Buying or selling a property can bring plenty of questions, especially if you’re not familiar with the conveyancing process.
From the terminology used to the costs and timescales involved, there’s a lot to get your head around. So, we’ve rounded up five of the questions we’re asked most often and put the answers in one place.
1. How long does conveyancing actually take?
A typical conveyancing transaction can take around eight weeks, although every sale and purchase is different. Where both solicitors are proactive, and there are no significant issues to resolve, we can sometimes complete transactions much sooner. We’ve completed matters in as little as four to six weeks. Delays can happen for all sorts of reasons, from waiting for searches and paperwork to dealing with alterations, notices or additional property reports. The important thing is keeping things moving wherever possible and dealing with any issues as they arise.
2. What does ‘noting interest’ actually mean?
If you’ve found a property you like, your solicitor may ask whether you want to note interest. Put simply, this tells the seller that you’re interested in the property and would like the opportunity to make an offer. It doesn’t mean you’re committed to buying, and it doesn’t guarantee that you’ll get the chance to make an offer. If the seller decides to accept an offer already on the table, they may do so without setting a closing date. The process can also vary depending on how the property is being marketed, so it’s always worth speaking to your solicitor about what applies to your particular situation.
3. How do I actually make an offer?
There’s no magic formula for making an offer on a property. The right amount will depend on factors including the asking price, the Home Report, the level of interest in the property and your own budget. Before you make an offer, it’s sensible to work out your maximum figure and stick to what you can comfortably afford. Your solicitor can guide you through the process and explain what happens after you submit your offer.
4. What is the Additional Dwelling Supplement?
The Additional Dwelling Supplement (ADS) is an additional property tax that can apply when you buy an extra residential property in Scotland, such as a second home or buy-to-let property. The current ADS rate is 8% for relevant transactions, and it is payable on top of any Land and Buildings Transaction Tax (LBTT) due. The rules around ADS can be complicated, particularly if you’re buying a new home before selling your existing one. In some circumstances, you may be able to reclaim the ADS if you sell your previous main residence within the required timeframe. If you’re unsure whether ADS applies to you, get advice before proceeding with your purchase.
5. How much LBTT will I have to pay?
Land and Buildings Transaction Tax (LBTT) is the Scottish tax that can apply when you buy property or land above certain thresholds. How much you pay depends on factors including the purchase price and the type of transaction. Additional rules can also apply depending on your circumstances, including whether you’re purchasing an additional property. LBTT is Scotland’s equivalent of Stamp Duty Land Tax in England and Wales, but the rates and rules are set separately for Scotland. Your solicitor can calculate the LBTT due on your purchase and advise you on any relevant additional charges or reliefs.
Still have a question?
There really is no such thing as a silly question when you’re buying or selling a property.
Whether you’re a first-time buyer, moving home, selling a property or adding to your portfolio, our team at Kaur Sutherland can help you understand what’s involved at every stage.
Get in touch with Kaur Sutherland today to discuss your conveyancing needs.
