Homebuying Rules in Each UK Country: What You Need to Know

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Buying a home in the United Kingdom is possible. However, to avoid pitfalls, it is advisable to understand how the legal processes in this country work. In this case, it is important not to mistake the law of England for the law of Scotland, or the law of Scotland for the law of Wales or Northern Ireland, despite the relatively common principles in property law.

England

In England, you make an offer on a home, often via the estate agent, and, once the offer is accepted, you’re ‘subject to contract’. Neither you nor the seller is stuck; either can pull out at any point during subject to contract.

Now come the next steps. You secure the mortgage (if this is required) and you have the property surveyed to check it’s sound. Contracts are exchanged, the sale is binding. The buyer must pay the deposit, usually 10% of the property price. Then comes the moment of ‘completion’: the remainder of the purchase is paid, and the ownership is transferred.

Scotland

Scotland offers the only homebuying system in the UK specifically designed to avoid sales falling through; properties are generally sold by sealed bids. A completion date is set and buyers must submit offers by a certain date – the seller then chooses the best.

From the moment an offer is accepted, a ‘missive’ – that is, a legally binding letter – is written to the other party, and missives continue to pass between them as they negotiate the terms of the contract. A contract is formed when the missives are completed, but it’s worth pointing out that a sale is legally binding rather earlier than it is in England: once an offer is accepted, it’s much more difficult to withdraw without penalty, even if the exchange hasn’t been completed.

Wales

Buying a house in Wales is largely the same as in England, with some regional differences. Once a buyer’s offer is accepted, there is a period of time before the sale is legally binding when either side can pull out (known as the ‘pre-contract’ stage). This involves carrying out legal checks to make sure the title is safe, arranging a mortgage, getting a survey done etc.

Contracts are then exchanged, which makes the sale legal. The buyer makes a deposit and the sale is secured on completion day. Sale contracts are binding from exchange Wales has its own Land Transaction Tax (LTT), replacing stamp duty (previously known as Stamp Duty Land Tax, or SDLT), which applies to property purchases.

Northern Ireland

The buying process is similar in Northern Ireland to that of England and Wales. An offer is made, a solicitor is then instructed to carry out the legal work, surveys are conducted and a mortgage is offered if required. Once this is in place, the contracts are exchanged between the buyer and seller, at which point the transaction is legally binding. The final balance is paid, and the ownership is transferred.

Northern Ireland administers its own version of Stamp Duty Land Tax, just as England does.

The process of buying a home in the UK’s four nations has some common characteristics, but there are also some important variations in the nuts and bolts – and some potential pitfalls – that could catch you out and add some complications to the process.

Understanding these differences can help ensure that the process goes as smoothly as possible, whether buying in England, Scotland, Wales or Northern Ireland. In all instances, it is best to seek advice from a local property solicitor who can talk you through the process in detail in your country of choice.