Understanding Changes To Land and Buildings Transaction Tax
Amongst the many life decisions you will make, buying a house is one of the biggest and therefore one, which requires much time and consideration. With that said, we feel that not only is it important that you have all the information you require but also that, that information is reliable and up-to-date.
Changes to legislation are particularly relevant when buying a house as they may have a rather significant impact on your buying decisions. One of the most recent changes homebuyers may have experienced or may be interested in is that of the legislation surrounding stamp duty.
With changes first introduced in April of last year, stamp duty has now been replaced in Scotland, by Land and Buildings Transaction Tax, which is calculated according to the specific price bracket that the property you’re buying falls into.
New Rates
Changes such as these are important to consider when setting budget, as you may now be saving a significant amount of money, due to the new rates (listed below).
Up to £145,000 – 0%
£145,001 - £250,000 – 2%
£250,001 - £325,000 – 5%
£325,001 - £750,000 – 10%
£750,001 + - 12%
Further to this, new rates will be introduced as of April 1st 2016, which will involve a 3% surcharge for those buying additional residential properties, for purchase prices exceeding £40,000. This change in legislation applies to those, who for example, are interested in buy to let properties. The new rates are as below:
Up to £40,000 – 0%
£40,001 - £145,000 – 3%
£145,001 - £250,000 – 5%
£250,001 - £325,000 – 8%
£325,001 - £750,000 – 13%
£750,001 + - £15%
If you have any questions about Land and Buildings Transaction Tax or any other legislation regarding the purchase of a property, please contact our Conveyancing department on 0141 887 5271.
Our Easy Guide To Conveyancing
When it comes to buying or selling a house, a key part of the process involves conveyancing. For most people they understand the basics of what is required to buy a house and how to market it, but the conveyancing process still remains somewhat of a mystery, after all, it isn’t a word that comes up too often in day to day conversation is it?
So to help we have created a quick guide to help you understand the conveyancing process, helping to clear exactly what it is, what stages are part of it, how long it takes and help answer some of the most commonly asked questions around it.
Conveyancing...What is it?
In a nutshell, conveyancing is the legal process which takes place after the main details of buying or selling your house has been agreed. This usually involves a contract being created which confirms ownership of the property being transferred from one person to another, done by way of missives (an exchange of letters between the buyer's and seller’s solicitors).
The conveyancing process will also involve your solicitor carrying out additional searches on the property itself and the parties involved in the purchase. These searches are done to make sure the buyer gets and knows what they paid for and to make sure there will be no additional costs incurred after purchasing the home.
What are the stages?
Once an offer has been accepted, both parties solicitors will then work to negotiate the terms of the contract by completing what is known as “missives”. This entails a number of important tasks, including agreeing a date of entry as well as what (or any) additional items to be left in the property (this is commonly things such as blinds, kitchen equipment etc).
The next stage is to “conclude missives”, which simply means that the contract of sale and purchase of the property has been agreed between the buyer and seller. By this point you will have your entry date, funds secured and insurances arranged for the transfer.
Moving forward to the date of entry both the buyer and seller’s solicitors will arrange the successful transfer of the funds. Once complete and correct funds have been received, the new owner will be able to pick up their keys to their new home from either the seller themselves, the seller’s solicitor or the estate agent, leaving them free to begin moving in!
How long does this take?
There is no set timescale for the conveyancing stage, but on average it can take six to eight weeks. This can very easily be longer or shorter depending on the circumstances, everyone will be different. There are a number of factors to consider in a house purchase or sale that can vary the timescale, for example agreeing the initial terms of the sale or securing your mortgage from your chosen lender.
We have a vastly experienced conveyancing team here at Walker Laird who will help you every step of the way, regardless of your circumstances. If you have any questions about conveyancing or would like us to help you during this stage then please give us a call on 0141 887 5271.
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I want to buy my first property…Where do I start?
Through our lives we experience many significant events and one of the most significant is buying your first property. On most occasions, when a person buys their first property it is the biggest purchase they have ever made. In fact, as you progress through life, buying your next property will usually be the biggest purchase you’ve ever made.
Although exciting, this can be a very daunting experience. We know this because over our 200-year history we have guided literally thousands of buyers who were taking their first step onto the property ladder. So, we thought we’d share a basic guide to the steps involved.
Step 1: Finance
First thing’s first, you need to assess your financial situation. There’s no point in looking at properties until you have a clear idea of your price range you can sensibly afford.
Speaking to one of our mortgage advisors is the best place to start. They will take you through all of the costs involved in owning a home and help you to accurately assess a realistic and manageable budget.
Step 2: Type of property
There are different options to consider for your home such as a flat, house, semi-detached, terraced, and so on.There’s also some worthwhile considerations around whether to opt for a new build or an established property. However, once you have an idea of your price range, choosing what type of property you would like to buy becomes a little bit easier.
Step 3: Location
The next step is to look at the location of your home. Deciding where you want to live may be the biggest decision in the whole process. Various factors come in to play here such as local schools, transport links, parking facilities, access to shopping and recreational facilities and other activities running in the area to name but a few.
It is also worth considering how long you may stay in this area and what is the potential investment value of the property you are purchasing. As a first time buyer, you want to make sure your property is going to increase in value enough to allow you to continue moving up the ladder as your circumstances change - perhaps when you start a family.
Step 4: Viewing the property
You’ve discovered a property that meets your criteria, now time to see what it’s like in reality. Our advice is to take others along to view the property with you, it’s always worth getting a second, and even a third, opinion.
We also advise that you view the property more than once, it is often the case that things are not quite as you remembered when you first visited.
Finally, we recommend that you visit the property at different times of the day, very often a quite daytime area becomes something different in the evening. Or, the beautiful public park next door becomes the local hangout for noisy kids in the evening. It’s better to be as aware of the environment as you possibly can be, and that means experiencing it for yourself at different times.
Step 5: Making an offer
Assuming you like the property and you’re happy that it will meet your needs, you then need to move quickly to make an offer and hopefully secure your first home.
That’s where Walker Laird’s experience is invaluable and can really help you. We know the area well, we’ve been helping clients buy and sell homes here for 200 years! Our knowledge of local areas, and even particular streets, will help you to quickly assess just how much to offer. We have a great deal of knowledge about the selling history of properties in most locations in the area and we can advise you with a great deal of confidence just how to proceed.
We hope you have found these basic tips about buying your first home useful and interesting, but really the best way to start is to give us a call, or pop in for a coffee and a chat to either of our offices, we will be pleased to explore your options and help you to make the right decisions.
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