TC Young’s Top Tips for First-Time Buyers

Buying your first home is an exciting and life-changing milestone. However, navigating Scotland's unique property market can feel daunting without the proper guidance. As a first-time buyer, you’ll encounter a range of unfamiliar processes, costs, and decisions that can seem overwhelming.

As someone trying to get on the property ladder and working as a trainee solicitor in TC Young’s Residential Property team, I understand these challenges firsthand. Throughout my time in TC Young's residential property team, I've gained invaluable insights into the buying process and what makes it smoother for first-time buyers. To help you get started, here are my Top Tips for First-Time Buyers:

Know Your Budget

Understanding what you can afford is the foundation of your property search. A clear budget will help you focus on locations and property types that match your financial situation. Remember that as well as the purchase price you will need to factor in additional costs like legal fees, taxes, and moving expenses. Starting with a realistic budget can save you time and help you avoid unnecessary stress later.

Utilise First-Time Buyer Schemes

First-time buyers can take advantage of various schemes to make buying a home more affordable; these include:

• Help to Buy ISA: While the Help to Buy ISA scheme is no longer open to new applicants, we can guide you through claiming your government bonus if you already have an account. Keep in mind that the Help to Buy Isa can only be used to purchase properties with a price of up to £250,000.
• Lifetime ISA (LISA): Consider opening a LISA to benefit from a government contribution of up to £1,000 annually towards your first home. Again, we will guide you through the process of drawing down the funds in your LISA.

By utilising these schemes, you can gain a little extra for your savings and get a helping hand from the government to get on the property ladder. TC Young can help you access the funds you have saved, though it’s worth noting that we’re not authorised to provide financial advice.

Familiarise Yourself with Additional Costs

The purchase price is not the only cost involved in the transaction, and it is essential to factor in the additional costs associated with a purchase; these include:

• Legal fees and outlays: TC Young offers clear, competitive pricing with complete transparency. We aim to provide affordable, stress-free services by delivering detailed cost breakdowns upfront, ensuring no hidden charges. With our tailored guidance, we help you navigate the process smoothly, avoiding unnecessary expenses and potential pitfalls during your property purchase.

• Land and Building Transaction Tax (LBTT): LBTT is a tax in Scotland that applies to residential and commercial property purchases. This is similar to what is known as Stamp Duty in England and Wales. First-Time Buyers are exempt from any LBTT on purchases up to £175,000. Revenue Scotland provides a handy LBTT calculator to help you see how much LBTT you would be paying on any purchase.

• Moving fees: These may include removal costs, storage fees, and other moving-related expenses. Plan for these to avoid last-minute surprises.

Being aware of these additional costs can help avoid any surprises down the line and can help you when setting out your budget.

Get a mortgage in principle

A mortgage in principle is provided by a bank or building society and indicates the amount they are willing to lend you for your purchase. This is crucial in determining the deposit size you'll need and how much you can afford to spend on your first home. It's important to understand that lenders base their loan amounts on the property's Home Report valuation, which can be a common pitfall for first-time buyers as any amount you offer above the valuation must be covered by your funds! It is recommended that you speak to an experienced mortgage advisor who can help- we can point you toward advisors we know and trust.

Find an experienced solicitor

In Scotland, a solicitor is legally required for property transactions. A skilled solicitor will guide you through the process, ensuring everything is handled efficiently and correctly. It's a good idea to contact a solicitor early so you're ready to act when you find the right home, as they will need to get your ID checked before they can offer. Our residential conveyancing team at TC Young has decades of experience and are always prepared to provide legal guidance for first-time buyers.

Finding a Property

Once your finances are in order, it’s time to start your search! Use property websites like Rightmove and ESPC to explore listings from various estate agents. These platforms allow you to refine your search by location, price, and property type, helping you find a home that fits your needs.

Don’t skip the Home Report

Once you have found a property you are interested in, getting a copy of the Home Report is crucial. Almost all properties for sale have a Home Report available to prospective buyers. This document provides detailed insights into the property, including its condition, energy efficiency, and valuation. Reviewing the Home Report is essential to identifying potential issues before making an offer. In a fast-moving market, it is always best to read the home report before you view the property as you may only get to see the property once, and it is helpful to have as much knowledge as possible for your viewing.

Know the Difference Between Value and Price

You will probably have noticed that most of the properties on the market are advertised with an “Offers Over” price. Whilst this is handy as a guide, you should always consider how this relates to the market value of the property (found in the Home Report). No matter what the “Offers Over” price is, most sellers will be looking for the market value or more.

Understand the legal process

After finding your ideal property, the legal process begins. Understanding the legal process can help alleviate any anxieties you may face as a first-time buyer, as you will have a greater understanding of what stage of the transaction you are at. Here are the key stages involved:

• Offer: Your solicitor submits a formal offer on your behalf. TC Young can guide you in making an effective offer and ensure that it meets your requirements.
• Missives: if your offer is accepted, the transaction will move to the missives stage. This is the exchange of formal letters between buyer and seller solicitors, which will later form the contract for the purchase.
• Conveyancing: This stage involves the legal transfer of ownership and is carried out alongside the missives. Typically, the process can take 6 to 12 weeks from the offer acceptance to the final property handover. Factors such as the chain complexity, mortgage details, and negotiation of terms can influence the timeline. Our solicitors handle all necessary legal documents and checks to ensure the property is ready and clear for your purchase.
• Settlement: The transaction is finalised on settlement day, and you will get the keys to your new home!

Get in touch

By following these tips and working with knowledgeable professionals, you’ll be well on your way to finding your perfect first home. Contact TC Young's experienced Residential Property Team today for expert legal guidance.  We’re here to make your first home-buying experience as smooth as possible!