The UK property buying process can be long and complicated. It requires surveys, legal searches and a solicitor or conveyancer.
However, if you are a cash buyer the whole process can be much faster.
Sellers often prefer to sell their homes to cash buyers. They know that this means a quicker sale.
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1. Look for a reputable estate agent
One of the most important things to do when buying a house for cash UK is finding a reputable estate agent & their facebook page. Estate agents can take a lot of stress out of the process, and they can help you avoid costly mistakes. Look for an agent with a good track record in selling properties like yours and compare their fees with other agents. Also, check whether they charge a fee for advertising your property on websites such as Rightmove and Zoopla.
Generally, estate agents charge between 1.5% and 2.5% of the sale price of your home. However, you should ask for a breakdown of the fees so you know exactly what you’re paying for. You should also be aware of any hidden costs, such as VAT. Many estate agents will add VAT to their fees, but some won’t.
Once you’ve found the right estate agent, it’s time to start looking for properties. Viewings are usually carried out by appointment, either at the property or at the estate agent’s office. You can often do remote viewings, which are useful if you’re abroad or have a busy schedule.
Once you’ve found the right property, it’s time to submit your sealed bid. The estate agent will then arrange for a date to open the bids and notify the winner. During this process, you’ll need to provide proof of funds in order to satisfy anti-money laundering regulations. This can be done by providing a bank statement or other similar document.
2. Get a survey
Buying a property for cash means you will not need to go through the mortgage application process. This can save you a lot of time as well as money. However, it is still important to get a survey done. This will help you identify any major issues with the property that may affect its value. You should also consider getting a structural survey which will provide more detailed information about the condition of the building.
Purchasing a property for cash will not avoid you from paying property taxes or other charges. For example, you will still have to pay Stamp Duty Land Tax and home insurance. You will also be liable to pay for any repairs that may need to be carried out on the property. If you do not have enough money to cover these expenses, then it might be better to rent instead of buying a house for cash.
You will need to provide your solicitor with proof that the funds used to purchase a house for cash are from a legitimate source. This is necessary to comply with anti-money laundering regulations. Typically, you will need to provide your solicitor with a recent bank statement or other evidence of your income. Your solicitor will then check that the purchase is a genuine one before exchanging contracts. Once the property has been purchased, your solicitor will arrange to have it transferred into your name at the Land Registry.
3. Get a mortgage broker
A mortgage broker is a specialist who can help you find the right deal for your needs. They can also help you with your application and paperwork, so that everything runs smoothly. They will also explain all the fees and charges associated with a mortgage, such as booking fee and arrangement fee. They can also recommend a lender who offers competitive rates.
When you buy a house for cash UK, you will need to provide proof that you have the funds available before making an offer. This can be done by providing a bank statement showing that you have enough funds in your account. The seller will also need to be satisfied that the funds are from a UK-based source, as per anti-money laundering rules.
You don’t need to have the funds in physical cash – you can use funds held in your bank account, including gifts from relatives. However, you should be aware that this ties up your money and can limit your options later on, if you ever want to move.
Another benefit of buying a property for cash is that there’s no chain, so the sale can usually go through much more quickly. This can be particularly beneficial if you’re purchasing a property in a seller’s market. It can also reduce the risk of the sale collapsing if another buyer in the chain struggles to secure a mortgage.
4. Get pre-approval
Whether you are a UK national or a non-resident, getting pre-approval from your mortgage provider is an important first step. This will help you avoid the risk of finding a property you can’t afford once the legal process starts. You may be asked to provide proof of funds, which can be as simple as a recent bank statement. You will also need to consider arranging mortgage protection insurance and home insurance.
Although the process is quicker when buying a house for cash, it can still take a while to get everything in order. You’ll need to appoint a solicitor or conveyancer to handle the legal paperwork. They can take time to arrange the necessary searches and surveys. This will add to the overall cost of your purchase.
Another downside of buying a property with cash is that you don’t get to earn interest on the money that you use. This can make your savings lose value over time. However, if you have enough money to buy a property outright, it’s a better option than paying for a mortgage that will only add interest charges to your monthly repayments.
It’s a good idea to get a survey for any property you’re considering. Many properties that are marketed as ’cash buyers only’ have something wrong with them, such as structural problems, unconventional construction materials, or they might be unmortgageable due to a short lease.
