Category: Selling

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Selling and Buying a House: Should I Sell First?

Selling and Buying a House: Should I Sell First?

Finding the best avenue to selling and buying a house can be confusing, join us as we delve into all the ways to sell and buy a house.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

Selling and Buying a House: Should I Sell First?

Selling and buying a house could take anywhere from four to twelve months, and is completely reliant on the demand and supply of the housing market as well as any property chains you may be in. 

 

There is no set way to sell and buy a house, in fact there are so many different avenues, it can be very confusing! The right avenue to follow will simply come down to what suits your needs. 

 

When you buy a house, you will need to pay Capital Gains Tax, and when you sell a house, you will need to pay Stamp duty, on top of the actual house sale and any arrangement fees or estate agent fees so it’s vital you have your finances in order. 

 

There are disadvantages and advantages to selling first, buying first or doing it simultaneously. 

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Should You Buy And Sell A House At The Same Time?

Selling and buying a house simultaneously is the route that most homeowners in the UK choose. This is due to the ease and convenience of not having to rent in between houses. 

 

But, buying and selling a home at the same time can be a complex process as it requires careful planning and coordination to ensure a smooth transition between homes.

What Is The Process Of Selling And Buying Simultaneously?

Selling and buying simultaneously, is the most generic way to sell and buy a house. 

 

Before considering simultaneously buying and selling a house, you should assess your financial situation and determine if you have enough funds for a deposit on the new house and if you can qualify for a mortgage while carrying the existing mortgage. 

 

You should always look to evaluate current housing market conditions, as if your local area is a sellers market then you will be able to easily sell your house. 

 

But, if it’s a buyers market then it may take longer to sell your house, but easier to buy your next one — which could end up in you spending more money on utility bills or selling at below market value to a cash buyer or auction. 

 

Due to the risk involved in the selling and buying a house process, you should attempt to coordinate the timing of your transactions to minimise the gap between selling your house and purchasing a new one. This could involve aligning your completion dates and arranging temporary housing if needed.

Advantages Of Selling And Buying A House Simultaneously

When selling and buying a house simultaneously, you will benefit from convenience, where you can avoid the need to find rented accommodation or move twice, which can save time, effort and avoid emotional distress. 

Selling and buying simultaneously can help you align your financial transactions by using the proceeds from your current home and apply them directly toward the deposit or completion costs of buying your new home.

 

Simultaneous purchase and sale allows you time to transition between homes more efficiently. 

 

You should be able to coordinate completion dates which can be beneficial to have specific time constraints or need to synchronise with other life events, such as employment changes or accommodating the start of the new school year. 

 

Selling and buying a house at the same time will also allow you to work with the same conveyancing solicitors at the same time, and minimise the conveyancing costs. If you were to sell your house and buy separately, then there would be a gap between the two processes. 

Disadvantages Of Selling And Buying A House Simultaneously

Although coordinating the sale and purchase of two properties can allow you to have a seamless move, if it goes wrong, it could produce time uncertainties. 

 

Which can be challenging to ensure that the completion dates align perfectly and any unexpected delays in one transaction can have a ripple effect especially if there are any property chains. 

 

The simultaneous transaction could create financial strain if you need to cover two mortgages or carry the costs of both properties for an extended period. It’s essential to carefully assess your financial situation.

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Should You Sell First And Then Buy?

If you have the time, or accommodation to stay in during the selling and buying a house process, then selling first and buying second may be the best option.

 

By selling first, you will have the funds readily available to buy your next property and be a more attractive buyer but you will need to rent or stay elsewhere in between houses.

What Is The Process Of Selling First And Buying Second?

When selling first and then buying a house, you should ensure that you have all your finances in order before you start the process of selling your house.

 

By staying organised, you will be able to organise and port your mortgage quickly, and ultimately make you far more attractive to the property seller. This will help avoid delays and the risk of you being gazundered. 

 

Before you sell your house, you should have already completed your research to find your next property and contacted local estate agents about houses you are interested in.

 

Once you have sold your house, you can actively view the properties and decide on a property that suits you.

 

You may need to move to a friend or relative’s property, or rent, while you find your next home, which may come at an additional cost.

Advantages Of Selling First

When selling first and then buying a house, you should ensure that you have all your finances in order before you start the process of selling your house.

 

By staying organised, you will be able to organise and port your mortgage quickly, and ultimately make you far more attractive to the property seller. This will help avoid delays and the risk of you being gazundered. 

 

Before you sell your house, you should have already completed your research to find your next property and contacted local estate agents about houses you are interested in.

 

Once you have sold your house, you can actively view the properties and decide on a property that suits you.

 

You may need to move to a friend or relative’s property, or rent, while you find your next home, which may come at an additional cost.

Disadvantages Of Selling First

Due to market conditions, you may find it hard to find a property to buy after selling yours, which means you will spend more money on finding further accommodation to rent. 

 

There is also the chance that house prices rise dramatically when searching for your next property, which may result in you ending up out of pocket. 

 

If you sell your house before buying a new one, you will need to find temporary housing arrangements which could involve renting a short-term apartment, staying with family or friends. 

 

You will also need to arrange storage for your belongings as well which can be expensive.

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Should You Buy First And Then Sell?

If you are selling and buying a house and want to buy first, then you’ll need to be able to fully fund the purchase of the new property before having the funds released from your house sale. 

 

This is one of the most risk heavy ways to sell a house but could have a massive pay-off.

What Is The Process Of Buying First And Then Selling?

When buying a house first and then selling your house, you will need to create a budget for purchasing the new home and ensure that you have the financial means to carry the mortgage of your old house and a new mortgage for the new house. 

 

When buying first and then selling your house you should begin by searching for a new home based on your preferences, needs and budget. You should engage with an estate agent to assist you in finding the right property, schedule viewings and negotiate offers.

 

Once you’ve identified a property you wish to purchase, work with a mortgage lender to obtain pre-approval or secure financing for your new home. 

 

When you submit an offer to the seller of the new property, you should negotiate the price, and completion dates before the offer has been accepted. Carry out any necessary surveys and work alongside your estate agent and solicitor to complete the necessary paperwork.

 

Once the purchase of your new home is underway, you can focus on preparing your current home for sale, including staging your home, making necessary repairs, and consider hiring an estate agent to list your property. 

 

Working closely with your estate agent, mortgage lenders and solicitors to coordinate the completion dates for both the purchase of your new home and the sale of your current one. Ensure there is alignment and sufficient time to complete necessary surveys.

Advantages Of Buying First

When selling and buying a house, buying first allows you the luxury of time to carefully consider your options and make a well-informed decision. 

 

You can thoroughly research the market, explore different options and find a home that truly meets your needs and preferences without the pressure of a pending sale. 

 

When you buy a house first, you eliminate the need to rent or arrange temporary housing arrangements. You won’t have to incur the costs of renting which can save you money and make the moving home process more convenient. 

 

Being a non-contingent buyer can provide you with a stronger negotiating position when making an offer on a new home. Sellers may view your offer more favourably since its not contingent on the sale of your current home. 

Owning a new home before selling your current property allows you flexibility in the timing of sale. You can choose the optimal time to list and sell your home, potentially allowing you to wait for market conditions to be more favourable.

Disadvantages Of Buying First

Buying a new home before selling your current one means carrying two mortgages simultaneously which can create financial burdens and increase your risk exposure. 

 

You will need to have sufficient financial resources to cover both mortgages, utility bills, insurance and other costs until your current home is sold.

 

If your current home takes longer to sell than anticipated, it can strain your finances and increase your monthly obligations. 

 

The housing market is subject to fluctuations and can be unpredictable; buying a house first exposes you to the risk of potential market downturns or a decline in home prices. If the value of the property decreases before you sell it, you may face challenges in selling it at the desired price. 

 

Buying a house before selling may limit your budget and purchasing power for the new home. If a significant portion of your funds is tied up in your current home, you may have less money available for a deposit and any necessary renovations or improvements on the new property.

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Selling And Buying A House? This Is How You Do It

If you are selling and buying a house, we can help!

 

We can offer you a full online estate agent service, without all the estate agent fees because its our mission to change the way you sell houses. We will work alongside you every step of the house selling and house buying process, covering everything so you don’t have to.

 

The days of expensive solicitor fees and legal work are over, and our team of property experts will be there to support you 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 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 And Buying A House FAQs

When selling and buying a house, you will find it easier to get approved for a mortgage if you have a property in your sights that you wish to buy. Which is why selling and buying a house simultaneously or buying and then selling may be the least stressful. 

 

If you decide to sell your house and then buy, you will be under stress to get approved for a mortgage while living in temporary housing.

When you are selling and buying a house, you should assess your financial situation, research and find a home, take your time, wait until the market favours your situation and take the big leap!

Selling a house to a first time buyer can have both advantages and disadvantages as they are eager and motivated to get onto the property ladder, they are often less complicated as there are no chains, but the first-time buyers may fail in securing financing due to a limited credit history or the house sale may fall through due to inexperience.

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Can I Sell My House Fast For Market Value?

Can I Sell My House Fast For Market Value?

Looking at how you can sell your house fast for market value, tips to help you secure a quick house sale, and how you can avoid hefty legal fees.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

It’s no secret that when it comes to putting your home on the open market, getting the quickest sale for the best price possible is every seller’s end goal. But is it possible? 

 

In this blog post, we will be looking at how to work out the market value of your property, wheat factors can affect market value, and answering the all-important question “can I sell my house fast for market value?”

How do I work out my market value?

When it comes to selling your property, knowing how much it is worth is one of the key parts of the journey. It lets you know how much your property is worth, how much you can make in the sale, and if you are buying another property, how much your budget will be. 

 

So, it is only natural to want to know how you can work out the market value of your property. 

 

There are plenty of free online valuation tools out there, that pull local market data, as well as the size, location, and condition of your property and can give you a rough valuation of your home. These are a good way of getting a rough idea of how much your property may be worth, but the real figure may be just more than or slightly less than this.

 

You can also invite three local estate agents round to your property to provide an in-person valuation. Although you may not hire them to sell your property, many estate agents will provide a free valuation so it is worth seeing if any in your area do. It is a good idea to get three different valuations as you will be able to get an average price from them. 

 

It is also worth conducting your own market research into the area to find your own figures. Zoopla releases a house price index which will allow you to look at housing prices across the country to give you a rough idea of what to expect. Property portals such as Rightmove and Zoopla are also good for seeing how much similar houses in your area have sold for, which will also give you an indication of market value. 

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What factors will affect the value of my house?

There are many reasons why your house may or may not achieve full market value when you put it up for sale. Below we explore some of the factors that your sale price: 

Location

When it comes to property, what are the three magic words that everyone knows? 

 

That’s right, it’s location, location, location! 

 

And as important as it is when you are buying a house, it is equally as important when you’re selling. Whilst each area across the UK will have different house prices, as a rule of thumb the North of England has cheaper property prices than the South. However, how much value your property holds will also depend on your whereabouts in the county you are as well. If your area has great schools, transport links, and lots of amenities, then it is likely to be valued higher than the areas which don’t. 

Condition

It’s no secret that a property that is in good condition will sell for more than a property that is not. Should a survey reveal any information about the property that is unfavourable, then the value will certainly drop as buyers will not pay more for a property that needs work doing. 

Flood Risk

Unfortunately, if you live in an area that has had severe flooding in the last three years or is located in a high-risk flood area, then its market value will be negatively affected for the next three years. 

Property market

One of the biggest factors when it comes to achieving market value for your property is the condition of the market when you put it on to sell. The open market is like an ecosystem, if there are lots of buyers and not many sellers, then your value will go up, however, if there are lots of sellers and not many buyers then your value is likely to go down. 

 

Before putting your home on the open market it is always wiser to check the conditions so you have the best idea about potential sale prices as possible. 

Parking

Off-street parking is a surprising factor that can affect your house sale value for the better. With more and more households owning more than one car, off-street parking is a huge bonus. According to data from the House Buyer Bureau, it can add as much as 20% in some areas, 

Value addition

Potential to add value is a vague term that is thrown around a lot by estate agents. It means that your property has areas where features could potentially be added to boost the value of your property. Examples of this would be a large garden where an extension could be added or converting an attic into an extra bedroom. If you have had planning permission approved in the past, this can be particularly attractive to potential buyers. 

Presentation

First impressions matter! The general presentation of your property during house viewings can have a massive effect on your home. If your home is neat and tidy, inside and out, then you will find that this is often reflected in the house valuations you receive in return. 

Bedrooms

Another good rule of thumb when it comes to the market value of your home is the more bedrooms it has, the more value it will be worth. If you sacrifice a bedroom to use as a home office or gym, you may find that you get a lower valuation. 

What documents do I need to help my house sell quickly?

One of the best ways you can help to complete the sale quicker is by having all of your key documentation to hand. This will ensure delays are avoided to the best of your ability and can keep the sale progressing. Below we have a list of all of the key documentation you may need to hand in order to sell: 

 

  • HM Land Registry title documents 
  • Subsidence guarantees or warranties 
  • Documents proving you have had all necessary gas checks prior to selling
  • Party wall agreements (if needed)
  • Planning permission
  • FENSA or CERTAS certificates for windows
  • Electrical checks
  • Building regulation completion certificates and builder’s guarantee certificates (for alterations and additions)
  • Damp guarantees/warranties

Tips to help sell house fast

If you are looking to sell your house fast for full market value, it is important to consider the steps you can take to help achieve that all-important quick sale. One of the areas of your home that can have the most effect is staging your home.

 

Staging refers to setting up your home in a certain way, so that it is more appealing to buyers. Whilst it may not sound like a big deal, according to research from Homesandgardens.com, a home that has been staged will sell three times faster than a house that has not been staged. The same research also revealed that 70% of estate agents stated that staging your home can help to increase the offer value on a house by up to 10%.

One of the most cost-effective ways you can get your property ready for the house sale process and secure the price you want is with a deep clean. Whilst it may sound obvious, clean houses get better valuations than those that are not. The best way to ensure that you perform an efficient deep clean is to tackle your home room by room, leaving no sofa cushion unturned or surface unwiped. 

 

Whilst it can work out to be a little more costly, don’t underestimate the power of professional cleaning on items like curtains and carpets.

Another aspect you should consider when preparing your house for a quick sale is decluttering. This goes hand in hand with our previous point and is not only a good way to achieve a fast sale and full market value, but it will also make moving easier. By deciding as you are deep cleaning which items you wish to keep in the move and which you shall put in storage or throw away, you will end up not taking as much with you when you move out. 

Another key to getting full market value for your property is making sure any unfinished DIY jobs and repairs are finished and taken care of. Potential property buyers are not going to pay full market value for a property that requires extra work doing to it. Your potential home buyers are likely to lower their asking price each time they see a fault that needs fixing. 

If you need to sell fast, then an element you can not afford to forget about when preparing for a house sale is kerb appeal. First impressions matter, so before you put your home on the open market, you’ll have to find time to dust off the gardening gloves. According to data from a survey done by HomeOwners Alliance, 68% of potential buyers considered kerb appeal to be an important factor when choosing their next home. 

 

Whilst tackling the garden can feel like a mammoth task, there’s no need to go full gardeners world on it. Small changes such as planting new flowers, painting a fresh coat of paint onto your fences, cutting the grass, and cleaning your patio! 

Whilst it may sound scary, an important part of home staging is ensuring that the property is neutralised. In order to neutralise your property, you simply need to remove any personal items from your home. This helps to give the property the same look that a showhome has, it turns it into a blank canvas where potential buyers can truly imagine themselves living. 

 

Items that can be easily forgotten about when neutralising your home in preparation for home viewings include: 

 

  • Family photos
  • Holiday souvenirs
  • Children’s artwork
  • Collectable items
  • Trophies and certificates

 

Show homes sell so well because they allow people to truly envision themselves living there, so when it comes to preparing your home for viewing, you should aim for a similar look for your property. 

If you want to sell quickly, there is one tip that you need to remember.

 

First. Impressions. Matter. 

 

If your home is looking tired, dull, and like it has seen better days, the chances are your potential property buyers are going to be put off by this. Just because your house is feeling tired, doesn’t mean you have to pay a fortune on a facelift. There are plenty of low-budget ways you can help to freshen up your home. Painting any walls that are looking past it is a great way to make any room look brand new. 

 

You don’t just have to freshen up your rooms in the physical sense, smells also play a big part in getting full market value for your property. The following smells and odours can put buyers off if they are present during viewings: 

 

  • Cooking
  • Bins
  • Blocked drains 
  • Damp 
  • Pets
  • Smoking 

 

Before having any potential buyers round for viewings, it is a good idea to invest in a couple of scented candles, reed diffusers, or room sprays to keep your home smelling fresh. 

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Options for selling your house quickly

When it comes to selling your house quickly, you have three main options. You can sell through a property auction, a cash buying company, or through an online estate agency, like ourselves. As with any method of selling, each of these sale routes comes with pros and cons, which we have broken down below: 

Property Auction

If you are looking to sell a property for full market value then a auction property sale may be a route you wish to explore. Whilst not necessarily known for providing you with a fast sale, property auctions can connect you with serious buyers. This is because once the hammer goes down on a bid at a property auction, the deal is legally binding. That means buyers are often sure of the property they are purchasing and will be unable to pull out without serious financial penalties.  

 

An auction property sale works by sellers agreeing on a minimum reserve price for your property, and if a buyer meets the reserve price then it sells to them.

 

A best-case auction scenario is that multiple buyers are interested in the property and will be outbidding each other, raising your total profit and allowing you to get slightly more than your market value. 

However, as we have already mentioned, a property auction is not always the best route if you are looking for a fast house sale. The main issue is that auctions involve a lot of waiting. There are marketing, viewing, and valuations involved in the selling process and these can take up to a month to complete before the auction date even rolls around. And if it is a month with particularly high interest, you may find yourself having to wait for the next month to roll around before you can sell, adding further time to your wait. 

 

After the auction is completed and the hammer has fallen, you will still have to wait a month for the paperwork to go through, which adds more time to what is already a lengthy process. 

 

On top of this, selling at an auction is not without cost. Auctioneers charge fees to cover the cost of marketing and selling your home which can once again eat away at your final profit and take away from your market value.

Cash Buying Company

Fast property buying companies offer a great alternative to putting your property on the open market. They specialise in fast home sales and will often buy any house in any location. They will usually offer you a free cash offer and can buy your property in a timescale that suits you, whether that’s months or days away. 

 

A cash sale from a home buying company is one of the best ways to get a guaranteed sale in a timescale that suits you. The way most quick house sale companies work is the seller will fill in their postcode online and get a rough valuation of their property. They will then be called by an agent at the company who will be able to give them a more concrete offer. An in-person valuation is conducted to confirm the price and then the house is sold within the agreed timeline. 

 

A genuine cash buyer will have the cash fund readily available without needing a loan or mortgage to be able to purchase your property. 

 

Before you accept that cash offer, it is a good idea to make sure that the cash buyer you are selling with is registered with at least one regulatory board, such as the National Association of Property Buyers or The Property Ombudsman. This will ensure that you are selling with the best of the best and offers extra security to you as the seller. 

 

However, if full market value is what you’re after, then a cash buyer may not be the route for you. Cash house buyers will buy your house at below market value in return for offering you a quick and hassle-free sale.   Each cash buyer is different, though as a rule of thumb, most companies will take around 10-20% below. 

Online Estate Agents

Another route you can take in order to secure a quick sale for full market value is online estate agents. An online estate agent will be able to sell your property for as close to full market value as possible, as well as taking the stress of selling out of your hands. 

 

An online estate agent will be able to offer you support throughout the house-selling journey, as well as marketing the property, organising viewings, and helping you with negotiations. And if you are looking for a fast sale, there are even companies that can help get you sold in as little as 28 days! 

 

Now you have heard all your main selling options, you still find yourself wondering “can I sell my house fast for market value?” Well, look no further as we have the answer that you are looking for! 

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How can I sell my house fast for market value?

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. 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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Do You Pay Capital Gains Tax When Selling Property?

Do You Pay Capital Gains Tax When Selling Property?

Looking to sell your property but don’t know what taxes you need to pay? Find out more here!

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

What Is Capital Gains Tax When Selling Property?

Capital Gains Tax (CGT) is the tax you pay when you gift or sell an asset. If you sell a property for more than you paid, you may be subject to CGT on the capital gains. 

 

The current CGT rate for individuals in the UK is 20% for basic rate taxpayers and 28% for higher and additional rate taxpayers. 

 

However, there is an annual tax-free allowance known as the annual exempt amount that allows you to generate a certain amount of capital gains tax-free each year. 

 

If you are a UK citizen and sell a property that’s your main residence, you may be able to qualify for Private Residence Relief (PRR), which can reduce or eliminate the capital gains tax owed. PRR is not available for estates used exclusively for business or rental properties.

 

If you sell a property that is not your primary residence, you must pay CGT on any capital gains made. 

You can reduce the tax owed by claiming certain expenses and allowances, such as costs associated with buying or selling the property or improvements made to the property. 

 

You can defer the payment of CGT by reinvesting the proceeds from property sales into another qualifying asset. 

It is essential to keep accurate records of the purchase and sale of your property and any expenses incurred to calculate the capital gain and any applicable taxes owed accurately. 

 

It is advisable to consult an accountant or financial advisor to understand the specific capital gains tax laws and regulations in the UK to determine the best course of action for your situation.

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When Do You Pay Capital Gains Tax?

You will pay Capital Gains Tax (CGT) when you sell an asset that has elevated in value since you bought it. Usually, when you sell your primary residence, you won’t have to pay any CGT due to private residence relief.

 

However, you’ll usually need to pay Capital Gains Tax on a property if you’re selling a second home or buy-to-let property.

When Do You Have To Pay CGT On Your UK Home?

Although in most cases you don’t have to pay CGT on your primary residence, there are some cases where you will:

 

  • The property includes 5000 square metres or more (this includes open land).
  • Part of the property has been sub-let (lodgers don’t count).
  • Part of the property is exclusively a business premise.
  • The property was bought to make capital gains. 
  • The property is not considered to be your primary residence. 

 

However, many of these can often be open to dispute or interpretation; if you need help, you should seek the advice of financial advisors.

Do You Pay Tax On Second Homes And Buy To Let Properties?

When you sell a second home or buy-to-let properties, you’ll be subject to Capital Gains Tax. 

 

If you own two or more properties, you can nominate the more valuable property as your primary residence to avoid paying Capital Gains Tax. 

 

However, if HM Revenue & Customs (HMRC) determines that a property isn’t your main home, you will have to pay Capital Gains Tax on any earnings in its value above your CGT allowance when selling a second home.

Do You Pay Tax If You Are Buying And Selling At The Same Time?

Although you will need to pay CGT, you will not need to pay Stamp Duty. You only need to pay Stamp Duty on a property if you purchase one after selling.

 

If you are buying and selling simultaneously, you will need to factor Stamp Duty into the transaction as it is based on the home value — and can end up being thousands of pounds.

 

However, not all properties will be subject to stamp duty. Stamp Duty usually applies to property purchases over £300,000 for first-time buyers or £125,000 for home-buyers.

Do You Need To Pay CGT On Inherited Or Gifted Property?

If you give a property to a civil partner, spouse or charity, you won’t have to pay Capital Gains Tax. 

 

If you have inherited a property and the estate has paid the inheritance tax, you won’t have to pay any further tax to pay unless you sell the property. The capital gain will be measured from the date you acquired the property.

What Is The Capital Gains Tax Allowance?

All taxpayers in the UK legally have a yearlong capital gains tax allowance, allowing you to earn a certain amount tax-free. You only have to pay CGT on capital gains that exceed your annual budget. 

 

In the tax year 2023-24, this allowance has decreased by 50% from its 2022/23 threshold of £12,300 to £6,000. 

 

Anyone who gains assets over £6,000 annually must pay CGT on the excess amount at their tax rate. You cannot carry over CGT into the next year; you’ll lose it if you don’t use it. 

 

Couples are treated as individuals, not partnered entities, so that each individual can earn up to £6,000 each on the property.

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How Do You Calculate Your Capital Gains Tax Bill?

To calculate your Capital Gains Tax Bill, you will need to determine the profit you made from the sale of your property, deduct any expenses, determine the amount of available Relief, calculate the taxable gain, apply the Capital Gains Tax Rate and pay any tax owed. 

 

To determine the profit you made from the sale of your property, you need to subtract the original price of the property from the sale price, which will give you the total gain made from the sale. 

 

If the property was your main home for all or part of the time you owned it, you may be eligible for PRR, which can reduce or eliminate your Capital Gains Tax owed. You may also claim Letting Relief if you rented out part of the property when you owned it. 

 

To calculate your taxable gain, subtract any allowable expenses and reliefs from the total profit made from the sale. Then you will need to apply the Capital Gains Tax rate. 

 

If you owe any Capital Gains Tax, you must report it on your self-assessment tax return and pay the tax owed by the deadline.

What Are The Requirements For Private Residence Relief?

If you meet all the eligibility requirements, you will be able to acquire a tax relief known as Private Residence Relief which covers the Capital Gains Tax. If some but not all requirements fit your property, then you will spend some tax. 

 

The eligibility requirements for Private Residence Relief include the following:

 

  • You have one home, and you’ve listed it as your main residence for all the time you’ve owned it.
  • You have not let part of it out. 
  • You have not used part of your home exclusively for business purposes. 
  • The grounds, including all buildings, are less than 5,000 square metres. 
  • You did not buy it to make a gain.

What Are The Capital Gains Tax Rates On Property?

You may face tax liability if none or only some of the Private Residence Relief requirements are met.

 

If you are an additional or higher rate taxpayer, you must pay either 28% on your gains from residential property or 20% from other chargeable assets. 

 

If you’re a lower rate taxpayer, the percentage you pay hinges on the size of your earnings, your taxable income and whether your growth is from residential property or other assets. To calculate this, you should:

 

  • Work out how much taxable income you have – your income minus your Allowance and any other Income Tax Reliefs you’re entitled to.
  • Work out your total taxable gains.
  • Deduct your tax-free income from your total taxable gains.
  • Add this amount to your taxable income.
  • If this value is within the lower Income Tax Band, you’ll pay 10% on your earnings (or 18% on residential dwellings). You’ll pay 20% (or 28% on residential dwellings) on any quantity above the lower tax rate.

 

If you are a trustee, business or personal representative of someone who’s died, you will pay 28% on residential dwellings and 20% on other liable assets. You’ll pay 10% if you’re a lone trader or partnership, and your earnings qualify for Business Asset Disposal Relief.

How Can You Reduce Your CGT Bill?

Capital Gains Tax on a property is charged on capital gains rather than the sale price. There are a few ways to reduce your Capital Gains Tax Bill, but we would always recommend that you seek a financial advisor to aid you:

 

Deducting Costs

 

Deducting costs when working out your CGT bill, including estate agent fees, selling costs, Stamp Duty incurred when purchasing the property and conveyancing fees. 

 

Deducing costs of improving assets, such as paying for a bathroom renovation, can also be considered when working out your taxable gain. 

 

However, you cannot deduct costs involved in the upkeep of the property, like interest on a loan to buy the property. 

 

Offsetting Losses

 

You can offset losses you’ve made when selling other assets; for example, if you own multiple properties and cause a loss of £25,000 when selling one of them, you can use that against the gains you make when selling another property and reduce your overall CGT bill. 

 

Joint Ownership

 

You can consider joint ownership with your spouse or civil partner, as everyone has a Capital Gains Tax allowance, so if you are the lone owner of a property, you can double your allowance by sharing ownership with your partner. 

 

If your spouse is in a lower-rated tax bracket than you, you could transfer all or part of the property into their name, as this will reduce your Capital Gains Tax Bill.

 

Timing

 

If you have used some or all of your Capital Gains Tax allowance for a particular year, you should consider delaying the sale of your property to the next tax year — remember that the allowance does not transfer over tax years. 

 

Main Property

 

If you have multiple properties, you can nominate the property you wish to sell as your main residence to reduce or eliminate the Capital Gains Tax Bill on that property. 

 

Letting Relief

 

If you have lived in the property at the same time as letting it out to tenants, you may be eligible for Letting Relief which may reduce your CGT Bill.

Capital Gains Tax FAQs

When you sell your property, you’ll have to pay Capital Gains Tax on most sales of UK property within two months (60 days). If the property belonged to someone who has recently died, you must include this information in the report to HMRC. 

 

You can report the Capital Gains Tax to HMRC by using HMRC’s online Capital Gains Tax Service, but first, you will need to calculate your capital gains.

The average cost to sell a house in the UK will vary depending on current market trends, however in 2022, the average cost was £10,401. This is due to estate agent & conveyancing fees, EPC & removal company costs, Mortgage exit fees, Early Mortgage Repayment charges, CGT and porting a mortgage.

You do not need to pay Capital Gains Tax on your primary residence (somewhere you have lived for two years or more), as PPR covers this. You may be able to transfer property to your primary home or your spouse in a lower tax bracket — but please check this with a financial adviser.

Any profit from selling a home will be added to your taxable income or salary, but these will be added if you are eligible for any allowances or tax reliefs.

Usually, when selling your main residence, you will not need to pay the two main taxes; Capital Gains Tax and Stamp Duty. PRR will cover Capital Gains Tax, but Stamp Duty is only for property buyers. 

 

However, if you are selling your property and then buying an onward property, you will pay Stamp Duty on that property.

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Do You Need A Solicitor To Sell Your House?

Do You Need A Solicitor To Sell Your House?

Looking at whether you need a solicitor to sell your house, and the difference between solicitors and conveyancers.

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

Do You Need A Solicitor To Sell Your House?

Hiring a solicitor to sell your home is not legally required, but it is highly recommended. 

 

Selling a house can be complex, and many legal and financial considerations must be considered. A solicitor can help you navigate the process and ensure everything is done legally and correctly.

 

When you sell your property, a solicitor will offer you a conveyancing service where they will check the legal title of the property, ensuring you have the legal right to sell the property and make sure there are no restrictions or issues with the title.

 

The solicitor will guide you through the process from the moment you have accepted an offer to the exchange of contracts to completion. 

 

You will need a solicitor or licensed conveyancer, whether you are selling a property via auction, an estate agent, cash buyer or privately.

What Does A Solicitor Do?

A solicitor, property lawyer or licensed conveyancer is a legal professional who provides legal advice and representation to clients. 

 

Their day-to-day role is advising clients on legal matters, representing clients in legal proceedings, drafting legal documents to ensure they are legally sound, conducting legal research, and managing cases. 

 

A solicitor’s primary goal is to help their clients navigate the legal system and achieve the best possible outcome in their case. Most solicitors will have a speciality in a particular area of law, for example, property or medicine.

What Does A Conveyancer Do?

A property or conveyancing solicitor will provide legal advice and assistance to clients involved in property transactions. Their role is to ensure that the sale or purchase of a property is legal and to protect their client’s interests. 

 

A conveyancing solicitor will advise clients on the legal aspects of buying or selling a property, including contracts, searches and surveys. They will draft legal documents, such as sale contracts, leases and transfer deeds.

 

A property solicitor conducts various searches, such as local authority and land registry searches, to ensure that the property is legal and that no issues could affect the transaction.

 

If needed, a property solicitor will negotiate with the other party’s solicitor on behalf of their client to ensure that the terms of the sale or purchase are fair and reasonable. 

 

To ensure the process runs smoothly, the property solicitor will liaise with mortgage lenders to provide the necessary funds for completion. They will also manage the transaction from start to finish and resolve any legal issues if they do appear. 

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Should You Hire A Solicitor Or A Licensed Conveyancer To Sell Your House?

All solicitors can legally perform the conveyancing process, but again we recommend that you find a property specialist as they will provide a more streamlined service. 

 

When it comes to selling a house, you can hire a solicitor or a licensed conveyancer, who are qualified and regulated professionals who can help you sell your property. 

 

However, there are some differences between the two that you should consider before making a decision. 

 

Solicitors are qualified lawyers who have completed a law degree and professional training; they will have a broader legal knowledge and can provide legal advice on a wide range of matters beyond conveyancing – they can even represent you in court if necessary.

 

Solicitors can help you in complex house-selling situations like divorce or probate as they have a more general understanding of the law. 

 

On the other hand, licensed conveyancers specialise in property law and are trained to handle all aspects of property transactions, including buying and selling properties, remortgaging and transfer of equity. The Council for Licensed Conveyancers regulates them. 

When deciding whether to hire a solicitor or licensed conveyancer to sell your property, you should consider your individual needs and the complexity of your transaction. 

 

A licensed conveyancer may be suitable if your transaction is straightforward and you do not require advice beyond conveyancing.

 

However, a solicitor may be better if you need broader legal advice or representation.

How Do You Find A Solicitor Or Conveyancer?

There are several ways to find the right solicitor or conveyancer for you. The legal professionals will handle your property transactions, including asking for recommendations, using online directories, checking reviews, checking accreditation and getting quotes — so it’s vital that you find the right one for your situation.

 

Ask family members, friends, or colleagues who have recently bought or sold properties for recommendations when looking for a legal advisor. 

 

Many online directories exist for solicitors and conveyancers, such as The Law Society’s Find A Solicitor or the Council for Licensed Conveyancers’ Find a Conveyancer. 

 

By reading online reviews and testimonials from previous clients, you can get an idea of the solicitor’s experience and how their customer service is. 

 

It would help if you always looked for any mention of contact time, as you will need to stay in touch with your solicitor as much as possible to keep the process moving forward. 

 

Most solicitors will be part of an agency and have a conveyancing team behind them, although you may also be able to find independent solicitors.

What Are The Average Conveyancing Fees For Selling A House?

When you sell your property, the conveyancing fees will vary depending on if your property is:

 

  • Leasehold or freehold.
  • Where the conveyancer is based.
  • If you are using a licensed conveyancer or solicitor.
  • The price of your property.
  • The length of your property chain.
  • If you are in a shared ownership property. 

 

However, saying this, the average cost of a conveyancer in the UK is £610-£950, depending on the value of your property. You can expect to pay around £300 more if the property is leasehold. 

 

We recommend doing your research, getting conveyancing quotes from many different solicitors, and weighing these up against their online reviews before deciding.

What Is The Conveyancing Process?

The conveyancing process is the legal work behind a house purchase or sale; it will typically involve:

The conveyancing process will begin when you instruct a solicitor or licensed conveyancer to act on your behalf. We recommend finding a solicitor with prior property knowledge and excellent reviews.

Your solicitor or conveyancer will draft a contract of sale and send it to the buyer’s solicitor or conveyancer for approval.

They will then conduct various searches and enquiries to ensure the property is legal and suitable for purchase. This will include the following:

 

  • Searches with local authorities.
  • Checking Title Deeds.
  • Raising any necessary enquiries with the buyer’s solicitor.

If you require a mortgage to purchase your onward purchase, the solicitor will liaise with your mortgage provider to ensure the funds are available for completion.

Once all the necessary checks and searches have been completed and any issues resolved, you and the buyer will exchange contracts. This is a legally binding agreement to sell and purchase a property.

On the agreed completion date, the purchase price balance will be paid, and ownership of the property will transfer to the buyer.

Your solicitor will register the property in your name and pay any necessary stamp duty; they will also send you a final report and account.

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What If Your House Sale Falls Through?

If a house sale falls through, the solicitor’s role will depend on the circumstances and terms of their agreement with you. In most cases, the conveyancing fees must still be paid, even if the sale does not progress.

 

However, some solicitors may offer a “no sale, no fee” arrangement, where they will only charge fees if the sale is completed. 

 

It’s essential to check the terms of the agreement before you instruct the solicitor before hiring them to ensure that you understand what fees will be payable in the event of a failed sale.

 

If the sale falls through due to issues with the legal process, such as problems with the title or searches, the solicitor may need to continue working to resolve these issues even if the sale does not proceed — in this case, you will still need to pay the solicitor fees.

 

Suppose the sale falls through due to issues outside the solicitor’s control, such as the buyer pulling out or the property being withdrawn from the market. In that case, the solicitor’s role will be limited to advising on legal implications and finalising outstanding matters, such as returning deposited funds. 

 

In any case, it’s essential to maintain good communication with the solicitor throughout the process and to seek their advice and guidance if any issues arise.

Can I DIY The Conveyancing Process?

While it is legally possible to handle the conveyancing process yourself, it is generally not recommended.

 

The conveyancing process involves many legal and financial considerations, which can be complex and time-consuming.

 

You must have a solid understanding of property law and be familiar with the conveyancing process to complete the process correctly and efficiently. 

 

Instructing a solicitor or conveyancer to carry out the legal legwork is generally recommended. Hiring a qualified and experienced solicitor or licensed conveyancer to handle the process on your behalf is worth the investment. 

 

There are many potential risks associated with DIY conveyancing, including:

 

Making Errors Or Omissions

With a proper understanding of conveyancing’s legal and financial aspects, you may avoid errors or omissions that can have serious consequences.

 

Delays

Handling the conveyancing process yourself can be time-consuming, and if you make any mistakes, it can cause delays that can be costly and frustrating. 

 

Legal Issues

If legal issues arise during the process, such as buyer or property title problems, you may need more legal expertise to resolve them. 

 

Liability 

You may be liable for any resulting losses or damages if you make any mistakes or omissions during the process.

Can A Solicitor Help When Selling A Leasehold Property?

It doesn’t matter if you are selling a leasehold or freehold property; you should seek the guidance of a solicitor. 

 

However, as leasehold properties tend to be more complex, we recommend hiring a specialist leasehold solicitor trained to deal with tenanted properties. 

 

A leasehold solicitor or conveyancer will be able to help you review the lease and advise you with any restrictions or obligations that may affect the sale, such as requirements to obtain consent from the landlord or comply with certain conditions. 

 

Like the standard conveyancing process, the solicitor must also conduct searches to ensure that no outstanding charges or arrears are owed to the landlord, third party or management company that could affect the sale.

 

The property solicitor will then advise on any service charges or ground rent payable and ensure that these are properties apportioned between the buyer and seller. They will then draft any legal documents, such as the contract of sale and transfer deeds. 

 

Once completion day comes around, the leasehold solicitor will then handle the completion of the sale, ensuring that all necessary documentation is signed and exchanged and that the sale proceeds are property distributed.

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What Is The Cheapest Way to Sell A House?

What Is The Cheapest Way to Sell A House?

The cheapest way to sell a house is through us, but what are the other options available?

Tom Condon
Tom Condon ★ Digital Content Writer

Table of Contents

What Is The Cheapest Way to Sell A House?

The cheapest way to sell your house in the UK is to sell without the assistance of a traditional estate agent, which could be done privately or through an online estate agent. Doing so can sidestep the high commission fees that conventional estate agents typically charge. 

 

Other avenues of house selling, like Cash Buyers and Auctions, will position themselves as the cheapest way to sell a house, but you will be losing profit on the property as they sell it for below market value.

Are Traditional Estate Agents The Cheapest Way To Sell A House?

Selling a house with a high street estate agent was one of the most common ways to sell a property, but there are better options. 

 

Local estate agents have physical offices and places of work, providing an in-person service. If your property sale does not complete, you usually won’t have to pay anything. 

 

The traditional estate agent usually offers a more hands-on approach by conducting valuations, photographs, floorplans, EPC surveys, advertising on property portals, viewings and negotiations on your behalf. 

 

You may also benefit from receiving the best price for your property as local agents may try and sell your property for more as they receive a larger commission. 

 

The downside to traditional estate agents is that they will charge anywhere from 0.9%-3.6%+VAT of the selling price of your property. If your property sells for £290,000, then that could be anywhere between £2,610 to £10,440.

Is Selling Privately The Cheapest Way To Sell A House?

Selling privately is not the cheapest way to sell your house, but it will be less expensive than selling to a traditional high street estate agent. 

 

Although you won’t have to pay any estate agent fees, you will have to pay for legal fees, removal costs, EPC costs and everything else associated with selling a property.

 

Selling a house privately will also mean that you need a property expert to guide you through the process, and you will be required to do much of the leg work.

 

Although this may, on the surface, seem like a cheaper option than using an estate agent, it’s also important to note that it will be one of the longer processes to sell your property. 

 

As a result, you will spend more money on utility bills and council tax while you wait for the property to sell. 

 

The private house selling process can be pretty daunting, so we have written this step-by-step guide to help you decide if it is right for you:

It would help if you used property portals such as Rightmove and Zoopla to see what similar properties are selling in your area, and this will allow you to get a general idea of how much to set your asking price at. 

 

You will also need to work out a figure that would be the lowest you are willing to sell the property for, as this will come in handy during the negotiation phase.

Once you’ve set your asking price, you must get your property into selling condition — a fresh lick of paint, de-weeding your garden, new carpets and improving your curb appeal.

Once your property is in selling condition, you should take photographs of your house and write a stunning description to entice buyers. 

 

As an independent party, you cannot post a property on Rightmove or Zoopla, but you could advertise your house in the local paper.

When you begin to get interested potential buyers, you can organise viewings of the property. You should ensure that you stay organised and don’t double book any viewings while giving yourself enough time to show the buyers around the property.

If the potential buyers appreciate your property, they may put forward an offer. You will likely need to negotiate this offer with the potential buyer and remember the lowest selling price. 

 

Being flexible will be helpful in this situation but try not to go beneath your lowest selling price. It can be somewhat stressful if you have not negotiated before, especially when you need an estate agent to do it on your behalf.

Once negotiations have been satisfactorily agreed, you must send the potential buyer written confirmation of the agreed selling price. This process is not legally binding, but it will prove that you are serious about selling to the buyer.

After accepting the offer, you can begin instructing a solicitor and starting the conveyancing process. 

 

This is the most important and longest part of the house-selling process, and while you DIY it, we highly recommend that you outsource it to a legal professional.

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Are House Auctions The Cheapest Way To Sell Your Home?

Selling a house via a property auction will allow you to sidestep estate agent fees and sell your property far more quickly when compared to trading on the open market. 

 

The process is relatively simple; all you need to do is find an auction house (auctioneer), decide on a reserve price, prepare your property for photographs and open days, and then get ready to exchange contracts on the auction day.

 

The auctioneer will do most of the leg work for you, such as marketing, conducting house viewings/open days and handling the negotiations for you on the auction day. Your property will sell if the reserve price you set at the start has been met. 

 

The downside to selling via an auction is that although you are sidestepping estate agent fees, you will have to pay legal, advertising, room hire, and auction fees.

 

The auction fees are a commission of the sold price sold to the auction house, which is usually around 2%+VAT of the final sale price of your property. 

 

If you sold your house for £290,000, this could be £5,800+VAT which may be more than selling with an estate agent. 

 

There is also no guarantee that your property will sell at auction, meaning you will lose money on legal fees and the auction costs and still have a property to sell.

Is Selling To A Cash Buyer The Cheapest Way To Sell A House?

Using a cash buyer to sell a home may only sometimes be the cheapest way to sell a house, as you will be trading below market value. Cash buyers may be investors looking for a good deal and may offer a lower price than the market value.

 

It’s essential to compare offers from different cash buyers and weigh them against the property’s market value, which you can work out by using recently sold house data from your local area on Rightmove or Zoopla.

 

Although Cash Buyers do not require a mortgage to buy your property, closing costs and fees may still be involved with the transaction, so it’s important to compare these costs when considering different offers. You will also need to cover solicitor and conveyancing fees. 

 

Cash buyers may want to purchase your property as is, as they will be looking to renovate it and flip it for a profit, which can benefit you if the property needs repairs. 

 

However, if the property is in good condition, you may benefit from selling with an online estate agent for a higher price. 

Is The Cheapest Way To Sell A House Via A Part Exchange?

Part exchange can be a good option for selling a house and securing a new property, but better alternatives may exist.

 

A part exchange is selling your property to a home builder or developer in exchange for a new property from them. 

 

The process can be a convenient option as it eliminates the need to find a buyer for your current property, and you can move straight into the new build once it has been built. 

 

However, the cost of the new property may be higher than your current property’s value, so that you could pay more overall. 

 

Additionally, the developer may not offer you the total market value for your current property — they will usually give you around 80%-85% of your market value.

How Does The Part Exchange Process Work?

You must find a new build development and approach a developer to check if they offer part exchange on their properties.

 

The developer will then check that your property is eligible for a part exchange and organise for two independent estate agents or valuers to view and evaluate your property.

 

The two valuers will be asked to value your property based on a selling price rather than the asking price. Once the valuations have been received, the developer will make you a formal offer, usually below market value.

 

If you accept the offer, then the conveyancing process can begin. The downside to a part exchange is that even though you exchange contracts, you may be met with a delayed completion.

 

Delayed completion is when there is no guarantee when your property will be finished, so there is no exact completion date. By the time you’ve sold your property, your new build may still need to be built, and you will have to pay for temporary accommodation.

Are Online Estate Agents The Cheapest Way To Sell Your House?

Online estate agents tend to be cheaper than traditional high street estate agents, as they typically offer a range of fixed-fee packages, which are more affordable than the percentage-based commissions of conventional agents. 

 

This is particularly advantageous for higher-value properties, as the fixed fee can be significantly less than the percentage of the house sale price.

 

Online estate agents are estate agents that operate almost exclusively online. But, most online agencies will offer a more basic service than a high estate agent, which comes at a lower cost. 

 

Some online estate agents will charge additional fees for services such as viewings and open days, and some may require payment upfront before any sale has been made. 

 

They may also offer a different level of support than traditional agents, which could disadvantage those less experienced in the selling process. 

 

But not all online estate agents are the same.

Which Online Estate Agent Is The Best To Sell My Home?

If you want to sell your house for free without all the fees and hidden costs, you’ve come to the right place.

 

The Property Selling Company offers a complete online estate agent service without fees because we want to change how you sell houses. The days of expensive solicitor fees are behind us; we’ll cover everything so you don’t have to. 

 

By offering you a tailored service, we will be with you every step of the way and carry out all the leg work. We will advertise your property on Rightmove and Zoopla, organise viewings, cover legal fees, and negotiate better deals for free. 

 

Selling your property has always been challenging; over the years, we have built a seamless process to provide excellent service and help you sell for free. 

You will benefit from our team’s expertise in the property industry and marketing, legal and completion services.

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No Onward Chain: What Does It Mean?

No Onward Chain: What Does It Mean?

Looking at what no onward chain means, how it can affect you as a buyer and a seller, and who we can help you sell in as little as 28 days.

Alexandra Ventress

Alexandra Ventress ★ Digital Content Writer

Table of Contents

In the wonderful world of property, the general rule of thumb is the fewer people who are involved, the smoother the process runs. You should be looking to sell your house in the shortest property chain possible. 

 

If you are selling a property, then chances are, you have heard the phrase ‘no onward chain’ thrown about. 

 

But what exactly does it mean? 

 

In this blog post, we are going to be looking at what it means if a property has no onward chain, whether it is a good thing or not, and how it can affect your house sale. 

What does no onward chain mean?

If a property is classed as no onward chain, it means that it is ready to be sold immediately. Also referred to as no forward chain or no upward chain, it means that the vendor does not require the funds to move into their new house, they are not looking to purchase a new property straight away, or they are happy to move into rented accommodation. 

 

When it comes to your typical house sale, sellers are often relying on each other for their sale to go through. This is referred to as ‘the property chain’. If a seller has no onward chain, they are reliant on no one when it comes to moving on after the sale of their house. 

 

 An example of a no onward chain property would be a new build. As there are no occupants to move out of the property and the builder is selling the property, there is nothing to get in the way of the sale. 

 

If you are a seller it works in your favour to be selling your home to a buyer that is no onward chain as they can buy your property ASAP as they will not need to sell their current property to buy yours. 

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Is no onward chain good?

Whether or not no onward chain is a good thing is down to personal choice. But as a rule of thumb, it is usually viewed as a good thing. A no onward chain makes the buying/moving process a lot simpler, which in turn helps it run smoother. 

 

If you should find a buyer who is no onward chain, it should help you achieve a fast and smooth sale. It also helps to reduce the fact that your sale will fall through.

Is it easier to sell a house with no chain?

Every house sale is different, however, selling a house with no chain is often an easier task, as you are not reliant on the sale of your current property. This means that you can afford to take your time to find the most suitable buyer, without the time pressure of a property chain. 

Examples of no onward chain property

A property with no onward chain is more common than you may think on the open market. Below are some examples of the different types of property with ‘no onward chain’. 

Some sellers decide they want more time to find a new property and so will move into rented accommodation instead of immediately looking for a new property. This will mean that the funds from the sale will not go towards a new house straight away, getting rid of any property chain there may have been. 

A property that has been inherited, regardless of whether it is going through probate or not, is usually a property that people are looking to sell. This will mean that an inherited property has no onward chain, as the money will not usually be used to purchase a new property. 

If a property is a new build, it will not have any occupants. They are often bought off the developer and so the money won’t be used to purchase a new property afterwards. 

Selling a property with tenants is not the easiest of tasks, and so they will often not be looking to purchase a new property after. 

Should a mortgage lender take back possession of a property, then they will be required to sell the property. The money from the sale will go towards paying off the debt, rather than buying a property. 

As a rule of thumb, property investors will usually have a large portfolio, and so when they are looking to sell it on, they will not be looking to jump straight back into purchasing a new home, meaning there is no onward chain. 

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What are the advantages of a no onward chain sale?

When it comes to selling through a no onward chain buyer there are plenty of advantages. The main advantage is that a no onward chain buyer will offer you the best chance at a fast and smooth sale. They are often quicker and with less risk as the buyer does not come with troubles that buyers in a chain can often bring. 

Can a no onward chain sale fall through?

Even though sales with a no onward chain buyer are usually more secure than those without, the risk is still there. Unfortunately, no sale is 100% complete until the completion day is over. Below are some of the common reasons why a house sale may fall through: 

 

  • The buyer is unable to secure a mortgage 
  • One of the preceding sales in the chain falls through 
  • The buyer or the seller changes their mind 
  • The sales process gets delayed by the conveyancer, buyer, or seller 
  • The survey highlights structural issues with the property

What's the difference between no onward chain and chain-free?

When a buyer is classed as chain free, it means that they are not purchasing a new property with the funds they get from the sale of their home, so first-time buyers are classed as first-time buyers, as they are not reliant on a sale to purchase. Whereas when a property has no onward chain, the property chain will end with the sale of that home. 

 

No onward chain is the end of a property chain, whereas a chain-free buyer can often be the beginning of a sale.

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Want to get sold with no onward chain?

Don’t want to the hassle of finding a no onward buyer on the open market? Then look no further! 

 

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!