Part X - Countryside Properties

Grolsch30

Hi,

Has anyone had any experiances with part exchanging with a building company.

We are currently looking at a new build property and the developer says that we can part X our property and they will give us 110% of the market value of our house.

Now the only stipulation they have is that you have to be upgrading and there has to be a 30% difference in price.
So if you want to buy your new house @ £100k and yours is worth £100k they will only offer you £70 k.

Do you think in order to get the full market value for the part x house the developer would be willing to give us the £100k and the 30% difference can be put on top and that extra cash will be used to pay legal fees, upgrade the new house/ build extension etc etc

So in effect buying the £100k new build for £130 k (with kinda £30k cashback of sorts), and I will be getting my full market value for my old home.

Has anyone had any experiances part x ing in general?

Graham1979

I completed a part-ex with Croudace Homes in late November and only have positive comments about my experience.

My flat was on the market with a local EA at £135k, the developers spoke to the agents and one of the others that I had rejected and within 24hrs offered me £130k part-ex, and as I was no longer listing the property myself it saved me the EA fees too.

The only downside I found to this was that they knew that their part-ex price was a good deal for me, and as such wouldn't drop the buy price on the new-build too far so I think that I lost some bargaining strength by going the part-ex route. That said, I've still paid less than some of my neighbours and they're mid-terrace whilst I'm end so I could be wrong.

I'd be a little sceptical about their 110% claim. The only reason I can see them doing that is if they think that you are buying their new property at 110% of what it's actually worth (and who wants to do that).

Grolsch30

Thanks Graham 1979 for your input.

The problem I may have is that 30% difference they need for the part X as my old house is about £15k off the new build property.

I absolutely don't want to lose many thousands of pounds of my house and don't want the haslle of estate agents and finding a buyer.

I am hoping that they will give us a kinda cashback deal where we get the full value of our house and the 30% difference we can use to maybe build an extension or other inprovements and pay for any legal fees.

What is the best approach to bargaining/ haggling with property developers?


Thanks again.

Graham1979

Just using some guesstimated figures to make sure I'm understanding correctly, your current property is worth say £100k, and the new build that you're interested in is worth say £115k.

You would like the developer to give you £100k part-ex for your current property, but as that will be below the 70% threshold for px you would purchase the new build at £145k (70% of this being £101.5k which gets you within their px rules).

Then the developers would give you £30k cashback on completion for the difference between what you paid and what the property is valued at?

Am I understanding what you're aiming to do correctly?

Grolsch30

Graham1979 wrote: »

Just using some guesstimated figures to make sure I'm understanding correctly, your current property is worth say £100k, and the new build that you're interested in is worth say £115k.

You would like the developer to give you £100k part-ex for your current property, but as that will be below the 70% threshold for px you would purchase the new build at £145k (70% of this being £101.5k which gets you within their px rules).

Then the developers would give you £30k cashback on completion for the difference between what you paid and what the property is valued at?

Am I understanding what you're aiming to do correctly?

Yes, thats kinda what we are looking at.

If for example our house is worth £100k and the new build costs £100k and the developers for the part x scheme say you must have a difference of 30% then instead of losing £30k of value (as they will only offer £70k for my property valued @£100k), we buy the property for £130k.

This would mean we get the full value from our house and the £30k we will be able to reinvest in an extension to the property/ furnishings etc and pay all legal fees with it.

Thats just an example as our house is valued around £180k and the house we are looking @ to buy is around £190k.

Obviously if it is financialy viable do you think this would be possible?

Also whats the best approach with bargaining with development companies?, obviously we'd like to get the best deal available.

Again we'd like part x because its so much less hassle!

Thanks again :beer: