So you’re thinking about buying a second property – maybe for short or long-term lets, or to have somewhere to escape the hustle and bustle at the weekends.
What do you need to know? Here we break down some of the basics – but if you’d like more information about your specific circumstances, speak to one of our expert property solicitors in the Highlands.
You can’t avoid paying tax. It’s a question we’re often asked and, while we’re not financial advisers, we can say for certain that there’s no way around it!
If you’re buying a second property you’ll have to pay an extra 8% of the total value , on top of any LBTT due. This applies whether you buy the property under your own name or under a company – you can’t cheat the system.
Many buyers forget about LBTT – and this additional tax – when setting their property budget. Remember to factor in all additional costs when deciding how much you can afford to spend on a property.
Now let’s look at a more complex situation:
John and Melissa live in a rented house as a cohabiting couple. Melissa owns a house that her parents live in. If John buys a property in only his name, is this classed as a first home?
Because John lives with someone that owns a property and they are a cohabiting couple, they are seen as one person, not two, for second home tax purposes.
Although Melissa and John do not live in the property Melissa owns, it is still classed as their first property, so any property bought by either of the couple is classed as a second home. Therefore, the extra 8% tax will be added to the cost of the property.
It can be easy to be caught out by situations like this – which is why it is so important to speak to an experienced property solicitor if you’re considering buying a second home.
As a trusted award-winning estate agent, we know what it takes when it comes to all things property. We’re confident that we can help you find something you love.
Getting a mortgage for a second property can be more challenging than for a primary residence. Lenders may require a larger deposit (often at least 25%) and may have stricter affordability criteria.
You’ll also need to be clear about why you’re buying the second property. If it’s a holiday home, you won’t be able to rent it out with a standard residential mortgage. You’ll need a buy-to-let mortgage which may have different terms and interest rates.
Although we’re not mortgage brokers, we can point you in the direction of trusted mortgage advisers here in the north of Scotland.
If you’re thinking of buying property and need advice, contact Innes & Mackay’s specialist property law team. We’ve been proudly serving clients in the Highlands, Moray and across Scotland for 150 years – and are with you all the way in your property journey.
With a legacy spanning over 150 years, we have a lifetime of experience delivering the high-quality advice and property services. Buying a second home doesn’t have to be a troublesome journey, with Innes & Mackay by your side, we’ll help you through the entire process.
With a legacy spanning over 150 years, we have a lifetime of experience delivering the high-quality advice and property services. Buying a second home doesn’t have to be a troublesome journey, with Innes & Mackay by your side, we’ll help you through the entire process.
Friendly, efficient and approachable. Great experience with Lauren when she came to look at our property and Claire very helpful when we have any questions. Lilian Wilson2024-07-27 The staff at Innes and Mackay were very supportive and helpful when we were selling our house. They were always very approachable and quick to answer any queries. Michelle Lilley2024-07-17 I would just like to pass on a very positive comment regarding the Innes & Mackay’s Conveyancing Team, who handled the sale of my property on Telford Rd., Inverness. Having sold properties in the past, I always find it a bit nerve wracking, especially when it comes to the legal side as anything can pop up, especially at the last minute. But the Team kept me right up to date on all the transaction aspects and that put me at ease, and I gratefully thank you all for that! I would highly recommend Innes & Mackay for any aspect involving the buying or selling a property to anyone that wants a professional and very helpful service and done with a smile. I will definitely be using them in the future. Thanks again! 😊👍 P McLellan Patrick McLellan2024-06-26 Efficient, friendly and professional. I would high recommend Innes and MacKay both from a solicitor and estate agent perspective. Daniel Gordon2024-06-11 The team have given me a very professional service from my first enquiry about putting my property on the market to the quick sale of it. The marketing was excellent and Tracy looked after me and arranged for the survey carried out prior to getting it on the market. The viewings were arranged to suit my availability and I got timely feedback after each one which gave me some useful guidance. Andrew Bowker2024-05-10 Great solicitor and property agent. We've been with them for nearly forty years. Great staff always very helpful. Michael Griffiths2024-03-19