Buying New Build - Buy or Part-Ex?

Dopple

Due to idiot neighbour we want to sell our house fast.
There is a new build development near by and the house we are interested in is £229k.
This price is negotiable and because we have a £40k deposit to put down on the mortgage plus whatever profit we get from the sale
of our home we are in a strong position.

Alternatively the builders will give us full market value for our home (about £110K) as part-ex but then the £229k price on the new build
would not be negotiable.

Are they any other companies that will buy our home quickly at a decent price, so we can sell quick to them
then negotiate the £229k price with the builders?
I've been looking at a company in our area called NGUHomebuyers, which say they will buy your home in 7 days.
Do these type of companies give you a decent price?

frafferty

Short answer - no. They usually give you 60-80% of value. Step away!

poppysarah

If you think you can get your house sold at 110k then sell it - but you'll incur HIP, EA and legal fees - so you'd need to sell it for more than that to be at the same point... BUT you'd be able to negotiate how much off the new build price?

Dopple

poppysarah wrote: »

If you think you can get your house sold at 110k then sell it - but you'll incur HIP, EA and legal fees - so you'd need to sell it for more than that to be at the same point... BUT you'd be able to negotiate how much off the new build price?

Thanks to you both for the replies.

Well, the buliders told us that the Part-Ex costs them 13% fee to the estate agent who has to sell our old house.
So on that basis if we don't part-ex I would hope for at least 10% off the price of the new build.

nomoreheroes

Not sure if it still applies but when I part exchanged my house about 20 years ago, the amount of stamp duty payable was greatly reduced.

ET1976

If you don't get a discount on the new build price, will you be able to get a mortgage on it? (I don't mean can you afford it, I mean will the lender value it high enough to lend to you).

Dopple

ET1976 wrote: »

If you don't get a discount on the new build price, will you be able to get a mortgage on it? (I don't mean can you afford it, I mean will the lender value it high enough to lend to you).

We can get a mortgage for up to £190k without selling the old house plus we can put about £40k down deposit, so we can just about do it. If it worked out that way the plan would be to get a cheap tracker mortgage for a year or two, then when our old property sells we can but the profits from that (about £50K) down when we get a fixed interest mortgage when the tracker comes to an end.
I would prefer to get rid of the old house sooner though.