Downsizing pensioner cash buyer

Davesnave

As retired people and real cash buyers with the money in the bank, we did a deal with the vendor of a legally restricted property who needed to move quickly.

Without going into details, this enabled us to buy cheaply, but it also carried risks, which is why no lender would have given others a financially satisfactory deal.

It doesn't matter if the problem is physical or legal, cheap property available to cash buyers only will probably carry risks, or the need for considerable work, or both.

theartfullodger

No details, risks.....

Anything to do with tax perhaps?

lisyloo

theartfullodger wrote: »

No details, risks.....

Anything to do with tax perhaps?

My parents had a RTB property that used to be pre-fab but was "bricked up".
It was absolutely fine by all accounts, but lacked a certain certificate that a mortgage company would insist upon.
So risks are not always tax related.

Davesnave

theartfullodger wrote: »

No details, risks.....

Anything to do with tax perhaps?

Nothing to do with tax or tax evasion.

There was a risk that the local authority would decide we were not entitled to own this rural property, though when we purchased, evictions for this sort of non-compliance were becoming fairly infrequent.

Now they're virtually non-existent.

Flugelhorn

I sold mother's bungalow and had a queue of "cash buyers"... only some of them were more ready to proceed than others . EA did a good job sorting them out and there was no discount

olgadapolga

As a cash buyer, sadly I've found the market to be no more favourable than if I needed a mortgage (and yes, I am a real cash buyer, money in the bank waiting to be spent on a house).

It may given a slight advantage when there are two similar offers, one from a cash buyer and one from a non-cash buyer but the reality - based on my experiences - is that the house-buying process in this country is so laborious that there's plenty of time to sort the finances out before exchange so having cash in the bank isn't really any sort of advantage.

Cakeguts

We got two small reductions as a real cash buyer. One was where someone wanted to move fast and the other was where the owner had moved out, the property was vacant and they wanted a quick sale. In both cases the money was in the bank waiting to pay for the houses. In both cases it suited the vendors to give a slight reduction in order to either not have a chain or to have a chain only above them. Neither of the properties were first time buyer type properties.

lisyloo

based on my experiences - is that the house-buying process in this country is so laborious that there's plenty of time to sort the finances

This. My estate agent who was experienced told me that even with a cash buyer it would still likely take 3.5 months.

theartfullodger

Davesnave wrote: »

Nothing to do with tax or tax evasion.

There was a risk that the local authority would decide we were not entitled to own this rural property, though when we purchased, evictions for this sort of non-compliance were becoming fairly infrequent.

Now they're virtually non-existent.

Luckily, the English & Welsh planning system allows for non-compliance to be formalised after 10 years with a Certificate of Lawful Development. Removes the restriction and increases value by 25% or more.

You're in Scotland though, aren't you?

Agricultural occupancy condition?



Sadly I am English, in the EU: Well, England to narrow it down, but lived in Scotland..

SmashedAvacado

Cash buyer - if genuinely cash, is slightly better because lenders can slow things down.
so as a cash buyer, you also need to be a buyer with a lawyer instructed already, with KYC done, with funds for searches, and a promise to exchange within say 14 days from reciept of papers. The reality is that sellers are so slow in providing complete "papers" - that this will give you plenty of time.

As for discount, it depends what demand is for the property