The UK land Registry is a Government department which administers one of the largest property databases in Europe, This database is used to record and register the ownership of land and property in England and Wales.
It is used by the UK government to assess property values for tax purposes. In a similar manner, it is also used to search current property prices by investors, buyers and vendors. The online search mechanism and price calculator service can be used to check the latest residential property prices for any given location using the postcode or street name as the search source.
The results from an online search of the database will yield certain information. This will usually shows it’s precise location on an ordnance survey map, a satellite view can be obtained using Google earth.  Street views can also be obtained using Google maps. The outline of the property will be shown as a dotted layout on the map.

The database also provides information on the ownership of land. Who they are, and details the land usage. It also records the ownership rights of freehold and leasehold properties. The latter only where the lease has been granted for a term exceeding seven years.

For houses it will provide details of the plot plus all relevant information on ownership status, and securities held against the property.

In cases where multiple ownership issues occur. Say for example a building exists, which contains eight flats. The database will provide eight sets of title deeds. These will list the different levels ownership on each unit. Eg leased or mortgaged. Securities held on each individual unit within the main building. Unit size as an example one or two bedroom flats. Etc.
For some of this information a fee will need to be paid.

Registration.

Land registered on the database using the latest figures taken from the Land Registry website show that 88% of land in England and Wales has been registered, with a view to obtaining full coverage by 2030. This currently represents 24.500.000 titles

By definition, the term land will also include any buildings situated upon it.

Assets which lay either in or above the land can also be registered. In the ground things such as mines and even minerals can be registered. In certain situations, the area of sky above the land can be registered.

Land and property owners whose title is not registered can make voluntary applications for registration to the database.

Benefits of registration

Registration establishes proof of ownership and produces an easily accessible document which can be viewed quickly and securely online.

Provides a better way to safeguard ownership of land and property. State-backed registration gives greater security of title, and offers better protection against claims of adverse possession.
The following provide the equivalent service.

For Scotland it is the Registers of Scotland.

For Northern Ireland the Land and Property Services maintains land records.

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Equity Release

This little study explains what the equity value of a property actually is and how it is can be accessed

In basic terms, the equity value of any asset. Is the net value after securities  have been taken off. As below

The asset value is £400.000

Loans secured against it are £250.000

The net value of the asset is £150.000.

that net value is the equity value, or value once all associated debt has been cleared.

With regards to residential property the same situation occurs. When a property is purchased, the equity value is determined by
the mortgage loan required to buy it.

This is a simple example used for explanation purposes.

Purchase price of the property £100.000

Mortgage required £75.000

This leaves an equity value of £25.000

The illustration equates to what is in effect a 75% loan
and assumes the buyers were able to lay down  £25.000
as a deposit.


Equity Access

Equity access is a thriving market and basically works in this manner. Owners can access additional funding by transferring some or all of the equity value into cash.

This is done by raising additional loans against the property.
The methods used are the Re-mortgage, and third party secured funding. Both have similar ways of working.

Re-Mortgage: Here The borrower will take out a complete new mortgage loan on the property

Using the previous example, the borrower wishes to access equity and raise a sum of £10.000

Property valuation is £100.000.
Existing mortgage is £75000.

The new loan will have to pay off the previous loan and provide the additional capital for the equity release. Therefore the new loan will have to be £85.000.

This is achievable as there is £25.000 of equity value in the property.
Once the new loan takes effect the equity value will be
reduced by £10.000 to £15.000

That is the basic form a re-mortgage takes. Funding schemes like these are available from most lenders. In many cases the original loan is repaid using funding from a different lender.

Third party secured funding.

Using the same scenario the borrower wishes to raise £10.000 from the equity value in their property. However instead of a complete re-mortgage. Funding for the extra £10.000 is obtained from a second lender. This means the borrower has two debts secured to the property.


Once again a highly used method, It is not without some issues, as the main lender, the one with the largest loan secured against the property. May take a very negative view of any other lending
secured against the property.
In exceptional cases they may refuse to allow the borrower to obtain additional funding in circumstances where the equity
value is very marginal.

In cases where the original loan  exceeds 75% of the valuation
less equity is available. See below

Example
Property Valuation £100.000

Mortgage Amount £87.000

Equity Value £13.000

Any loans where lenders issue funding which exceeds 75%,  is
considered very high risk. Usually offered with strict terms and conditions attached.  Which must be accepted prior to the funding being issued.


Prior to organizing additional funding for equity release it
is always a good idea to research for the best available options.
Also to check on your current position before embarking
on the search. Over recent years property prices have steadily risen, however the market can and has collapsed in the past. Leaving many in a state of negative equity.
Where the amount of the loans secured on the property far exceeds the current market value. The more recent and concerning trend is, that numerous lending institutions have been swallowed
up by larger entities. In fact there are many borrowers
whose original lender no longer exists.
Therefore terms and conditions for the loan
may have long since changed.

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In this article we will be taking a look at the house buying process as it currently stands in Scotland.


The process itself in considerably quicker and offers greater security for all parties involved.
There are a number of reasons for this. It basically involves the legal requirements the buyer and seller have to pass through before the whole house buying and selling procedure can even begin.

These requirements vary for both the buyer and the seller and must be in place before any property can be put up for sale.

They are as follows

The Vendor /Seller is required by law to provide what is called a Home Report.

It consists of a single survey, an energy report and a property questionnaire.
The single survey contains a valuation and an assessment of the property's condition (including the roof, external walls and plumbing). For older properties or those of a non-standard construction, a more in depth survey may be required.

The energy report will give the property an energy efficiency rating and assess its environmental impact by looking at carbon dioxide emissions.
Completed by the seller, the property questionnaire will contain details such as whether the property has ever flooded or been treated for wood rot, as well as useful pieces of information such as what the parking arrangements are and which council tax band the home falls into.

The  exceptions to this are on new-builds and buildings that have recently been converted into residential properties. A copy of these documents must be provided to all prospective buyers.

The Buyer is required to have secured the funding or at the least posses a mortgage agreement in principle before they can even make an offer to buy on any property.

These requirements provide an element of security in that the buyers are better informed about a property's condition and value at the point of making an offer. It also provides the vendor with the assurance that any offers received from prospective buyers. Will have already been screened and accepted for funding by a lending institution.


In Scotland all house purchase activities are controlled by solicitors Therefore before anything can commence buyers and sellers must have appointed their respective solicitors.

Before an offer is made the buyer has to have either the  mortgage actually in place or an agreement in principle from a lender. The procedure for obtaining funding is pretty much the same across the UK and will usually take the following course.

When the buyer applies for a mortgage, they will need to fill in a mortgage application form. This will ask for some fairly detailed information to help the lender decide whether, and how much, to offer to lend. The lender will normally need the following information.

Supporting documentation

Proof of identity:
Birth certificate, passport drivers license, bank account details and utility bills etc

Employment Status:
If employed, proof of salary from employer : Payslips P60
If self-employed, copies of audited accounts from the accountant.
If working as a contractor: contract details. Long term or short term.

Previous or current mortgage arrangements Loans:
Details of any amounts outstanding, length of term and payment management e.g regular payments with no arrears. No bad credit issues. CCJ’s etc

Details of personal financial circumstances:
including details of:
Any expenditure commitments e.g: credit cards, other loans or HP agreements.
Essential expenditure/outgoings e.g: utility bills, council tax, insurance, travel costs, fixed childcare costs.
Spending on 'quality of life' items which are non-essential e.g: recreation, leisure etc.

Once this has been assessed the lender will issue a mortgage offer based on the information given on the application form and the supporting documentation. This offer will be based on what it believes the borrower can afford to pay back over the term or length of the loan.

Based on this mortgage offer, the buyer will know how much they are able to lend, and can therefore look at properties within the suitable price range
Once the buyer has assured themselves that they have mortgage funding available. A solicitor can be instructed and the process can commence.

Solicitors are responsible for the following tasks
Examine and explain the home report
Carry out searches in the property and personal registers to ensure there is nothing preventing the seller from selling the property.
Check with the local authority to see if there are any planning issues affecting the value of the property and whether any roads next to the property have been adopted by the local authority.
Put together the formal offer
Submit the offer to the seller's solicitor
Draw up the contract, and organizing the transfer of the Title and money.

We’ll take a brief look at each stage.
Firstly the home report, as previously shown this consists of three elements. Each of which has a bearing on the property.

The Energy Performance Certificate (EPC) - this reveals how energy efficient the property is and where improvements could be made.

Survey – an assessment by a qualified surveyor from the Royal Institution of Chartered Surveyors (RICS) pointing out the condition of the property, where repairs are needed and a valuation of the property. A mortgage valuation might also be included. The level of information contained in the survey is broadly equal to the Homebuyers report. This is however subject to a three month timespan.
If the survey is over three months old then the buyer will have to get another one done. In many cases buyers may decide to instruct their own surveys as a matter of requirement.

Property Questionnaire – sellers have to provide an accurate account of the property including its Council Tax band, any Local Authority notices served on it, alterations made, parking, any history of flooding as well as factoring in arrangements covering any repair and maintenance.
The solicitor will receive these documents and advise their clients on how to proceed. If all is well and the buyers wish to proceed then their solicitor will issue a note of interest to the vendors solicitor.

Note of interest

When the buyer has found a property they want to buy, their solicitor will register a ‘note of interest’ with the seller’s agent.
This essentially shows the buyer is interested in the property and wants to be kept advised of developments such as the fixing of a closing date to submit offers.
Prior to making an offer the buyers can instruct the solicitor to begin the process of commencing the preliminary searches etc. However if the offer is not accepted then the buyer will still be liable to pay for those services. In many cases solicitors are instructed to forward an offer and wait until that has been either declined or accepted.

Making an offer

When, the buyers decide to issue an offer on the property.
The need will be to decide how much to offer.
The amount offered will depend on:
Property prices in the area;
How much you can afford;
Any competing interest in the property;
Anything else that is to be included in the offer such as
fixtures and fittings.
The buyers solicitor will do this in in a formal letter.

Multiple Bids

If there are several competing bids, the seller’s solicitor will set a closing date for offers to be submitted. These will then be opened at the same time on the closing date All parties will be notified as whether their offer has been accepted or declined.

Subject to survey

Here the buyer instructs the solicitor to issue an offer before having their own survey done. If their offer is accepted , it will be subject to the results of the survey. There are three types of survey, these are fairly consistent across the UK and are as follows:

Home condition survey – the cheapest and most basic survey. Suitable for new-build and conventional homes, it essentially provides a current valuation for mortgage purposes. But not much else. Typical cost: £250.

Homebuyer’s report – a more detailed survey looking thoroughly inside and outside a property. It also includes a valuation. Check whether the valuation and homebuyer’s report done at the same times. Typical cost: £400+.

Building or full structural survey – the most comprehensive survey suitable for an older building or one of non-standard construction (for example, if it’s made of timber or has a thatched roof). Typical cost: £600+.


If after submission the offer is accepted, the vendor’s solicitor issues a qualified acceptance, which simply means the property belongs to the buyer if contract details can be worked out.
The vendors solicitor will also hand over information about the property such as the title deeds and planning papers. At this stage the buyer will instruct their solicitor to commence work on the preliminary searches and other details. This stage of the process is called
Swapping the Missives
Here the buyers and vendors solicitors negotiate the the terms of the contract on behalf of their clients.

Conveyancing

This is the legal process required to transfer the ownership of the property from the seller to buyer. The legal aspects of buying a home can be complicated. Therefore most home-buyers in Scotland appoint a solicitor qualified in Scots Law and holding a practicing certificate from the Law Society of Scotland to do the legal work involved in buying a property.
The fee charged by solicitors will vary. It is worth getting estimates from several solicitors.  Prior to appointing one to act.
For freehold properties the process is fairly simple, however leasehold properties will require more work.
The lease is the legal document which sets out the rights and duties of both the tenant(leaseholder) and the landlord of the building (freeholder). The lease will specify the number of years available on the property.
This usually applies for 99 or 125 years.

Clarification may need to be sought for a number of different
issues such as
The length of time the lease has left to run:
The ground rent payable to the landlord or freeholder, including any management fee or service charge to cover repairs and maintenance of shared parts:
Who is responsible for maintaining the shared areas of the building and whether that responsibility is shared in a fair way:
What liability there may be for any major work e.g: re-roofing or painting the outside of the building etc:
Solicitors will advise their clients on the progress and provide
advice on any documents that need to signed.

Once all the contract details have been agreed,
the two solicitors exchange letters.
These letters are known as conclusion of missives.
Both parties are now legally committed to the sale.

After this the buyer may be required to pay a holding deposit: on average £500-£1,000  to secure the deal. It is not a common practice, as there are usually penalty fees in the contract to deter either party from backing out at this stage.
Once the contract has been agreed by both parties The buyers solicitor will check the title deeds and discuss with their client the regard to any condition on the property.
Title burdens – conditions attached to owning the property ranging from where rubbish bins can be put to more serious restrictions on how the property can be used and altered.
The vendor signs the transfer of the title deeds, called the disposition.
The vendor’s solicitor will also prepare the
Land Transaction Return for the buyer to sign.

At this point the buyers solicitor will contact the lender to confirm that the contract has been signed. The purchase is proceeding and what the date entry is expected to be. This allows the lender to release the funds at the right time to complete the sale on the date of entry.
The vendors solicitor will request the transfer of funds from the lender on the date of entry.

That then is a basic introduction to the house buying process as it stands in Scotland.

As with all mortgage transactions there will be additional costs or fees. The largest will be that for the solicitors. Some have already been mentioned as in the holding fee and survey fees.

Mortgage Arrangement Fees

There is often a fee to set up the mortgage – usually referred to as an arrangement fee.
These can be either paid in advance, or added to the mortgage, but choosing this option means you’ll pay interest on it for the length of the mortgage. May vary in price subject to the lender and lending scheme. Other lenders fees may include.
A fee for transferring the money, typically £40-£50
A fee of £100-300 for setting up, maintaining, and closing down the mortgage account.

Survey Fees

These work on a sliding scale according to the survey undertaken
Home condition survey – the cheapest and most basic survey.: up to £250.

Homebuyer’s report – a more detailed survey looking thoroughly inside and outside a property. It also includes a valuation: £400+.

Building or full structural survey – the most comprehensive survey suitable for an older building or one of non-standard construction: £600+

Holding Deposit

May not be required subject to due to penalty clauses written into the contract £500 - £1000

Solicitors fees

Solicitors fees average cost: £400-£900 plus 20% VAT.
This will include any or all of the following
Searches plus any other fees paid on the buyers behalf.
Registering the signed title deeds with the Land Register. The cost starts at £60 and rises , subject to the property price
The transaction is completed by paying the Lands and Buildings Transaction Tax (LBTT) . Essentially the Scottish version of the stamp duty paid in England, Wales and Northern Ireland
It works on a sliding scale as follows and must be paid within thirty days of completion
2% for homes costing between £145,000 and £250,000
5% for homes costing between £250,001 and £325,000
10% for homes costing between £325,001 and £750,000
12% for homes costing more than £750,000

When researching content for this article we came across one constant piece of advice with regard to keeping expenses  as low as possible.
This is to shop around for the best deals  available. Things like mortgages, often lenders may have specific deals where free surveys may be included as part of the service. Fees may be re-paid. Solicitors may offer reductions on certain services. lenders may include a free conveyancing service if a solicitor on their panel is employed. etc.
Don't be frightened to ask questions.

That concludes this article. It is not exhaustive but covers the procedure in as simple a manner as is allowable in a document of this size.


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There is a wide range of standard and industry jargon underpinning the mortgage and house buying process. The purpose of this series of articles is to try and provide an understanding of what it all  means.

So what follows will be an A-Z, or glossary of terms.
This will be spread across several posts for ease of access
This first section goes from A-E

Acceptance
This is a document issued by the lender that gives details of their mortgage offer. The term acceptance is used when the borrower signs and returns the document accepting the offer of funding

Additional Security Fee
More Commonly known as MIGPIt is a one-off fee levied by the lender to protect them against the borrower defaulting on the loan. Usually charged on mortgages over 75% of the house value. Also known as MIG, Indemnity Guarantee Premium and Mortgage Indemnity Premium.

Advance
Listed in the acceptance letter. It is the total amount of funding
offered by the lender

Adverse Credit
These issues come to light when credit searches are carried out, it is essentially, where there is a poor credit history. Such issues can be things such as county court judgments (CCJ’s), bankruptcy, mortgage arrears, Individual Voluntary Agreements (IVA’s) and credit card or
other borrowing arrears or defaults.

Agent
This is normally a person/company, organisation that has been appointed and who acts on behalf of a landlord, such as a letting agent, management agent or estate agent.

Applicant
This is simply a term which describes the person/s making the application for mortgage funding etc

Appraisal
Simply stated, it’s an assessment of the property for valuation
by an estate agent

 Annual Percentage Rate/APR
 The total cost of a loan, taking into account interest charges, arrangement fees and other costs, shown as a percentage.

Arrangement fee / Administration fee
More Commonly known as MIGP  It is a one-off fee levied by the lender These are fees which come in a wide range of areas and are usually payable before an action is carried out. Examples include payment which is charged to cover the costs of drawing up a tenancy agreement.

Arrangement fees to the lender for arranging the loan. Things such as charging for reference requests. Fees to secure a specific type of funding scheme. Etc. They are many and varied. Be aware of them

Assignment
Part of the completion process, when the property is signed over

Assured Shorthold Tenancy/AST
This basically gives a landlord the right to reclaim their property back after a specified period of time. Short term tenancies tend to be six months to a year

Banks
A place to go for Mortgages & Loans.

Base Rate
This rate is set by the Bank of England and is used as a benchmark for lenders to set interest rates by. It represents the lowest rate of interest a bank will charge you when it lends you money. This rate is reviewed periodically thorough out the year and can go up as well as down.

Booking Fee
See admin/arrangement fees

Break Clause/Release Clause
Used in conjunction with fixed term tenancies. When the fixed term tenancy period ends, this clause can be added to the tenancy agreement by either the landlord or tenant. It basically allows a cool down period over which the tenant can either agree to renew the tenancy, or end it. This clause will normally allow either party to get out (normally with about 2 months notice) before the end of the new term.

Bridging Loan
Basically a short term expedient, it is a very expensive temporary loan to tide you over when having to buy your new house before
selling your old home.

Broker
This is a person that advises on mortgages etc.  Known as
a mortgage broker.

Building Insurance
This is a type of insurance covers the property in the event of it being damaged or destroyed, and is a requirement. The sum that is insured covers the estimated cost of rebuilding the property.

Building Society
Another place to go for Mortgages & Loans

Buy to let
This is a specific mortgage that allows you to buy a property with the main aim being to find tenants and let it out. The income from renting the property out is taken into consideration by the lender.

Capital
The total amount – sometime referring to sum borrowed in a mortgage – sometimes the amount you have left in a property after the
mortgage has been repaid.

Capital and Interest Mortgages / Repayment Mortgages
With these, all payments. Both the capital and interest monthly mortgage payments are paid back directly to the lender. The advantage being, that at the end of the loan term, the entire debt will be repaid
with nothing outstanding.

Capped Rate
These are interest rate schemes offered to borrowers, that are capped to a certain level of interest over a set period of time. They usually run over the first 3 years of the mortgage starting, but it can be for longer.
The interest rate cannot go any higher than this capped rate during this specified period of time.

Cash Back Mortgage
See Cash Back on completion.

Cash Back on completion
This is where you get a lump of cash from the mortgage lender on the completion of a sale.

Cash on Cash Return
This is the same as Return on investment.

Caution
These are entries that are on a land register to protect the
interest of a third part.

Chain
This occurs when the seller needs the sale of their house to occur before they can complete the purchase of another property. The same situation may exist for others in the chain. As a result, the whole chain can collapse if one link breaks.

Chain Free
This is simply when a potential buyer does not need to sell a property in order to buy a new one hence they are “chain free”.
First time buyers are often chain free.

Charge
The term attached to a property by the lender to give security against the asset. It means that they have a right to the property value
should it come to a sale.

Charge Certificate
This is a certificate issued to the lender by the Land Registry that gives evidence of the lender’s charge over the property.

Collateral
The property is what is classed as collateral. It is seen as a guarantee that you will be able to pay the lender the loan. If you aren’t able to repay this loan the property could be sold by the lender in order to recoup the money they originally lent you.

Completion
This is the final stage of the buying process. The ownership is legally transferred from the seller to the buyer.

Compulsory purchase order
Normally issued by local authorities which  enables an authority to purchase a property whether the seller wishes to sell or not.

Contents Insurance
Insurance to cover any loss or damage to your possessions.

Contract Race
This is what sometimes happens when two potential buyers want to buy the same property. The seller will normally be the one to instigate the contract race but it can also be instigated by a buyer. The winner of the race will be the first buyer to be in a position to exchange contracts.

Contracts
The legal documents needed to transfer the ownership of property
they are signed by both the seller and the purchaser.

Conveyancing
Legal process involved in buying and selling a house.

County Court Judgement (CCJ)
Issued by the County Courts for default or non payment of loans. Possession of these can have an adverse effect on obtaining funding for mortgage use. See Adverse credit

Covenants
The covenants are the terms of any given tenancy agreement. They include any obligations or promises made by either the Landlord or the tenant. They are requirements by law on the owner of a property that they will either do or not do something with their property.

Credit Search References
These are references taken regarding a potential tenant. These references can be from sources such as the tenant’s employer. A check of the tenant’s credit history is also often carried out. See Adverse credit

Current Account Mortgage
This type of mortgage is a flexible mortgage that can keep all your finances in one place. It combines your mortgage with a current account and the money in the current account can be automatically set against the mortgage balance and then interest only charged on the outstanding amount of the loan. In practice this should mean that interest payments should be reduced.

Deeds
These are the legal documents associated with a property.

Default
This is when payments have stopped or been missed.

Delayed Completion
Completion is classed as delayed if they take over 28 days to complete after exchange of contracts a delayed completion needs to be agreed before exchange of contracts.

Deposit
This is normally a lump sum paid to the seller towards the overall cost of the property it is normally held by solicitors until completion of contracts.

Direct Debits
Direct debits are used to make payment directly from a bank account.
They work in a different manner from standing orders

Disbursements
Expenses paid by the solicitor on behalf of the buyer.

Discounted Rate
A Discounted rate mortgage will have an interest rate lower than the lender's Standard Variable Rate.

Discounted Tracker Rate Mortgage
This is a variable rate mortgage that is discounted from the Bank of England’s base rate. It is usually discounted by a set percentage for a set period of time. In practice there are usually early repayment charges that will be charged if the loan is repaid within the discounted period.

Early Repayment Penalty / Early Redemption Charge
This is a fee charged on early payment of a mortgage loan

Endowment Mortgage
Type of mortgage where monthly payments are split between the lender and the insurance company running the endowment (life assurance) policy. Interest is paid to the lender, the capital portion of the loan is re-directed into the endowment policy. The loan is paid off in one lump sum at the end of the loan period.

Engrossment
This is the final and formal version of a document that has been prepared by a solicitor in preparation for signing following the agreement of the final draft between parties.

Equity
This is the difference between the market value of a property and the amount of the mortgage that is still owed to the lender on that property.

Estate Agent
Property agents who deal in the buying and selling of property

Excess
The initial sum you have to pay on an insurance claim.

Exchange of Contracts
The point at which buyer and seller are legally bound to the sale and purchase of the property.

Exclusive Mortgage
Mortgage scheme which is only available through a specific Lender.

Execution
This is when a deed is signed, sealed and delivered in front of an independent witness.

This list is not comprehensive will be updated on a regular basis