Page 31 - ESPC July 2022
P. 31

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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