For many people, buying a new home means simultaneously selling their existing property. We take a look at how the two transactions can be tied together.
Often in property transactions, there is a chain of people both buying and selling their homes, all reliant on each other for the transactions to succeed. If you are both buying and selling, you need to be as organised as you can and anticipate what is coming next, so that you are ready to proceed as soon as possible. It is quite likely there will be a delay somewhere in the chain, so you may need to be patient.
Preparation
Make sure you do as much work up front as possible. This includes working out the finances and applying for a mortgage if you need one.
You should find a solicitor to act for you and start gathering up all the information that your buyer will want to see. This will include an Energy Performance Certificate, identification documentation, planning consents and any guarantees you have, for example for windows or building work.
Marketing your home
Let your estate agent know that you will also be buying a home. If you want to move fairly quickly, price your property realistically. It is open to you to market your home with more than one agent if you want to, although their fee is likely to be higher for this.
Find out the situation of any potential buyer. If they are set on moving very quickly, they may not be prepared to wait for a chain to complete. If you have a choice of buyers, you may prefer to accept a lower price to have either first time buyers, buyers who have already sold their home or those who are prepared to be patient.
Finding a property to buy
When looking for a new property, again you should enquire what the sellers’ position is. Be cautious if they are after a very quick sale, as they may pull out if delays arise, leaving you out of pocket for expenses you may already have incurred, such as a survey and searches.
Exchange of contracts and completion
You will need to wait for exchange until everyone in the chain is ready, with all of their searches, mortgage offers and replies to enquiries. Keep in touch with your estate agent and make sure the slowest parties are being chased regularly.
A deposit of 10 percent of the purchase price is payable on exchange of contracts. It is usual to use the deposit paid to you by your buyers, but if the home you are buying is considerably more expensive, you may need to pay more so that they have the full 10 percent.Try to be as flexible as you can when it comes to agreeing a completion date.
If you are thinking of buying or selling a property, speak to one of our expert lawyers on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
