Buying a house in Scotland: offers, mortgages and LBTT

Buying a house in Scotland involves its own offer process, legal contract and property tax. The practical starting point is to work out what you can afford, instruct a solicitor who handles Scottish purchases and understand the property before making an offer. This guide explains how those pieces fit together.

Offers over, fixed prices and closing dates

Scottish property listings do display asking prices. An offers over price invites bids above the advertised amount; offers around indicates a guide for negotiation. A fixed price gives a stated asking price, but does not remove the need for a formal offer and agreed contract. The asking price is not necessarily the property’s valuation or the price you will ultimately agree.

If you are interested, ask your solicitor to note your interest with the selling agent or solicitor. This helps them keep you informed about a closing date; it does not reserve the property or commit you to buying it.

Where several buyers are interested, the seller may set a closing date for offers. Your solicitor submits your offer by the deadline, normally without knowing competing bids. The seller can consider the price, conditions, your ability to proceed and the proposed date of entry. They can accept a lower offer or reject every offer. Without a closing date, there may be scope to negotiate directly through the solicitors or selling agent.

Set your limit using the property’s condition, local comparable sales and your available funds. Do not assume a standard percentage above the asking price will secure a home. The Scottish Government explains marketing prices and seller choice at a closing date.

What to check in the Home Report

Most homes marketed for sale in Scotland need a Home Report, supplied by the seller or their agent. It has three parts:

• Single Survey and valuation: a surveyor’s assessment of the property’s condition, accessibility, repairs and value.
• Property Questionnaire: information from the seller, including alterations, past issues and other details relevant to ownership.
• Energy Report: energy-efficiency information, including the Energy Performance Certificate.

Read the repair findings before making an offer. Obtain estimates for significant work and discuss any recommended specialist investigations with your solicitor or surveyor. A valuation is not a guarantee that the lender will accept the property or lend the amount you need.

There are defined exemptions. Examples include new homes sold off-plan or to their first occupier, and newly converted homes that have not yet been occupied in their converted state. A home is not exempt simply because it was built recently. The official Home Report guide explains its contents and exceptions.

Mortgages, valuations and the cash you need

UK-wide lenders offer mortgages on Scottish homes, but each lender sets its own affordability, property and geographic criteria. A property’s construction or location, including an island location, can affect eligibility. Check the particular lender’s requirements instead of assuming all Scottish properties or all borrowers are treated alike.

An agreement in principle (AIP) is an initial indication of potential borrowing. It is not a final mortgage offer. The lender still needs to assess the full application and the property. A mortgage adviser can help you assess suitable options before you commit to a purchase.

Distinguish three figures: the advertised asking price, your agreed purchase price and the valuation accepted by the lender. Where the purchase price exceeds that valuation, the lender may base its loan-to-value calculation on the lower figure. You then need to cover the difference yourself, as well as the deposit required against that value. For a lender-specific example, see Nationwide’s Scottish lending criteria.

A hypothetical valuation gap

Suppose you agree a £220,000 purchase price, the lender accepts a £200,000 valuation and, hypothetically, agrees to lend 90% of that valuation:

• Mortgage: 90% of £200,000 = £180,000.
• Your contribution: £220,000 minus £180,000 = £40,000.
• That £40,000 consists of £20,000 against the valuation plus the £20,000 price difference, before tax and fees.

This illustrates the arithmetic, not an offer of lending. Your actual borrowing depends on affordability, the property and the lender’s assessment. Check the figures before deciding how high to bid.

Missives: when the purchase becomes binding

Your solicitor sends a formal written offer covering the price, proposed date of entry, included items and any conditions. The seller’s solicitor may respond with a qualified acceptance, proposing conditions of their own. The solicitors negotiate through correspondence known as missives.

The contract becomes binding when missives are concluded, meaning the terms have been agreed. Submitting an offer or receiving a provisional acceptance does not by itself mean that stage has been reached. Ask your solicitor to tell you clearly when you will become bound.

If you need a mortgage or must sell another property to fund the purchase, explain this before your solicitor makes the offer. Any protection depends on the conditions actually agreed in the contract. Mortgage refusal is not an automatic right to withdraw. Failing to complete after missives are concluded can expose you to damages and other contractual consequences.

Your solicitor should also confirm when your buildings insurance needs to start, because this depends on the missives. The Scottish Government’s offer and missives guidance explains this stage; our conveyancing guide gives broader context on the solicitor’s role.

LBTT, first-time buyer relief and ADS

Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty Land Tax in Scotland on 1 April 2015. The ordinary residential rates below apply to portions of the price, not one rate charged on the whole purchase.

For a £220,000 purchase, ordinary LBTT is £1,500: nothing on the first £145,000, then 2% on the remaining £75,000. This is before any relief or additional supplement. See Revenue Scotland’s residential rates.

First-time buyer relief

Eligible first-time buyers can claim a higher nil-rate threshold of £175,000, giving a maximum saving of £600 per qualifying transaction. Relief can still apply when the price exceeds £175,000. For the £220,000 example, qualifying relief reduces ordinary LBTT from £1,500 to £900.

Every joint buyer must qualify. Previous residential property ownership anywhere in the world, including property inherited or received as a gift, matters. The home must be intended as the buyer’s only or main residence, and the other eligibility conditions must also be met. Ask your solicitor to check your circumstances against Revenue Scotland’s first-time buyer relief rules.

Additional Dwelling Supplement

The Additional Dwelling Supplement (ADS) can apply when buying an additional residential property for £40,000 or more. The current rate is 8% of the whole purchase price, on top of ordinary LBTT, for relevant transactions from 5 December 2024. Earlier contracts can fall under transitional rules.

For individual buyers, the assessment generally considers whether you will own more than one dwelling at the end of the purchase day and whether you are replacing your only or main residence. Property ownership anywhere in the world counts. For a joint purchase, one buyer’s circumstances can make ADS payable on the whole transaction; relevant spouse, civil partner or cohabitant ownership can also matter.

Replacing a main residence can qualify for an exception, or a later repayment where ADS was payable initially and all repayment conditions are met. Repayment is not automatic. Have your solicitor check ownership, sale dates and replacement-home conditions under the Revenue Scotland ADS rules before setting your budget.

These are the rules reviewed for this article on 20 September 2026. Your solicitor should confirm the tax treatment for your transaction and its effective date.

Budgeting for costs and a realistic timetable

Affordability depends on the home and location you choose. Compare similar properties in the area, allow for repairs and consider ongoing running costs. A national average cannot tell you what a particular home is worth or whether it is affordable for you.

Alongside your deposit and any valuation gap, allow for:

• LBTT and any ADS payable at purchase.
• Solicitor’s fees, registration charges and other conveyancing outlays.
• Mortgage product, valuation or adviser fees where applicable.
• Additional surveys, specialist reports and repairs.
• Insurance, removals and a reserve for unexpected costs.

Get itemised quotes and confirm when payments are due. Our guide to buying costs can help you organise a budget, but Scottish tax must be calculated under LBTT rules.

There is no guaranteed completion period. The mortgage assessment, legal checks, survey issues and any linked sale can affect progress. The agreed date of entry is the date on which settlement and possession are intended to take place; discuss a realistic date with your solicitor before committing. The Scottish Standard Clauses client guide explains why finance and sale dependencies matter during the missives process.

Buying a house in Scotland step by step

1. Prepare your budget and finances. Assess affordable monthly payments, available savings and buying costs. Discuss mortgage options and obtain an AIP where appropriate.
2. Instruct a solicitor early. Explain your funding, any property sale and ownership history so they can advise on offers, conditions and tax.
3. View the home and read its Home Report. Consider repairs, the valuation and any further investigations before setting your offer limit.
4. Note your interest and prepare the offer. Your solicitor checks any closing date and submits the proposed price, date of entry and conditions.
5. Progress the mortgage and legal checks. Complete the mortgage application while your solicitor investigates the title and negotiates the missives. Resolve funding and relevant conditions before becoming bound.
6. Authorise conclusion of missives with your solicitor’s advice. Understand your obligations, confirm that the necessary funding is in place and arrange insurance from the date your solicitor specifies.
7. Prepare for settlement. Transfer the required buyer funds as instructed. On the agreed date of entry, the solicitors arrange settlement and release of keys once the transaction completes.