What is a cash buyer

DaftyDuck

In the first instance, a cash buyer is anyone in any position who can con(vince) the Estate Agent into believing he is a cash buyer (tautology accepted).

In the last instance, it's anyone who can transfer sufficient funds some (any)how to the buyer to complete the sale.

But, to me, a cash buyer is someone who actually has access to all the money, immediately and without caveat, from the outset, to purchase the house and clear all the expenses in doing so. Whether that's a suitcase of readies stashed under the bed, or a bank account with the money in it, I wouldn't differentiate.

What it's not is someone who needs anyone else's say-so on accessing that money. That could be a mortgage company, a parent or relative, even someone with stocks and shares to sell. Any mortgage, however small, and you are not a cash buyer. Your hands are tied and you cannot progress at your own behest.

ThePants999

Technically... TECHNICALLY technically... a cash buyer needs to prove to their solicitor that the funds are from a legitimate source, else the solicitor should refuse to handle it under money laundering regs, so I guess someone else's say-so is sort of involved...

beeg0d

ThePants999 wrote: »

Technically... TECHNICALLY technically... a cash buyer needs to prove to their solicitor that the funds are from a legitimate source, else the solicitor should refuse to handle it under money laundering regs, so I guess someone else's say-so is sort of involved...

Not necessarily. If BOTH partys do the legals DIY. vender could simply sign the land reg forms and buyer hand over a suitcase of pound notes in exchange. Of casue the vender might raise some eyebrows at the bank when attempting to deposit £200,000 in fivers

Mattygroves2

A cash buyer is someone with the full amount of the property price in liquid assets. Have done this twice recently and on both occasions had to provide proof of the total funds to the EA (ie copy of a bank statement) as part of them checking we were as described. Bought with cash 6 years ago and didn't have to prove funds then so I think things have tightened up.

It means you can take your own decisions about what you are prepared to accept in a property and the shortcuts you are willing to take. For example our first purchase was a flat and we didn't bother with either a valuation or survey - not possible if getting a mortgage.

j_yorks

You are definitely not a cash buyer.

theartfullodger

1/3rd of all purchases last year were to cash buyers (!!).
http://www.propertyindustryeye.com/more-than-one-third-of-homes-bought-by-cash-buyers/

[Deleted User]

Depending on how 'small' the 20% mortgage is, you could always take out a personal loan or remortgage your existing property for the 20%. You would then have funds in place to purchase the new property for 'cash'.