How much do you know about UK companies that buy houses? Although most homeowners will choose to sell their property on the open market, there will be some that will be looking for an alternative route.
There are several reasons why you may choose to sell your property to one of the many companies that buy houses.
- Perhaps you are concerned about the condition of the property?
- Perhaps you are looking for a quick house sale?
- Perhaps you have previously experienced a property sale falling through before completion, and are looking for a guaranteed sale?
We are going to look at some of the most common reasons for selling your property to a company, and take you through the options available.
Companies that buy houses for cash
Homeowners may be looking for a cash buyer for several reasons, including:
If the property is leasehold (rather than freehold) and the lease has less than 99 years remaining, mortgage companies may be reluctant to lend on the property.
For this reason, if the homeowner has decided not to extend the lease before selling the property, they would be likely to need to sell to a cash buyer (whether you’re dealing with an individual, or companies that buy houses) to prevent the sale falling through due to the buyer’s inability to secure a mortgage.
Speed of sale
A lot of conveyancing time (the time taken between accepting an offer on a property and the sale completing) is taken up with providing information to the mortgage provider, getting a valuation carried out, awaiting a formal mortgage offer and arranging the drawing down of funds. A cash house sale can avoid all of those elements, and therefore result in a much quicker house sale process.
Condition of property
If the property is not in great condition, mortgage lenders may be reluctant to lend on it. Selling to companies that buy houses means that your buyer is able to assess the value of the property, without having to worry about the valuation a mortgage company places on it.
Of course, any buyer is going to want to feel they are getting value for money, and will not want to pay more than the property is worth. That being said, if a cash buyer sees significant potential in a property, they may be willing to pay a little higher than they would have been able to if they were reliant on a mortgage.
Unusual properties are always harder to value than those with lots of similar comparable homes nearby. For this reason, a mortgage company is likely to be cautious in its valuation of an unusual property, as they will want to ensure they would be able to recover their investment if the property owner was to default on their mortgage.
A buyer who is not reliant on a mortgage will of course not want to pay more than the property is worth, but they may be in a position where they are prepared to take more of a risk than a mortgage lender would be.
A property owner has the option of trying to attract a cash buyer through an estate agent, however, selling to a company that can buy your house for cash will have the benefit of a more secure, guaranteed chain-free sale.
Companies that buy houses in any condition
If you have a property to sell, but you know it is not looking its best, or you have inherited a property that needs updating, a company that can buy a house in any condition could be a great option for you.
Whilst a property that requires work may attract buyers on the open market, it is likely to take considerably longer to sell than a house in excellent condition. If you need to sell the property quickly, the best way to do that is to sell to a company that can buy a property in any condition, and buy it quickly.
Companies that buy houses quickly
A homeowner may want to sell their property to a company that buys houses quickly for several reasons, including:
Fear of missing out on a dream property
If you’ve found your dream property, but worry that you’ll have missed out on it by the time you find a buyer for your own property, a company that buys houses quickly could be the answer.
Selling your property to a company that buys your property directly will make you a property chain-free buyer, and therefore make your offer on the new property considerably more appealing and competitive.
Moving to a different area or country
If you are planning a move to a different area or a different country, the idea of trying to time a property sale to fit in with the move (especially with the unpredictable nature of the UK property market) can be a stressful one.
Selling your property to companies that buy your house for cash means you can dictate the date that the sale completes, timing it to fit in with your move perfectly. This eliminates the stress of having to arrange an interim rental property between the sale of your property and your relocation, and the hassle of having to move twice in a short period of time.
Want to sell a house quickly to release equity
House prices have seen impressive growth over the last couple of decades. If you have owned your property for a substantial amount of time and have built up significant equity, you may want to sell your property to release the funds.
Whatever plans you have for the future, selling your house to a company that can buy your property directly will give you a guaranteed sale figure, allowing you to accurately plan your budget and your future.
Inherited a property
Inheriting a property sounds great, in theory, but it soon becomes evident that owning a property is costly, even if you are not living in it. If you have inherited a property and are looking for a quick hassle-free sale, a professional property buying company could be an ideal solution.
House is about to be repossessed
If you have been struggling to make your mortgage repayments, and are facing repossession, it is advisable to try to secure a property sale before your mortgage lender starts formal court proceedings against you. You would need to ensure that the figure you achieve from the sale of your property would fully repay your mortgage (or you would need to speak to your mortgage lender if you do not think this is achievable).
The benefit of selling to a professional property buying company is that they should be able to make you a guaranteed offer for the property, which you can take to your mortgage lender, along with an agreed sale completion date.
This should halt any action your mortgage lender is planning to take against you, helping to preserve your credit rating and financial record, which would be seriously damaged by a repossession order.
Former rental property to sell
If you have a former rental property that you are planning to sell, you will want to secure a quick sale. Empty rental properties are costly, and whilst they are on the market and vacant they will not be producing any income.
For this reason, a quick sale to a company that can buy former rental properties is a great idea. Such companies should be able to buy your former rental property in as little as seven days, often proving much more cost effective than selling on the open market via an estate agent.
Struggling to attract a buyer on the open market
If you have a property that has been for sale with an estate agent for several months without securing a buyer, you may want to consider selling to a house buying company. Because they can buy properties quickly, you could save yourself months of hassle and stress, and have the sale completed in as little as a week.
Companies that buy your house
Even if speed of sale is not a big concern for you, there are many reasons why you may want to sell to a company, rather than through the open market. These include:
You are stuck in a property chain
If a property chain is holding up your move, a company that can buy your house directly could help. A guaranteed sale, to a company that can buy your house directly, on an agreed date, effectively makes you a chain-free buyer. This will not only speed up your move, it will also make it much less vulnerable to chain collapse.
You want the convenience of a hassle-free property part-exchange
If the idea of trying to coordinate the sale of your current property with the purchase of your new home is giving you sleepless nights, a hassle-free property part-exchange could ease your mind.
Part exchange offers from new build developers are hugely appealing, but with the help of a house buying company you could benefit from a similar deal without having to buy a new build.
A house buying company can offer you a guaranteed house sale on a date or your choice, meaning you can time it to fit with when your new home is ready. You will receive a guaranteed sum from the property buying company and will not have to worry about any delays or hold-ups. A property part exchange offers the ultimate no-hassle, stress-free move.
Previous house sales have fallen through before completion
If you have had previous house sales fall through before completion, and don’t want to risk it happening again, a sale to a professional home buying company can offer you a guaranteed sale, with no risk of it falling through.
Companies that buy houses for cash, quickly and in any condition are known as cash home buyers.
Whether speed, certainty or a stress-free sale are your biggest priority, a professional cash home buying company is a great option for lots of property owners.
In exchange for a quick and guaranteed property sale, a genuine cash home buyer will purchase your property at a discount. For this reason, it is not the right option for everyone, but for any home owner who finds themselves in one of the circumstances mentioned above, it can be a great fit.
If you are looking for UK companies that buy houses, always be sure you’re dealing with a genuine cash homebuyer. Quick Move Now are the original and leading house buying company in the UK, established in 1998, we have bought over 5,500 properties across England and Wales. Don’t just take our word for it, check out our Quick Move Now reviews.