The property market continues to be slow in the UK, some increases in price have been reported in the summer months, but many analysts expect to see prices ease back a little over the winter. So how do you find a property buyer when the market is so slow?
One option is to sell your house as “half price”, no doubt you will get a queue of property buyers, but financially this would not be acceptable to most people, we all want to get the best possible price. However for those who are creative, and may be flexible in their approach to selling their property there are some solutions that may work, we outline two of them here.
Solution 1 – Sell your property fast but with part payment delayed
This works by selling your property at a price close to “today’s valuation”, let’s use a figure and assume the valuation is £200,000. The agreed sale price is £190,000, with £140,000 paid immediately, the balance of £50,000 in 3 to 5 years time.
The balance payment of £50,000 is secured by placing a charge against the property immediately after the sale is completed, this ensures that the vendor’s final payment of £50,000 is registered against the property which cannot then be sold without being paid to the vendor. Additionally there will be a legal agreement drawn up with the buyer and vendor outlining the terms and date for repaying the £50,000.
Advantages to the vendor, they get to sell their property fast at close to valuation, releasing the majority of the equity. The vendor will also avoid paying any agent fees by selling in this way. The only real disadvantage is the equity tied up, the vendor will have to wait for 3 to 5 years for the remaining equity.
… read more about fast property sales on our blog here
Solution 2 – Sell your property and move on with delayed completion
This will only be of interest where you do not have equity in the property that you need today, or may be no equity in the property. The buyer will take out what is called a lease option on your property, they will agree a fixed price to buy your property at a future date. In the mean time the buyer will take on legal responsibility for everything from your mortgage interest to property insurance and maintenance.
Depending on the timescales involved, which can be anything from one to five years or more, the price eventually paid can be anything from a little below the current valuation to a price higher than the current valuation.
The advantage to the vendor is they get to sell and move on right way, within weeks. This could be an ideal solution if you are relocating overseas, moving back in with family, divorcing, etc. The main disadvantage is that you will have to wait for any equity you have in the property, which can be anything from one to 5 years or more depending on the terms you agree with the buyer.
… read more about selling property with delayed completion on our blog here
