Moving to Scotland from England?
It is a dream of many to consider moving to Scotland from England
It is a dream of many to sell their home in England and move to Scotland and we have a recent case study of a client who we have supported to do just that. She has made her dream come true & ditched her city pad in England for a serene, coastal steading on Scotland’s golf course of East Lothian. Here we focus on the house buying process, the implications for mortgages and how important it is to choose the right professionals to support you on this journey. If you are thinking of moving to Scotland from England then read on.
- Is Moving to Scotland Easy?
- What to Know before Moving to Scotland?
- What is the difference between a Scottish Home Report & an English Home Buyers Survey?
- What is the Offers Over system in Scotland?
- How do I Offer on a Property in Scotland?
- What is a Note of Interest?
- What is a Closing Date?
- If I make an Offer over the Home Report valuation how does that affect my deposit?
- What are the differences in the Legal Process between England & Scotland?
- What do I need to know about getting a mortgage in Scotland?
- What is Land & Buildings Tax (LBTT) in Scotland?
- What other Financial Planning aspects should I consider when moving from England to Scotland?
- Where should I relocate in Scotland?
Is Moving to Scotland from England Easy?
The short answer is no because the legal process is different in each country. However with the right team of professionals around you it is possible to achieve a simultaneous transaction ie. sell in England & buy in Scotland on the same day. This is what we achieved for our client when she was moving to Scotland from England.
What to know before moving to Scotland?
One of the distinct differences between the English & Scottish systems is the timescales involved. In England it can take a minimum of 14-16 weeks to complete any purchase from the date your offer has been accepted whereas, in Scotland, it can be as little as 6 weeks.
Given the procedural differences in jurisdictions and the added complexity of differing timescales, some sellers in Scotland may be reluctant to sell their property to someone “subject to sale” in England. The preference may be for their purchasers to have a contractually binding contract in place to sell the property but if not, to be under offer at least. An English seller then should be mindful of and consider the possibility of marketing their property before finding somewhere else to buy to ensure their offer is as attractive as possible.
You will need a solicitor to deal with the English sale and a solicitor to deal with the Scottish purchase. For things to run smoothly it is of paramount importance to ensure that you select solicitors familiar with both jurisdictions and who are willing to go the extra mile to communicate with one another to ensure a smooth transaction. Don’t assume this will happen automatically. Vet your solicitors carefully. We can help you in this regard by recommending our trusted solicitor Krms who have specialist knowledge in this area & who we know will provide you with the same 5-star service as we do.
What is the difference between a Scottish Home Report & an English Home Buyers Survey?
Sellers in Scotland are obliged to carry out a Home Report before any property can be listed for sale. The Home Report is a document telling you more about the property and comes in 3 sections: –
1. single survey and valuation
2. property questionnaire completed by the seller
3. an energy report (EPC).
The Home Report is freely available to all interested parties, and it is paramount you ask for this & read it carefully. We would help you review the Home Report for any areas of concern.
Like the English home buyer survey, the single survey and valuation is prepared by a chartered surveyor and provides information about the house and its condition allowing you to assess from the outset whether the property is for you.
What is the Offers Over system in Scotland?
Estate agents in Scotland either market properties for sale at a Fixed Price or invite Offers Over. In a competitive market there will likely be more Offers Over and in poorer selling conditions or with less attractive properties then there could be more Fixed Prices. Generally speaking, of course.
Notwithstanding any price listed by the estate agent you should seek out the Home Report where the ACTUAL valuation of the property, as carried out by the chartered surveyor, is located. This value is the baseline, and you can now think about how much you would pay for the property. Would you pay more than it is worth for this property? Is it a fair fixed price and would you be prepared to pay it? How much is this property worth to you? We can of course help you think through these questions concurrent with your financial situation.
How do I Offer on a Property in Scotland?
Buyers in England and Wales will be used to instructing a solicitor after their offer has been accepted on a property and therefore negotiating their offer directly with an estate agent. However, in Scotland, buyers should instruct their solicitor firm from the outset because a solicitor firm will make all offers and formal notes of interest. Sometimes estate agents will pass verbal offers from buyer to seller but these must be formalised by the solicitor.
Your offer can be made conditional dependent of your circumstances, and you would discuss this with your solicitor. Common conditions such as :-
- Subject to sale of existing property.
- Subject to mortgage being agreed.
- Subject to damp report or other specialist report if you had concerns over the Home Report.
What is a Note of Interest when buying a property in Scotland?
When you are moving to Scotland from England it is important to know this. If you think you might like to buy a particular property, ask your solicitor to formally note your interest with the selling agent. It does not oblige you to buy, it simply indicates that you are interested in the property and wish to be kept informed of developments, such as when an offer must be made or when a Closing Date is set.
What is a Closing Date in relation to buying a house in Scotland?
When the selling agent is happy there are enough interested parties & enough notes of interest in the property then a closing date will be set, typically a Friday at 12 noon! Your solicitor must then arrange to place your final offer in writing before the deadline to be considered. The seller then makes a decision and usually accepts the highest bid or a balance of important factors eg. fair bid combined with no chain/cash buyer/extended entry date etc.
If you decide to bid then you should work together with your mortgage adviser to understand what you can afford, what the property is worth to you, how your mortgage will work and generally discuss the risks. There are lots of factors at play here and it is best to take advice. Call us for help with this.
If I make an Offer over the Home Report valuation how does that affect my deposit?
If you pay extra over the Home Report valuation, then this extra amount must come from your savings as extra deposit. This can confuse people and so we are happy to explain this more fully dependent on your exact situation.
What are the differences in the Legal House Buying Process between England & Scotland?
One of the biggest misconceptions about the buying process in Scotland is that once your offer is accepted in principle, you are contractually bound to buy the property, which is not the case.
When your offer is accepted, the seller’s solicitor will send your solicitor a formal acceptance, which may include ‘qualifications’ in response to any conditions in your offer. The acceptance is therefore referred to as a qualified acceptance. Your solicitor will discuss any such qualifications with you and negotiate on your behalf. The offer, acceptance, and any subsequent letters, which are intended to be part of a legal contract, are known as missives.
When the final acceptance is issued, missives are said to be concluded. Now you and the seller enter a legally binding contract. Your solicitor will advise you when the missives are actually concluded. Conclusion of missives in Scotland is the same as Exchange of Contracts in England. Once concluded, missives cannot be re-opened without agreement from both parties unless an extreme emergency situation prevails.
When moving to Scotland from England you can therefore be assured knowing you will not be contractually bound to buy in Scotland before being contractually bound to selling in England
What do I need to know about getting a mortgage in Scotland?
Not all lenders lend in Scotland for example many of the regional English building societies do not lend.
You do not need to arrange your own valuation as most lenders in Scotland will accept a transcript of the Sellers Home Report if it is dated within 3 months.
If you are tied into a fixed rate with your existing English property, then we can help you assess whether you could port your current mortgage product to your new Scottish property. We were able to achieve this for our case study client as we had arranged a 5-year fixed rate deal for her in June 2022, six months in advance of becoming effective in December. This meant that she still had 4 years on a fixed rate of market leading 3.05%. We were thus able to secure this rate for her & avoid her paying any penalty to the lender for a midterm change of property.
The single biggest thing you can do is to engage with an expert mortgage adviser to discuss your dreams way in advance to ensure success. Pick someone who has experience of helping others with complicated relocations.
What is Land & Buildings Tax (LBTT) in Scotland?
The Scottish taxation system is slightly different and it is important to remember that when moving to Scotland from England & calculating all your costs to buy. Your mortgage adviser will remind you of this too. Essentially Scottish LBTT is equivalent to English Stamp Duty Land Tax (SDLT) but the rates are different.
Land & Buildings Tax (LBTT) replaced UK Stamp Duty Land Tax (SDLT) on 1 April 2015. For full & accurate information & a calculator please click the link below.
What other Financial Planning aspects should I consider when moving from England to Scotland?
When planning to move from England to Scotland you should estimate relocation costs and set up a budget for living expenses in Scotland. Thorough financial planning is essential to ensure a smooth transition.
It’s crucial to account for various financial factors such as potential differences in income levels, taxation systems, job opportunities and cost-of-living variations between England and Scotland. The Scottish Government has powers to take a different stance on certain things meaning Great Britain is no longer uniform.
Our client organised her job move & some removals prior to the home move and she stayed with a family member for a while. Ensuring that the new income stream is in place is a less risky move. The move to home working nowadays though can facilitate a geographical relocation without any change to employment or income situation.
Relocation costs, including hiring house removals, transportation fees, storage services, temporary accommodation, setting up utilities in the new home, and maybe building a home office should be carefully budgeted for to avoid unexpected expenses. Conducting a comprehensive review of existing financial commitments, including loans, mortgages, and insurance policies, can help in making informed decisions about managing finances post-relocation.
It is part of our service to help you think through these costs and prepare your plan.
Where should I relocate to in Scotland?
When considering a move from England to Scotland, it’s essential to explore the diverse regions that Scotland has to offer. Each has its unique property market considerations and lifestyle offerings.
From the vibrant city life of Edinburgh and Glasgow to the tranquil beauty of the scottish highlands and islands. Scotland boasts a range of living environments to suit every preference.
In urban hubs like Edinburgh where edinburgh Castle stands proud and Glasgow, prospective residents can expect a bustling cosmopolitan atmosphere, with a plethora of cultural attractions, dining options, and career opportunities. Property markets in these cities are dynamic, with a mix of historic and modern residences catering to various budgets and preferences.
On the other hand, those seeking a more rural or coastal lifestyle may find themselves drawn to regions like the Highlands. Here stunning landscapes, outdoor recreational activities, and close-knit communities characterize the way of life. Property markets in rural areas often offer unique opportunities, from traditional cottages to sprawling estates, with considerations such as accessibility, amenities, and potential for remote working influencing purchasing decisions.
Whether it’s the lively urban energy or the tranquil countryside charm, Scotland’s regions offer distinct lifestyles to suit every family unit embarking on their relocation journey.
For information regarding house prices and regional variances etc we recommend you review https://www.ros.gov.uk/. A local estate agent is also worth it’s weight in gold.
Rosie has been with us every step of the way and beyond…
We have recently relocated from England to Scotland and Rosie has been with us every step of the way and beyond. Rosie’s expert knowledge of lenders and the different options available ensured that we secured the right deal way ahead of our moving date. Rosie did a thorough assessment of our needs and followed up every request promptly and professionally. We’re not planning to move again but should that ever happen, I wouldn’t move anywhere without Rosie’s expertise.
Case Study Clients November 2023
