Cash buyer using profit from house sale

flosswoss_2

Hi. I am selling my house in the south of England and buying in the north using the profit from the sale. I know it sounds fairly straightforward but I know there are bound to be problems I haven't thought about. I realise the cash will only be released at the end of the process and can imagine this causing a potential problem? Does anyone have any advice please? Thanks

caprikid1

I would not consider you to be a "Cash Buyer" more a downsizer.

IE you still have a chain potentially just no mortgage issues.

jjlandlord

There are 2 different concepts here:

cash buyer v. mortgage
chain v. no chain

Hoploz

Hi, you will need to pay a 10% deposit on exchange of contracts. But your buyer will have to pay theirs, so it can be sent up the chain.

flosswoss_2

Thank you for your replies. I get it, so a cash buyer has the funds upfront. I have only ever bought one house in the past, never sold, so am new to a lot of the processes. I like the idea of money being sent up the chain though, it does make sense.

I won't be needing a mortgage but there will be a chain.

littlepinkbiscuits

If the sale of your property produces enough funds to purchase your new property then you won't undergo money laundering checks. If you are topping up your funds to purchase with money from elsewhere, you will need to provide evidence to show where the money is coming from.

Cautious_Optimist

You could sell your house and put your money in the bank.
Then rent somewhere or stay with family etc.
Then you will be a cash buyer and chain free.

Why not keep it simple?

AlexMac

Cautious_Optimist wrote: »

You could sell your house and put your money in the bank.
Then rent somewhere or stay with family etc.
Then you will be a cash buyer and chain free.

Why not keep it simple?

Agreed. Sometimes EAs round here use the phrase 'cash buyer' loosely to mean 'someone who sold STC but we trust them and their buyer to complete...' especially when you're selling and buying in the same area, or better still (as we did last time) via the same agent.

But you'll be in an even stronger position if you sell, bank the cash, then rent for 6m in your area of search. Slightly more expensive, and the's a chance that prices may go up in the few months between selling and having an offer to buy accepted, but worth it in my view, especially as it lets you look locally and get to know the new area.

And if you keep schmoozing the local agents and have evidence of funds, you'll be their #1 buyer when siomething ideal comes up!

Good luck

flosswoss_2

Hey, some good advice there about renting, I'm finding this terribly difficult as my partner and I live hundreds of miles away so am trying to find the best solution. At the moment our best solution seems to be selling and renting a caravan.....in winter!!