Advice please. Am I best to sell my house cash, rent a place & pay cash for another ?

Sarinee

In my neighbourhood as probably in others, houses seem to get sold and the sales fall through. I am in the situation of owning my house but would like a more modern property but no one will be interested in me buying their house until I have sold my own. What is the best way to do this ?. Am I best to sell mine and then pay cash for another house ?. I am concerned if I go down this route and rent a house, the sale on my house may fall through leaving me with a house to rent for 6 months or so while I am still living in my house.

(My 1st post on MMT's so excuse me if everything is'nt correct)

Old_Git

Have you seen any houses you like .
If you rented how long would you have to rent for .
if you find a buyer how long would it take you to find a house to buy .Is there a good supply off houses that you would consider buying .

If you seen a house tomorrow that you wanted could you get a mortgage and then pay that off when you sell your house.

yoyoegg

What is the best way to do this

Not the 'best' way, but what happens is a chain is created starting from a FTB or BTL LL and then everyone up the chain relies on the completions to take place on the same day and the money shuffles along via the solicitors.

Most folks only sell to rent if -

1) They are convinced prices will drop rapidly
2) They are moving to a new area and want to take time to look around
3) The hope to bargain down the price on next purchase to cover costs of renting
4) They have to move out and can't find anything they like

N.B Assuming you are England!

Sarinee

I cannot get a mortgage as I am retired but thank you for your comment Old Git :-)

yoyoegg, Thank you for that, I did'nt realise that would be possible and that the person wanting to rent out a property would wait for that. Suppose it would help if they were both up for sale & rent by the same agent ....perhaps

yoyoegg

Just to be clear, 'chains' are when everyone is becoming/staying as owner-occupiers.

I'm assuming you are downsizing in some way and are mortgage free so the sale of yours place will generate the money on completion; you'll purchase a smaller place and release cash to pay fees/stamp commission etc.

Sarinee

Not in fact downsizing unless I see something, it depends what is on the market. I do have some savings but not enough to buy a property.

So where do I go from here I wonder, seems I am a bit stuck where I am.

Old_Git

Sarinee wrote: »

I cannot get a mortgage as I am retired but thank you for your comment Old Git :-)

yoyoegg, Thank you for that, I did'nt realise that would be possible and that the person wanting to rent out a property would wait for that. Suppose it would help if they were both up for sale & rent by the same agent ....perhaps

if you put your house up for sale now ,you can also look for a house to buy now .Dont look for a house to rent at this stage .When you get a buyer the legal work will take approx 2 months thats when you look for a rental if you havent found a house to buy in the meanwhile. If you have found a house to buy everyone completes on the same day .

Sarinee

Sounds the only way but I am still a bit concerned about whether whoever is renting a property to me will hang on and let me sign up the same day. I know nothing about house rentals nowadays, I will have to look into it.

Old_Git

Sarinee wrote: »

Sounds the only way but I am still a bit concerned about whether whoever is renting a property to me will hang on and let me sign up the same day. I know nothing about house rentals nowadays, I will have to look into it.

dont look for a rental until you have to .Look for somewhere to buy .As for a rental no they probably wont wait ,which is why you dont look for a rental until you have a buyer with a survey and finance in place.

Sarinee

Ok thanks. Just off for a bite to eat :-)

tim123456789

Sarinee wrote: »

Sounds the only way but I am still a bit concerned about whether whoever is renting a property to me will hang on and let me sign up the same day. I know nothing about house rentals nowadays, I will have to look into it.

people don't spend months looking for the "right" property to rent.

in most cases the deciding factor on whether to rent a property is "can I move in tomorrow/next week?"