Accepting goods as part-payment for property

ilikewatch

To cut a long story short...

I wish to sell a property for around £150K
I also want to buy a car from my prospective buyer for £20K

The easiest way would probably be if I bought the car, then my prospective buyer put my payment towards buying my house. Unfortunately I don't have the 20K spare until I've sold my house and my prospective buyer is 20K short of the purchase price of my property.

How can we achieve this in a legal/above board manner? Does the car need to be professionally valued to ensure that the value can be taken into account for stamp duty/land registry purposes? Will this hugely increase conveyancing costs?

marksoton

I can't see that working. And if a mortgage lender is involved almost certainly not.

G_M

If he's a cash buyer I see no problem. The contract specifies payment as 150K to be paid £130 in cash plus car re xxxxxx value £20K

If he's getting a mortgage I doubt the lender will agree.

I'd advise you not to DIY the conveyancing though.

Alternative is to buy the car after the property sale has gone through. Or borrow the money to buy the car (0% credit card for a few weeks?)

ilikewatch

He is a cash buyer, so will speak to a conveyancer after the bank holiday and get their views. I doubt I could currently borrow anything like the 20K required, my prospective buyer has already told me that he couldn't borrow the shortfall.

davidmcn

Do you trust each other enough to coordinate completion - as the solicitors won't be keen to organise an all-parties meeting at which car keys etc are handed over simultaneously with house funds.

Why doesn't he just sell the car to someone else? Or is there something special about the car from your point of view?

ilikewatch

davidmcn wrote: »

Do you trust each other enough to coordinate completion - as the solicitors won't be keen to organise an all-parties meeting at which car keys etc are handed over simultaneously with house funds.

I trust him as much as anyone so long as the contract reflects that title to the car passes to me on completion. In actual fact the car is already parked in my garage (I have allowed the prospective buyer to store it there for the last few months as a favour) and I have the keys in case I need to move it for access.

ilikewatch

davidmcn wrote: »

Why doesn't he just sell the car to someone else? Or is there something special about the car from your point of view?

Yes, this particular car holds unique significance for me.

ilikewatch

D'oh - I think I may have solved the problem myself.Have just got off the phone to a mutual friend of mine and my prospective purchaser - he's in the motor trade and says that he would (conditionally) be happy to buy the car into stock, then sell it to me when I have received the funds from the house sale.

G_M

davidmcn wrote: »

Do you trust each other enough to coordinate completion - as the solicitors won't be keen to organise an all-parties meeting at which car keys etc are handed over simultaneously with house funds.

Not sure I see why handing over car keys is any more complex than handing over house keys.........

But even if it is, it can be arranged. Last time I sold I met my buyer at the bank to Complete (I was doing my own conveyancing). She was on the phone to her solicitor, and we coordinated transfer of funds (I checked with the bank) and transfer of documents & keys etc.

chanz4

If he is a cash buyer, and £20k less, just lower the sale price don't see why a dealer needs to take the car in.

eddddy

G_M wrote: »

Not sure I see why handing over car keys is any more complex than handing over house keys.........

I guess it's related to the risk that if the sale completes, but the buyer still has the car keys and car - the buyer could relatively easily drive off with the car and disappear with it.

(Or conversely, if the seller has the keys and car, the seller disappear with the car, and not complete.)

It's harder to drive off with a house and it's land, and disappear!