start packing non-essentials
• Pack a box to keep handy for the first night in your new home – tea, coffee, snacks, cleaning products and toiletries
• Mark fragile on boxes containing breakables
• Mark all boxes with the room that they will be going in at your new property

3. Keep stress to a minimum and plan for someone to look after your pets and/or young children on moving day

4. Notify utility suppliers, companies related to your finances (banks, credit cards, your employer etc.), and the DVLA of your new address

5. Gather up and keep all your important documents (passports, marriage certificates) safe

6. Collect spare sets of keys from relatives and friends

7. Write directions for your moving company, provide a plan of your new home and organise parking for the removal van

On moving day

1. Finish packing anything that you have still been using (bedding, toiletries etc.)

2. Disconnect appliances

3. Show the removers round your home and explain what has to go and what has to be left behind

4. Lock up and make your way to your new house

5. Show the removal team round your new home and explain what has to be put where

6. Check the van to be sure it has been emptied of all your belongings

7. Make up the beds

8. Relax with a celebratory glass of champagne and leave the unpacking until tomorrow

Happy moving!

If you’ve sold your property but haven’t found somewhere new yet or you’re thinking about moving, search properties for sale and to rent in Scotland at s1homes.com.

In recent years, mortgage lending has become stricter. In the past, lenders multiplied your salary by three to five times – known as loan-to-income ratio – to decide how much to offer you. Now, mortgage lenders will cap the amount you can borrow at a maximum of four and a half times your income but will also calculate your affordability of the loan based on both your income and your outgoings.

As soon as you are considering buying a property you should start finding out about mortgages. This will give you a guide to the price bracket to search in and will mean you can act fast when you find a property you like.

How much to borrow?

• Be realistic about how much you can afford to pay back on a monthly basis. Don’t automatically take on the maximum that you are offered without being sure that you can comfortably manage the repayments.
• Keep in mind that interest rates can change, therefore your monthly payments may increase or decrease.
• Allow for changes in your salary or work circumstances. For example, if you plan to reduce your working hours or take a break to start a family
• Think about other expenses associated with owning a house such as council tax, utility bills, insurance etc.

Deposits

The amount of deposit you have, (or equity in your property if you’re remortgaging) will influence how much you can borrow and at what rate. In most cases you will need at least a ten per cent deposit.

The higher the deposit you have, the better your mortgage rate will be. Having a larger deposit also reduces the risk of negative equity (where the value of your home is less than the outstanding mortgage).

Remember, to take other costs associated with buying a new property into consideration when working out how much of a deposit you can afford, for example, legal fees.

Getting a mortgage

From 26 April 2014, the Financial Conduct Authority (FCA) introduced new processes for getting a mortgage. The new rules were introduced to avoid people falling behind with payments or losing their home as a result of over borrowing.

Anyone selling mortgages must be registered with the FCA. You can check the FCA register here.

Things to watch out for:

• When talking to lenders or mortgage brokers ask if they are offering information or advice. To offer advice they must have undergone specialist training
• Check how interest is calculated. There are many different ways to calculate interest and this can make a difference to your monthly payments
• If you want to switch your mortgage to a better deal or pay it off early there may be redemption charges
• If a mortgage is described as CAT (charges and access terms) standard, this means it adheres to government standards and should be reasonable value with no hidden charges.

Once you have chosen the mortgage you want, make an appointment with your lender. You may need to take along the following:

• Three months pay slips from your employer (or three years accounts if you are self-employed)
• Proof of the length of your contract
• Copies of three months bank statements
• Proof of twelve month mortgage or rent payments
• Copies of insurance policies (building, contents and life insurance)

Once you’ve filled in the application form the lender will consider all of your income details and do a credit check. They will then give you an acceptance in principle which is useful to show a seller. However, this does not guarantee that you will definitely get a mortgage for a particular property.

The final application will not take place until you have had an offer on a property accepted.

Types of mortgages

There are many different types of mortgage available and it’s worth comparing and speaking to different lenders. There are a number of mortgage comparison websites which can be useful as a start and you can get advice from an intermediary.

An intermediary could be:

• An independent financial adviser (IFA)
• An estate agent
• A solicitor
• A mortgage broker
• An accountant.

Features and benefits of mortgages vary greatly, but no matter which mortgage you choose you will have to repay the amount borrowed plus interest.

Repayment mortgages

• Monthly payments are used to repay the amount borrowed and the interest
• Monthly payments are typically higher
• At the end of the term, the loan is guaranteed to have been paid in full.

Interest only mortgages

• Monthly payments used to repay the interest only
• At the end of the term, the capital is still outstanding and must be paid
• Usually, money is deposited into a long term savings plan for the length of the term ensuring money is available to repay the capital
• The buyer is liable for the shortfall.

Over the term, there probably won’t be much difference in the total cost of the mortgage. However, it’s worth remembering that only repayment mortgages guarantee that your monthly payments will cover the entire loan.

Most mortgages are paid back over a 25 year term. However, if you can afford higher monthly payments, it’s worth reducing the term which means you’ll pay less to the lender in interest. It’s also possible to have a longer term which will lower your monthly payments but you’ll pay back more in interest.

Bridging Loans

If you are buying and selling a property at the same time, you may need to take out a bridging loan to ensure that you have the funds to continue with the purchase. This means that the bank will lend you the money for your new home before your current home has sold, like a very short-term mortgage.

However, it can be a very expensive solution so it is worth speaking to your mortgage adviser to get more information.

What to do if your mortgage application is rejected

There could be many reasons your mortgage application is rejected; credit rating, income, employment status, problems with the property. You can ask the lender for reasons for the rejection. You may want to try other lenders.

If the reason is because of your credit history it’s worth checking with credit agencies that they hold the correct details for you.

If you feel you have been treated unfairly by a lender or broker you should approach them first to try and resolve the problem. However, if there are no suitable resolutions you make a complaint to the Financial Ombudsman Service.

 Search properties for sale across Scotland at s1homes.com

What is a Home Report?

Home Reports are unique to Scotland. They were introduced by The Scottish Government in 2008 to provide buyers and sellers with better information about the value and conditions of properties for sale in Scotland.

About the Home Report

The Home Report is made up of three documents:

1.    The Single Survey

This is an assessment by a chartered surveyor of the condition of the home, a valuation and an accessibility audit for people with particular needs.

2.    Energy Report

This is also prepared by a chartered surveyor. It is an assessment of the energy efficiency of the home, its environmental impact and recommends ways to improve the energy efficiency.

3.    Property Questionnaire

The property questionnaire is completed by the seller of the property. It contains additional information that is useful for buyers, such as council tax banding and factor fees.

Who needs a Home Report?

Sellers must have a Home Report before marketing a property for sale. Buyers can find out key information about properties they are interested in, before arranging viewings and making offers.

Are there any exceptions?

There are some properties that don’t need a Home Report. Exceptions include newly converted premises, unsafe properties and properties to be demolished. A full list of exceptions can be found on The Scottish Government website. If a property does not require a Home Report, the seller will still need to obtain an Energy Performance Certificate.

How do you commission a Home Report?

For sellers using an estate agent, you can commission a Home Report through your agent. There is also the option to commission it directly with a chartered surveying firm.

How much does a Home Report cost?

The Royal Institution of Chartered Surveyors (RICS) in Scotland advises that Home Reports will cost sellers between £585 and £820. The cost will depend on the size of your home and the surveyor you decide to use. You should request quotes from a few surveyors to ensure you get a competitive price.

How long does a Home Report last?

Your Home Report must be no more than 12 weeks old when the house is put on the market so that the most up-to-date information about the property is provided to potential buyers. If you want to take your property off the market, you can do so for 4 weeks at a time without requiring a new Home Report.

If your property has been on the market for a significant period of time, a buyer might request that it is updated. This will be agreed on both sides and a charge agreed with the Home Report provider.

Do you have to supply the Home Report to anyone who asks for it?

If you think the buyer could not afford the house, is not genuinely interested in buying the house or is not a person to whom you would wish to sell the house, you do not have to supply a copy.

Any other questions? The Scottish Government has a useful Home Reports website.

If you’re considering selling your home, get a free valuation and search a full directory of estate agents across Scotland at s1homes.com.

We have everything you need to know about getting onto that first rung of the Scottish property ladder in our first-time buyers guide.

Deposits and mortgages

Whether or not you’re a fan of maths, when it comes to buying a property it’s important to do your sums. In the current market, most banks won’t lend more than around 90%, so you’ll need to have a 10% deposit. The higher deposit you have, the better your mortgage rate will be. It also reduces the risk of negative equity (where the value of your home is less than the outstanding mortgage.)

• Think realistically about what you can afford – don’t borrow more than you can comfortably repay just because it’s offered to you. Bear in mind, unless you have a fixed rate mortgage, your monthly payments could also change.
• Consider your bills – council tax, utilities, insurance, factor fees etc. Take advice from friends and family on how much you should budget, and ask the current owner of properties you’re viewing what they pay out each month. The Home Report will include Council Tax band and other useful information.
• Talk to the experts. Banks and independent mortgage advisers can help with your financial planning and guide you in the right direction – always check upfront if you will be liable for a fee for their advice.

Searching for property

Once you have an idea of what you can afford, think about where you’d like to live and what’s important to your lifestyle. Do you want to be close to public transport links and shops? Or maybe the proximity to restaurants and bars is of key importance. Thinking about where you want to live is a good starting point.

So, what about the property itself? Do you want a new build or an older property with period features? Maybe it’s important to you to have a large kitchen or central heating. Make a list of your requirements and those that you’d be prepared to compromise on.

Start searching! 95% of people start their search online on sites like s1homes.com, Scotland’s biggest property site. You can even set up property alerts based on your search criteria to be emailed as soon as property matching your criteria hits the site.

Viewing properties
Estate agents across Scotland advertise their properties with online portals, like s1homes.com. Alongside the listing, there will be contact details for the agent. Call or email them directly from the site or your property alert email and arrange a time for a viewing. Once you’re in touch with them, agents will also be on the lookout for properties coming onto their books matching what you’re looking for.

For things to look out for during a viewing, print our handy property checklist.

Putting in an offer

You’ve found somewhere you want to buy. It’s important to know that the process for buying a property in Scotland is different to the rest of the UK. You will need to instruct a solicitor to make an offer on your behalf. If accepted, solicitors will then draw up paperwork, including missives and agree a date of entry.

The move

You’ve got your moving date. Now to get organised. See our tips for what to do when, packing and removal.

After you’ve moved in

As well as thinking about paint, carpets and cushions, it’s important to identify and sort out any issues as soon as possible. Check the property thoroughly to make sure everything works and that you have everything you negotiated as part of the sale, such as curtains or blinds. If there is anything wrong, contact your solicitor immediately as you will have 5 working days to raise the issue with the sellers.

It’s daunting, but mostly exciting, to search for and buy your first property – so give yourself a congratulatory pat on the back. Until you decide it’s time to do it all again…

For lots more advice and to search for property for sale in Scotland, visit s1homes.com

Image credit: www.flikr.com/moyanbrenn

This week, Glasgow councillors are expected to agree to a new partnership with Glasgow Credit Union.

The two year pilot Partnership Mortgage Guarantee Scheme will provide for house hunters who can afford to pay a mortgage but cannot raise the necessary deposit.

At present, lenders are demanding deposits of between 5% and 25%, which for many people on low incomes is impossible to raise.

Glasgow Credit Union will allocate up to £4million in mortgage funding over the period.

The council will act as a guarantor for the loan over a maximum five year period, up to a maximum of 20% of the original mortgage amount in the first year, reducing to 10% by year five.

An incentive will be offered to those considering buying homes which have been vacant for some time. In a bid to bring empty properties back into use, the council will meet the first £500 of buyers’ costs when they acquire a property which has been noted on the council tax register as empty for the last six months.

Loans will be given up to a maximum property value of £125,000, although the expectation is that the average property value will be around £80,000.
Glasgow Credit Union will also provide guidance to buyers with regards to survey costs and legal representation.

First-time buyers are the main target for the scheme and applicants must purchase the property as their main residence. It is expected the pilot will attract 50 buyers.

City council leader Gordon Matheson said: “This is a fantastic scheme, giving people in Glasgow the chance to own their home when otherwise they could not.

“It is the only scheme of its type in Scotland – a unique partnership between a local authority and a credit union to deliver such a service.

“We are delighted to work with Glasgow Credit Union on this pilot project, which helps to tackle the changing needs and demands of housing all across the city in a number of ways.”

June Walker, chief executive of Glasgow Credit Union, said: “For many people, especially the younger generation, saving enough for a deposit for their first property can be an impossible task.

“It’s frustrating for them that they often pay more in rent than they would as a monthly mortgage repayment, but because they don’t have a large deposit to put down on a property, they’re excluded from becoming home owners.

“This innovative scheme will provide them with the opportunity to get onto the property ladder, and we’re excited to be partnering with Glasgow City Council to offer this service.”

Source: Evening Times