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Can You Sell or Buy A House Without Building Regs?

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Can You Sell or Buy A House Without Building Regs?

Looking at what building regulations are, what they are used for, and whether you can buy or sell a house without building regs. 

Sell your house in 28 days

WRITTEN BY: Alexandra Ventress ★ Digital Content Writer

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Can you sell or buy a house without building regs?

Looking at what building regulations are, what they are used for, and whether you can buy or sell a house without building regs. 

Sell your house in 28 days

WRITTEN BY: ALEXANDRA VENTRESS ★ Digital Content Writer

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Table of Contents

When it comes to buying or selling a house, an aspect you may not be familiar with is building regulations. However, trying to buy or sell a house without them can be tricky business. 

 

But what are building regulations? What do you need them for? And can you sell or buy a house without building regs? 

 

Looking for a quick answer? Check out the interactive menu to the side. 

What are building regulations? 

Building regulations are regulations and instruments that are in place to make sure that buildings are built correctly and up to code. Building regulations approval is required for the majority of building work done across the UK and were introduced in 2010. It is a statutory requirement for you to obtain building regulations approval and you will need them signed off by a local authority in order to confirm that they are up to code. 

When do I need building regulation approval?

Whilst it can feel confusing, only certain buildings and building works require building regulation approval. Below, we have broken down which types of buildings do and which do not require it: 

What requires approval? 

  • Signing off a new build before completion
  • Heat producing appliances 
  • Drainage 
  • New electrics
  • Damp proofing 
  • Building an oversite 
  • Excavation and pouring of new foundations
  • Cavity wall insulation
  • Extensions 
  • Structural work 
  • Structural alterations 

What does not require approval?

  • The majority of repairs and maintenance (unless it involves oil tanks, fuse boxes, glazing units, or heating systems)
  • Replacing toilets, sinks, basins, and baths
  • Any work that has been carried out by a member of the Competent Persons Scheme
  • New power points and lighting points
  • Repairs or maintenance to exciting power circuits 
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What are notifiable works?

When work is carried out that requires building regulations approval, then it is classed as ‘notifiable work’. There are three levels of this notification: 

 

  • Full Plans– Before a project fully commences, a detailed plan will need to be submitted to LABC. 
  • Building Notice -Often used for smaller projects, detailed plans of this nature do not need to be submitted. 
  • Competent Person – If you use certain registered trade people, they may be able to issue a building regulations certificate on their own works. 

Why would someone build without regulations?

There are many reasons why a home seller may have a property without building regulations. It could be a case of the owner being unaware that they required building regulations approval. The homeowner may have believed the work they were doing would not be granted permission so completed without regs. They could have been trying to cut costs by using an unregistered tradesperson or by doing work themselves. 

What is the 10 year rule in building Regs?

The 10 year rule is a clause that may be applied if you own a property that has no building regs. If there has been a breach of building regulations (excluding dwellings) that has not been challenged for a period of 10 years.  

Are building regulations enforceable after 10 years?

Whilst there is no time limit on your local authorities’ right to apply for an injunction, as a rule of thumb if 10 or more years have passed since the work was carried out, then there is no serious risk of action. After 10 years, you are more than likely safe, however, there are risks involved with selling or buying a house with a lack of building regulations. 

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What happens if you don't get building regulations?

As building regs are a legal requirement in order to make sure that your property is up to code and safety standards, you can find yourself facing serious repercussions if you do not comply with building regulations. These can include:

Should the building authorities inspect the property and the alterations have failed, then they will need to be done in order to comply with regulations. This brings with it the potential of steep bills, loss of profit and a property revaluation. 

If the building authority has been notified about the lack of certification, then enforcement action may be carried out. If you are facing enforcement and do not make the changes to comply, you can be fined or even face court proceedings.  This will be the case even if the building alterations were carried out by the previous owner. 

If the structural works do meet regulations, then potential buyers may not be able to secure a mortgage on it. This will mean you may end up stuck on the open market for months, unable to secure a buyer. 

As we have already mentioned, the purpose of building regs is to keep your building safe. If your property does not meet the standard, then you are opening yourself up to a whole host of potential problems, ranging from inconvenient to severe. 

You can run the risk of insufficient insulation leaking away the heat in the property which can bring with it its own problems, such as damp and mould, and higher heating costs. 

 

There are also serious problems you may end up facing if the building work you have done is not up to code: 

 

  • Fire or flooding as a result of improperly installed plumbing or electrics 
  • Kitchen appliances overheating or breaking due to insufficient ventilation
  • Subsidence or collapse as a result of too-shallow foundations 
  • Serious trip hazards due to irregular tread on stairs or drop size 
  • The building could be at risk of collapsing due to knocking through walls without sufficient reinforcement.

What happens if I buy a house without building regulations?

If you purchase a property without building regulations, then you have a few options that you can explore in order to correct this issue. Below are some of the most popular choices when it comes to buying a home without building regulations: 

Indemnity Insurance 

The most common method to correct buying a property without building regs is to apply for indemnity insurance. Whilst this is often viewed as the cheaper and easier option, it is still a legal procedure, so it is worth talking to a conveyancing solicitor in order to fully understand the pros and cons of this option. 

 

Indemnity insurance offers you and your lender protection “where there is a defect in the title which cannot be resolved”. Whereas with a regular insurance policy where you may monthly or annually, when it comes to an indemnity policy, you only pay it once. 

 

Indemnity insurance will protect you from enforcement action taken by authorities in the case of buildings control approvals. 

Retrospective building control approval

If you have had work done that does not meet the proper regulation, then you can apply for building control approval on work that has already been taken out. This process is referred to as ‘regularisation’ and occurs when a building control surveyor conducts an inspection of your property and accesses if it’s in line with regulations and standards.

 

It can be a complicated and time-consuming process, however, if you pass, you will have your regularisation certificate.  You will need to engage with the local council if you wish to receive an inspection and building regulation requirements compliance certificate and you will need to pay for it to be done. 

 

It is worth noting that regularisation will only be available on work that has been carried out after 11th November 1985, but the majority of local councils will only issue regularisation on building work that is 10-15 years old. 

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How to sell your house without building regs?

When it comes to selling a home without building regulation compliance, you have three main options. You can sell through either a property auction, cash buyer, or an estate agent. As with any selling option, each of these selling options comes with its own pros and cons, which we have broken down for you below. 

Property Auction

One option for selling your property without a building regulations completion certificate is to put it onto a property auction. A property auction is becoming an increasingly popular selling option. An advantage to selling through a property auction is that once the gavel goes down, the winning bid becomes legally binding. 

 

However, the downside to selling through property auctions is that they are not a speedy method of sale. You may end up waiting for several weeks before you can put your property on the auction, and even if you are successful, you will still have to wait for the sale to complete, and will still be charged a commission at the end, eating away at your final profit. 

Cash Buyer 

If you are selling a house without building regulations, one route you may wish to explore is a cash buyer. Cash buyers will often buy your house regardless of the condition or location, making them a great choice for those looking to sell without building regulation approval. 

 

However, it is worth bearing in mind that cash house buying is an unregulated business, so you will need to carefully vet the company you choose to sell with if this is a route you wish to explore. You should look out for those who are part of regulatory boards such as The Property Ombudsman or The National Association of Property Buyers. 

 

It is also worth keeping in mind that cash buyers will not offer you 100% market value. They will usually buy your house for below market value, but if you are looking for a fast sale, then this is a route to keep in mind. However, in order to secure this sale, your final profit may have to take a hit. 

Estate Agent

Another option to explore is estate agents. Estate agents will undertake all of the heavy lifting involved with your house sale, such as creating a listing, marketing your property, organising viewings, and handling negotiations for you, in return for a percentage of the final sale price. 

 

Another advantage to selling through an estate agent is that they have a bank of knowledge and experience when it comes to selling properties of all kinds. 

 

If estate agents are a route you wish to further explore, read on… 

Sell to us!

Looking to save on estate agent fees after purchasing indemnity insurance? Or maybe you are seeking a sale that is fast, effortless, and free?

 

Here at The Property Selling company, we believe that selling a house should be three things: fast, effortless, and free.

 

We offer you a full online estate agent service, without the fees – because it’s our mission to change the way you sell houses. 

We will be working alongside you every step of the house-selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete.

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals all for free!

 

If you are ready to sell your home in as little as 28 days, then get in touch today and fill out one of our fast, free, no-obligation forms for your house valuation today!

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What Home Renovations Are Worth It Before Selling?

What Home Renovations Are Worth It Before Selling?

What home renovations are worth it before selling and more!

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

When wondering what home renovations are worth it, knowing what scope renovation you wish to undertake can be crucial.

 

Homeownership, after all, is a journey that involves not only finding the perfect house but also transforming it into a personalised oasis. 

 

The average person will renovate their home every 15-20 years but move house every 23 years. 

Over time, whatever renovations you did initially may become dated, and as trends come and go, you may feel like no one else would be attracted to your property. 

 

Home renovations provide an exciting opportunity to breathe new life into a space for yourself or a tenant or attract potential buyers. But, some home renovations will cost significantly more than you will receive from possible offers on the house.

 

This leads us to ask what home renovations are worth it before selling.

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What Home Renovations Are There?

Home renovations not only enhance the aesthetics of a house but also improve its functionality, increase property value and create a more comfortable and enjoyable living space.

infographic, average costs, instalment times and value added of home renovations by rooms

Average Cost – £10,000 to £15,000.

Average Instalment Time – 2 to 16 weeks.

Average Value Added – 3% to 10%.

 

While a small kitchen renovation may only add a couple of per cent to your home value, a complete overhaul could add up to 10%.

Average Cost – £1,000 to £15,000.

Average Instalment Time – 2 to 6 weeks.

Average Value Added – 4% to 11%.

 

Bathroom renovations are among the most popular forms due to their quick turnaround time and high return on investment.

Average Cost – £40,000 to £80,000.

Average Instalment Time – 6 to 10 weeks.

Average Value Added – 10% to 16%.

 

While a loft conversion is a high upfront cost, converting your loft and creating an extra bedroom, bathroom, or study could increase the home valuation significantly.

Average Cost – £5,000 to £6,000.

Average Instalment Time – 1 to 2 weeks.

 

While a roof replacement won’t directly impact how much Value is added to your house, it will ensure you don’t lose anything. If any surveys suggest you re-roof, we highly recommend you consider this.

Average Cost – £10,000 to £30,000.

Average Instalment Time – 3 to 5 weeks.

Average Value Added – 4%.

 

While conventional conservatories could cost £10,000 or less, they are poorly insulated and are very hot in the summer and very cold in the winter. 

 

Many home-buyers will turn away from conventional conservatories as, most of the time, they are seen as unusable spaces. If you wish to maximise your investment return, we recommend an insulated conservatory.

Average Cost – Up to 15,000.

Average Instalment Time – 2 weeks.

Average Value Added – 4%.

 

Eco-friendly upgrades could include double-glazing windows, new energy-efficient lights, or a boiler.

Average Cost – £13,000 to £15,000.

Average Instalment Time – 3 to 4 weeks.

Average Value Added – 7%.

 

Single garages are in demand for modern living, as they are multi-use spaces. They can house cars, a gym, a spare bedroom, a utility room, or even extended storage or living space.

Average Cost – £5,000 to £15,000.

Average Instalment Time – 1 to 3 weeks.

Average Value Added – 7%.

 

Smart home technology is becoming increasingly prominent in homes across the UK. Smart homes have lighting, heating, kitchen and bathroom appliances controlled via a smart hub or smartphone.

Average Cost – £5,000 to £5,000.

Average Instalment Time – 1 to 4 weeks.

Average Value Added – 3%.

 

While landscaping may not be a massive value adder, it makes up by helping to remove buyer objections. One of the first things a potential buyer will see is your garden and outdoor space. If it is well maintained and “pretty”, you will massively benefit from an improved curb appeal.

Average Cost – £1,200 to £1,800.

Average Instalment Time – 2 days.

Average Value Added – 8% to 10%.

 

A deck or patio instalment is one of the fastest and most straightforward ways to increase the value of your home. This goes hand in hand with landscaping your garden, but not one to miss!

Average Cost – £400 to £6,000.

Average Instalment Time – 3 to 12 weeks.

Average Value Added – 5% to 10%.

 

Simply by decluttering, adding new paint and introducing a little interior design to a property, you can add 5-10% to your property’s Value. 

 

But be careful; when you complete this stage, extravagant designs will put off most potential buyers.

Average Cost – £1,500 to £2,250 per m2.

Average Instalment Time – 7 to 15 months.

Average Value Added – 15%.

 

This is the renovation with the highest return on investment but has the longest installation time. If you have the time to wait for an extension to be built, the more, the merrier!

 

But, be it a single-storey or double-storey extension, you may risk your home becoming a building site for a prolonged period, and alternative accommodation may need to be sought.

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What Adds Best Value To A Home?

While some home renovations may be suited for people looking to expand their living space, other home renovations worth investing in for selling will ultimately depend on your circumstances.

 

When selling their house, most people will focus on redecorating bathrooms, kitchens and gardens. This is because they are the most frequently used spaces in a home and are often referred to as personal sanctuaries. 

 

While bedrooms and living rooms are also personal spaces when a new buyer moves in, they will completely change the layout of these rooms, so it’s not worth doing any more than redecorating these spaces. 

 

It’s important to remember that you should maintain a cohesive design and consider your home’s overall style and character. A well-executed colour design across a house may improve your chances of selling faster on the open market than a single-storey extension.

What Adds Value To A Kitchen?

The best way to add value to a kitchen remodel is to upgrade countertops, cabinetry, and storage space and create a functional layout. 

 

One clean and efficient way to create more space in a kitchen is to remove any corner cabinetry and create a gallery kitchen. Corner spaces often need to be more utilised and better areas for storage.

What Adds Value To A Bathroom?

The best way to add value to a bathroom remodel is to update fixtures and new durable flooring, lighting and storage solutions. 

 

If the bathroom does not have any windows, then it’s essential that you make the space as light and airy as possible and add efficient ventilation.

What Adds Value To A Bedroom?

While we wouldn’t recommend spending too much time or money on a bedroom, you should make them presentable and clean. This could be anything from improving the natural light of a bedroom, creating closet space, improving the flooring or adding smart lighting.

What Are The Pros & Cons Of Renovating Before Selling?

Renovating before selling a house can have pros and cons; whilst a remodel can enhance the appeal and value of a home, it could come in costly, and there may be various complications in the process.

What Are The Pros Of Renovating Before Selling?

Renovating a home before putting it up for sale on the open market offers several pros that can optimise the selling process. 

 

Thinking strategically about a renovation can elevate the market appeal of your property, attract a wider pool of buyers and speed up the time on the market.

Potential buyers will try to imagine themselves in a space when they visit a property. But also over-analyze the properties’ quirks, and if there are any defects in the property, they will pick up on it. 

 

This could include cracks in the wall, outdated interior design, broken windows or doors and poorly kept gardens. 

 

If you can quickly amend any quick fixes, we recommend doing this to remove any buyer objections to buying your property.

One of the primary motivations for renovating a property before selling is to increase the property’s value and walk away with more than you put in. 

 

This could be especially effective in a rundown property with a high return on investment potential in a good location. 

 

Although, if the property needs serious remodelling work, especially the structure, you will need to weigh the pros and cons of spending an extortionate amount of money against the time you’ll spend renovating.

If you live in an area with low demand and supply, your property needs to stand out more than similar properties on your street.

 

Completing a renovation could make your home a competitor and allow you to sell faster.

The worst fear of a homeowner looking to sell their home is that the listing becomes stale on the open market; you have had buyers pull out or received only a couple of offers but nothing you are willing to accept. 

 

Carrying out a renovation may be the little boost of fuel to reignite the appeal of your property. But, remember, a renovation doesn’t mean an entire property rebuild; it could just be a decluttering, garden trim and addition of paint.

What Are The Cons Of Renovating Before Selling?

There are also potential cons to renovating before selling a property, including the costs involved, the uncertainty of a build and recouping any investment.

A massive pain point for any home seller is their time trying to sell their property on the market, which is only extended when you throw in a renovation.

 

If the property is undergoing a significant renovation, this could add months or even years to the property selling timeline, at which time, the market could change drastically — and you could end up out of pocket!

Although not all renovations start costly, homeowners will often find unforeseen problems in a property once the renovation begins.

 

This may extend your budget and contingencies thin.

There is no guarantee that your renovation project will add value to your property. For the Value of your home to increase and for you to receive a profit from the sale, you will need to find the right buyer and sell at the right time.

 

A surveyor or estate agent will determine your home value once the housework is completed, and as mentioned above, market trends tend to fade quickly.

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Is It Worth Renovating An Old House?

If you are looking to sell an old house, you may wonder if it’s worth renovating the property or selling it for less and moving on.

 

Many people will search for an old house to renovate themselves, while others will look for a property to move into. You will need to do your research into the local market to decide whether or not it’s worth doing the work or not.

 

You can do this by checking Zoopla or Rightmove and seeing if any fixer-upper properties are similar to your property in your area and how long they have been on the market.

 

If they have been on the market for a prolonged period, it is worth considering renovating the property to improve the possibility of selling quickly.

What Home Renovations Are Worth It Before Selling?

Selling a home is a significant milestone in any homeowner’s journey, and ensuring you can receive the best possible return on your investment should be your top priority. 

 

While factors like location and market conditions influence the final selling price, the condition and appeal of your property play a vital role in attracting potential buyers and securing favourable offers. 

 

The best home renovations for your property could be a single-storey extension or a simple redecorating spree. You will need to determine which suits your property the best but in the meantime…

 

If you don’t want to renovate, you could sell to an online estate agent like us! We will help you sell your property in as little as 28 days in a hassle-free fashion — because we believe selling shouldn’t be complicated. 

 

We will handle all the negotiations, solicitors and stress of the house sale and even cover all your expenses usually associated with selling a house. 

 

We are members of the National Association of Property Buyers and The Property Ombudsman, which means we are part of regulated property selling bodies. And we are rated excellent on Trustpilot. 

 

If you wish to sell your property to an online estate agent like us, get in touch with one of our property consultants.

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Should You Rent Out or Sell Your House in 2023

Should You Rent Out or Sell Your House in 2023?

Looking at whether or not you should sell or rent out your property, the pros and cons of selling your current property or renting it, and how you can sell to us.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

Deciding whether to sell or rent out your current home is a decision that thousands of homeowners face every day. Whilst the majority of homeowners are reliant on the sale of their current property in order to purchase their next, some find that it can make financial sense to hold onto their current property and rent it out to tenants. 

 

In this blog post, we will look at the pros and cons of renting out your home vs selling it, why people choose to rent out their properties rather than selling on the open market and answer the all-important question “Should I sell or rent my house?”

 

Looking for a quick answer? Check out our interactive menu at the side! 

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When does renting your home make sense?

Whilst renting out your home rather than selling it is a situation that is not suitable for everyone, you may find it is suitable for you if: 

 

  • You have enough money in savings to be able to buy another property without selling your current home 
  • You feel confident that house prices are going to rise 
  • You are having to temporarily relocate and you want to keep your current home 
  • It is an attractive rental property that has the potential to generate a healthy rental income 

Will your mortgage lender let you rent out your home?

One of the biggest deciding factors on whether or not you should rent your house you will need to check your mortgage to make sure you would not be in violation of it should you let out your home. Unfortunately, the majority of mortgages contain clauses that do not allow you to rent out your home. However, others will let you rent it out for a year and some will even allow you to rent it out if you are moving for work for a limited period and are intending to move back. 

 

If your mortgage will not allow you to rent your property, then chances are you will have to switch to a higher interest buy to let mortgage. This will usually involve you having to pay early repayment charges, valuation survey fees, and new mortgage arrangement fees. 

 

Another option that you could explore would be to look at Let to Buy mortgages. Whereas Buy to Let mortgages are taken out by homeowners who are looking to let out their property, Let to Buy mortgages are taken out by homeowners who use it to buy a property. If you have enough equity, you remortgage and use some of the cash to put down a deposit on a new property. You then let out your current property and use the rental income to pay the mortgage on your existing home. 

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Pros and cons of renting out your house

As with any house-selling decision, there are pros and cons to renting out your property. Below we have broken down some of the biggest advantages and disadvantages of renting out your home:

Pros 

  • If you are only moving away temporarily or you cannot sell your property on the open market, then renting out it short term may be a viable option 
  • You can generate income and secure capital growth by retaining an existing property and letting it out to tenants. 
  • If you do not want to undertake the hassle of renting, then you can always use a letting agent
  • Your tenant will pay rent on time and take care of your property

Cons

  • Becoming a landlord is a minefield of red tape. With 400+ rules and regulations that getting added to by the day, you have a lot to find yourself getting to grips with. 
  • When you rent out your home, taxes on second homes can be hefty, and the rates on buy to let can be much higher than when investing in other ways. 
  • You will potentially have to invest money into your current property to ensure that it is up to code e.g new boilers or wiring 
  • The rental income you receive from your tenants can often be outweighed by the costs of running and maintaining your property
  • In the event that you default on your mortgages on house prices fall you could risk losing both houses 
  • If you have unruly tenants, they may end up damaging your property which may not be covered by your landlord insurance, leaving you out of pocket
  • You will need to be wary of ‘void’ periods. This is when you are unable to let the property for one reason or another and have no rental income. 
  • You will need to prepare in case your tenants decide to stop paying rent. Will you be able to cope without the rental income until you can find new people to let your property to? 

Pros and cons of selling your home 

When you are deciding whether to rent or sell, it is important to explore the pros and cons for both sides. Now that we have looked at the advantages and disadvantages of letting your property out, we can now take a deep dive into the pros and cons of selling your home: 

Pros 

  • You are able to move on with your life without worrying about tenants or the property
  • You can release equity and invest it in other investments 
  • Any extra cash that you spend on your next home will be free of Capital Gains Tax when you sell the asset
  • You will be able to spend more on your new home than if you rented it out 
  • You won’t have to deal with any extra unexpected repair bills or letting voids
  • You won’t be putting all of your eggs in one basket and expecting one property to deliver a return 

Cons

  • It can be difficult to part with the family home, especially if you have lived there for many years 
  • If you have found yourself in the position of being in negative equity, then you may have to use the cash from your house sale to redeem your mortgage 
  • Selling on the open market can take months and can bring a lot of stress with it 
  • You run the risk of selling off a lucrative asset 

Do you need to pay Capital Gains Tax when selling your house?

Capital Gains Tax (CGT) is a tax that you pay on any profit or gain you make when you sell an asset that has increased in value. 

If the ‘asset’ that you are selling is your main residence then you will not need to pay CGT on it. But if you own a second residence then you may have to pay. The rules and regulations surrounding CGT are frequently updated, so it is important to check with either a tax advisor or HMRC if you suspect you may have to pay CGT. 

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Should I sell my house and rent to get out of debt?

Selling off your property in order to get out of debt will only really work if the property is worth more than you owe. You can figure out how much your property is worth by taking away your remaining mortgage balance from your house’s market value. 

 

If your market value has fallen below your outstanding mortgage amount, then you are now in negative equity. If you sell whilst still in negative equity you risk owing money to the bank, so if you can help it, wait until house prices improve. 

 

You should also consider the following when deciding whether to sell to get out of debt: 

Selling your home in order to clear your debt is a big decision to make and it can have major repercussions later down the line. It is worth exploring other avenues before putting your home on the market for good. An example of this would be talking to your lender about implementing lower interest rates. 

When it comes to debt, you ideally want to release equity as quickly as you can. Selling on the open market is not often ideal when it comes to a fast sale, as it is a lengthy and time-consuming process with no sale guaranteed at the end of it. You will need to research what the local market is like and consider whether your home is in a sellable condition or not. 

Another element you will need to consider when it comes to selling your house in order to clear debt is how much the process will cost. Selling a house can be an expensive business, with solicitor fees, conveyancing costs, estate agent commission, repairs and maintenance fees all eating away at your equity. Will you be able to afford all of the fees, especially if the sale falls through? 

Once the majority of homeowners have bought a property, this is often their biggest asset. If you decide to sell your property in order to clear your debt, you may struggle to purchase another property in the future. You should decide whether you are dependent on this home in order to fund retirement or if this sale will affect your finances in the long run. 

Are your money troubles short-term or long-term? Are they a result of a change of circumstance or is it due to difficulty managing money? Selling your house to clear debt is not a decision that should be taken lightly. You should only sell your property if you are certain it will clear your debt for good. 

What are the extra costs involved with renting out your property? 

When you are deciding to sell your house or rent it out, you will need to consider the costs involved with letting a property. Not only will you be paying your own monthly mortgage, but you will also be paying the costs of maintaining a rental property. Your lender will often want to be sure that the rental income is enough to cover the mortgage interest payments, and you will need to take the following points into consideration: 

 

  • In the event that you are unable to rent out your property, will you be able to afford the mortgage? You need to be sure that you will be able to avoid repossession or a forced sale should you run into difficulty. 
  • Will you manage your property yourself or are you going to enlist the help of a letting agent? Whilst letting agents do a great job it is worth bearing in mind that it is not done for free, and you will need to pay them on top of the mortgage and running costs. 
  • How many months will you rent out your property for? You should plan to have at least one month of the year where the property is empty, so you have time to find a tenant. 
  • Are you going to be able to afford the property maintenance? Should the property need a new roof or boiler can you afford it alongside property and mortgage payments?
  • Have you thought about how much insurance will cost? 

Will I have to pay income tax if I become a landlord?

As of April 2017, landlords will have to pay tax on their entire rental income, rather than just on the profit they make. You will only be able to claim relief on mortgage interest at a rate of 20%, regardless of income tax band. If you are a landlord who is in a higher tax band, then you will pay tax rental income at 40%-45% but you will only be able to claim 20% tax relief. 

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Should I sell or rent?

Whether or not you should rent or sell your home is down to your own personal circumstances. What works for one homeowner may not for another. But before you make the decision to become a landlord, you should carefully weigh up the pros and cons. Becoming a landlord involves navigating a lot of legal red tape and undertaking a lot of extra work to ensure your tenants are well provided for and are in a safe and legal property. 

 

If you are unsure about becoming a landlord, but don’t want to navigate the stress of a house sale, then we may have the solution for you…

The Property Selling Company 

Wanting to avoid the red tape that being a landlord brings with it? Or maybe you want a life free from unruly tenants and unexpected repair bills? Whatever you reasons for deciding to sell instead of rent, we are here to help. 

 

Here at The Property Selling Company, we believe a house sale should be three things: fast, effortless, and most importantly free. That’s why we can sell your property in as little as 28 days, without having to pay estate agent fees! 

 

It’s our mission to change the way you sell houses, so we are proud to offer a full online estate agents service. Long gone are the days of hefty estate agent fees eating away at your final profit. 

 

We work alongside you every step of the way, covering all aspects of the house-selling journey so that you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete. 

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals all for free!  

 

If you are ready to sell your home in as little as 28 days, then get in touch today and fill out one of our fast, free, no-obligation forms for your house valuation today!

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Selling A House With Subsidence: How Easy Is It?

Selling A House With Subsidence: How Easy Is It?

In this article, we will break down what Subsidence is, what the signs are, what underpinning is and how easy it is to sell a house with Subsidence.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

The United Kingdom’s coasts are rapidly eroding, causing many houses to fall victim to coastal erosion. As a result, the mere mention of Subsidence can send alarm bells ringing for homeowners and potential buyers alike. 

 

Whether you buy a cheap property on the coast, look to renovate it, and then realise the previous owners didn’t disclose a history of Subsidence or the ground has begun to erode while you have lived within the property, the thought of selling a house with Subsidence can be daunting.

 

But selling a house with Subsidence doesn’t have to be complicated. A property with Subsidence can be easily rectified as long as the underpinning is secure.

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What Is Subsidence?

Subsidence in a house refers to the downward movement or sinking of the ground beneath the structure, which can result in the shifting of the building’s foundations. 

 

Subsidence happens when the soil beneath a building is made up of a high percentage of clay and is, therefore, unable to support the structure’s weight. Clay expands in wet weather and reduces in warm weather, exaggerating the subsidence rate.

 

Subsidence is especially alarming when the ground is sinking at different rates and the property’s foundations become misaligned.

What Are The Signs Of Subsidence?

If you suspect that your property is at risk of Subsidence, then you should consult a structural engineer or building surveyor who can assess the situation; however, here are some common signs:

Look out for new or widening cracks in the walls, particularly those wider than 3mm or diagonal cracks that appear internally and externally. These cracks may be thicker at one end and taper as they move across the wall.

Cracks form around window and door frames, especially if they are diagonal or have a stepped pattern. These cracks may indicate that the building’s foundations are settling unevenly.

It could be a sign of Subsidence if doors and windows become difficult to open or close correctly. The frames may become misaligned as the building shifts or settles, causing doors and windows to stick.

Check for sloping or uneven floors, particularly on the ground floors. If the floor feels uneven or slopes noticeably in one direction, it could indicate that the foundation is moving.

Gaps or separation between walls, ceilings, or floors may indicate that Subsidence is causing different parts of the building to move independently, leading to visible holes or cracks at the junctions.

In severe cases of Subsidence, the entire building may exhibit signs of leaning or titling, which can be observed from the outside, where the structure appears visibly off-vertical.

What Is Historical Subsidence?

If your property has had Subsidence in the past, fear not! It is not impossible to sell your home; you must disclose the historical Subsidence to your estate agent. 

 

When you inform the estate agent, they will make sure all potential buyers are aware, be prepared that it may take longer to sell your home as Subsidence can be-off putting, even if historical. 

 

You will need to instruct a building surveyor to assess your property, and they will distinguish if your property has ongoing Subsidence or historical subsidence issues:

 

  • If your property has historical Subsidence, any continued movement is unlikely, and you will not have to make any further structural changes.
  • If your property has ongoing Subsidence, you must carry out structural changes to secure the property.

 

If the property has historic Subsidence, you will need to provide evidence of any past insurance claims and the specifications of renovations that have been used to improve the security of the structure, as well as present a Certificate of Structural Adequacy.

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What Is Underpinning A House?

Underpinning a house is a structural improvement technique used to strengthen and stabilise the foundation of a building. 

 

The process involves strengthening the existing foundation or constructing a new foundation beneath the existing one to provide additional support, enhance its load-bearing capacity and prevent further movement. 

 

Underpinning a house is usually the go-to method when structural engineers look to improve a home with Subsidence. 

 

Underpinning a house could cost anywhere from £8,000 to £30,000 or more for an average-sized home.

What Is The Process Of Underpinning A House?

A structural engineer or a specialist contractor will assess the existing foundation, soil conditions and any signs of foundation issues. 

 

They will conduct a detailed engineering analysis to determine the most suitable underpinning method and create a plan for the project. 

 

The area around the foundation is carefully excavated, usually in small sections, to provide access to the existing foundation. The depth of the excavation will depend on the specific underpinning method chosen and the desired stability.

 

Temporary supports, such as props or jacks, are installed to ensure the stability of the structure during the underpinning process. These supports bear the weight of the building while the foundation is being strengthened.

 

The Engineer will then implement the chosen underpinning technique, which could involve pouring mass concrete, constructing reinforced concrete beams, installing mini-piles or injecting grout. 

 

After the underpinning construction, the new foundation elements or materials need time to cure and settle. This period allows the foundation to gain strength and stability.

 

Once the underpinning has settled and achieved the desired strength, the excavated areas are backfilled with suitable materials. 

 

The soil is compacted in layers to ensure proper support and prevent future settlement. Any disrupted structures or finishes, such as flooring or walls, are reinstated. 

 

After the underpinning process is completed, ongoing monitoring must be conducted to ensure the foundation’s stability and the underpinning’s effectiveness, which may involve periodic inspections and measurements to track any changes.

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How Much Does Subsidence Devalue A Property?

Selling a house with a history of Subsidence can affect its property value as Subsidence is categorised as a structural issue and can raise serious concerns for potential buyers about the stability and condition of the property.

How Much Does Subsidence Devalue A Property?

If you go to sell your property on the open market, Subsidence means you take a hit of around 20% of your property’s value, as the future owner will spend around that trying to sort out the Subsidence. 

 

If your property were valued at £290,000, you would expect to receive offers of around £232,000. But this will vary depending on the severity of the Subsidence.

Does Subsidence Affect House Prices?

Yes, Subsidence will affect the house price when selling. If your property has ongoing Subsidence, you can expect to receive a 20-25% below-market-value offer, while historical Subsidence with no signs of resurgence may not affect the house price.

Does Underpinning Devalue Property?

Underpinning a house does not necessarily devalue a property; as it is often used to stabilise a property’s foundation and address subsidence issues, it may positively impact a property’s value by restoring its structural integrity.

 

However, it’s essential to consider that the perception of underpinning and the associated history of Subsidence can affect the perceived value of a property. 

 

Some potential buyers may view a property that has undergone underpinning as a potential risk or a cause for concern, impacting their willingness to pay the total market value. 

 

Four factors may impact how much you get for selling a house with Subsidence:

The quality of underpinning work is vital and must be completed by qualified professionals using appropriate techniques and materials that successfully resolve the subsidence issue. 

 

This can reassure potential buyers and help maintain or enhance the property’s value.

Proper documentation and guarantees for the underpinning work can help instil confidence in potential buyers. This includes providing information about the scope of work, warranties and insurance coverage.

The impact on property value can also be attributed to the local housing market conditions and buyer sentiment. 

 

The impact may be minor in areas like London or the South East, where subsidence issues are common, or buyers are more familiar with underpinning. 

 

However, the impact on property value may be more significant in markets where Subsidence is less prevalent, like Yorkshire.

It’s worth noting that underpinning a property may impact insurance coverage or premiums. Some insurance providers may require additional information, inspections, or specific policies for properties that have undergone underpinning.

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How Much Does Underpinning A House Cost?

The cost of underpinning a house will vary depending on the scope of work needed and the underpinning required. 

 

When you look for quotes, the scope of work, duration, property access and whether the Subsidence has caused aesthetic or structural issues will be considered.

 

The surveyor can suggest the best type of underpinning for your property. 

 

Piling is the most expensive type of underpinning, which is only used for deep foundations. But, mass concrete fill and beam, and Base are the most common ways to underpin a building. 

 

In terms of costs, the underpinning methods are:

 

  • Mass Concrete – £1,500 per m2
  • Beam And Base – £2,000 per m2
  • Piling – £2,600 per m2

 

But, you will also need to consider the costs for labour and services:

 

  • Structural Engineer – £70 per hour
  • Party Wall Engineer – £700 per neighbour
  • Building Control Application Fee – £200
  • Planning Permission – £33

What Impact Does Underpinning Have On A Mortgage?

If a property is underpinned, lenders will agree to a mortgage, but if the property is undergoing Subsidence, it may be challenging to get a mortgage.

 

Subsidence is seen as a high-risk structural issue, so it’s vital that you carry out any fixes as soon as possible. 

You may also get a mortgage on an underpinned house if you can secure home insurance. 

 

This is due to mortgages being dependent on the property being able to be insured.

Does House Insurance cover Subsidence?

Subsidence is covered by most house insurance, but only if the property has never had issues with Subsidence before. 

 

You may need to find a specialist insurance package if:

 

  • You wish to carry out any underpinning method.
  • The property is at risk of riverbank or coastal erosion. 
  • There is any damage to the land the property sits on. 

 

The insurance should cover all damage, the cost of reparations and any alternative accommodation. 

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Selling A House With Subsidence: The Process

Selling a house with Subsidence is similar to selling conventionally. However, you will need to ensure that you have the correct documentation and are as transparent as possible throughout the process.

 

Before you put your house on the market, you should have a building surveyor or structural Engineer assess the property to evaluate the subsidence issue and determine its cause and severity. 

 

The assessment will provide valuable information you must share with potential buyers and estate agents.

 

We recommend that you carry out any repairs or underpinning suggested before listing the property for sale as this will increase your chances of getting full market value & instil confidence in any potential buyers.

 

Transparency is vital when selling a house with Subsidence. You must disclose the subsidence history to potential buyers upfront. 

 

Providing accurate information about the subsidence issue, including the results from the survey, will help build trust and manage expectations. 

 

If you lie to the potential buyer and they request their survey, they may either pull out or give you a much lower off on the property.

 

When setting a realistic price for your property, you will need to consider the subsidence history and how well the underpinning has resolved the situation.

Selling A House With Subsidence: How Easy Is It?

Selling a house with Subsidence or underpinning can be a hassle, especially if it’s your first time selling up. But it doesn’t have to be!

 

Here at The Property Selling Company, we pride ourselves in creating an utterly hassle-free selling process, where we believe that selling a property should be three things; fast, effortless and free.

 

We can help sell your property in as little as 28 days while handling all aspects of the sale, including negotiating, surveys, and even covering all your legal fees. 

 

We offer you a complete online estate agency service because it’s our mission to change how you sell your house. We understand that underpinning can be a substantial upfront cost, so we won’t charge you any estate agent fees. 

 

We will work alongside you every step of the house sale, and our team of property experts will continue to be there even after the process is complete.

 

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What Is A Red Book Valuation?

What Is A Red Book Valuation?

Join us as we break down what a red book valuation is and why you would use one.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

When it comes to assessing the value of your home, accuracy, transparency, and credibility are paramount. In the United Kingdom, one term that consistently emerges as the gold standard is the Red Book Valuation.

 

The comprehensive set of guidelines ensures that valuations are carried out consistently, transparently, and in compliance with professional standards. It is widely recognised and trusted by mortgage lenders, investors and professionals throughout the property industry.

 

In this article, we will delve into all things Red Book Valuation, exploring its purpose, the valuation process, and why it holds significant relevance in property transactions.

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What Is A Red Book Valuation?

A Red Book Valuation in the UK is a property valuation conducted in accordance with the Royal Institution of Chartered Surveyors (RICS) Valuation – Global Standards. These standards are commonly known as the Red Book due to the colour of their cover.

 

The RICS Red Book is a set of guidelines that outline the best practices for property valuations and provides consistent, transparent frameworks for valuers to follow when assessing a property. 

 

Red Book valuations will be carried out by a qualified chartered surveyor who has received training and is a member of RICS. This type of valuation is often required for various purposes, including property transactions, mortgages, financial reporting, taxation, and legal proceedings. 

 

As a homeowner selling your home, you may not directly need to commission a Red Book valuation yourself. 

 

But it may still be beneficial for you to be aware of Red Book valuations and how they work because they can help you set a realistic and competitive asking price for your property and have a stronger negotiating power later in the house selling process.

 

Most estate agents will handle the Red Book Valuation for you if it is necessary for your property, but not all will pay for it.

What Is The RICS Red Book Valuation Criteria?

The RICS Red Book valuation criteria covers everything from duty of care, to ethics, to the minimum content of a valuation report, to the valuer’s qualifications. 

The criteria also structures which of the five valuation methods the surveyor should adhere to, which will vary depending on the type of property. 

When Would You Need A Red Book Valuation?

Red Book valuations are needed any time you require a formal valuation for legal proceedings or tax purposes, which must be done by a RICS Registered Valuer.

 

 Some circumstances in which you will need a Red Book valuation include:

 

  • Tax planning purposes.
  • Calculating Capital Gains Tax or Inheritance tax.
  • Transferring assets into a Self-Invested Personal Pension (SIPP) Fund.
  • Any property being sold by a charity or that is probate.
  • Court proceedings, like during a divorce case.
  • Landlord rent reviews. 
  • Compulsory Purchase Orders (CPOs).
  • Shared ownership and social housing (Registered Prover) purchases. 
  • Disputed under resolution via mediation or arbitration.

 

Red Book valuations are only valid for three months, and must be renewed for a further three once lapsed if data is still recovered. 

How Much Does A Red Book Valuation Cost?

Red Book valuations in the UK can cost as little as £150, but as they are based on the property’s location, value and size, this can vary significantly.

 

At most, you could be looking at £1200, or more.

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What Is The Red Book Valuation Process?

By following the Red Book valuation standards, a RICS certified surveyor will:

Confirm the terms of engagement using an official letter and check for any conflict of interest regarding the valuation, as well as the sale or purchase of the property in question.

Next, they will check title and lease deeds and then inspect the property’s condition, confirming the size and property valuation.

They will inspect three comparable properties from the same area, which have been sold in the 6 months preceding the valuation.

Undertake a check on current and historic planning consents & permissions for the property as well as checking the rights of way, restrictive covenants, flood risks, chancel repair liability, land contamination and other mortgageability factors. 

Check the efficiency of utility services.

And, finally, calculate a suitable valuation and present these findings in an official report.

How Do You Arrange A Red Book Valuation?

To arrange a Red Book valuation, you should determine the purpose for which you require the valuation; whether it’s for a property transaction, mortgage financing, taxation or legal proceedings. 

 

Next, you should look for a qualified and experienced chartered surveyor who is a member of the Royal Institution of Chartered Surveyors (RICS). 

 

You can search for RICS surveyors on the RICS website, but you should ensure that the surveyor has experience with Red Book valuations. 

 

When instructing a surveyor, you should first request a quote from them which will vary in cost depending on the scope of your house. 

 

Once you agree on the terms, including the fee, timeframe and scale of the survey then you can schedule an appointment for the surveyor to inspect the property. 

 

On the agreed-upon date, the surveyor will visit the property and conduct a thorough inspection. You will need to make sure that the entire property is easily accessible, and remove any obstructions to doorways. 

 

After the property inspection, the surveyor will undertake the necessary research, analysis and valuation calculations to prepare the Red Book valuation report. Once it is ready, they will send you the report, and your estimated market value. 

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What’s The Difference Between Red Book & Market Valuations?

Red Book valuations ensure that the valuation process is conducted in a professional and consistent manner, with transparency and compliance with recognised industry standards. 

 

Market valuations on the other hand, refer to the broader practice of determining the market value of a property which can be conducted using various methods and different professionals including those who may not follow the specific guidelines of the Red Book.

Red Book Valuations

Red Book valuations refers specifically to any property valuation conducted in compliance with the RICS valuation – Global Standards (Red Book) which provides a set of guidelines and practices for valuers, ensuring consistency, transparency and professionalism.

 

The Red Book valuation is therefore far more accurate and unbiased than the Market Valuation. But, Red Book valuations do not factor in market conditions like supply and demand into the valuation. 

 

During a Red Book Valuation, the RICS surveyor must produce defined and justified valuation results.

Market Valuations

A Market Valuation on the other hand is a broader term that encompasses any valuation of a property’s market value, which could be done by an estate agent, chartered surveyors and independent property valuers.  

 

Market valuations refer to the process of determining the estimated worth of a property in the open market, considering factors such as supply and demand dynamics, recent comparable sales, location, condition and other relevant market factors.

When Do You Not Need A Red Book Valuation?

Although Red Book Valuations are preferred for their adherence to professional standards and recognition within the industry, there are a few situations where strict compliance with Red Book valuations is not necessary, such as:

 

  • Personal financial planning.
  • Simply curious. 
  • You only need a rough estimate of your property.
  • Non-market value assessments like property insurance surveys or assessments for specialised assets (solar panels).
  • Unregulated property transactions, like transfers between family or to a charity. 

 

However, it’s important to note that even if you don’t require a Red Book Valuation, you should still seek financial advice. 

 

You also don’t legally need to have a formal valuation in order to buy or sell a property, instead you could do an estate agent’s value appraisal. 

 

If you are looking to know your home’s valuation due to wanting to sell your home, then please fill out our sign up form and one of our property consultants will get in touch with you and provide you with any advice you require.

 

At The Property Selling Company, we can help you sell your house in as little as twenty eight says. We will take the hassle out of the house selling process for you, arrange all surveys, negotiate with buyers and handle conveyancing — while covering all costs usually associated with selling your house. 

 

That includes your RICS Red Book Valuation, if needed. Want to get started today? Click get offer below.

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Selling a House With a Mortgage

Couple discussing a mortgage with their mortgage lender.

Selling a House With a Mortgage

Looking at how to sell a house with a mortgage, the pros and cons of selling with a mortgage, and how we can help…

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

When it comes to selling your house, you can often be left with a lot of questions, especially when it comes to selling a property with a  mortgage. You can be left confused about your selling options, whether or not you should port your mortgage, and what the ups and downs of selling with a mortgage can be.

 

In this blog post, we will be looking at your options when it comes to selling a house with a mortgage, what porting your mortgage involves, and how you can sell your house with a mortgage in as little as 28 days…

 

Looking for a quick answer? Check out our interactive menu to the side. 

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Can I sell a house with a mortgage?

Of course! You can sell your home at any time as long as you can afford to pay off your remaining mortgage balance. Or alternatively, if you like you can transfer your existing mortgage to a new house. 

If you are planning to sell your property in order to free up some cash but not purchase another property straight away, then you should make sure that the sale price is higher than your existing mortgage. This should be including any fees that you have to pay, such as early repayment charges. 

Can I transfer my mortgage to another property?

Yes, you can! This process is referred to as porting and involves porting your current deal to a new property, rather than taking out a new mortgage. Porting a mortgage is a popular choice as it can often save homeowners a lot of money, especially if they are in the early repayment charges window or they have a favourable fixed rate. It also has the added advantage of being much less hassle than starting a new application with a different mortgage company.  

When should you port a mortgage?

The circumstances for when you should port a mortgage vary from person to person. But as a rule of thumb if one of the following criteria applies to you, then porting your mortgage may be an avenue you wish to explore: 

  • If you have had your property valued and it will not cover the mortgage debts, but you are comfortably paying off your mortgage payments each month. 
  • If you are comfortable with your current mortgage deal and don’t wish to make any changes 
  • If you are no longer in your mortgage initial deal term as you will no longer have to pay early repayment charges 
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How do you port your mortgage? 

In order to port your mortgage, you will need to fill out an application form. This is because you will not be transferring the deal itself, but the terms and conditions of the mortgage. As long as you are not decreasing or increasing the loan amount, you should not have to pay any fees for porting a mortgage. 

 

Whilst many mortgages are portable, it is worth bearing in mind that this is not the case every time. Your personal circumstances as well as the property itself will determine whether you are eligible for porting.  

What to consider before selling a house with a mortgage

When it comes to selling a house before you pay off the mortgage, there are a few elements you will need to consider before you put your current home on the market and buy another property. These include: 

  • Once you have sold your home, if the amount you get from the sale is not enough to pay off your mortgage, then you will need to continue making payments to your lender until you have repaid your mortgage in full. 
  • Until the property has been sold, you will be responsible for all mortgage repayments, insurance and other household costs. 
  • If you plan on redeeming your existing mortgage (paying back the full amount) and not buying a new property you must ensure that the sale price is more than what is left on your mortgage 
  • Once you have sold your home you will need to think about your personal financial situation. If you are out of employment at the time when you sell your house and you receive a cash lump sum from the sale of the property, then this can have an effect on whether or not you will receive your benefits. 
  • If you owe more money than your property is worth, then you are described as being in negative equity. If this applies to you, then you may need to think about other options other than selling, as it may not be a viable option for you. 
  • Once the sale is complete, your existing mortgage loan will need to be repaid by your solicitor or conveyancer. 

Additional costs for selling a house before the mortgage is paid 

Other costs that you should be wary of when selling your house with an existing mortgage include: 

An early repayment charge is a fee that you can incur when you wish to end your mortgage deal before the ‘official’ deal term ends.

 

An example of this would be if you were on a 3-year fixed rate deal with your lender but after 12 months you decided you wanted to move to a lower fixed-rate, you would end up facing an early repayment charge.

 

Because your lender expects to make a certain amount of interest by lending you the money for your mortgage, when you switch or pay off the debt early, they loose money. This is why you may end up facing an early repayment charge.

When it comes to selling your property with a morgage, you can expect your estate agent fees to range anywhere from 0.9% – 3.6%. This fee will depend on the agent you use, the property itself, and how sucessfully you negotiate. 

 

In the UK, if you sell with your average high street ‘no sale no fee’ agent, you can be facing fees of around 1.42%+VAT. This means if you have a property that is valued at £285,000, you can expect to add around £4,000 to your house selkling costs. 

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What are early repayment charges? 

Early repayment charges are a fee that you may incur if you wish to end your mortgage before the deal term has officially ended. They are charged as the lender expects to make a certain amount of interest by lending you the money for your mortgage on a fixed or tracker rate mortgage. If you decide to switch or pay the debt off early, they will lose money, which is why you are then facing an early repayment charge. 

 

If you are a homeowner who is paying their lender’s standard variable rate (SVR) then early repayment charges should not be a concern for you. 

Pros and cons of selling your house before your mortgage is paid off 

As with any house-selling situation, there are pros and cons to selling your property before the mortgage term is over. Below we take a look at some of the pros and cons of selling your property before the mortgage is paid off: 

Pros

  • If you have had a change of circumstances and your current property is no longer affordable, you may be able to get a more affordable mortgage on a cheaper property. 
  • If you have your property evaluated and it is high enough to cover your mortgage debt, then you will be able to pay off your debts. 
  • If you have found yourself in the position of falling behind on your mortgage payments, can stop the repossession of your property by selling it and then settling the mortgage debt.  
  • Once you have sold your property, you may be left with some spare cash to put towards your new property. 

Cons

  • When you sell your home, you may find yourself becoming homeless temporarily. 
  • If you cannot afford to pay your mortgage lender, then you may find yourself in a mortgage shortfall. This can be costly and stressful, and if you don’t make your payments, then you may end up facing legal action. 
  • If you purchase a new property, you will still be responsible for the mortgage payments on your old property until it is sold.
  • You can find yourself in the situation of having to secure a short sale with your bank. This means that your old home will be sold for less than you originally bought it for. 
  • If your property valuation comes back lower than expected then you won’t have enough to cover your original mortgage deal, which will make paying your remaining payments difficult. 
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Where can I sell my house with a mortgage?”

The majority of homeowners on the open market, unfortunately, do not have the borrowing power to be able to take out two mortgages at the same time. So if you find your dream house on the open market but yours is yet to sell, what can you do? When taking out a loan or porting your mortgage is not an option, how can you purchase your dream home? 

 

Thankfully, you have several options to ensure that you do not miss out on your house purchase. 

Property Auctions

Property auctions are becoming an increasingly popular method of selling properties. The seller agrees on a minimum reserve price that must be met for the property to sell.  The hope is that the minimum reserve price will be met and that potential buyers will keep bidding, raising the total profit. The main advantage of selling through this method is that auctions tend to attract serious buyers. As winning bids are legally binding once the gavel falls, the buyer cannot pull out without severe financial consequences. 

 

The downside to selling through a property auction is that they are not the swiftest selling option. Once you have listed your property for sale, you will have to wait for the next auction which could be weeks or months away. Even after the auction is complete, you will still need to wait for the paperwork to go through which can add an additional month or more to the process. Furthermore, selling at an auction is not without cost. Auctioneers, like estate agents, charge a commission to cover the costs of marketing and selling your home.

Bridging Loans

Another option for selling your home is taking out a bridging loan. These loans help to bridge the gap between buying and selling a property. They are usually short-term loans however they come with higher borrowing costs. 

The Property Selling Company 

Another way you can quickly sell your property in order to buy the home of your dreams is through an online estate agent like ourselves. 

 

Here at The Property Selling company, we believe that selling a house should be three things: fast, effortless, and free. That’s why we can sell your property in as little as 28 days, without the estate agent fees! 

 

We offer you a full online estate agent service – because it’s our mission to change the way you sell houses. Gone are the day of estate agent fees eating away at your total profit. 

 

We will be working alongside you every step of the house-selling process, covering everything, so you won’t have to. The days of expensive solicitor fees and legal work are over, and our team of property experts will continue to be there, even after the process is complete. 

 

We will market your property on popular property portals such as Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals all for free!  

 

If you are ready to sell your home in as little as 28 days, then get in touch today and fill out one of our fast, free, no-obligation forms for your house valuation today!

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