Buy-to-let terms explained, with Scotland first

Reference · Scotland ·

Read the first-time investor guide

In short: this glossary explains, in a sentence or two each, the words you will meet when you buy a buy-to-let in Glasgow or Edinburgh. Scotland uses its own terms for its own system, from missives to the Additional Dwelling Supplement, so Scottish terms come first and English ones are marked where they differ. Each entry links to a fuller guide.

Additional Dwelling Supplement (ADS)
A Scottish tax added on top of LBTT when you buy a home and will own two or more homes anywhere in the world afterwards, or when a company buys. It has been 8% of the whole price since 5 December 2024, on purchases of £40,000 or more. An investor who already owns the home they live in pays it. Work it out in the calculator →
Appraisal
Our written figures on a property before you decide: the price, the purchase tax, the works it needs, the rent it is likely to let for and what is left after costs. Every property we put forward comes with one. See what each package includes →
Cash-on-cash return
A year of cash flow after all costs and mortgage interest, divided by the cash you actually put in. It shows whether borrowing is working for you or against you. Read the guide →
Closing date
In Scotland, when several buyers have noted interest, the seller can set a date and time by which all offers must be in. Offers are sealed, so you get one chance. How buying works in Scotland →
Date of entry
The Scottish term for completion: the day the price is paid and you get the keys. The purchase tax return is normally due within 30 days of it.
Factor
A property factor manages the shared parts of a building, such as the roof, the close and the stair, and bills each owner a share. Many Glasgow and Edinburgh tenements have one. Ask what the factor charges and what repairs are planned before you offer. What we check before an offer →
Gross yield
A year's rent divided by the purchase price, before any costs. It is the figure on a listing and is useful only as a first screen. Gross yield vs net yield →
Home Report
A pack the seller in Scotland must provide, with a single survey and valuation, an energy report and a property questionnaire. The seller must hand it over within nine days of being asked. How buying works in Scotland →
Interest cover (rental cover)
The test a buy-to-let lender uses to check that the rent covers the mortgage interest by a margin, usually at a higher stressed rate than the one you will pay. Stress-testing a mortgage →
Landlord registration
In Scotland you register with the council before you let a property, and renew every three years. The fee is £85 for the landlord and £20 for each property. Letting without registration is a criminal offence. The landlord paperwork, step by step →
Land and Buildings Transaction Tax (LBTT)
Scotland's purchase tax, in place of England's stamp duty. It is charged in slices of the price, from 0% up to £145,000 to 12% above £750,000, and the bands have not changed since 1 April 2021. Work it out in the calculator →
Letting oversight
Our monthly service on the Hands-off package: we deal with the letting agent for you, follow the rent, the repairs and the tenancy, and report back. £50 a month per rented property, from when it is let. Packages and fees →
Missives
The formal letters your solicitor and the seller's solicitor exchange until the terms are settled. When the missives are concluded, the contract binds both sides, even though you have signed nothing yourself. How buying works in Scotland →
Net yield
The rent for the weeks a property is let, minus the running costs, divided by everything you spent to buy it. It is the number that reflects what you keep. Gross yield vs net yield →
Non-Resident Landlord Scheme
The HMRC scheme for landlords who live outside the UK. The letting agent, or the tenant, takes basic rate tax off the rent unless HMRC has agreed it can be paid without. Read the guide →
Note of interest
The first formal step in buying in Scotland. Your solicitor tells the selling agent you are interested, so that you hear if a closing date is set.
Private residential tenancy (PRT)
Since 1 December 2017, most new private lets in Scotland have had to be private residential tenancies. It replaced the short assured tenancy and has its own rules on rent increases and ending the tenancy. Rent rules in Scotland →
Register of Overseas Entities
A Companies House register. A company registered outside the UK must be on it before it can buy UK property. A person buying in their own name does not need to register. Buying from overseas →
Repairing Standard
The minimum condition a rented home in Scotland must meet. Since March 2024 it has included a fixed heating system, residual current devices on the electrics and safe kitchen space. How we run a refurbishment →
Stamp Duty Land Tax (SDLT)
The purchase tax in England and Northern Ireland. It does not apply in Scotland, which has LBTT, or in Wales, which has its own Land Transaction Tax. Buyers who live outside the UK pay an extra 2% in England and Northern Ireland. Stamp duty for non-resident buyers →
Scottish Letting Agent Register
Letting agents in Scotland must be on this register to trade. Every agent we introduce clients to is on it. Property management in Glasgow →
Sourcing fee
What a property sourcer charges for finding and securing a property. Ours is fixed and published: £2,500 per property for a price of £50,001 to £150,000, then in bands. Sourcing counts as estate agency work, so a sourcer needs redress scheme membership and HMRC registration. What sourcing costs in the UK →
Tenancy deposit scheme
A tenant's deposit in Scotland can be up to two months' rent and must be protected in one of three approved schemes.
Tenement Management Scheme
The default rules for shared repairs in a Scottish tenement when the title deeds say nothing. Each flat gets a vote and a majority can order maintenance. What we check before an offer →
Void period
The weeks a rental property sits empty between tenants. The rent stops but the costs do not, so allow for voids in every set of figures. Void periods: what they cost →

Common questions

What is the difference between LBTT and stamp duty?

Land and Buildings Transaction Tax is Scotland's purchase tax and Stamp Duty Land Tax is England's and Northern Ireland's. They have different bands and different surcharges. In Scotland a buy-to-let investor usually pays the 8% Additional Dwelling Supplement on top of LBTT, and there is no extra charge for living abroad.

Which terms matter most for a first buy-to-let in Scotland?

Start with the Additional Dwelling Supplement, the missives, the Repairing Standard and landlord registration. They decide the cash you need, when the deal becomes binding, what the property must have before you let it, and what you must do before a tenant moves in.

Is this glossary legal or tax advice?

No. Each entry is a short plain-English summary, checked on 20 October 2026, with a link to a fuller guide. Rules and rates change, so confirm anything you rely on with your solicitor or tax adviser.

Please note. We source and refurbish property, and we introduce clients to registered letting agents for the letting. We are not financial or investment advisers, and nothing on this page is a recommendation to buy. Property investment carries risk, including the risk to your capital. Tax rates and figures were checked on 20 October 2026 and will change. Take your own tax and legal advice before you commit.

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