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All aspects of the timing and procedures to be adopted with your sale and purchase need careful planning so speak to us first

If you already own a property and wish to buy, timing is of paramount importance.

The most important point is that if you submit an offer for a property, that forms one leg of a contract and under the terms of the contract you have to pay the price on the entry date you specify otherwise there are substantial financial penalties.

When the market is hot, and properties are selling quickly, you know you should be able to sell quite quickly but the challenge is being able to buy the property you want in the competitive market.

In a hot market, then, the normal practice is to offer for the new property and specify a long entry date – perhaps twelve or more weeks away.

Different considerations apply when the market is cooler. You have to adopt a much more cautious approach when the market is cooler.

If you put an offer for the new property and don’t manage to get your own property sold by the time the date of entry comes around you have a financial problem.

Most people need access to the money tied up in their own property to assist with the purchase of the new property and most mortgage lenders won’t allow you to run your new mortgage at the same time as your existing mortgage, so how do you fund the purchase of the new property without having sold your present property? In a hot market the answer was probably a bridging loan – but Banks are universally reluctant to provide bridging finance nowadays having had their fingers burnt with the problems associated with the recession.

If you commit to the purchase in a cooler market and don’t sell you could find yourself in a breach of contract situation which can be very expensive.

The normal way to proceed therefore is to note interest in the property you are interested in (don’t offer yet) and put your property on the market – when an offer comes in for your property then you offer for the new property.

We then conclude the contract for the sale just before we conclude the purchase contract to ensure that your position is protected.

If you must offer for the new place before you have an offer for your own property there are ways of doing it but your “plan B” to cover the situation where your own place doesn’t sell by the date of entry must be fully researched before you offer. This does not work for everyone but normally involves remortgaging your own property to raise capital and taking out a new mortgage with a mortgage lender that allows your existing and new
mortgages to run together.

All aspects of the timing and procedures to be adopted with your sale and purchase need careful planning so speak to us first – we offer a free pre-sale appraisal of your property and initial consultation both without obligation.

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