How to buy a house when you haven’t sold yours ?
Join me as we explore the best ways to sell your house in Britain. A you probably know there are many options to buy and to sell a house and you may be wondering if you can buy a house without selling yours first…
As a homeowner it may be difficult to make the decision to sell your house, it’s your home and it’s the place you’ve been making memories in for the past years. For you it is a home but for buyers your home is just a space with potential, that they may not see straight away. That’s especially frustrating if you are actively trying to sell your house but it is not selling.
You’ve probably spent a lot of money to make it into your perfect house, and it might be an emotional time, but don’t worry – I’m here to help you choose whether buying a home is possible before selling yours.
Selling Your Own House in Britain
So you’ve found your next dream home but you still have yet to sell your old one.
What can you do? Don’t worry, I am here to help! In this blog post, I will give you some tips on how to buy a house when you haven’t sold yours.
I’ll also tell you about some of the things that could go wrong if you don’t take care of the sale properly. So read on and find out how to make the process as smooth as possible for yourself!
1. The process of buying a house before you’ve sold your old one
It’s difficult to buy a home before you’ve sold your old one, so here are some pointers to assist make things go as smoothly as possible:
Talk to the estate agent you trust
They may be able to recommend someone who can help you sell your house quickly.
Make sure that you have a clear understanding of how the sale of your old house will affect your new home.
For example, will you still be able to move in on the agreed date? Will you be eligible for additional tax etc.?
Stay in touch with your estate agents and solicitors to make sure that there are no delays and everyone is on the same page. It’s essential to be comfortable with selling your property before taking any further steps.
Figure out your finances:
Talk to your mortgage company and/or financial advisor: they may be able to give you some advice on how to proceed. They may also be able to offer you a ‘bridging loan’ which will help you buy the new property before your old one is sold.
What is a bridging loan?
A bridging loan is a short-term loan that can help you buy a new property before your old one is sold. The loan is secured against your old property, and it will need to be repaid once the property is sold.
Bridging loans can be a great way to buy a new house if you haven’t yet sold your old one, but they can be expensive. You should always speak to your mortgage company before taking out a bridging loan, as they will be able to advise you on the best way to proceed.
Pros of a bridging loan:
– You can buy a new property before your old one is sold.- The loan is secured against your old property, so you don’t need to worry about losing it.
Cons of a bridging loan:
– The loan is expensive, so you will need to make sure that you can afford to repay it.- You will need to make regular repayments on the loan, even if your old property hasn’t been sold yet.
Research the market:
It’s important to have an understanding of how the housing market is performing in your area. This will help you determine how long it might take to sell your old home, and how much you can realistically expect to sell it for.
2. What could go wrong if you don’t take care of the sale properly
If you don’t take care of the sale properly, there could be a number of problems that could arise:
– You may not be able to move into your new home on the agreed date. This could cause a lot of inconvenience and stress.
– You may not be able to get the mortgage for your new home. This could mean that you have to find a different property or go through the whole process again.
– The sale of your old house may fall through at the last minute. This could leave you without a home and out of pocket expenses.
4. Tips on how to effectively put your old house in the market
– Make sure your house is in good condition before putting it on the market. This will make it more attractive to potential buyers and help you get a better price for it.
– Work with an experienced estate agent who knows how to market your property effectively. Do not be afraid to ask them about their previous experience. They will be able to give you advice on how to present your home in the best light possible.
– Take great photos in daylight, soft afternoon light is much more forgiving.
– Make sure you have a realistic asking price for your property. Overpricing it will discourage potential buyers from even considering it, and under pricing it will leave you out of pocket.
– Be prepared to negotiate on the price of your house. This is a normal part of the process and there is usually room for negotiation.
By following these steps, you can increase your chances of selling your old home quickly and smoothly. This will then make it easier for you to buy your new home without any delays or problems. Do not be afraid to ask for help from professionals if you are unsure about anything. They will be able to guide you through the process and help you make the best decisions.
What are the risks of not selling your old house before buying a new one?
There are a few risks that you should be aware of if you don’t sell your old house before buying a new one. First of all, you will need to pay two mortgages at the same time. This can be a big financial burden, and it may mean that you struggle to make your mortgage repayments. If you miss any mortgage payments, your credit rating will be affected and this could make it difficult for you to get a mortgage in the future.
What are the costs of buying a house before selling property:
When selling and buying a property it is important to remember that there are a lot of additional costs related to the transaction. You can read an extended version of the summary here: Cost of selling the house – calculator
When selling an existing property you need to think of:
– stamp duty tax
– capital gains tax
– estate agent fees
– conveyancing fees
– any certificates needed (gas safety, electric safety, EPC…)
When buying a new property you need to think of:
– mortgage application fees
– valuation fees
– survey fees
– stamp duty tax
– conveyancing fees
– mortgage broker fees (if used)
You might also need to think of the cost of decorating or renovating your new home, as well as any other unexpected costs that might crop up.
Are you able to buy a house before selling yours in Scotland?
The answer to this question is unfortunately, no. You cannot buy a property in Scotland without having sold your current one first. This is because the process of buying and selling a property is different in Scotland than it is in England and Wales. In order to buy a property in Scotland, you need to have what’s called “settled status.” This means that your current property must be under offer from a buyer and the sale must be progressing smoothly. Only once you have settled status can you begin the process of buying a new property.
If you’re in the process of selling your home but haven’t yet found a buyer, don’t worry – there are still options available to you. One option is to rent out your current property while you wait for a buyer. This will give you the flexibility to move into your new home without having to worry about finding a buyer for your old one. Another option is to take out a bridging loan, which will allow you to finance the purchase of your new home until your old one is sold.
Whatever option you choose, it’s important to speak to a financial advisor to ensure that you are making the best decision for your individual circumstances. They will be able to provide you with more information on how to buy a house when you haven’t sold yours in the UK.
If you’re thinking of buying a property in Scotland, it’s important to be aware of the different process and what is required of you. With a little planning and some expert advice, you’ll be able to navigate the process and find the perfect home.
What should I do if I can’t sell my house by the time I want to buy a new one?
If you’re in this situation, don’t worry – there are a few options available to you. One option is to take out a bridging loan, which can help you buy your new property before selling your old one (if you are in a financial position to do so)
Another option is to sell your property through an auction. This can be a quick and easy way to sell your property, and you may be able to get a good price for it.
Finally, you can look at quick house buyers who can buy a property very quickly for cash but tend not to give a full market price. It is worth trying though, they give you a cash offer almost instantly, so you can proceed with your home purchase without additional risk. That may put you in a better position than waiting for the market conditions to improve.
If you’re not in a hurry to sell your current house, it might be a good idea to wait until the market picks up and then try to sell it. This option might take a bit longer, but it could end up being more profitable in the long run though it runs the risk of you losing a desired future property assuming you have one in mind.
Is it better to wait and see how the housing market develops before buying or selling?
This is a complicated question and no-one can really tell you despite what they might say. The market is constantly changing if you wait for a turn it might be too late so, a lot of it comes to circumstance.
Can I buy another house before I sell mine UK?
In short, you can but as with most things, it depends on your financial situation and the market conditions at the time. If you have the funds available you can buy another property but this runs the risk of (temporary) having two properties which have tax implications specifically, capital gains tax.
Whatever you decide to do, make sure you speak to a financial advisor to get expert advice on your situation. They’ll be able to help you figure out the best course of action for you.