Buying house out right - process

dwill1503

We are going to purchase a flat or house outright to rent out. It will be approx £100k.

We've only ever bought/sold before with mortgage company involvement. If we are just cash buyers, what is the process? Are there any things we need to consider?

We are already landlords so know about renting, Hmrc, insurance etc so don't need advice there

G_M

No difference really except no lender to apply to.

You have more freedom as to what searches you want done, as it's entirely your choice, with no lender requiring searches.

Same with survey. No lender requiring a Valuation survey, so you could dispense with this IF you wish (or have a Valuation, Homebuyers or Full survey as you decide).

Similarly, no lender demanding you use a solicitor - so you could DIY the conveyancing if you feel up to it.

But the basic process is the same.

PasturesNew

Process is the same, there's just no mortgage involved. Because there's no mortgage involved it's your choice if you have searches/a valuation/survey done at all. It can be quicker as there's no waiting for these things to occur, but that might be offset by the sellers if they're buying something else that involves getting a mortgage.

dwill1503

Thank you very much. I guess we are just concerned that normally it's all led by the mortgage company & we are worried we'll miss something. I think we'd still have a full survey done but I will take another look at the different options.

merlin51

You will need to provide details of where your funds have come from. So for example if you have a bonus from work you will need to give a copy of employment contract and/or letter from your employer confirming this is where x£ comes from. If it has been from proceeds of sale of something you need to provide the proof etc

somethingcorporate

The process is generally led by your solicitor, not the mortgage company.

Emmylou_2

Have just been through this process (thanks to the Bank of Mum and Dad).

We still went for a full survey (house built in 1885...glad we did as it brought up some extra work, and we renegotiated price). We didn't do all the surveys - just the Local Search - as we are very familiar with the area.

We had to prove where the funds came from (which meant that the in-laws contacted the lawyer with a copy of their bank statements or whatever investments they'd cashed in to buy the place) and obviously had to arrange getting them to the solicitor's client account (so we had to pay for a CHAPS from our bank to theirs).

G_M

dwill1503 wrote: »

Thank you very much. I guess we are just concerned that normally it's all led by the mortgage company .

I have absolutely no idea what you mean by this.

Even if buying with a mortgage, it is your purchase, and the responsibility for all those hundreds of thousands of pounds is yours (whether payment is to the seller or the bank).