Jim Hay Estate Agents are the only independent estate agents in the Hawick & Jedburgh area of the Borders, we are a fresh vibrant company with a modern approach to selling property. Our client-comes-first ethos has generated significant word-of-mouth business, as well as the recommendations of builders, brokers and mortgage lenders.

First class legal services. Friendly, helpful staff. Competitive costs. Modern inviting shop. It’s a simple business model. But a successful one.

Buying and selling a property can be very stressful, there is so much jargon that it becomes confusing and difficult at times to understand. At Jim Hay Estate Agents we try and explain as many of the various aspects of buying and selling, what do they mean in simple terms .

Below we try and explain what some of these terms mean, but if there are any questions you still need an answer to please contact us and we shall endeavour to give you an answer.

Land & Buildings Transaction Tax (LBTT)

LBTT replaced the United Kingdom Stamp Duty Land Tax (SDLT) from 1 April 2015. It is set by the government and at present we have no LBTT on the purchase of a home valued up to £145,000. 

LBTT bands:
£145,000 to £250,000 is 2%
£250,000 to £325,000 is 5%
£325,000 to £750,000 is 10%
Over £750,000 is 12%

Unlike SDLT, the new LBTT tax is paid only on the amounts between bands, and not on the full purchase price. For example if you purchased your home for £330,000:

the first £145,000 is 0% => £0 tax
the next £105,000 is 2% => £2,100 tax
the next £80,000 is 5% => £4,000 tax
Total LBTT tax: £6,100

Buy to Let and Second Homes

From 1 April 2016, a 3% LBTT surcharge applies to the purchase of Buy to Let and Second Homes. 

LBTT bands:
less than £145,000 is 3%
£145,000 to £250,000 is 5%
£250,000 to £325,000 is 8%
£325,000 to £750,000 is 13%
Over £750,000 is 15%

Freehold or Leasehold

Freehold means that you legally own and are responsible for the whole fabric of the property; it’s entirely yours. It will be subject to any covenants or other laws in place such as planning law or conservation areas, but in the main you are free to do what you like with it.

Leasehold means you have bought a lease that allows you to live or trade in a property for a certain length of time. You don’t own the property; you only own the right to live there. The actual owner is the person who owns the freehold. Leases can be relatively short or as long as 999 years, but no matter what the term is, the leasehold eventually reverts back to the freeholder when the term expires, unless you pay more to extend it. Recent legislation provides for the right to extend your lease, but you will have to negotiate a price for it with the freeholder.

Surveys And Searches

There are different types of surveys depending upon your situation and the age and condition of the property you plan to purchase. You can choose from:

Basic Valuation. Banks and mortgage companies will require a valuation survey. This is an inspection on behalf of the mortgage lenders to ensure the investment is sound. A valuation is not a structural survey; it provides no legal recourse and is for the benefit only of the lender. All it does is let the lender know that what they’re giving the money for is worth the amount they are lending you .

Homebuyer’s Survey and Valuation Report (HSV).
This is a basic survey carried out in a standard format by the Royal Institution of Chartered Surveyors ( RICS). The surveyor will look at issues like damp, dry rot, the state of the roof and the walls , and provide a report on the status of your property. It also gives you full legal recourse to claim against problems not spotted by the surveyor.

Full Structural.
Recommended for listed buildings, properties built before 1900, any building constructed in an unusual way, a property you are planning to renovate, and properties that already have extensive alterations . It gives you legal recourse.

If you purchase a site with environmental contamination, even if it’s leakage from elsewhere or an underground stream that brings debris to your site, you as the new owner will be responsible for getting the site cleaned and tested.

Some planning permissions have conditions requesting an archaeological, ecological, or contamination survey. You will have to pay for a specialist survey to assess whether your development will create problems for local wildlife or environmental concerns.

The above is not an exhaustive list should you require any further information on any of the topics mentioned or cannot find what you are looking for , please contact us and we shall do whatever we can to help.

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