Buying & Selling Your Property

buy sell property

Moving house is something that virtually everyone does at some point in their lives. Whether you are moving to the country or moving to the city, there are some principles that are the same. And while the process is always a little chaotic, there are tips to make it as smooth as possible, especially if there are kids involved in the process!

Preparing the house

To get the best price for your own home, you might need to do a little work. Have a chat with the local estate agents and get them to give you an honest assessment of the property. If you are aiming to sell to another family, then the house will need to be in a condition where new people could move straight in and live there immediately. If you are selling the house to someone interested in property developing, then this might be a little less important.

Always view your property as an investment and make sure you get the best possible price. Don’t opt for losing money for a quick sale unless this is crucial to your plans – quick house sale companies rarely get you the full market value. Estate agents may take a little longer to sell the house but will get you the best possible price. Their valuation upfront will give you an idea of what you have to work with.

Finding a new property

As soon as you start the selling process, you also need to be laying the foundation for the buying process – especially if you are moving house with a family! You don’t want to find that the sale of your house falls through because you have nowhere to go when you leave it.

After you have your valuation from the estate agent, you can begin to look at properties and see what you can afford. If you are moving out to the country, you might find you can get a little more house for your money than in the city as properties prices are sometimes lower.

The legal stuff

There’s not really a good way to avoid the need for legal involvement in the buying and selling of a house and to ensure it is all done correctly, it wouldn’t be advisable anyway. Talk to two or three lawyers to get prices before you commit to anyone and look for recommendations from friends and family.

Once you start the legal process, you should specify and have specified a range of little issues. Things such as what you are leaving the house – carpets, fixture, even furniture – should all be specified in the contract for both parties. The same should be done with the house you are buying so again you know what will be taken and what will be left.

Preparing the move

It is a good idea to start the packing process as soon as you know you are going to move. Once you have a good idea about what you will need moving, you can get prices for your removal men as they usually charge by the box. Again, shop around and get a few prices – look at areas such as insurance and their customer reviews to get the right people for the job.

Finally, don’t forget to organise your documents and other important paperwork with your change of address. Things such as bank accounts, driving licenses, passports and credit cards all need to be updated to ensure everyone knows where you are. A redirect of mail for a short time can also be a benefit. That way you will still get mail from anyone you missed notifying first time around.

Financing Your Property Development

country property development finance

Embarking on a property development project can be a daunting challenge as there is a huge amount to consider finding the right property, assessing work requirements and coming up with accurate costings and timing are but a few of the initial challenges. Amongst these is of course is actually finding the fund required to get started. The property finance available to you will differ depending on your personal circumstances and the project itself. Below is a basic outline of some of the funding options you may wish to consider, and it goes without saying that once you have done your initial research it is imperative you discuss your requirements with a financial advisor or broker to help you make the right decision for you.

Is a mortgage right for my project?

There are a number of different mortgage types available and so it is likely that most property development projects will find some kind of mortgage that will fit it’s needs.

A residential mortgage only tends to be the best viable option if you are purchasing a property to live in or you may wish to re-mortgage if your bank will allow it in order to fund renovation work a current property. This is partially because mortgage is intended as a long-term finance solution and the requirements are stricter than some other property finance options.

If you are a property developer with a strong portfolio already, you may want to consider a commercial mortgage as a viable way of freeing up funds to purchase an additional property by consolidating existing mortgages that sit on your portfolio properties. As well as the standard requirements for meeting mortgage eligibility, the lender will want to have evidence of a successful portfolio and basically ensure that you are a safe bet by examining your current property situation.

If you are carrying out your project development on a property that you intend to rent out once renovations are complete then you might consider a buy to let mortgage. These kinds of mortgages are very similar to a residential mortgage, but they allow you to make money from someone else living in the property and they are likely to have different fees associated with them. As with a standard residential mortgage, your finances and credit history will be taken into account when the lender is deciding if you are eligible for the loan amount. In addition, the lender will expect you to be able to show the rental income on the property will be at least 125% of your agreed mortgage repayments.

How do bridging loans work?

Bridging loans can be a brilliant solution to financing your property development so long as you do your research. In the past, bridging loans have been seen as a slightly ‘shady’ method of securing a loan but nowadays they are a perfectly viable solution for property development in the current climate. A number of highly reputable lenders offer them, for example you can get a Santander Bridging Loan as well as a number of other high street banks such as NatWest and Barclays. Bridging loans are meant as a short-term financing option and tend to rely heavily upon the worth of the property you are purchasing with the funds. Usually, you will only get a bridging loan for a 12-month term with the intention of selling on before the 12 months is up or having the property in a state fit enough to get a good quality long term financing option such as a mortgage for. Bridging loans tend to have higher interest rates and fees associated with them but they in effect put you in a position to be able to act as a cash buyer. This position can be priceless when trying to get a great deal on a property that needs a lot of work or if you are interested in a property that is up for auction, where you need funds within days of the auction completing. Quite often a bridging loan will be completed inside of 2 weeks which is much quicker than traditional lending methods.

Are there other property funding options?

In a word, yes. There may be other funding options that are more or less suited to your requirements, so it is extremely important to do your research. Your funding option could make or break your budget when it comes to property development. For example you may miss out on the perfect auction property if you didn’t also explore auction finance, which tends to be a much quicker funding option due to the nature of the purchases you would be making.

There are a number of factors that lenders will look at when making a decision as to whether they should provide you with a loan and it is important that you consider these prior to making a decision on the finance option most suitable for your project.

The valuation is one of the most important parts of securing your loan and no matter what finance provider or lending option you choose, it is likely that you will need to pay for that lender to have a valuation carried out on the property before they will provide funding. For all lenders the valuation will help them to assess how much they should lend you and what the LTV should be. When it comes to providers of Bridging Finance, it is easily one of the most important elements as often, those providing bridging finance base the loan purely on the value or potential value of the property itself. Unlike mortgages, they are less interested in your background and personal circumstances as they expect the loan to be short term and, if all else fails, the property itself will end up being their repayment. Bridging lenders may still be interested in your personal circumstances to an extent as it will give them an idea of the risk in the project and your ability to pay the monthly interest rates. You may find that your credit history, current income, other assets and property/project history come into play when applying for all or any of the above finance options, but these additional circumstances are likely to play a much bigger role in the decision making for a standard mortgage provider.