Buying with cash

stokie_steve_2

Hello, I am lucky enough to have come into some cash recently and want to buy a house outright with the money. I have bought a house before using the traditional method of mortgage etc. but this is new to me. Has anyone had any experience with this?

Do I need a HIP? Searches etc? Need to pay a deposit to secure the purchase?

The house I have seen is listed with an estate agent, but would it be better to try and deal with the vendor directly?

Regards
Steve

Milliewilly

stokie_steve wrote: »

Hello, I am lucky enough to have come into some cash recently and want to buy a house outright with the money. I have bought a house before using the traditional method of mortgage etc. but this is new to me. Has anyone had any experience with this?

Do I need a HIP? Searches etc? Need to pay a deposit to secure the purchase?

The house I have seen is listed with an estate agent, but would it be better to try and deal with the vendor directly?

Regards
Steve

The process is the same minus the mortgage company so its up to you if you want a survey doing. The Estate Agent will want to see proof of cash. Your solicitor will want to know where the cash has come from. You don't need to pay a deposit to secure. Hip is done by the vendor.

It makes no difference really dealing with the vendor direct or not - they will still have to pay the EA if they have introduced you. If you want to negotiate with them directly they may not be comfortable doing that but its up to you to ask them.

tootsmyboots

We are in the middle of conveyancing on a cash purchase. We have had searches done through solicitors. We do have to provide a deposit on exchange as our vendor is buying a property to move into.

We bought in exactly the same way we did as FTBs who needed a mortgage. The only difference this time is we havent had to wait for a mortgage offer. However, our vendor has so this has slowed things down a little, but no more than normal.

Incidently our EA never asked for proof of funds.

googler

If you genuinely mean 'cash' - as in turning up at the solicitor's office on the day of conclusion/entry with a suitcase of £20s, expect to be looked upon with suspicion. Ever heard the term 'money-laundering'?

If you merely have inherited or such, and the money is in your bank account, and you're what's termed a 'cash buyer' (i.e. you don't need a mortgage in order to buy), then you're unlikely to need a deposit unless you buy a new-build.

You won't need a HIP, but you may want to look at the seller's HIP for whatever they're selling.

stokie_steve_2

I am lucky as the house is vacant so hopefully there will be no chain. I am hoping I would be in a strong position to negotiate. But I don't want to push my luck too much as the price is really good!

Don't worry the money is not in a suit case under my bed! It's fully legit and in the bank!

G_M

then you're unlikely to need a deposit unless you buy a new-build.

This is not true. When you Exchange Contracts on the property you will need to pay a deposit. 10% is normal. 5% can often be agreed.
The balance (90%) is payable on Completion when you get the keys.
If you are happy the property is in good condition, no survey needed. If you worry the roof might be poor, or the walls damp, or the back wall weak/falling down - get a survey!
No real advantage cutting out the EA.

googler

googler wrote: »

you're unlikely to need a deposit unless you buy a new-build.

Sorry, that should have been prefaced with "in Scotland, you're unlikely...."

England & Wales - different rules.