pros and cons of buying property cash

london.cidade

if you had the money to buy cash. would you buy cash ? or would you apply for a short term mortgage to guarantee everything goes legally smooth ?

for example, if the property has legal problems, how can I find it out ? is it all about the surveyor report quality ? will having mortgage make me safer ? are there any other point that iI must consider ?

thank you very much

hazyjo

Surely your solicitor will be doing the legals, not the mortgage provider.


Up to you if you choose to have a survey done.


Jx

csgohan4

Buying a house cash or mortgage, you still need to apply due diligence, get a good surveyor and a decent solicitor.

Having cash means slightly less time in terms of waiting for a mortgage offer when reaching completion.

The usual hold ups are solicitor/survery based in terms of building regulations, title deeds e.t.c

G_M

However you choose to pay, you will need to satisfy yourslf the purchase is worth making.

Just like buying a car: you might pay with cash, use a credit card, take out a loan, or even a lease on the car, but you still need to chek

* the car is in good condition
* the seller owns the car
* there is no existing finance arrangement on the car giving a finance company rights to repossess it
etc

Same with a property.

* surevey
* boiler inspection etc
* Pre-contract Enquiries
* Local searches
* Land Registry Title examination
etc

If you plan to do the conveyancing yourself (not advised as you seem to have minimal relevant knowledge), get a good book or 3 and start reading! Otherwise employ a conveyancer.

That advice applies however you plan to pay.

london.cidade

G_M wrote: »

Same with a property.

* surevey
* boiler inspection etc
* Pre-contract Enquiries
* Local searches
* Land Registry Title examination
etc

If you plan to do the conveyancing yourself (not advised as you seem to have minimal relevant knowledge), get a good book or 3 and start reading! Otherwise employ a conveyancer.

That advice applies however you plan to pay.

I'll definitely hire a conveyancer, on the other hand, I'd be grateful if you might recommend a book for conveyancing containing UK or London practices/real examples.

eddddy

london.cidade wrote: »

I'll definitely hire a conveyancer, on the other hand, I'd be grateful if you might recommend a book for conveyancing containing UK or London practices/real examples.

Instruct a conveyancing solicitor, and tell them to advise you about anything that may be a concern to a mortgage lender.

Conveyancing solicitors typically act for mortgage lenders as well, so they know what would worry a lender.

Try to avoid 'low cost conveyancing factories' as they tend not to be so good at giving advice. (Some EAs might recommend these, in order to earn commission.)

I guess it's interesting to understand the conveyancing process, but is your real concern that you don't end up with a 'problem property'? I'd suggest that a good solicitor and a good surveyor is your best protection against this.

sheff6107

Surely the main advantage of buying cash is that you can offer less because it makes you a preferential buyer.

G_M

sheff6107 wrote: »

Surely the main advantage of buying cash is that you can offer less because it makes you a preferential buyer.

Marginally. It also depends on your definition of 'cash buyer'!

1) Someone using the sale of a current property to pay for the new property - so not needing a mortgage

2) someone with a suitcase full of cash, so no need for a mortgage, and no property to sell.

I'll definitely hire a conveyancer, on the other hand, I'd be grateful if you might recommend a book for conveyancing containing UK or London practices/real examples.

Conveyancing guides:

https://www.amazon.co.uk/Which-Guide-Conveyancing-Consumer-Guides/dp/085202813X/ref=sr_1_1/251-9251701-0158723?s=books&ie=UTF8&qid=1472492827&sr=1-1&keywords=diy+conveyancing

https://www.amazon.co.uk/Buying-Selling-Conveyancing-Lawpack-Property/dp/1906971803/ref=sr_1_2/251-9251701-0158723?s=books&ie=UTF8&qid=1472492827&sr=1-2&keywords=diy+conveyancing

https://www.amazon.co.uk/Bradshaws-Guide-Buying-Selling-Conveyancing/dp/B001KSX616/ref=sr_1_3/251-9251701-0158723?s=books&ie=UTF8&qid=1472492827&sr=1-3&keywords=diy+conveyancing

and a more general guide:

https://www.amazon.co.uk/Buying-home-comprehensive-property-guide/dp/1500407739/ref=sr_1_7/251-9251701-0158723?s=books&ie=UTF8&qid=1472492827&sr=1-7&keywords=diy+conveyancing

Check your local library for free copies!

bouicca21

Probably worth a few interviews with banks - you probably want to be sure that you are buying a mortgageable property because at some stage you will want to sell it.

Tassotti

A surveyor can tell you that

bouicca21 wrote: »

Probably worth a few interviews with Sbanks - you probably want to be sure that you are buying a mortgageable property because at some stage you will want to sell it.

davidmcn

Tassotti wrote: »

A surveyor can tell you that

Quite, no need to waste lenders' time, your surveyor and solicitor can advise you on whether the property would be regarded as mortgageable.