Selling & buying property simultaneously (in Scotland)

[qwertypie]

Maybe this is a stupid question, but how does this work exactly?

Do we sell, attempt to arrange a late move-in date for the buyers, then search for a suitable new property, hoping (praying??) that one comes on the market and that our offer is accepted, all within a very narrow time frame??

Any experiences or insight? I don't know anyone who has recently sold then bought, so thought I'd ask here! Thanks!

Most people find somewhere they like first, offer subject to selling & mortgage etc then put their place on the market.

TBH I’ve heard enough horror stories of cash buyers and chain free not to actually trust what people say anyway.

It may well be you end up in a chain, missives in Scotland can be concluded prior to exchange date where your solicitor will receive money from your sale and mortgage and pass it to your sellers solicitor.

We were recently in a long chain and money all flowed through on the day as all the missives had already been concluded.

It may well be you miss out on LBTT holiday but you can only save a max of 2.1k in Scotland anyway which is not worth rushing for in the grand scheme of things.

Good luck - it’s a mini property boom here anyway at the moment!

Thanks for your help @Lazt! I find it all a bit overwhelming. We are considering moving and just want to get things straight before starting or applying for a mortgage in principle etc.

I've definitely noticed the property boom - any family homes in our area are selling within a week or two! The thought of such a high level of competition is very intimidating

I suppose I was under the impression that most sellers would be more likely to accept an offer from a buyer who'd already sold their property or who had no property to sell. But I guess logically that can't be the case much of the time

Well all things being equal they probably would
But most buyers have to get a mortgage/sell current property or both,so offers subject to mortgage /sale of existing house are standard

Do we sell, attempt to arrange a late move-in date for the buyers, then search for a suitable new property, hoping (praying??) that one comes on the market and that our offer is accepted, all within a very narrow time frame??

FWIW I’ve done this twice, and both times bought a home which was nice but not amazing and if I’d had more time would have waited for something else. It’s almost panic buying a home as you know you have to be out your old one! In terms of timings and legal side of it, it worked out fine though.

Next time I would probably try to do it the other way around especially if properties nearby are selling quickly. Find somewhere you love first and then put yours on the market.

In all situations though, dates just sometimes don’t work out or things fall through and you may be left renting or staying with relatives for a while.

We already knew the flat we wanted and put in a note of interest. Ours went to a closing date and the solicitor checked re the flat we wanted and said they would welcome an offer (I was worried they would go to a closing date). We then haggled a bit over our offer and moving date.

@Lazt do you know anything about the LBTT exemption for first time buyers? ( or up to a certain amount).The entire ‘mortgage’ process is a mystery to me!!

There is no LBTT due on a property purchased at a price of 250k or below
This is a Covid LBTT holiday provision until 31/3
Previously first time buyers got relief up to £175k but as this falls into the 250k it s irrelevant at present
This is subject to no Additional dwelling supplement being due

A friend in Dumfries has just done that his biggest problem was finding removal people. Local ones were booked solid and he found a company in Ayr that suited his date.

It party depends on how quickly you think you will be able to sell and buy. I don’t mean the legal process, I mean the popularity of what you are selling and what you want to buy.

If you are buying in a hot spot, they may be reluctant to accept an offer with a long entry date that’s dependent on you

1. Getting a mortgage arranged
2. Selling your own.

Offers are falling through quickly ATM and others are delaying concluding missives in case the market drops, so they can pull out.

These are not normal times.

The last thing you want is to end with with a bridging loan.

Thankyou @user1487194234