Page 30 - ESPC July 2022

PROPERTY ADVICE

What should be taken into account
when moving house?

Buying or selling a home this year? Whether you’re upsizing, porting your
mortgage or re-mortgaging, we understand it can be tricky to figure out the
best course of action when selling and buying at the same time.

What happens to your existing mortgage When you buy your next property, typically
when you sell the property? what happens is the surplus funds from the
When your existing property is sold, typically sale of the existing house are then piggybacked
any surplus funds are passed to the client. on to your new mortgage and consolidated How long can the buying and selling allow them to analyse and look at a potential
The solicitor will normally deal with this together to then let you buy the new house. buying budget. Once they’ve analysed that it’s
by reconciling the money and the existing process take? about getting an agreement in principle in place
mortgage will also be closed off. In essence, What typical costs need to be factored in It depends. In the current market, the majority so that you know your eligibility.
you are mortgage free at this point because for buying and selling? of properties in Edinburgh are selling quickly
you no longer own property. On the purchasing side, the primary costs are and that’s maybe partly down to a lack of
the legal fees. These can vary from firm to firm stock on the market. There are quite a lot of You would then put a solicitor in place so that
when you see the right property you are ready
However, things to consider include if you’re so you should always shop around for an ESPC people chasing the same properties so there to strike and make an offer. By getting all your
on a fixed rate mortgage, which means solicitor to find out who suits you best. are a lot of closing dates with a lot of people finances together, it lets you have a good
you may be tied in, and you may incur early offering for them. understanding of what your onward purchase
repayment charges because you’re trying to There are other outlays involved in a purchase, budget will look like and it also allows the
break the fixed rate period. In this instance for example, the registration dues payable If you put a property up for sale today, unless solicitor and the mortgage adviser to outline
your mortgage advisor would need to factor to the Registers of Scotland. Then there’s there were unusual circumstances, you might the timeline of events and the timescales. It also
this in to any costings to decide the next best property tax, which doesn’t apply to all be typically receiving offers with dates of entry allows the mortgage advisor to educate the
mortgage. This terminology is called porting purchases because there are different bands (that’s completion) of six to 12 weeks away. You client in terms of the offers over the valuation,
your mortgage. and first time buyers get some relief at the would definitely need a minimum period of six the loan to value, how it affects interest rates
moment on what’s called Land and Buildings weeks to organise a mortgage but that might and types of mortgages.
depend on your circumstances or the lender
Transaction Tax, which is shortened to LBTT. you were thinking of using.
It depends on what property you’re buying and
what your circumstances are. If you already
own a property and you’re buying another How can we best prepare for buying and Find out more about buying and selling by
property, then there’s an additional amount of selling? watching the video of our recent event with
LBTT called Additional Dwelling Supplement Engaging a mortgage adviser to give them all David from ESPC Mortgages and Gavin from
(shortened to ADS) which is 4% of the price. your personal and financial circumstances to mov8 at espc.com/events

There also may be search costs, even if you
are buying a new build property. In that case, The information contained in this article is provided in good HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP
the purchaser has to pay them but at most, faith. Whilst every care has been taken in the preparation of the UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS
they should only amount to a few hundred information, no responsibility is accepted for any errors which, SECURED AGAINST IT.
despite our precautions, it may contain.
pounds. On the selling side, estate agency fees
ESPC (UK) Ltd is an Appointed Representative of Lyncombe
would be payable for marketing the property. The initial consultation with an adviser is free and without Consultants Ltd which is authorised and regulated by the
obligation. Thereafter, ESPC Mortgages charges for mortgage Financial Conduct Authority.
advice are usually £350 (£295 for first time buyers). YOUR
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