Archive for the ‘Fast House Sales’ Category

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Property price increases reported by Nationwide

October 2nd, 2009

Nationwide have just reported a 0.9% increase in property prices for September 2009, the fifth month in a row that increases in property prices have been reported. Is it time for property buyers to move in?

Whilst it is comforting to many that the spiral of price falls seems to have abated and that maybe, just maybe, we are starting to see some upward movement there still needs to be caution applied by anyone looking to buy.

Firstly we have still to see further rises in unemployment, this will certainly have an effect on house prices, particularly in those areas that will be most affected by higher unemployment levels.

Secondly, we have some fairly significant budget cuts to feed through into the economy.  Whilst at the time of writing this blog there has not been any clear indication from the government on the severity of cuts, there seems to be almost a consensus amongst economists that significant cuts in spending will happen. The phasing and timing of these cuts will have an impact on property prices.

Thirdly, all of the data reported in 2009 on property price movements is based on an “abnormal market”, that is mortgage lending is over 50% down on the historical normal levels.  Until the market is more fluid we will not know the true effects of buyer and seller demand, and thus the impact on property prices. 

Overall there is no need for panic, but equally anyone who thinks prices are about to boom is very unlikely to realise this.  The facts are we are still in uncertain times, the property market has stabilised to some degree, but property prices are still vulnerable to many economic effects yet to unfold.

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Posted in Fast House Sales, UK House Prices

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How to sell London property quickly

October 1st, 2009

Whatever the property market is like it is always, always, possible to find a property buyer if you are selling in London.  It does not matter if the property is a studio flat, a huge mansion, or some land for development, within London there are property buyers for every type of property – at the right price of course.

There are many ways a property can be purchased, it may be a conventional transaction to a home buyer, or cash (or financed) purchase to a property investor, or a delayed completion purchase (more on this later).

Selling a property to someone buying as their home is usually going to achieve a higher price, not always, but usually.  The exceptions tend to be where a property has development potential. When an investor purchases they will be looking to make a profit, this may be by selling on the property, or developing the property.  That said much of this is irrelevant to the seller, they simply want the best possible price within the timescales they need to sell.

So, let’s assume you are selling a property within the M25, how much discount would you need to provide for a quick sale?   The answer may amaze you, it can be anything from 25% to +5%, yes, there are certain circumstances where an investment property buyer will pay a higher price than today’s valuation.  And no, we are not crazy, it is really true.

The way to achieve an above market price is to swell based on a delayed completion.  This is achieved by contracting the responsibility of your mortgage maintenance, insurance, etc, to a property investor for a period of time, for an above market sale price this may be 3 to 5 years.  The property buyer will pay all of the property’s associated costs, you can literally walk away from your property, move on with your life, and then collect the increased equity over your mortgage when the sale completes.

A delayed completion is ideal where the owner is emigrating overseas, wants to relocate and rent somewhere else, is divorcing, and generally does not have a lot of equity tied up in a property, so there are no real concerns about waiting for a delayed completion.

If this sounds like something your are interested in read more from “RM Properties” on our blog here …http://www.repaymortgage.co.uk/blog/sell-your-property-today/

That said if you want a straight sale, no delayed completion, and are prepared to sell at a discount, then RM Properties can make an offer for a quick property sale also.

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Posted in Fast House Sales, London Property

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Can’t find a property buyer?

September 28th, 2009

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

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Posted in Fast House Sales, Property Buyers

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A quick house sale example

September 21st, 2009

On the 7th September 2009 an enquiry was received from someone in desperate need to sell fast, they needed to raise over £100,000 in 8 days.  OK, maybe we should have called this a quick flat sale rather than quick house sale, anyway, the property was a flat in East Croydon on Lower Addiscombe Road.  The flat needed some refurbishment work but otherwise it was structurally sound.

Within 24 hours we were on site appraising the property, we made an offer of £100,000 there and then.  It was a cash offer to ensure we could complete very quickly.  The next step was to instruct solicitors, we had ours appointed the same day, the vendor solicitors were appointed on 8th September.  The conveyancing work then got into gear.

The next steps was to transfer the funds into our solicitor’s account so that they would be ready the moment the contracts were ready to exchange.  There was a slight hiccup along the way, mainly getting the vendor identity documents verified (always ensure these documents are submitted to your solicitor for verification at the beginning).

We avoided many of the usual question and answers exchanged between solicitors and shortened the land registry enquiries by taking out insurance against any adverse checks, this enabled the conveyancing to be completed in 5 working days, which is pretty good considering the slight delay on vendor identity documents. 

By the 14th September we were ready to exchange and complete, the £100,000 was transferred to the vendor solicitor the same day, and by 15th September the funds were transferred on from the vendor solicitor to the vendor.  Overall that was a very quick house sale, just 8 days from offer to funds in the vendor’s bank account.

There was quite a discount on this property, in fact over 30%, because of this risks were taken with the purchase, full searches, structural surveys, etc, were not undertaken, had these thrown up any serious issues the property discount could have turned into a loss.  With a more “normal” process of 4 to 6 weeks for completion a much higher price could have been paid as full surveys would have been carried out.

If this type of quick house sale sounds like it may be of benefit to you call RM Properties on 0800 8600 285.

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Desperate to Sell House?

July 31st, 2009

There have been many reports saying that the decline in property prices has come to a halt and may now be starting to rise.  There seems to be some evidence pointing to this.  But equally we have still to see the effects of higher unemployment with the jobless total expected to rise to 3.2 million in 2010.  The increase in unemployment may well force prices down again but we think the recover will start later in 2010.

But what if you are desperate to sell your house today?  How do you find a buyer that can complete? The problem is that many buyers are struggling to get a mortgage, or at least sufficient deposit to go with their mortgage.  It can take months just to get one or two viewings, much depends on the type of property you are selling, the property location and the local economy.

There is a solution, that is to sell your house to a property investor, they will not pay the top price for your house but they will be able to purchase quickly freeing you up to move on.  At RepayMortgage they specialise in finding private property investors and at any one time have over 450 active investors throughout the UK who can make an offer and complete the purchase within a few weeks.  To find out more just give them a call on 0800 8200 285 or 020 8366 8211.

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Bank of China Mortgage

July 25th, 2009

We’ve been used to the proliferation of Chinese restaurants, now almost on every high street, then Chinese imports as their economy flourishes.  Now Bank of China Mortgages are here, maybe they see the UK as a great opportunity?

There has been much publicity regarding UK banks and the higher mortgages costs, lack of availability, etc, and we have blogged about them here.  but maybe, just maybe, the Bank of China could start to change the banking market for the better by introducing much needed competition and more cash.

The Bank of China will offer mortgages to both Buy-To-Let investors and homeowners, with mortgages starting at around 2.5% over BBR (which is an effective rate of 3% as at July 2009).  As yet we do not have details on the all-important loan-to-value (LTV) they will be offering, but it cannot be any worse then the UK banks are currently offering, and hopefully much better.

But dint think it is just a simple process of going to your current mortgage broker as they may not be able to access the Bank of China, it is understood that the mortgages will initially be brokered through Savills, and the Legal & General Mortgage Club.  Other brokers are expected to be appointed by the Bank, but it seems not all brokers will have access. 

Lets hope this move the the Chinese Bank will provide a much-needed shake up of the UK banking system and kick-start the mortgage lending to help with the recovery of our battered property market.

Here are some contact details of brokers providing access to mortgages with non-UK banks….

  • Savills – 0870 900 7762
  • Legal & General Mortgage Club – 01226 230504
  • LargeMortgageLoansUK – 020 7519 4900

Looking for buy-to-let properties?  BMV Properties at discounts to todays valuation? << click here

Before letting don’t forget to check tenant backround for financial risk? << click here

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Posted in Fast House Sales, Mortgages

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Urgent House Sale

July 24th, 2009

Need an urgent house sale?  Then read more.  It is a sign of the times that many vendors simply cannot find a property buyer for a quick house sale … never mind an urgent house sale.  Properties are listed with agents, sometimes at very attractive discounted prices, but still no buyers can be found.

The reality is however the fast property buyers, often with cash resources, do exist and are able to complete a very fast property purchase, but you just need to find them.  So how do you find a fast property buyer?

The simple answer is to go to a specialist fast property buyer company. Such companies purchase properties for their own portfolios and also on behalf of other affiliated private investors. And it really is possible for them to complete a purchase in 7 days, amazing but true.

If you are in a situation where you need to sell fast then you can click on the link to the right (quick house sale) or call 0800 8600 285. If you refer anyone selling a property you can also get a commission if the sale goes through.

One last point to note. When selling a property in this way to a private investor or company you do not pay any fees, no need for a HIP, it is a straight forward sale processed through solicitors with no other agents involved.

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Quick House Sales

July 16th, 2009

The term “Quick House Sales” seems unrealistic to most people in the current property market, but the fact is it really can happen.  Most people use the traditional method of selling a property with an estate agent, they sign the letting agent’s contract, pay out for the HIP, then wait for a potential buyer to ring on their doorbell.  The reality is very few buyers ring on the door bell and when they do that is the last you see of them.

For a quick house sale it means selling to a private investor or company. They will buy fast, usually an offer is made within a few days and the purchase completed a few weeks later, which is great, but you would have to sell below the current property valuation. So what are the costs?

For a quick house sale in today’s market you would expect to receive an offer of between 20% and 30% below the current market valuation.  Investment buyers make the lower offers for several reasons; clearly they want to make a profit, however they also have to pay around 4% in financing fees, stamp duty and legal fees, totalling to around 5% to 6% of the purchase price.  Then they also factor in that prices are still falling (at time of writing), so add in another 10% to allow for this.  Overall that leaves about 5% profit, which is a lot of money, but then they are taking some risk.

Let’s compare this with an estate agent sale.  Around 2% + VAT commission, legal fees, HIP cost, and say 6 months to sell.  In that 6 months, based on current market conditions, let’s say prices fall by 3%, then there is the cost of mortgage interest, lets say 2% over 6 months.  Also any buyer in today’s market is going to want at least 5% off the asking price.  Overall the cost is going to be around 13% of the selling price. 

So by comparison selling to a property investor will have a net cost of 7% to 17% compared to a private sale via an estate agent.  This is still a lot of money, but once you have sold the property you can then take advantage of market conditions to get a discount on the property you are buying.

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House Buying Companies

July 15th, 2009

With the increase in the number of people facing difficulty in meeting mortgage and other financial commitments it is inevitable that repossessions increase as lenders refuse to help with refinancing.  For some lenders it is a case of survival, they need to reduce their riskier mortgage lending so that their overall risk enables them to secure funds in the market place, but in the short term it means much pain for many people with mortgages.

In extreme cases there are solutions, in effect handing over your property to a house buying company who will then rent the property back to you.  Historically this has been and issue as some of these companies have gone back on rental agreements, evicting the former house owner, and then selling on for a profit.  In some cases these companies have even gone bankrupt.

Step in the FSA (Financial Services Authority).  As of 1st July 2009 new regulations came into effect to help prevent vulnerable homeowners being mistreated by some of the “less honest” rent back companies.  Although to be fair, most of these companies did operate fairly, but for the homeowner wanting to sell and rent back it was a bit of a lottery as to who you sold to, so well done to the FSA for taking action to address this.

For those who just want to sell and move on there are also companies who will purchase property outright, in some cases “cash property buyers” who will purchase a property within days.  But as the property market is still falling don’t expect to get the maximum price, these companies are often traders who then sell on to private investors, there needs to be a discount to cover the cost of buying and re-selling.

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Selling a house with little or no equity

July 15th, 2009

In today’s market it is very unlikely any buyer will pay the full market value for a property, in most cases buyers will seek discounts of 5% or 10%, even more if you need a very fast property sale.

But what if your property value is only a few thousand more than the mortgage, to sell at a price less than your mortgage you would need to find money from elsewhere to pay back the lender. Is there any way you can be assured for selling at a price equal to or great than your mortgage in such situations?  In short the answer is yes.

If your property is in the London / South East area there are buyers who will pay closer to the market valuation for your property and allow you to move on within just a few weeks.  So how does this work?

Briefly, the buyer will contract to purchase your property at an agreed price, equal to or higher than your mortgage, but the actual completion of the purchase will be a few years from now (typically 1 to 3 years).  So, in the mean time the buyer will also contract to pay your mortgage and maintain/insure your property.  In effect, you can just walk away from your property without worrying about paying your mortgage or maintaining the property.  Then after a year or two the purchase is completed and the buyer pays you and difference over your mortgage. 

If you know someone who wants to sell in this way then contact RepayMortgage, you can read more here  selling property with little or equity. This way of selling is not for everyone, but it is a way to sell and move on without remaining tied to a property and location where you no longer want to live.

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Posted in Fast House Sales, London Property

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