Planning a house move in Scotland? It’s an exciting time, but beware; the final fees could end up costing you more than you bargained for…
When it comes to moving house, don’t let yourself get won over by a good sale price; there are more costs to consider than first meets the eye.
Here, we detail the hidden costs of buying and selling your home in Scotland, so that you’re not surprised when you receive your final bill.
Land and Buildings Tax
Land and Buildings Transaction Tax (LBTT) is the Scottish equivalent of Stamp Duty Tax. In Scotland, LBTT is only paid on homes costing £145,001 or more provided it is your only residential property.
According to estate agency Savills, you can expect to pay the below rates on any second, additional or buy-to-let homes in Scotland.
Taking that into account, you’ll be paying around £13,100 on a property worth £200,000.
| Tax Band | % | Taxable Sum | Tax |
| £0 – £145,000 | 6%* | £145,000 | £8,700.00 |
| £145,001 – £250,000 | 8% | £55,000 | £4,400.00 |
| £250,001 – £325,000 | 11% | £0 | £0.00 |
| £325,001 – £750,000 | 16% | £0 | £0.00 |
| £750,001 + | 18% | £0 | £0.00 |
Deposit
You’ll need to set aside around 5-20% of the purchase price of the new property if you’re moving from another property.
For example, £10,000 to £40,000 when buying a £200,000 home.
Estate agent fees
The average cost of estate agency fees in Scotland is £2,183, charged at a rate of 1.5%.
So, on the purchase of a £200,000 home, you can expect to pay £3,000 on these fees.
Home report and valuation fee
According to Glasgow-based estate agency Pacitti Jones, the mortgage lender “will assess the value of the property to establish how much they are prepared to lend you”.
The cost is then established and can be £150-£1,500 based on the property’s value.
Depending on your lender, you may or may not be charged for valuation, but it’s worth taking into account.
You’ll have to fish out a few hundred for your home report, too – around £600 according to Compare My Move, who worked out the average rates across Scotland.
Legal fees
Legal fees vary from different solicitors offices, but are typically in the region of £500-£1,500, plus VAT.
Final takeaway….
The average home price in Scotland last year was £187,517, so at this price, you can expect to pay £6,284 on top of the cost of the final sale. Not a cheap sum, but if you’re aware of it ahead of time, you can set the money aside for better things – like that new sofa you’re going to buy!
Glossary of Scottish property terms
- Buyers must adhere to a predetermined deadline termed as “closing date” while submitting offers.
- Once an agreement is reached between both parties via negotiations called missives conducted between their respective solicitors, it leads to “disposition” or legal transfer of ownership.
- Home report is essential since it provides information on the condition and value of properties.
- Buyers need to pay LBTT (Land and Buildings Transaction Tax) when buying Scottish properties registered under “Land Register”.
