You will also have the added convenience of saving on estate agency fees by selling your property directly to the developer. Property part exchange schemes are only available on new build properties and will only be offered on selected plots. There are also likely to be other guidelines surrounding the value difference between your current property and your new property. There may be many reasons why part exchanging your house is not an option for you. Home buying companies effectively offer a private part exchange service alternative to a developer-run scheme.
The process is very similar to a developer-run part exchange service and will include two independent estate agent valuations. As a result, there are several factors to consider. You will also need to keep in mind the depreciation rate for new build properties. If you use a house buying company rather than a developer part exchange scheme, it works slightly differently. A home buying company can offer you all of the speed and certainty of a developer-run property part exchange scheme, completing the sale on a date of your choice to tie in with the purchase of your next property, but without tying you to certain homes, or properties of a certain value.
Selling to a home buying company also makes you a chain-free buyer, which puts you in a great position to negotiate a great deal on your new home. Owning a completely new property can have its advantages and disadvantages. Often you will have less choice of properties to buy than if you were choosing from the wider housing market.
And new build homes typically have far smaller gardens and rooms than other older homes. To be able to take part, more often than not, your current property must be in good condition.
Developers want to take properties they can sell on quickly. They will be looking to relaise their profit as quickly as possible so they can maintain strong cashflows to move forwards. Again, remember to check the detailed requirements in terms of the value of the home you are purchasing with each new house developer.
Properties that are leasehold can be a challenge. For these, developers may insist that a fixed term — typically more than 80 years — remains on the lease. Leasehold properties are those that are only owned for a fixed period. Typically, they are flats. But houses, especially if bought through a shared ownership scheme, can be leasehold too. There has been a lot of controversy over these in recent years.
Once a lease comes to an end, the landlord regains ownership of the property. More information on leaseholds is available on this government website. As we said above, each developer offering a part exchange contract will apply their own terms and conditions.
The valuation stage for your existing property is vital. Once a valuation has happened, the developer may reject your property because they feel it would be difficult to sell on. Your property will also be rejected for sale if significant issues are unearthed in the building survey.
For instance, these would include structural faults. But, balanced against that, the developer will remove the hassle of selling your home. If they do take your house in part exchange. Bear in mind that developers want to sell all the new homes they have built on their site as soon as possible. They have already gone to the trouble of financing, planning and building the development. They want to realise the fruits of their hard work and will have a very good idea of the value of every unit.
If you are having problems talking the sale price down or getting more money for your existing property, consider looking elsewhere.
What about providing white goods for your new home, or carpets? A good alternative is to find the right property buying company. While there are many of these businesses around, not all offer the same guarantees, quality and service. If you want to sell fast and avoid negotiating with a housing developer, National Property Buyers can help as a professional house buying company.
We will make you an offer for your home regardless of its condition. Our home buying process is straightforward and we strive to make the sale as smooth and quick as possible. Unlike most of the other options available to you, we are not a broker or middle man, meaning you skip the fees and get a sale quickly and easily. We might be able to help you get a better deal.
Get an offer. No solicitor fees Best prices paid! We can buy in 7 days Great customer service Any location or condition Initial offer in 24 hours. Quick Page Navigation What does part exchange mean? How does part exchanging your home work? Who can part exchange? Is part exchanging a good idea?
How much can you get from our we buy any house service? Check to see if your property is eligible check now Receive an offer from us within 24 hours Find out more. Rated as Excellent - aww thanks guys! The answer is that the price for the part exchange property being left behind can sometimes be problematic — and a bone of contention between buyer and developer.
The flip side of that could be that you might not have received the full market value anyway, so the deal might be worth it for a quick and less stressful sale. You might also consider this loss a fair deal, in that the developer is not only going through the process of buying your home but will also have to sell it as well.
However, if you want to extract maximum value for your home you should possibly hold out for a better price. Especially when one considers some of the advice contained in this Guardian piece. As an example from developers Taylor Wimpey , the process will be something like this:. However, if everything is agreed you might be able to make a provisional reservation on your new home. If the developer does not think they will be able to sell your home as a part exchange house, the part exchange may not be accepted.
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