When it comes to buying and selling property in the UK, there are a number of differences when comparing Scotland to England and Wales. If you are in the process of moving from England or Wales and are looking to purchase your first Scottish property, these differences can come as quite a surprise, which is why we wanted to share this handy guide on what to expect when buying property in Scotland, and how the Scottish system differs.
For buyers, working with experienced estate agents in Scotland and understanding these differences can make the process feel clearer and more manageable from the outset. For anyone buying a home in Scotland, particularly a first time buyer, understanding the home buying journey is an important financial decision.
The Role of Estate Agent & Solicitor
We start off our guide by taking a look at how the role of Estate Agent & Solicitor can differ in Scotland compared to England and Wales. In Scotland, the two roles are frequently combined and the service is available under one roof, whereas in England and Wales, the legal conveyancing process is managed separately by a solicitor or licensed conveyancer.
This can be an important advantage for buyers and sellers alike. Where estate agency and conveyancing work closely together, communication can be more joined up and the process can feel more straightforward. This is one of the reasons many people choose to work with Scottish estate agents who also understand the legal side of the transaction and can help coordinate legal representation from an early stage.
Another difference relates to when a solicitor would become involved in the process. In Scotland, a would-be buyer would need to instruct a solicitor to make an offer on their behalf. Making an offer, sometimes referred to as Offer Submission, is therefore a more formal step in the Scottish system. In England and Wales, it is common to only instruct a solicitor when you have had an offer accepted on a property.
As part of the Legal Work, your legal professional will review legal terms, carry out due diligence, examine the Title Deeds, check the Land Register and confirm important details relating to the property address. These checks are an essential part of the selling process and buying process alike, helping protect buyers and sellers from avoidable issues.
No 'Gazumping'
Now, whilst there is no legal grounding in this area, 'gazumping' where a seller who has already accepted an offer on their property receives and accepts another, higher offer seldom occurs in Scotland. This is because a property is almost always removed from the market as soon as an offer has been accepted. It is also strengthened by the fact that Scottish solicitors have to decline to act on behalf of a seller who decides to accept another offer after already agreeing to accept an offer, unless the first offer fell through at no fault of the seller.
In practice, this means the seller's solicitor will usually proceed on the basis that an agreed offer is being taken forward. Unfortunately, 'gazumping' is still a common issue in England and Wales and causes many buyers to miss out on their dream property. For people buying and selling property in Scotland, this can make the process feel more secure and give both parties greater confidence once an offer has been agreed, especially where a property is chain free.
Stamp Duty vs LBTT
Another difference is the property taxation system.
Land and Buildings Transaction Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) in Scotland from 1st April 2015, with the tax being applied to residential and commercial land and buildings transactions. LBTT is a tax that is payable at different rates on each portion of the purchase price within specified tax bands.
This is an important cost to factor in when budgeting for a move, alongside legal fees, mortgage costs and other expenses associated with buying a home. Buyers coming from outside Scotland are often unfamiliar with LBTT, so it is helpful to understand this early in the process.
More information on how these changes will impact how much LBTT you pay on your property purchase can be found here.
Home Reports and Information Upfront
One big plus point of buying property in Scotland is that sellers are required to have a home report. This applies to all properties excluding new builds and several other exceptions.
A Scottish Home Report will contain items such as a survey, a detailed property questionnaire and an Energy Performance Certificate (EPC), which gives you as a buyer useful insight into the condition of the property before you make an offer. These property assessments are a key feature of the Scottish system and can be particularly useful to a first time buyer.
The survey within the Home Report is often prepared by a surveyor who is a member of the Royal Institution of Chartered Surveyors. If you are buying with a mortgage, your mortgage provider will typically rely on the valuation in the report when considering how much to lend, although some lenders may also request a separate Mortgage valuation. In some cases, buyers may choose to arrange a more detailed property survey or Building Survey for additional reassurance.
Before making an offer, many buyers will already have an Agreement in Principle, sometimes called a Mortgage Agreement in Principle or mortgage ‘in principle’, in place. This can help when it comes to making a timely Offer Submission in a competitive property market. Once an offer is accepted, the buyer can proceed with the full mortgage application and move towards a formal mortgage agreement.
This process is very different to England and Wales, where property sellers only need an Energy Performance Certificate before putting the property on the market. It is then down to the buyer to instruct a survey, which is usually done when an offer has been submitted, subject to survey. For buyers searching through the market with the support of estate agents Scotland, the Home Report is one of the clearest examples of how the Scottish buying process provides more information earlier on.
Freehold vs Leasehold
In England and Wales, the vast majority of flats and a very small number of houses are leaseholds, which means you do not own the land the property is built on. A leaseholder essentially rents the property from the freeholder for a number of years.
However, in Scotland, all properties are sold as freehold, where you own both the property and the land it is built on. This is another notable difference that often comes as a surprise to buyers relocating north of the border.
Offers Over
Whilst it is not exclusive, the majority of properties in Scotland come to market with an 'offers over' price. If there is significant interest, a closing date may be set where buyers will submit their best offers on a nominated day.
This can feel unfamiliar to buyers from England and Wales, especially in competitive areas or fast-moving markets. It also means buyers should be well prepared before offering, with their finances, solicitor and mortgage arrangements in place as early as possible.
Missives
The last difference on our list relates to the contracts when buying and selling property in Scotland.
Missives is the term given to the series of letters that are exchanged between solicitors on behalf of clients that make up the contract for the sale of property from the seller to the buyer. They will include conditions such as the price of the purchase and the completion date.
On average, missives take around 6 to 8 weeks to conclude, quicker if it is a cash purchase. Once they are concluded, the deal becomes legally binding and the seller must agree to transfer the legal title of the property to the buyer. If a seller fails to do this, the buyer is within their rights to claim damages against the seller.
In England and Wales, no legally binding agreement exists until contracts are signed and exchanged, which gives both the buyer and seller the opportunity to pull out of the purchase at a much later stage in the process.
These differences in the buying process are due to the separate legal systems that exist within Scotland and England and Wales. It is important to understand them before you begin your move. Whether you are buying your first home, relocating from elsewhere in the UK or simply trying to understand the Scottish market better, having the right support can make the journey much easier.
If you have any further queries or would like guidance on buying or selling property in Scotland, please contact our team. Drummond Miller is here to support you at every step of the way.