The dream of owning a home is a significant milestone for many people. It symbolises security and stability or simply just a place to call their own. However, for those looking at the prospect of buying a house, especially in a city like Aberdeen, it may seem difficult.
As the third-largest city in Scotland, Aberdeen boasts great scenery that makes it an attractive location to buy a house. But can you do it alone?
In this article, we explore everything you need to know about buying a house on your own in Aberdeen.
Whether you are a first time buyer or someone looking to invest in the property market, let’s get started.
Do I need a solicitor to buy a house in Scotland?
Buying a home in Scotland can be quite complex, especially with the legal side of things. Due to this, a solicitor can make the process so much easier.
They will help you get to grips with things like:
- Offering guidance on Home Reports and surveys
- Mortgage advice
- Offer submission
- Legal ownership confirmation
- Property checks
- Search verification
- Financial transactions
- Insurance assessment
- General advice
As you can see, there are many steps in the process of buying a house that requires expert knowledge. Without this, you may find yourself struggling.
Can you buy your council house?
Unfortunately, The Housing (Scotland) Act 2014 ended the Right to Buy in 2016 for any tenants that lived in social rented properties, which means it is no longer possible to buy your council house under previous laws.
However, there are other options available which can make buying a house by yourself a reality.
Is there any help for first time buyers?
Various help-to-buy schemes are available for individuals who can manage a mortgage but lack a substantial deposit.
Low-Cost Home Ownership
First time buyers unable to afford properties on the open market can purchase new properties at reduced prices from developers in select Aberdeen developments.
New Supply Shared Equity
With this scheme, the Scottish Government retains a financial stake in the property, reducing your funding burden. You pay for the majority share (typically 60% to 80%), and the government acquires the remaining share through a registered social landlord.
Open Market Shared Equity
Under this scheme, first time buyers with low to moderate incomes can purchase homes on the open market while the Scottish Government shares the financial stake. You pay for the majority share (usually between 60% to 90% based on your income), and the government assists in funding the remaining portion.
Buyers can purchase a portion of the home and rent the rest from a registered social landlord. Partial ownership options include 25%, 50%, and 75% of the property, although certain qualifications may apply depending on the registered social landlord.
How much money does a first time buyer need?
In Scotland and the UK at large, it is possible to get mortgages with as little as 5% of the property value. This is often called 95% mortgages. However, you may need to meet the eligibility criteria of the lender to be accepted.
So as an example, the average price of a terraced property in Aberdeen is currently £209,051. So, to get a 5% mortgage, you would need just under £10,500 to purchase a property.
How much can a first time buyer borrow?
As mentioned above, first time buyers can get a 95% mortgage which allows them to borrow 95% of a property’s value. However, there are specific amounts on the exact figure that you can borrow. There are many different criteria and requirements that go into setting this figure. However, the amount that you can borrow is around 4 to 5.5 times of your income.
So, for example, if your annual salary is £25,000 and you are able to borrow five times your income, you’ll be able to put £125,000 towards your purchase.
This is where buying a house alone may become more difficult unless you have access to savings or additional money.
Is it a good time to buy property in Aberdeen?
You will be pleased to know that Aberdeen has actually been named the third cheapest UK city for first time buyers. While other cities and towns across the UK are reporting increased property prices, Aberdeen has reported declining property prices instead.
To get an idea of what the current property market in Aberdeen looks like, take a look below.
Average House Price in Aberdeen
Here are the current averages for house prices by type of property.
- Terraced £209,051
- Semi-detached £236,399
- Detached £492,788
Average Flat Price in Aberdeen
The current average flat price is £117,732
Meanwhile, property prices according to the number of rooms are:
One Bedroom – £83,286
Two Bedroom – £139,193
At what age can you own property?
Legally you can own property once you turn 18. Although, if you’re looking to purchase a property using a mortgage, meeting eligibility criteria may be much more difficult at a younger age due to having limited credit score information.
Do sellers prefer first time buyers?
Yes, sellers often prefer first time buyers as they are typically chain-free, making the selling process faster. Buyers who currently rent can also move quickly and have the advantage of being chain-free.
Chain-free simply means that the buyer doesn’t need to sell their own property before buying. Usually, when selling is required, it can cause risks of delays or potential sale collapse.
It is possible to buy a house on your own in Aberdeen; however, there are definitely things you need to consider. Especially when it comes to how you’re planning to finance the purchase of a new property, limited options on homeownership coupled with reduced borrowing abilities can make it a difficult task.
If you currently own a flat and are looking to purchase a house. We can help. As homebuyers, we can help you sell a flat fast. No matter what area or what condition, we can make a cash offer to purchase your property. If you’re happy with the offer, we can even conclude the sale in as little as seven days. This can help you become chain-free and remove any further obstacles. Simply get in touch to receive your free cash offer.