Here are some top tips from us to help the whole process go smoothly.
Your reservation fee, along with your solicitor details and personal identification, reserves your new home for a period of 28 days (unless advised otherwise).
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During the time between reservation and final settlement, your home will be withdrawn from sale and it will not be subject to any price increases. The reservation fee, and the payment made when missives are completed forms part of the deposit on your new home. This will then be deducted from the purchase price upon settlement.
If you decide to cancel your purchase, our sales advisors are there to explain your cancellation rights to you and help you with the whole process.
Finding a solicitor
Your solicitor is the person responsible for the conveyancing process. Their job is to take care of the legal aspects of your new property. These include:
• checking the legal title to the property and carrying out legal searches
• collecting and transferring funds during the sale
• organising payment for LBTT and any other charges that may incur
• offering legal advice.
Often the best way to find a solicitor is to ask friends or relatives for recommendations. However, your Cruden Homes sales advisor can give you a list of local solicitors to help you during the process. Although, please note that we are not able to make specific recommendations.
Land and Buildings Transaction Tax (LBTT)
LBTT replaced UK Stamp Duty Land Tax (SDLT) in Scotland on 1 April 2015. LBTT is a progressive tax that’s payable on all property purchases over a certain price threshold.
As at January 2018, LBTT is currently 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.
Moveable property is not included within chargeable consideration. Moveable property includes things like fixtures and fittings e.g. curtains and furniture.
The Scottish Government plans to introduce a new relief on LBTT for first-time buyers in Scotland later in 2018, which increases the zero-rate threshold from the current level of £145,000 to £175,000. Please visit www.revenue.scot for the most up to date information available or ask your sales adviser.
Finding a mortgage
Mortgages. There is a huge range of them out there. How much your mortgage will cost you each month is entirely dependant on the mortgage you choose. That’s why it’s important to find the one that’s right for you.
Building societies and banks offer a range of mortgage deals, and will always offer the best advice in relation to your loan.
If you’re not sure how to seek financial advice, one of our sales advisers will help you in finding an independent financial advisor or mortgage broker.
Before making a mortgage offer, your lender will go through a series of checks on the property and request a valuation. This is another cost you need to consider when buying a home, as your lender may charge you for this service.
Concluding a missive
Your solicitor will arrange for you to sign a copy of the missive – you’re then usually required to pay a further deposit. Once missives are concluded, the transaction becomes legally binding.
Settlement day – it’s one of the more exciting parts of the buying process. This is the day you finally become the legal owner of your new home.
Once your solicitor has transferred the funds for the property, a Cruden Homes’ solicitor and your solicitor will then receive the Title Deeds to your new property.
After you have completed the registration procedure, the Title Deeds will be forwarded to your mortgage lender.
There are two types of home insurance – buildings insurance and contents insurance. Your mortgage lender will often recommend an insurance company for you to use. However, insurance is one of the largest costs of managing a new home – it’s a good idea to shop around to find a policy suited to you.
Your new Cruden home is insured by us up until the day of settlement. From then on, you’re responsible for both building and contents insurance. However, if you’ve arranged with us to put any items into your new home prior to legal completion you will be responsible for insuring them.
It’s up to you whether or not to have buildings or contents insurance, but we recommend that you do. There are risks involved in not insuring your contents, and ultimately, you won’t be covered if anything goes wrong.
If you’ve bought a flat, it’s likely that the buildings insurance will be administered through your factor and payable as part of your regular management charges. But, you should always ask your insurer. They’ll advise you on what cover you need, depending on the type of flat you own.