Will Buying a house/flat with cash avoid property chain problems

karljt2013

If a house or a flat is bought with cash instead of a mortgage, will this help to prevent being caught up in a dreaded property chain failure? Also how can I force the seller to complete the sale as soon as possible to avoid being gazumped? I haven't spent years saving my *ss off in order for a chunk of my money being swallowed up in legal/survey fees only to be gazumped or for the seller to just pull out at the last minute. Would forcing a speedy sale reduce that risk?

The cash is being saved up between two people in two different bank accounts. Once enough money has been saved will it all have to be gathered in one bank account to complete the deal or could we send the money from two separate accounts? would that be more complicated and involve more fees?

Also do we just have to show the seller our bank statements or will their solicitor want our whole financial life story (which of course takes more time and lines their pockets with more fees)

Any guidance would help.

G_M

karljt2013 wrote: »

If a house or a flat is bought with cash instead of a mortgage, will this help to prevent being caught up in a dreaded property chain failure?
chains are not caused by whether cash/mortgage are used to pay for the purchase. They are caused by sale of current property being used to pay for the purchase.

Also how can I force the seller to complete the sale as soon as possible to avoid being gazumped?
By threateing to withdraw. If the seller thinks he will lose you as a buyer, he might move faster - assuming he can.

I haven't spent years saving my *ss off in order for a chunk of my money being swallowed up in legal/survey fees only to be gazumped or for the seller to just pull out at the last minute.
It's part of house-buying
Would forcing a speedy sale reduce that risk?
Reduce? Yes. Guarantee no gazuming? No.

Assuming you can 'force'.

The cash is being saved up between two people in two different bank accounts. Once enough money has been saved will it all have to be gathered in one bank account to complete the deal
No
or could we send the money from two separate accounts?
Yes
would that be more complicated and involve more fees?
Are you a) using a conveyancer or b) doing the conveyancing yourself?
If a) as long as he has all the money in advance he does not care how many accounts it omes from (though it's harder for him to check it's all arrived)
If b) I would not advise sending the seller multiple sums of money on Competion day......

Also do we just have to show the seller our bank statements
Are you a) using a conveyancer or b) doing the conveyancing yourself?
or will their solicitor want our whole financial life story (which of course takes more time and lines their pockets with more fees)

Any guidance would help.

Money laundering rules means your solicitor (if you use one) must check you did not earn your cash from People or Drug Smuggling.

If you have no solicitor, the seller's solicitor will ask the same questions before accepting the money in payment.

edit: I suggest you get yourself a book eg

http://www.amazon.co.uk/How-Your-Home-Save-Money/dp/0716023806/ref=sr_1_19?s=books&ie=UTF8&qid=1421359233&sr=1-19&keywords=how+to+buy+property

http://www.amazon.co.uk/How-Buy-House-Kirstie-Allsopp/dp/1444790633/ref=sr_1_14?s=books&ie=UTF8&qid=1421359153&sr=1-14&keywords=how+to+buy+property

lonestar1

Buy at auction if you have the cash just be sure to do your research first

p00hsticks

We've just been in a similar situation. Our sellers estate agents wanted to see bank statements to show that we were genuinely cash buyers, and our solicitor also needed to see statements and check ID.

We had to transfer 10% of the price to our solicitors before exchange and the balance (including fees and stamp duty) so that he had it a few days before completion - I wrote a cheque for my half, my OH transferred several chunks of £20k online over successive days (£20k being the online transfer limit for his bank).

karljt2013

G_M wrote: »

Are you a) using a conveyancer or b) doing the conveyancing yourself?
[/B]

Considering the fact that I just had to search Google for what a conveyancer is I think it is safe to say I won't be doing it myself.:rotfl:

Looks like I have a lot to learn over the next 12 months, I think I will buy that book.

G_M

lonestar1 wrote: »

Buy at auction if you have the cash just be sure to do your research first

Given that by his own admission (and the tenor of his questions) the OP is somewhat naive as far as property-buying is concerned, an auction might not be the way to go........

AdrianC

lonestar1 wrote: »

Buy at auction if you have the cash just be sure to do your research first

Buy at auction, IF the property you want is for sale at auction, AND the price is right, AND you're happy to forego much of the protection that normally takes place during the buying period.

But IF you're not happy with any one of those three, don't even contemplate buying at auction...