n
Best properties for home working and home schooling
n
Can social media sell your home?
n
The appeal of the Scottish estate today
Property Matters Issue 3 | 2020
Welcome
I
t goes without saying that 2020 has proved an unusual year for the residential property sector in the UK!
As I write, we don’t yet know when the government restrictions will be eased, but our expectation is that the property sector will bounce back relatively quickly. Buyers in most parts of Scotland and the North of England are keen to proceed as soon as they are able to. The current situation may however lead to a permanent shift in our thinking. Employees may be surprised that their home working was actually very efficient; employers may feel that they could potentially rationalise their property footprint, thereby reducing a significant cost to the business. Demand for rural property is likely to be boosted by this enforced experiment in home working. Most of us would prefer to live in a rural setting, amidst rolling hills or woodland, and wake to the sound of birdsong. If there is no longer the need to commute to an office daily, homes in more remote areas will be considered by a much wider pool of buyers. Where in the past a key criterion may have been the length of the journey into the centre of town, today the main test may be broadband speed. With some islands in the Outer Hebrides now enjoying speeds of one gigabyte per second, about eighteen times faster than the UK average, there is perhaps scope for many of us to realise that long-held dream of living in the country.
Contents 4
Buying a residential property in Scotland
6
Buying a residential property in England
8
Dressing a property up vs Empty properties
10 The appeal of the Scottish estate today 14 Coast and waters 18 Best properties for home working and home schooling 20 The new normal 22 The power of the For Sale board 25 Top tips on how to get your tenancy deposit back 26 Galbraith and the Beach café, Nairn Academy 28 Strong demand for rental homes put landlords in the driving seat 30 Kerb appeal 32 The timeless attraction of a period house 36 10 frequently asked questions 39 Why the Northern Counties? 40 Fabulous Fife and thriving Dundee
With best wishes to all our readers. n
Simon Brown Head of rural and residential sales and lettings
Front cover Property For Sale Camuscross, Isle Ornsay, Isle of Skye Offers Over £575,000
Galbraith is a leading independent property consultancy. Drawing on a century of experience in land and property management, the firm is progressive and dynamic, employing more than 250 people in offices throughout Scotland and the North of England. We provide a full range of property consulting services across the commercial, residential, rural and energy sectors. Galbraith provides a personal service, listening to clients and delivering advice to suit their particular opportunities and circumstances.
Follow us on twitter: @Galbraith_Group Like us on Facebook: www.facebook.com/GalbraithPropertyconsultancy See us on instagram: www.instagram.com/GalbraithGroup Join us on Linkedin: www.linkedin.com/company/galbraith
O
nce upon a time we would pick up a local newspaper to look for our next home or visit an estate agent on our local high street. In recent years we have seen significant changes in how property is marketed and where buyers choose to look for their next home. One option that is certainly here to stay is social media. In 2019, social media users worldwide hit a record high of 3.484 billion, that’s 45% of the world population. An incredible amount of people and opportunities. Social media plays a significant role in the lives of many people and who are now turning to social media to search for the biggest purchase of their life. Facebook, Twitter, Instagram and the many other social media networks out there have taken the world by storm and they can offer exposure beyond any other. By creatively placing properties on social media platforms we instantly
Can social media sell your home? Hannah Christiansen 01224 860710 hannah.christiansen@galbraithgroup.com widen your audience and increase the chance of securing a buyer. Properties will gain attention from more people, including international buyers, very quickly and drive traffic to our website for further information. At Galbraith we strongly believe that sitting back and waiting for buyers to come forward is not the route to a successful sale. It’s imperative to us that we actively market a property to prospective purchasers. Galbraith has fully embraced social media and the opportunities it creates for our sellers. Through engaging posts, paid for advertisements and a clever and creative mix of pictures and videos we have created a social media network with more than 45,000 followers. This has brought great success and exposure for our clients and this success has not just
been clicks, likes and shares, but crucially it has brought viewings, detail requests and enquiries before a property has even hit the open market. A great example of such success was a property launched here in Aberdeen. A ‘coming soon’ post was created and submitted to Facebook before the property was formally launched to the market to wet the appetite. Within a very small period of time we had reached an impressive 13,799 people with 65 likes, 53 shares and 40 comments. But more importantly the first person to contact the office after the post was the solicitor of the actual buyer. Another great example from Aberdeenshire was a property we launched to the market that very quickly received over 50 likes. One
of the first people to ‘like’ the post was the person who purchased the property. Furthermore, the firm handled the sale of a beautiful island, Little Ross, located in the South West of Scotland. Our posts created excitement online and drove over 6,000 clicks to our website and were shared by accounts all over the world. Social media may not be solely relied upon to sell your home, but there is no doubt its part in the process is becoming extremely important by greatly increasing your property exposure and audience. The evidence speaks for itself and it’s exciting to see how social media will greatly contribute to property sales in the years ahead. n
Property Matters | 2020
Buying a Residential T
o the uninitiated, the process of making an offer on a property in Scotland can seem mystifying. We have a completely separate legal system here from the rest of the UK, as distinct and unique as our lochs and glens. Navigating it successfully requires the services of Scottish solicitors, who are qualified in our laws and procedures. English solicitors cannot practise here unless they are dual qualified, which is rare. With many of our buyers hailing from south of the border, we are well versed in explaining the differences as far as property goes. It is not as complicated as it first appears, and in each of our offices you will find expert agents ready to advise you and steer you safely through the process of making an offer.
Solicitors When you set off on your property buying journey, it is wise to get yourself registered with a Scottish solicitor. Ideally they will be based in the part of the country you are looking to settle in, familiar with the local titles and the inherent peculiarities therein, and have good working relationships with the other law firms in the area. However, this is not essential, and
you may engage a solicitor from any part of Scotland. You will need to furnish your chosen solicitor with identification, and they will usually want to meet you face to face, so it is a good idea to make finding a solicitor a part of your first trip to your desired area.
Noting Interest Once you have viewed a few properties you will probably have a shortlist of those you are seriously interested in, or indeed you may have found your dream home. If you are not quite ready to make an offer due to your own sale or financial situation, you can ‘Note Interest’ on a property with the selling agent, or have your solicitor note interest with them on your behalf. This means that you will not miss any Closing Date which may be set for offers. It does not mean that the selling agent will inform you of all and any interest in the property – agents are only obliged to inform you of a Closing Date and give you the chance to offer at that date. However, in certain circumstances, depending on the wishes of the vendor, you may be approached to gauge your position if another interested party makes an offer.
Property Matters | 2020
Property in Scotland Making a Verbal Offer If you are in a position to proceed, it is best to contact the selling agent and discuss the offer you wish to make. They can advise you as to whether this is likely to be acceptable, and negotiate with you on behalf of the vendor. This way, all parties come to an agreed figure, and you can then instruct your solicitor to submit your offer safe in the knowledge that it is already agreed. At this point you should also make clear to the agent any conditions that would apply, in terms of timing or specifics of the sale. This saves you the time and expense of having your solicitor submit a written offer that may be rejected.
Making a Written Offer Once you have a verbally agreed price, you then instruct your solicitor to submit a written offer in Scottish legal form to the selling agent. This will include any conditions which will apply, such as sale of your own property, survey, finance and Date of Entry (the date you pay the purchase price and get the keys).
An important procedural point to note is that under the Anti-Money Laundering Regulations 2017, the selling agent is required to carry out identity checks against all purchasers. You will be required to provide identification to them directly or have it sent by your solicitor with the formal offer. The selling agent will then pass your offer to the vendor’s solicitor, and the two solicitors then proceed through the legal process of ‘missives’, with the aim of concluding the contract (similar to exchanging contracts in England) as soon as practicable. This process can take anything from a matter of days to a number of weeks depending on the various offer conditions and legal hurdles. Meanwhile, the selling agent will mark the property either ‘Offer Under Consideration’, if there are certain conditions to be met, such as the sale of your property, or ‘Under Offer’ where your offer is straightforward. Our agents will be delighted to discuss any of the process with you in more depth, advising you specifically with regards to your own circumstances, and negotiating your purchase of one of our properties. n
See the full range of our sales portfolio at galbraithgroup.com/property/search/residential Marion Currie | 01556 505346
Property Matters | 2020
Buying a Residential Property in England O
ur three English offices, in Penrith, Blagdon and Hexham, joined the Galbraith fold in early 2019. We offer the full range of residential and rural property services, as well as estate management, land agency and forestry advice across the whole of northern England. Between us, we have decades of experience in the English property sector and we are very much enjoying the benefits of our relationship with our Scottish colleagues, in addition to learning the language! For those looking to buy or sell a property in England for the first time, there are some important differences to bear in mind compared with the Scottish system.
interest in the property, in which case the price agreed may be in excess of the advertised price.
Documentation and surveys At the time that the property goes on the market, the vendor is legally obliged to obtain an Energy Performance Certificate, which is made available for potential purchasers to inspect. It is not a requirement for the seller to commission a Home Report or survey. The English approach is that the buyer will commission a structural survey, usually after a verbal offer has been accepted subject to contract. Realistically, it is the buyer who is keen to understand everything about the property they are about to acquire.
Pricing
Making an offer
Residential property is marketed at a guide price which is realistic in terms of the market conditions at the time and demand in the local area, but also designed to have widespread appeal and generate interest.
Those viewing a property may formally register their interest in a property with the agent, although it is not a requirement to do so. An offer may be made verbally or in writing and is essentially treated the same way in either case. The agent is legally required to report all offers to the seller verbally and in writing.
It is not usual to use the phrase ‘offers over’ in England, but in some cases there may be a high degree of
Best and final offers Much the same as in Scotland, where there are several offers advanced, all parties will be requested to put forward their best and final offers at a closing date. The vendor will be advised of all the offers and the circumstances relating to each potential purchaser. For example, a good agent will have verified that a purchaser has their mortgage in place, or agreed in principle, and will ascertain whether each party has a property to sell or has already accepted an offer on their own house. Understanding where each person is in the buying chain can make a significant difference to the appeal of their offer. Attention to detail at this point in the proceedings is crucial as it could save a considerable amount of time for the seller and avoid the huge inconvenience of a sale falling through.
Instructing a solicitor Once an offer has been accepted, the seller’s solicitor will draft a standard contract agreeing to the transfer of the title deeds, for the buyer’s approval. At this point the buyer’s solicitor will begin the necessary searches with the local authority and other relevant statutory bodies to ensure that the property is not subject to any special conditions, rights of access and there are no other issues that need to be addressed.
Missives and date of entry The equivalent of conclusion of missives is the exchange of contracts. This is the point at which the purchaser becomes legally obliged to proceed with the sale on the date of entry, which is referred to as the completion date in England. Usually there is a delay of about 28 days between exchange of contracts and the completion date. English and Scottish law differs. You need a solicitor who is qualified to act in the purchase of English property when you are buying south of the border. We would advise that it is preferable to instruct a local solicitor, because their local knowledge has often proved invaluable to clients in the past.
Tax Stamp Duty Land Tax applies to all residential property, with the first £125,000 tax free and an increasing percentage levied in bands, as the purchase price increases. In both England and Scotland (where the property tax is Land and Buildings Transaction Tax) different rates apply if you are purchasing a second home (an additional 3% in England). A discount is applied for those purchasing their first home. At the time of writing, if you have paid the additional stamp duty applicable as the owner of a second home, and you subsequently sell your first residence within three years, you may be entitled to apply for a refund. Our Hexham based estate agency team covers the whole of the north of England. Sam has worked in the estate agency world north of the border too. If you would like to discuss any element of the sales process then please get in touch. n
Sam Gibson BSc (Hons) MRICS 01434 405975 sam.gibson@galbraithgroup.com
Property Matters | 2020
Dressing a property up vs Empty properties No matter what is happening in the property market, when you want to sell your home there are two important factors to consider to assure a quick sale: price it well and ensure it is looking its best. Regardless of the asking price, the appearance needs to be inviting. Empty properties can often be undesired or even overlooked so we explore the reasons for dressing a property vs leaving it empty.
The importance of dressing a property
P
otential buyers become interested in a property when they walk in and feel, “I could live here�. Often with an empty house people struggle to visualise themselves living there and that is why it is important to present the property in such a way that a lifestyle is being sold along with the property. Staging uses design and creative concept techniques with the objective being to have potential buyers walk in and see the property as their home. They want to envisage themselves living and entertaining there so a seller creates a space with which the buyer will connect. In order to do this effectively, the house should be made both as impersonal and
attractive as possible to give the buyer scope to see it as their home. Staging is not a new concept. Large house builders sell through their immaculately designed and furnished show homes but it is not always necessary to go to those lengths or expense. There is so much than can be achieved either doing it yourself or with the help of a professional who will work with you and your budget. Before you start you should consider the property’s strong and weak points and any changes that need to be made, the time this will take and obviously any general cleaning, repairs and tidying up. Staging
Focus on decluttering, positioning furniture, lighting and colour
“
Fiona Fulton 01292 292535 fiona.fulton@galbraithgroup.com
focuses on decluttering, positioning furniture, lighting and colour to emphasise the property’s strengths and minimise any weak points thereby showing the property to its maximum potential. Presenting a well-cared for home and creating a positive first impression will attract the attention of the prospective buyer and encourage them to consider how the property could fit their requirements.
Don’t discount an unfurnished house While unfurnished homes can be beautiful, they do not appear to attract the same level of attention as furnished properties. However, seeing a property stripped back can allow for a buyer’s imagination to take over and the property’s full potential to be realised.
An empty house offers full transparency in terms of the property’s current condition, as well as allowing prospective buyers to get an accurate understanding of the property’s actual size. Unfurnished homes allow buyers to view much more of the structure and space – rather than being obstructed by wardrobes, tables and curtains – so the internal condition of the house and the space it provides is much more obvious. There could be a number of reasons why a property is empty and potential buyers should not assume it means there is something wrong. The sellers could be living overseas or could have moved to a different part of the UK due to work commitments. We would always advise prospective purchasers to keep an open mind when viewing an unfurnished property and to appreciate the blank canvas that could in fact make for their ideal family home. n
The Appeal of the
Scottish Estate Today The worldwide romantic appeal of Scotland is long established; beautiful coast lines, the rugged mountain ranges of the Highlands, the rolling countryside of the lowlands, together with the ability to “get away from it all� with relative ease
Property Matters | 2020
I
ndeed Queen Victoria and her family fell in love with the wildness of Scotland in the 19th Century making Balmoral the heart of the Royal Family’s annual summer holiday ever since. The desire for the Scottish estate grew in popularity, partly perhaps as a result of this Royal connection, with the principal recreational pull being fishing, shooting and stalking. The “big house” was very much at the heart of the estate for entertaining, with the estate grounds allowing the chosen outdoor pursuit to be enjoyed during the day amidst the beautiful Scottish countryside. The entire estate was very much geared towards enjoying the outdoors and sporting activities. Today, however, the draw for the Scottish estate can be for much more diverse reasons or criteria. The romantic appeal continues but the activities to be enjoyed are far broader than perhaps the more narrow pull of 100 years ago; rewilding, conservation and forestry being high on the list, together with farming and other outdoor recreational pursuits. Of course the traditional reasons of stalking, grouse moor management, driven pheasant shooting and fishing continue to be on the wish list of many looking to buy a Scottish estate but generally the one type fits all no longer applies and the estate owner of today may have a combination of any of the above or indeed will add in to the mix further diversification ideas, such as gin distilling or a falconry school to name but two. The desire for an estate to generate income is also often on the agenda of a potential purchaser, resulting in many diversification projects including for example the growth of renewable energy generating technology on estates, the cottages and houses being renovated and rented out as holiday homes,
The “big house” was very much at the heart of the estate for entertaining...
“
The decision to bring an estate to the market can be for many different reasons
“
Property Matters | 2020
the principal house perhaps becoming a wedding or event venue and traditional outbuildings being converted into breweries, artisan distilleries or indeed kitchens for niche products.
Scale requirements vary greatly, as does the desire for a period principal house, but the common and uncompromising criteria is privacy and an undisturbed setting.
Owning a piece of Scotland provides the owner with the opportunity to indulge a passion or pastime otherwise unavailable; be it creating a focus for conservation by the introduction of woodlands or management of moorland. It may be that a new owner looks to develop a holiday or tourism destination from their estate. The farming side of the estate may run either ‘in hand’ by the owner or tenanted on various short, medium or long term agreements. Or it could simply be for enjoyment such as riding on horseback through the glens, wildlife photography or landscape painting.
Over the last five years Galbraith has handled the sale of more Scottish estates than any other firm with our involvement in estate transactions being from all sides; selling, buying and valuation advice.
The options for a Scottish estate are broad, adding to its appeal. The demand continues to far out strip the supply with buyers coming from not only within Scotland and the UK but also internationally.
The decision to bring an estate to the market can be for many different reasons, sometimes for the first time in generations, and the owner will look for the sale to be handled by a professional agent experienced in the estate market. A landed sale involves many intricacies and an understanding of these complexities is essential. Valuing an estate requires a detailed knowledge of the value of each element making it up; the sport, hydro or wind farm potential, forestry or planting land, farmland, buildings, cottages and of course the principal house or shooting lodge. n
Galbraith has a long pedigree in the estate market. Whether selling, buying or valuing we have highly experienced professionals covering Scotland and the north of England. For estate sales, purchases and valuations contact: John Bound 01463 245352 | john.bound@galbraithgroup.com Simon Brown 01786 434602 | simon.brown@galbraithgroup.com Emma Chalmers 01738 456062 | emma.chalmers@galbraithgroup.com Sam Gibson 01434 405975 | sam.gibson@galbraithgroup.com
Emma Chalmers 01738 456062 emma.chalmers@galbraithgroup.com
Property Matters | 2020
Coast & Wa Time and time again we see well-sited coastal properties out-performing those without water views Inverness Office The west coast of Scotland in particular beats many other areas for its spectacular combination of inland and sea lochs, dotted with small islands and set against a backdrop of dramatic mountain ranges. Having direct access to water and with the right to launch a boat further adds to the appeal. Premiums between 13% and 25% were paid last year by
n
Sold Inverness Offers Over ÂŁ375,000
those looking to secure their ideal home. The Inverness office of Galbraith, which covers the Highlands and Islands, can lay claim to not only having the most beautiful stretch of coastline in Scotland, but also the greatest length of coastline at 4,905 km. The region has long-attracted those looking to live or holiday in a stunning and unspoilt area and the attraction of a water view,
or better still direct access to water, seems to be high on most buyers' wish-list. We sell a wide range of coastal property from our Inverness office and whether it’s a tumbledown cottage or state of the art contemporary house, at the time of launch we know the phone will start to ring. The west coast with its beautiful sandy beaches, hidden coves and island views is breathtaking
ters
and brings with it the opportunity to indulge in lots of water-based activities. We recently sold an unmodernised cottage on the edge of a Highland loch with its own 10 acre island within the loch. The lure of being able to launch a boat from your own property and sail to your own island for the day awoke the sense of romantic adventure in many buyers. After eight notes of interest and six offers, the property went under offer three weeks after coming to the market, well in excess of the asking price. The east coast stretching from Moray to Caithness is different in many ways, but no less spectacular. This is the coastline of long sandy beaches, links golf courses, sheer cliffs and wide skies. Notable sales we have handled over the past few years have included Old Scrabster House, perched above the harbour and had distant views to Orkney, while Stain Croft was an idyllic stone built cottage, a few metres from the beach at Keiss Bay, its bright yellow shutters providing protection in the worst storms. As an island nation, for many of us the draw of life close to water is too strong to resist. Currently on the market https://www.galbraithgroup.com/property/inv18020326-camuscross-isle-ornsay-isle-of-skye-iv43-8qs
Phiddy Robertson 01463 245 369 phiddy.robertson@galbraithgroup.com
n
For Sale Inverness Offers Over ÂŁ575,000
n
For Sale Inverness Offers Over ÂŁ360,000
n
For Sale Castle Douglas Offers Over £700,000
n
For Sale Castle Douglas Offers Over £700,00
Castle Douglas Office We are delighted to be marketing some of the finest coastal properties in Dumfries and Galloway in 2020, with stunning views over idyllic and often untouched coastline, the area offers ‘cornish’ scenery at a fraction of the price. Buyers are drawn to waterside properties for the ever changing landscape, the flora and fauna that the waterside location attracts and the potential for amenity be it fishing, sailing or just enjoying the scenery. Properties in Kippford and Rockcliffe are often popular and in demand for the reasons above and the traditions that a British seaside village offers, particularly in a beautiful part of the country such as this.
David Corrie 01556 505346 david.corrie@galbraithgroup.com
Properties in a “ good coastal location n
Price on Application
are always highly sought after...
Property Matters | 2020 n
Sold Cupar Offers Over £295,000
Fife Office Properties in a good coastal location are always highly sought after - and it really is a case of location location location! Large premiums are often paid and closing dates are certainly more common than for other properties. Why? It’s a lifestyle thing - beaches, walks, views, invigorating sea air. VIllages like Elie, Earlsferry, Crail, Balmerino and Anstruther are always incredibly popular.
George Lorimer 01334 659988 george.lorimer@galbraithgroup.com
n
Sold Stirling Offers Over £300,000
Stirling Office Argyll offers a plethora of coastal locations which are a major draw for those looking to buy in the area. The region is synonymous with sea and loch views, often coupled with mountainous landscapes and stunning beaches. Demand for waterside properties has never been greater with a growing number of ready buyers looking to make a permanent move or invest in a second home. Over the last year, 65% of our residential property sales in Argyll were on or overlooking water.
Nicky Archibald 01786 434600 nicky.archibald@galbraithgroup.com
Hexham Office
n
Sold Inverness Offers Over £375,000
The Northumbrian coast is wonderfully dramatic. It provides some of the most exciting landscape that Britain has to offer with plenty to do and see with every mile of pretty sand, dunes and cliff. Nature in abundance and castle after castle. During my career I have been involved in the sale of some fabulous houses and apartments all along this wonderful stretch of our coastline and have ascertained that there is a tri fold market for most waterside properties those looking to buy a principal residence, those looking to buy additional homes and those wanting to add to existing portfolios of letting properties. The additional home buyers tend to come from Yorkshire. My opinion is that the waterside element to a property boosts its capital value by as much as 30%. n
Sam Gibson BSc (Hons) MRICS 01434 405975 sam.gibson@galbraithgroup.com
Property Matters | 2020
The
Best Properties for Home Working & Home Schooling Featuring swimming pools, games rooms and home offices these are some of our best properties for both work and play
Balcary House, Auchencairn, Dumfries and Galloway Offers Over ÂŁ700,000 A delightfully versatile property in a wonderful, secluded location with direct access to the beach and adjacent woodland. Heated indoor swimming pool. Stunning views to Hestan island and the Lake District beyond.
Kinloch Beag, Meigle, Perthshire Guide Price £435,000 is a substantial family home with three reception rooms, four bedrooms and a sauna. The gardens are beautifully secluded and provide a peaceful setting with open countryside to the north and east. There is an attractive Summer House and the former Gardener’s stores include a workshop and home office.
Moody Cottage, Durham Guide Price £1,450,000 has a separate double garage with office above. The main house has wonderful views over mature woodland and grounds of 5.8 acres. Beautiful orangery and stunning kitchen-dining-room with high-end finishes. Private access to neighbouring estate with 35 acres of grounds and a river. Master suite with two dressing rooms and two bathrooms.
Adastra, Aberdeenshire Offers Over £650,000 is an outstanding executive home on a half-acre, private plot with lovely south-facing gardens. Detached double garage with gym and shower room. This space is also perfect for a games room or home office. 5 bedrooms, 4 public rooms, 5 bathrooms. n
Sam Gibson from the Hexham office assesses the likely impact of mass home working on our property preferences
The New Normal Sam Gibson BSc (Hons) MRICS 01434 405975 sam.gibson@galbraithgroup.com
A
t the time of writing (late April 2020) the Covid-19 pandemic has taken hold in the UK. Many of us are working from home until further notice, while school-age children are also confined to barracks, with regular school work assigned by Intranet. Government advice has been to postpone any house moves wherever possible. As some families have two or more children each studying (or pretending to study) in their bedrooms and two parents also working from home in separate rooms, this is a rather odd new reality for many of us. The consequences for the economy will be far-reaching, but in terms of the property sector, how will this major change affect the way that we view our homes?
The home office Where once this may have been a spare bedroom too small to be useful for any other purpose, or an area squeezed in at the foot of the stairs, the home office is now a major consideration. Some families will require two, if employers switch to more flexible work patterns. The best home office for prolonged periods of home working is one that is light and airy, has a window with a nice view, or better still a small
Property Matters | 2020
balcony or access to outside space. At the very least this should be a room that isn’t a thoroughfare to another part of the house and has a door which can be closed.
Broadband speeds, running costs and the potential for a renewable energy scheme Broadband speed is at the top of the list of requirements for most house hunters. The ideal would be superfast speeds of 24 Mbps or faster – but a typical family home requires 12 Mbps, according to Ofcom. In rural areas, speeds vary, but the government has been working towards rolling out superfast broadband for all and it is likely this will continue in the near future. The prospect of spending more time at home equals greater running costs. A house which offers the potential to reduce our energy consumption, thereby reducing our carbon footprint and cutting our energy bills, will hold significant appeal. Houses with solar panels, a ground-source heat pump, or a wind turbine will catch the home worker’s eye in the short to medium term. The Domestic Renewable Heat Incentive is a government scheme designed to promote the use of renewable heat, including installation
of an eco friendly system (e.g. a biomass boiler, solar thermal panels, an air-source heat pump or groundsource heat pump). Payments under this scheme will help offset the cost of installation and furthermore the overall cost of running your home should be reduced. The government’s Feed-In Tariff scheme offers a payment for electricity generated by the home owner from renewable sources. Although now closed to new entrants, homes which have a FIT scheme in place continue to receive payments for electricity generated and are only going to serve as a greater attraction to purchasers.
The garden & grounds The importance of access to a garden has never been more apparent. We can at least escape to our garden, thereby benefiting from both fresh air and the potential to get some exercise at the same time. The dream for many of us would be a couple of acres of land, either for fruit trees, perhaps keeping chickens or creating a vegetable patch, or a paddock and stable for those with equestrian interests. On a smaller scale, an attractive garden may now be one that is fully enclosed, with a good degree of
The Scottish Borders – Britain’s Best Kept Secret
D
espite being one of the easiest areas of Scotland to reach, the Scottish Borders has been described as ‘Britain’s best kept secret’. This helps preserve the area’s peace and beauty for residents but means that prospective house hunters can often overlook the Borders.
privacy, and perhaps a terraced area or summer house for eating lunch outside, weather permitting.
Three generations in one house The current situation brings into focus the needs and wants of the different generations. The advantage of having this space already set up may be music to your ears if you are currently struggling to manage the demands of working from home and suddenly needing to home school your children as well! It may be that we will give more consideration to having a dedicated games room for younger children, converting the loft to a chillout space for teenagers, or creating an annexe for older family members, either as a permanent addition to the home or for occasional use.
The Borders offer something for everyone with great community spirit, history and traditions. The friendly rivalry between historic settlements, with great pride in each town’s Common Ridings and rugby team, is one of the reasons why this region has such great appeal. It is a fantastic place for family life, with highly regarded schools, whilst at the same time it enjoys excellent transport links to major cities such as Edinburgh, Glasgow and Newcastle-upon-Tyne. Most home hunters are primarily interested in a property’s location and therefore the Borders’ countryside, with its picturesque towns and villages, scores high on this count. The Borders has a great range of homes including impressive country houses, former manses and mill owner’s houses, charming country cottages, modern family homes and affordable town/village houses and flats. The area also featured highly in Rightmove’s Happy at Home Survey. Topping the index for Scotland and 11th overall in the UK is Galashiels. The former mill town, set amongst rolling hills, offers excellent services, schools, restaurants and shops. A wide range of styles of property can be found in the town from traditional large family houses to original mill workers’ flats dating from the 1800’s to new properties in modern developments. In addition the town has excellent access by both road and rail to Edinburgh. n
Commuting distance Given the major hit to the economy from the current crisis and the likely repercussions, there is the possibility that employers will decide to reduce the number of office bases they maintain in the future, or decrease the size of their office space to accommodate fewer staff, sharing the same desk on rotation. Across the UK as a whole, the average commute time is just under an hour. If more of us are working from home for the majority of the week, commuting distance becomes less of an issue. Previously unconsidered properties may now be well worth considering. In Northumberland, areas around Rothbury and Allendale have always held a strong appeal despite their relative distance from the major towns, but this attraction will be even greater if the daily commute is no longer a factor. n
Polly Cregan 01896 662 826 polly.cregan@galbraithgroup.com
Property Matters | 2020
A ‘For Sale’ “ board shows you are committed & motivated to sell your property.
The Power of the
For Sale Board From time to time our clients may ask “Do we really need a ‘For Sale’ board?”
W
e understand that there are so many different reasons for this question, whether it be not wanting neighbours to know your business, worries about people turning up unannounced, are boards really even necessary nowadays? In reality, these concerns are usually unfounded and the pros of this very effective traditional form of marketing far outweigh the cons. n
Be serious
A ‘For Sale’ board shows you are committed and motivated to sell your property. Buyers almost expect to see a board, some may even think there is a problem if you don’t display one! During the early days of a marketing campaign the addition of a ‘For Sale’ board will greatly help us gauge interest and help shape our strategy to sell for you in the best time frame possible, and for the best price. n
Be honest
Let’s face it, that sensitive conversation in the driveway with your neighbour of 18 years is always going to be a little daunting. We feel it best to have these conversations early before the jungle drums beat, people will of course find out through word of mouth or online, with or without a sign. Be courteous, confident and happy embracing your news. You never know who your neighbours might know, it could be your buyer. If you really want to keep things quiet you can always discuss with us the options to sell off market.
Property Matters | 2020 n
Be seen
An eye catching and professional sign adds kerb appeal to your property and will help passers-by notice you immediately. The fantastic thing about physical board advertising is that it is present 24/7. We regularly get calls from interested parties who have noticed a board. Your buyer could be local, visiting friends and family in the area, or equally your buyer could be from further afield, having a drive around to see what the neighbourhood is like. A ‘For Sale’ board will help your property stand out. To maximise the impact of your board ensure your property is kept looking smart and welcoming by keeping your garden trim and windows clean. Keep us up to date, we’ll straighten up your board should the elements hit! n
Be open
A ‘For Sale’ board will be a beacon for your viewers to find you. This will greatly improve their viewing experience. In rural locations we often utilise directional boards that will guide your viewers to your property. This helps to avoid any last minute flusters. These directional boards are also useful to catch passers-by who otherwise may have missed you. We can reassure you that it is actually very rare for someone to knock on your door unexpectedly in this day and age. A wealth of property information is available at the click of a button, it’s noted within this information that viewings can be made by appointment. As mentioned previously, it’s most common that interested parties will take a drive by first to scout out the area and determine if they’d like to arrange an internal viewing. n
Trust our experience
We’ve recently had great success in Aberdeenshire. A ‘For Sale’ board was placed in a stunning Royal Deeside hotspot in The Cairngorms slightly in advance of hitting the open market and received a significant level of enquiries from the signage alone. In fact, the second person to call from seeing the board was our eventual buyer. Enquiries at this early stage tend to pull in a highly motivated offer level to block out growing interest. Proof that the humble ‘For Sale’ board remains powerful. ‘For Sale’ boards are an essential and proven marketing tool that boost your presence and generate interested buyers. Residential agents want to sell your property efficiently and achieve the best price. The key to this is visibility and thus utilising all platforms available; eye catching ‘For Sale’ boards, busy online property portals, punchy social media, bright and attractive office displays and our extensive database of active buyers, to name but a few. We encourage our clients to proudly display their Galbraith ‘For Sale’ board. Trust us, the joy of adding that ‘Sold’ sticker is priceless. n
Amy Price 01224 860713 amy.price@galbraithgroup.com
Top tips on how to get your tenancy deposit back
...leaving a property untidy or dirty can result in deductions from the deposit of your property
“
etting your full rental deposit back at the end of a tenancy isn't always guaranteed, here are some top tips that can help you avoid deductions at the end of your tenancy.
G
before you leave, and don’t forget to tidy the garden, referring to your inventory for reference. If you don’t fancy getting your hands dirty, you can always hire a professional cleaning service.
Moving In
Packing to leave
When you rent a property, you will receive an inventory, this will detail the property condition from your tenancy start date. You should do your own inspection on the day you receive your property keys, taking note of anything you find that is not noted on the inventory and reporting this to your letting agent or landlord.
When packing to leave your property, make sure you don’t leave any extra items or pack something belonging to your landlord in error. This could delay your deposit return until the item is returned and checked.
Be sure to take photos of anything found that is not already noted on your inventory. It is crucial that these photos are dated for the benefit of both landlord and tenant. Sign the inventory once you agree with the property condition and return this to your letting agent or landlord within good time, usually five working days.
Don’t assume that leaving items behind that you no longer require i.e. a blind or a kettle will benefit the next tenant or landlord. The landlord would become responsible for any repairs or replacements during the next tenancy. Remove all items, referring to your original inventory for reference. Failing to do so will result in charges from your deposit to have the items removed and disposed of or returned to yourself.
Decorating
Damages
Remember, if you want to redecorate the house or flat you’re renting, you must always get the landlord or agent’s permission first in writing, not verbally. If you have already made changes, for example, painted a wall or put up a shelf, make sure to return the property to its previous state when you leave. When removing pictures or posters, take care not to remove layers of paint and plaster, or leave holes and stains on walls that your landlord will have to repair or redecorate.
Accidents do happen, so if the property does become damaged, you should report it in writing to your agent or landlord as soon as possible, don't wait until the end of your tenancy to inform your letting agent or landlord. Replacing the item or having the item fixed with the agreement of the landlord or agent will result in the matter being addressed during the tenancy, avoiding deposit deductions when you vacate.
Cleaning
It is important to stay on top of your rent payments throughout the year, but if you’re struggling to make them, talk to your landlord or agent as soon as possible - don’t just ignore the problem.
The main reason tenants don’t get their deposit returned in full is due to the cleanliness of the property at the end of their tenancy. For many people, cleaning is an after-thought, but leaving a property untidy or dirty can result in deductions from the deposit. The easiest way to avoid losing out is to keep on top of your cleaning and maintain your accommodation throughout the year. Think about setting up a cleaning rota, or getting stuck into monthly deep cleans with your housemates. If you do decide to leave the cleaning to the last minute, ensure a full and thorough clean is undertaken
Arrears
Your landlord is entitled to request the deduction of any unpaid rent from your deposit if you still owe money at the end of your tenancy. If you think your landlord or letting agent has made unfair or unjustified deductions from your deposit, you can raise this with the tenancy deposit scheme, who will act as independent adjudicators to try to find an amicable resolution. n
Susan Guthrie 01896 662824 susan.guthrie@galbraithgroup.com
Property Matters | 2020
and the Beach CafĂŠ, Nairn Academy
Networking is something we all do to a greater or lesser extent and it isn’t often that you can quantify the benefits. However, sometimes it all falls into place.
G
albraith joined the Chamber in 2018 and shortly afterwards I attended the Networking Lunch at the Newton Hotel in Nairn. There I met David Munro, a teacher from Nairn Academy, who told me about the café opening at the school to provide both training and a social amenity for upper school pupils. As with all such ventures, funding is key and I saw an opportunity here for Galbraith to support and engage with young people. Working in conjunction with Farmer Jones’ Academy and with support from Highland Council, Highland Catering and Galbraith, the café opened in mid-2019. The aim of the café is to give pupils work experience in a supportive environment – they are trained in customer service, food preparation, budgeting and management. As part of the Farmer Jones’ Academy apprenticeships and accredited courses, fresh produce is grown in the poly tunnels in the garden next to the café and used in the food preparation. Coffee-making is now almost an art form and the pupils have been barista-trained so the café can compete with the high street brands. In addition, this is a gathering place within the academy where older pupils and staff can feel removed from the school environment and take some time to relax. Such is the success of the café that within months of opening, with guidance from the Sundancer Restaurant, a dinner was held here to celebrate the first night of the Nairn Book and Arts Festival. Again Galbraith was able to make this possible by pledging extra support. The hope is that, in the future, the café can be open to local community groups and possibly even the general public, while, with the right backing, this is a model that could be introduced to other schools. By providing opportunity for our young people, the business community can help them to follow their own paths rather than feel that the conventional route is all that is open to them. n
Phiddy Robertson 01463 245 369 phiddy.robertson@galbraithgroup.com
Property Matters | 2020
Strong Demand for Rental Homes put Landlords in the Driving Seat
P
rior to the current crisis, the number of applicants for rental property in Scotland had increased by 86.2% in one year, partly due to a severe shortage of rental property coming to the market. At the time of writing the letting market is largely frozen but nevertheless we continue to receive many enquiries from would be tenants keen to view properties and rent once restrictions are lifted. Demand has been soaring, with prospective tenants often competing with each other for available property in their preferred
region. On average there were 12 tenant applications for every rental property we manage. The implication of this for landlords is that they are able to take their pick of tenants and only enter into an agreement with the most trustworthy. The average time taken to let property to a tenant has decreased by 25% over the past 12 months – the average is now just 36 days. In many cases however a property will be let without the need to be marketed at all, since we have a database of registered tenants.
Landlords have been impacted by a range of legislative changes over the past three years, particularly in Scotland. However, rents are continuing to perform well. In our view the private rental sector will continue to offer good returns for landlords who understand their obligations. Tenants are chasing a limited supply of property. This means that rents are typically rising – properties we let have achieved an increase in rent of 3.9% on average over the past 12 months. In addition, landlords and their agents can select from a pool
of waiting tenants – with the benefit that it is possible to engage with only the most reliable, carefully vetted tenants. The average time taken to let a property in Dumfries & Galloway was 18 days and in the Scottish Borders the figure was just nine days. The number of people applying to register as tenants has also increased significantly from 523 applicants to 974 applicants. A good agent can advise the landlord on how best to bring a property into a suitable condition for letting and can advise on how best to reach the right target audience. In some cases there are grants available for updating a cottage to comply with recent energy efficiency legislation, which may offset some of the cost of improvements. Tenant activity has been buoyant
across the whole of Scotland during the first quarter of 2020 with some noticeable hot spots. Ayrshire, Dumfries & Galloway, Fife and Stirlingshire have a distinct shortage of suitable property to let, particularly in rural areas. We have little doubt that market demand will resume rapidly once the lockdown is relaxed. There are also signs that the supply of houses available for long term letting may increase, as the Coronavirus crisis has exposed some limitations of a reliance on short term and holiday lets for investors. n
Bob Cherry 01292 292 303 bob.cherry@galbraithgroup.com
Property Matters | 2020
Kerb Appeal How to make your To Let property irresistible to tenants
What is kerb appeal? Kerb appeal is the term used to describe the attractiveness of your home as seen from the road. How many homes have you discounted simply because you didn’t like the look of the house from the outside? First impressions count, so make sure it’s a good one. An empty rental property costs money for every day it sits empty, so as a landlord, it is very important to reduce the time it takes to find qualified and suitable tenants. The exterior photograph is the most commonly used ‘lead’ photograph on any website listing. Its job is to get people to click on your property to find out more information and hopefully book a viewing. If the main image is poor then not many people are going to be interested enough to click through and find out more.
Add house numbers
Kerb appeal is also important for those that might take a ‘drive-by’ visit before booking a viewing. The appearance of your property in reality must match up to the online image, otherwise potential tenants will be disappointed.
Add some greenery
While it may not seem like a marketing ploy at first, improving the exterior of your property can pay considerable dividends. When people arrive, this is the first thing they see. The most cost effective actions you can take are mow the lawn, plant some flowers, and pressure wash the driveway.
Other elements of good kerb appeal The design of your home and front garden cannot be changed without great expense. However, by ensuring that paintwork is fresh, windows and doors are clean and all hedges, planting and lawn areas are neat and tidy, you can maximise the appeal.
Pay special attention to your front door It’s the focal point that prospective tenants will be subconsciously looking at, so it needs to make a positive impression.
You are not off to a good start if potential tenants can’t even find your property. A plaque with your house name or number in plain view from the street makes it easy for them and can look visually impressive.
Place colourful potted flowers outside your front door or add a hanging basket. Make sure the grass is mowed regularly. Sweep away fallen leaves and keep trees, shrubs and other plants neat and tidy. Weeds should definitely be removed.
Improve your paving If you have a path leading to your door, make sure all the paving slabs are in good condition, without any weeds, cracks or stains. Trim any surrounding lawn to create a neat, tidy effect. Ensuring your home has flat paths is essential for those with pushchairs, wheelchairs or toddlers – so easy access should increase the number of potential viewers for your property.
Add an attractive light If your property hasn’t got an exterior light by the front door, think about adding one. Not only will this add some style to your property but it will also provide a sense of security for potential tenants.
Samantha Outten 01292 292 302 samantha.outten@galbraithgroup.com
Replace / clean windows If the windows of the property have blown or are broken, replace them as soon as possible. If the windows are in relatively good condition, hire a window cleaner – this makes a big difference, both inside and out. Taking a weekend to tackle these jobs can pay dividends, both in attracting tenants who would have been put off by poorly maintained exterior details, and in boosting the value of the house. After all, if you can’t be bothered to look after your property then how can you expect your tenants to! n
The timeless attraction of a
period house and the
hurdles of modernisation
Property Matters | 2020
T
here is no strict definition of a ‘Period’ home but it is generally known as one which was constructed prior to WW1. There are many reasons to choose a period house and these may include admiration for a specific period of architecture, the opportunity to discover and preserve living history for current and future generations to enjoy and the often impressive, unique or unusual features within such properties. Windows, ceiling height, external and internal ornate features, doors and flooring very often have distinct period characteristics within these homes. A Tudor property tends to have smaller windows because glass was costly to produce, the greater your wealth, the more windows you could afford. Elegant interiors with generous proportions, ornate ceiling plasters, tall ceilings and large windows were the features of Georgian property. These houses were also three to four storeys high with the kitchens on the lower ground and servant rooms on the top floor. With the spread of wealth from the Industrial revolution, the emergence of the middle class and the need for more houses, the Victorian period saw a shift away from grand and ornate houses to the development of larger scale terraced homes, often close to the sources of employment. Like the Georgians, high ceilings and larger windows were normal, however, accommodation was less spacious. Many agree Edwardians got the mix of high quality craftsmanship with a modern living environment just right, with a bespoke approach and re-focus on quality. Edwardian homes often had greater width, a feeling of being airy and had more windows.
“
Many agree Edwardians got the mix of high quality craftsmanship with a modern living environment just right...
One of the big conundrums for owners of period homes is finding a balance between respecting the historical nature of the house and making it suitable for living in 2020 and beyond. Our expectations are different from those who built these homes. Today the demand is for a more open plan and less formal accommodation which flows across each level.
Property Matters | 2020
If you’re fortunate enough to live in a period home, the subject of modernisation should be viewed as renovation, and not re-building, to maintain the integrity of the house. This will undoubtedly be time consuming and expensive but if done properly, well worth the effort. Whether your house is listed or not will have a major bearing on what you can do and the cost involved. The need for planning permission, complying with building regulations, party wall acts and restrictive covenants within the title must also be considered at the start of any work. You should really know your house before deciding on what to modernise and figure out what makes it work. Areas which initially you saw as un-necessary or thought required modernisation may actually become part of the character and integrity of the period nature of your home. Keeping control of costs is always an important factor but more so with a period property due to any modernisation likely to be more expensive to protect the essence of that period feel. Money shouldn’t be spent on frivolous items which aren’t in keeping with the style and some improvements can have a negative impact on the house price if the appearance is compromised. Removal of period detail can take away the character and unless substituted sensibly may be detrimental to a future sale price. High quality replica detail can now be purchased but this will be expensive and repairing the original features may be more cost effective. Keeping to materials and designs of that original period is important. A crucial part of the modernisation process is finding a good quality builder who understands period buildings. They should appreciate the importance of traditional materials which are compatible with the way the house was originally built as well as being sympathetic to its appearance. The cost and time involved in modernising a period home can be substantial and costly if it goes wrong. Finding a balance between creating a space for the needs of living today and over modernising which can conflict with the period may cause longer term problems with resale and the price a new owner could be prepared to pay. In each area there will be a ceiling price which can be achieved. No matter how much is spent, this investment may not always be returned so the temptation to overspend should be resisted. The most important point to remember is, do not aim for perfection, the character of a period house is exactly this imperfection that arises over time. Preservation of originality is the key. n
Scott Holley 01738 456061 scott.holley@galbraithgroup.com
“
You should really know your house before deciding on what to modernise and ďŹ gure out what makes it work.
10 Frequently Asked Questions Buying and Selling in Scotland
Rod Christie 01343 546 362 rod.christie@galbraithgroup.com
1
When should I put my property on the market?
Generally speaking, our advice would be to market your property at a time when you are committed to selling, have done all you reasonably can to make the house as saleable as possible and that will ensure the conveyancing runs as smoothly as it can. The market is less seasonal than say 10 years ago and it is possible to achieve a good sale at any time of the calendar year. That said, the best photos are often taken during the late spring and summer months so it pays to plan your campaign as early as you can.
2
What can I do to make my house more saleable?
Firstly, it is probably not sensible to invest a huge amount of capital in your home if you are planning on selling as there is always a risk you might not realise it all back from the sale. Unless there is a glaringly obvious reason to do so, don’t install new kitchens and bathrooms as it is likely that a buyer will want to put their own stamp on the house and buy new. Instead, focus on ensuring the garden is neat and tidy and any obvious repair and
maintenance issues have been dealt with. Focus on what might be highlighted and marked down in the Home Report and then take a view as to whether it is affordable and achievable within your given time frame. A touch up to scuffed and marked décor is no bad thing but buyers will begin to wonder if one wall has been done and the others not – are you trying to hide something? Ideally, imagine yourself in the position of a buyer and present the house as you would like to see it from their eyes.
3
What do I need to do before I put my house on the market?
Further to the advice given above, the most important thing would be to take advice from a reputable agent who can advise on what you as the vendor will need to do at each stage of the process. In the majority of cases, you will need to instruct a Home Report to be carried out by an independent surveyor whilst it is also important to pull together the paperwork that will be required by the lawyers and lenders alike. These may include copies of any planning consents, building warrants and completion certificates, septic tank registrations and if applicable private water test results.
Property Matters | 2020
4
How long does a Home Report last in Scotland?
The Home Report will last indefinitely and you as the vendor are only legally obliged to provide it once, at the beginning of the marketing campaign. That said, within the report will be a valuation of the property and the figure stated will only be valid for three months following the date of inspection. As most buyers need to secure a mortgage, depending on the time frame concerned, there is every chance that the lender will ask for the Home Report to be updated (replaced) and whilst not legally obliged to do so, the costs of the new report are more often than not borne by the vendor.
In Scotland this is termed “ ‘concluding missives’. Up to this point, either party can withdraw from the sale without penalty...
5
When I make an offer and it’s accepted, is it legally binding?
No, the offer is only legally binding when the conveyancing has been carried out and contracts exchanged. In Scotland this is termed ‘concluding missives’. Up to this point, either party can withdraw from the sale without penalty.
6
Can the purchaser or the vendor pull out after missives have concluded?
Yes, but not without significant penalty. If missives have been concluded, should a party decide to pull out of the sale, they will be liable to pay for all of the abortive costs for the other side. As an example, if a buyer pulled out of a sale after concluding missives, they would be liable for the seller’s legal fees, estate agent’s fees, the difference between their offer price and the next agreed sale price and any other abortive costs. As you can imagine, this figure could be significant and as such it is very rare for any buyer or seller to conclude missives unless wholly committed to the deal.
7
What documents do I need to provide for AML purposes?
Each joint beneficial owner of the property must provide sufficient evidence to satisfy the necessary Anti-Money Laundering Regulations. The principle document must be a photographic ID of the individual such as a passport, driver’s licence or shotgun / firearms certificate. A secondary form of ID is also required and which verifies the individual lives in their primary residence. We have found the best document to provide is the most recent Council Tax Statement, however, other accepted documents will include utility bills or bank statements dated within the past three months. It is a legal requirement that the estate agent (and lawyer) sees a copy of the original documents, not just a photocopy or scanned version. If it is not possible or convenient to do so, these can be taken to a local Post Office or lawyer and countersigned with this version then sent to the estate agent.
8
When I want to make an offer on a property do I have to do it formally through a Solicitor?
As a buyer you should always do what you are most comfortable with. At least initially when negotiating the purchase price and any other key conditions, many buyers chose to do this themselves directly with the estate agent. Others may be less comfortable with this and may instruct their lawyer to do this on their behalf. Neither option is right or wrong but do note that your lawyer may charge to do something you are possibly equally capable of doing yourself. Once the key conditions have been agreed in principle, it will then be necessary to submit the offer formally in writing by your lawyer. This can then be reviewed and passed to the vendor’s solicitor who will then commence the conveyancing process.
9
Why do I need to appoint a Scottish solicitor when I already have an English one?
Whilst the principle procedures of buying and selling are broadly similar both north and south of the border, there are differences in the law which a lawyer based in England may not be aware of. Generally speaking, we would advise using a firm of solicitors local to the property you are buying. More often than not they will have good working relationships with other local lawyers which may well help the conveyancing process run smoothly and will be easily on hand should you need to discuss anything with them after the move. Your local estate agent will be able to advise on reputable firms in their area.
10
What is LBTT and how much will it cost?
Land and Buildings Transaction Tax (LBTT) replaced Stamp Duty in Scotland in April 2016. It is a tax payable by the buyer upon the completion of a property purchase and which is based on the value of the property. LBTT is a progressive tax, with its structure designed so that the charge rises more than proportionately to the actual price of the property. The percentage rate for each band in LBTT is applied only to the part of the price over the relevant threshold and up to the next threshold. Properties valued below £145,000 are exempt from tax with rates then rising sharply to 12% of the purchase price for properties valued over £750,000. A useful tax calculator is available from Revenue Scotland. However if in doubt, we would always advise that you discuss all tax matters with your accountant. https://www.revenue.scot/land-buildings-transaction-tax/taxcalculator/lbtt-property-transactions-calculator n
Property Matters | 2020
Why the Northern Counties? Hexham is the ideal location for Galbraith’s newest estate agency office. Coming in #1 in the Happy at Home survey it sits in the Tyne Valley and is easily accessible to Newcastle-upon-Tyne by both road and rail.
hilst the quantity of chimney pots may be lesser than in most other counties, there are compelling advantages to draw, and keep, some of the more adventurous and successful people in the Northern Counties.
W
bijou jewel or honey pot of Corbridge. Hexham, once voted by Country Life as the nation’s favourite market town and more recently “the happiest place to live in the UK” is the perfect springboard from which to enjoy the unmissable attractions of the area.
It is no surprise that the eminent historian and author E. M. Trevelyan described it as the “Land of far horizons” and it still is an inspirational landscape. From sweeping views and rugged moorland, to gentle and pretty valleys,some of the most productive arable land that the UK has to offer is found here. We have some of the most dramatic coastline with some 80 miles of stunning beaches and important nature reserves (e.g. the Farne Islands and Lindisfarne), 1,200 miles of recognised walking routes, 8 resplendent (and some famous) castles (e.g. Hogwarts at Alnwick) and of course one of the biggest tourist attractions in the UK – The Roman Wall, a UNESCO World Heritage site.
The Northumberland National Park is a fabulous reason to come to live in the north. Home to the country’s cleanest air and rivers and darkest sky, Kielder reservoir was created in the 1970’s and now forms one of the central parts of the National Park. The Dark Sky Park has become a strong tourist attraction and the reservoir a hub for water sports and wildlife (Red squirrels and ospreys aplenty) and the Kielder half and full marathons have become popular events.
Health, wellbeing, sport and amenities are high on most house buyer’s agendas. Commerce and commuting are necessary considerations. Culture, history, education, travel opportunities, nature and wildlife all factor somehow in our lives to varying levels. The Northern Counties deal with all these requirements spectacularly. Our regional centre is Newcastle upon Tyne. It is home to pace setting businesses and the Black & White Army - perhaps of more fiscal consequence, Sage Computers/accounting, and the INTU Metro Centre, the first shopping centre of its kind. Once upon a time, Newcastle held equivalent financial global stature to that of Abu Dhabi today. In those days, coal was king. The owners of the Empire’s greatest and most productive coal mines lived here in the north east. Their houses survive them, today some of the greatest of which overlook the Tyne Valley, in which sits the
Because of the diversity of the region and principally the quality of our schooling facilities (both private and state schools), our buyers are of a wide demographic mix and are active right through the price ranges. Covid 19 has of course had colossal effects in the residential marketplace – we are all waiting to see how it will recover. At the start of the year we were watching the 2020 market develop with encouraging prospects. There was an undeniable bounce following the general election at the close of last year and with Brexit finalised, buyers were pressing ahead with key financial decisions. This was backed up statistically too. Rightmove saw a 15% increase in the registration of new buyers across the whole of the UK in January. Today, we can only report that our registered buyers appear to be determined to play out their goals of making a purchase. The whole picture is yet to unfold, much will depend on the banking world. n
Sam Gibson BSc (Hons) MRICS 01434 405975 sam.gibson@galbraithgroup.com
Fabulous Fife & Thriving Dundee
S
unny, dry North East Fife has long been a popular and sought-after location for house hunters attracted by the lovely coastline, historic towns and villages, and beautiful countryside. Add some world renowned golf courses, top quality farmland and excellent accessibility and the allure becomes even greater. According to our busy Fife agents though there are three main factors which have really driven the market in recent years – the opening of the new Queensferry Crossing in summer 2017, the opening of the V & A in Dundee in autumn 2018 and the phenomenal world-wide popularity of St. Andrews. By the end of June 2019 Dundee saw the third largest year-on-year increase in average selling prices compared to the previous year, rising by 10% (TSPC). Broughty Ferry and the West End as well as the DD6 bridgehead in North-East Fife (comprising Newport-on-Tay, Wormit, Balmerino and Tayport) are sought-after locations for Dundee professionals. The High School of Dundee offers an excellent private education from ages 5 to 18 and since 2013 pupils have scored the top, or joint top, marks in Scotland in Higher or Advanced Higher exams 17 times! While still small Dundee Airport has regular flights to Stansted and London City airports and the railway station is on the main East Coast line. Dundee has strengthened its claim as Scotland's sunniest city after officially recording more winter sun than the rest of the country with much of the city benefitting from a lovely southerly aspect out to the Tay. The beautiful Angus glens are right on
the doorstep of Dundee offering the great outdoors without the need to travel too far. At the other end of Fife the Queensferry Crossing has undoubtedly had a major impact on the Kingdom, significantly enhancing accessibility to and from the central belt. Our agents have witnessed a marked increase in the number of Edinburgh buyers moving out of the city and making their money go further, often looking to live the good life by purchasing a country property with a few acres. The greatest impact of all though, and without doubt the jewel in Fife’s crown, is the enduring allure of the ancient and historic St. Andrews, renowned world-wide as the “Home of Golf”. The Old Grey Toon as it is known, and its environs, continues to attract enormous interest from both domestic and international buyers and has been virtually bursting at the seams for decades. St. Andrews University was ranked as the top Scottish university in the Times and Sunday Times university guide in 2019 and in 2020 the Guardian university guide ranked the university the second best in the UK. It attracts world class academics and international students but a big emphasis is now being made to encourage local students to apply for entry. The Wills and Kate factor was the icing on the cake. St Andrews in many ways sits in “splendid isolation” on the northeast fringe of Fife but is very well-placed for access to Dundee. 2022 will see the spotlight fall on the town again with the 150th British Open being played over the Old Course. The build-up has already begun with the property market starting to warm up even further in anticipation! n
George Lorimer 01334 659988 george.lorimer@galbraithgroup.com
Is there gold at the bottom of your garden?
W
e are often approached by parties looking to buy a small stretch of perhaps neglected farmland adjacent to their property. Likewise, we see a number of landowners coming to us who have been approached and are looking for advice. So What Steps Should You Take? n
Firstly, the easy bit; identify the land you would like to purchase. It is worth having a look at the land to see if there are any physical features which may complicate a potential sale. These can include telegraph poles, water troughs, septic tanks and field drains. It is also likely that a new boundary will be required so look at potential routes for a boundary fence bearing in mind you, as the purchaser, are likely to be responsible for the installation of this should you be successful in acquiring the land.
Property Matters | 2020
n
Identify the landowner. If the parcel of land is an agricultural field this may be fairly straightforward as you can make enquiries with the local farmers to find out who owns the land.
n
Before approaching anyone you need to have a realistic idea as to the value. There are no set formulas for calculating the worth of these small parcels, however there are a number of factors which will assist in allowing you to put forward a sensible offer and we will cover this in more detail later.
n
The final step is to approach the landowner. It is worth bearing in mind that although the land may look like it is neglected or not used the fact that it is not on the market would suggest the landowner does not have a strong desire to sell it and this is why approaching with a sensible offer is key.
What is a Sensible Offer? A very good question. On the initial approach landowners will naturally be suspicious, why do you want to buy this parcel of land? Have you seen an opportunity they have missed to capitalise on this land? Galbraith have been involved in a number of transactions where parcels of land under an acre have sold to neighbouring properties for reasons such as extending existing garden grounds, acquiring an area to create off-street parking or merely because the homeowner would like to have control over their view. Prices have ranged from £2,000 to £35,000. If you are approaching a landowner there may be some negotiation but your opening bid needs to be attractive enough for them to consider the possibility of selling the land, otherwise they will walk away. The landowner will incur legal costs in any transaction and your offer will need to be at a sufficient level to cover these or alternatively your offer can be made with an undertaking to cover the seller’s legal costs. Typically, these can be in the region of £2,000 depending on the firms involved and the intricacies of the sale. You need to decide on a budget; what is the land worth to you? In the case of additional garden ground, or
perhaps off street parking, acquiring the land can have an uplift in value to your existing property, for example a country cottage with no off street parking may have a value of £170,000 but by purchasing some additional land to create off-street parking, the value of that property may rise to £200,000 and therefore the value of this additional land may be in the region of £30,000. There will always be an element of negotiation as it is natural the seller wants to achieve as much as possible and the purchaser wants to get as good a deal as they can. Often the key to success is demonstrating a clear rationale and minimising disruption and inconvenience for the seller. Some of these can be dealt with by agreeing to cover legal fees and the cost of new boundary fencing. If the seller feels there may be future development potential then it would be worth considering a clawback clause within the contract. A clawback essentially allows the seller of the land to be paid a proportion of the uplift in value should the land be developed, this can be particularly useful in assuring a landowner that you are not looking to exploit any planning potential. n
Richard Stewart 01738 451111 richard.stewart@galbraithgroup.com
Offices across Scotland & Northern England
Elgin 01343 546 362 elgin@galbraithgroup.com
Galashiels 01896 754 842 galashiels@galbraithgroup.com
Inverness 01463 224 343 inverness@galbraithgroup.com
Kelso 01573 224 244 kelso@galbraithgroup.com
Aberdeen 01224 860 710 aberdeen@galbraithgroup.com
Ayr 01292 268 181 ayr@galbraithgroup.com
Perth 01738 451 111 perth@galbraithgroup.com
Castle Douglas 01556 505 346 castledouglas@galbraithgroup.com
Cupar 01334 659 980 cupar@galbraithgroup.com
Hexham 01434 693693 hexham@galbraithgroup.com
Stirling 01786 434 600 stirling@galbraithgroup.com
Blagdon 01670 789621 blagdon@galbraithgroup.com
Edinburgh 0131 240 6960 edinburgh@galbraithgroup.com
Penrith 01434 693693 penrith@galbraithgroup.com
Expertise Galbraith operates from 14 offices across Scotland and Northern England bringing our clients a wealth of experience in: • Residential estate agency • Property lettings • Commercial property sales & management • Estate, farm & forestry sales & acquisitions • Estates, farming & land management • Renewables and Utilities • Building surveying • Forestry