The dynamics of the property market in Scotland have changed dramatically in the last decade. Before the recession buyers were able to offer for properties before they sold, have their offers accepted and then put their properties on the market in order to find a buyer. Purchasers committed contractually for their purchase prior to receiving an offer for their sale. In the unlikely event of clients not selling, Banks offered the safety net of bridging loans.
The banking crisis and recession changed everything – until recently bridging loans just weren't available, and unless clients could afford to pay for a new property without money from their sale, clients would have to sell before they could buy, and hence have the risk of having to go into rented accommodation short term basis.
One of the major advantages of instructing a solicitor estate agent to advise you on the whole process is that we have an overview of not only the sale of your existing property, but also the purchase of a new property and can assist in dovetailing the two elements of the transaction together.
Since the significant change in the dynamics of the market, property professionals in Scotland have guarded against allowing clients becoming involved in English type chains – we have all heard and continue to hear of the horror stories of chains in England of six or seven transactions all falling down because one party changed their mind or couldn't get the mortgage they needed.
There is, however, some light at the end of the tunnel.
Bridging Loans have become more available through specialist sources. The use of them has made it possible to unlock several transactions whereby "fall back" bridging facilities have been made available to purchasers. On some occasions the bridging loan has had to be drawn down, but on most, the availability of a bridging loan has turned the purchaser into a "credible buyer" and we have managed to sell and dovetail in the sale resulting in the bridging loan not being required.
These mechanisms are reasonably sophisticated solutions to a problem that 9 out of 10 purchasers have to address, but in many cases they do result in purchasers not having to face the risk of having to go into rented accommodation with associated rental costs, double removal and storage costs, not to mention the sheer upheaval of having two moves.
We live in very changing times in the residential property world where an overview from your solicitor of the whole purchase and sale process can certainly diminish the stressful complexity of a move.