Scottish property transactions work differently from English ones, and the differences affect timing, funding and risk. Advice written for England does not transfer.
Missives, not exchange and completion
In England and Wales, offers are not binding until exchange of contracts, and either party can walk away before that point.
In Scotland the process runs through missives, a series of formal letters between solicitors. Once missives are concluded, the contract is binding. There is no separate exchange, and the point of commitment arrives differently.
The practical consequence for funding is that you need your position clear earlier. Concluding missives without your finance being agreed is a materially riskier position than the English equivalent, because the ability to withdraw is not there.
Standard security, not a legal charge
A lender takes security over Scottish property by standard security, registered in the Land Register of Scotland, rather than by legal charge.
It achieves the same commercial purpose, but the documentation and the process differ, and enforcement follows Scottish procedure. Lenders unfamiliar with Scotland sometimes handle this slowly, which is one reason to establish early whether your lender actually lends north of the border.
Not every lender lends in Scotland
This is the point most worth knowing. A UK-wide panel is not the same as a panel that lends in Scotland. Some lenders exclude Scotland entirely; others lend but with less experience, which shows up as delay.
For healthcare specifically the pool narrows further, because you need a lender that lends in Scotland and understands healthcare. Establishing that at the outset avoids a late and expensive discovery.
LBTT, not SDLT
Land and Buildings Transaction Tax applies, collected by Revenue Scotland, with different thresholds from SDLT. Figures do not transfer across the border.
If you are taking a lease rather than buying, note that Scottish commercial leases require LBTT returns every three years during the term, with further tax potentially due if rent has increased. There is no equivalent in England, Wales or Northern Ireland. See property tax on practice premises.
If you are buying a GP practice
The premises position in Scotland is fundamentally different. Under the 2018 Scottish GMS contract there is a 25-year transition away from GPs owning their premises, supported by interest-free sustainability loans and by health boards taking over ownership and leasing back.
A GP considering buying into a practice with premises in Scotland should understand where that sits against the transition before committing capital. See GP premises finance in Scotland.
Other sectors
For dental, veterinary, pharmacy and care, the business itself is assessed much as it would be elsewhere in the UK. What changes is the property mechanics, the tax, and the regulator.
Care services in Scotland are regulated by the Care Inspectorate, and independent healthcare by Healthcare Improvement Scotland, rather than the CQC. Community pharmacy operates under a different contractual framework from England. Lenders assessing a Scottish case need to be reading the right regulator’s reports.
A practical sequence
- Establish early that your lender lends in Scotland and understands the sector
- Get an agreement in principle before missives are concluded, not after
- Instruct a Scottish solicitor experienced in commercial property, not an English firm working at a distance
- Budget for LBTT separately, and check the lease position if leasehold
- For GP premises, understand the 2018 contract position before committing
All figures are indicative and subject to lender assessment, your circumstances, valuation and prevailing market conditions. Commercial mortgages and unregulated bridging loans are not regulated by the Financial Conduct Authority. Property offered as security may be at risk if you do not keep up repayments.