As one of the leading real estate agents in Wimbledon and the surrounding areas, we have many years of experience helping our clients’ property transactions go through smoothly.
These are our tips for keeping in control of your chain purchase at each stage of the process when you’re selling and buying at the same time:
Before you start the process of buying and selling at the same time, you will need to understand how much your current property is worth. You will need to have your own home valued – invite three estate agents to give you a valuation. However, be wary of anyone quoting figures that are unexpectedly high.
Do your own research to better understand your property’s potential value. The average house selling price in Coombe is £480,000, £835,000 in Wimbledon, and around £1,321,500 in Wimbledon Village, by Rightmove estimates. Naturally, there’s a fair amount of variation according to property type, condition and postcode. Use an online valuation tool while interrogating property portals and HM Land Registry for the latest sales figures.
Once you know how much your home is worth, you’ll know how much equity you have in the property, which will help you decide your maximum spend.
It’s important to remember, Wimbledon properties are on the market for an average of 150 days, as per Home.co.uk. Prepare for the next steps in the selling and buying process to take time.
Before you get serious about your property search, getting an accurate idea of what you can comfortably afford is worthwhile. You’ll need to budget for stamp duty and all the other costs of selling and buying – an online calculator can help.
Based on buying and selling Wimbledon properties at £800,000, the costs could include the survey and conveyancing solicitor’s fees at an average of £3,000, stamp duty at around £30,000, mortgage fees at £1,000 plus, removals, the EPC and estate agent fees.
Estate agent fees are usually based on a percentage of the price your home sells for, typically between 0.9% and 3.5% – £7,200 to £28,000 based on the example selling price.
You may also need to be ready to pay a deposit on your new home when contracts are exchanged – usually 10% of the purchase price. It’s normal practice for only the first buyer to pay the deposit and pass it up the chain.
If you are upsizing, 10% of your purchase price will likely be higher than the deposit paid by the first person in the chain. This is not usually an issue, but some sellers and their solicitors may demand the complete 10% from you – so be prepared to come up with the funds at the exchange of contracts.
You may consider a bridging loan if you’ve found your new home, yet your own buyers can’t move quickly enough for you to buy and sell at the same time. If you do, be aware of the risks and costs, chiefly the interest on repayment.
Talk to your mortgage lender or mortgage broker so you’re clear on your options – whether you remortgage or port your existing loan – and analyse the costs involved if you decide to move lenders.
You should calculate the equity in your current home and how much extra you will need to borrow to enable you to see what current mortgage rates you are eligible for. Then, compare them to your current rate and terms to see whether porting or remortgaging is the best option.
Factor mortgage arrangement and valuation fees into your calculations too. You should also find out if there’s an early repayment charge to exit your existing mortgage deal when you sell your house if you are in a fixed rate period, which may influence your decision.
If you’re buying and selling at the same time, you can make sure everything progresses smoothly by having your paperwork in order from the start. When you prepare to sell your house, get all guarantees for work on your current home, gas and electrical safety certificates such as the EIC, planning permission, FENSA certificates, leasehold documentation if applicable, and mortgage documentation ready before your solicitor needs it.
You also need proof of identity, including photo ID like your passport or driving licence, proof of address, and the title deeds. Be prepared to complete all your seller forms as quickly as possible and respond to any queries immediately.
You’ll need an energy performance certificate (EPC) before you market your current property for sale, so you should book an inspection with an accredited assessor as soon as possible. This will cost you around £75-£120. The EPC gives your buyer an indication of how energy efficient your home is – and how expensive the bills are likely to be. It might be worth implementing some energy efficiency improvements first to boost your score.
If your house is already on the market when you submit an offer on a new home, it will make you a more attractive buyer than someone who has not yet put their house up for sale.
Therefore, choosing your estate agent before you start your house hunt is one of the vital first steps for selling and buying. This may give you an advantage in having an offer accepted, or to negotiate a better deal if the vendor is looking for a quick and smooth sale.
You can also prepare your home for sale by sorting out any minor repairs and ensuring your property looks its best for marketing and viewings.
A proactive conveyancer can make or break a speedy house sale, so research before you appoint yours. Get quotes, but don’t necessarily go for the cheapest conveyancing fees. Look at online reviews, but even better, get personal recommendations from people who’ve bought and sold in your area.
Try to ensure your conveyancer is around as much as possible during the sale process – check that they and you don’t have holidays booked.
You can appoint a solicitor or a licensed conveyancer to do the legal work around buying and selling a house. Bear in mind, if you opt for a solicitor, that they sometimes work in different areas of law and may be required to attend court on other business, possibly making them more challenging to get hold of to work on your house sale.
It is sometimes possible to do DIY conveyancing, but this is not recommended in most use cases.
When you start receiving offers, the highest one may not always be the most suitable one to accept. If you want to ensure that your property sale goes through, having a reliable and motivated buyer will reduce the risk of them pulling out.
Buyers who are just starting to market their own property could slow down the process. Long chains can increase the risk of delays or collapse when selling and buying a house, so you may prioritise chain free buyers and first-time buyers. Likewise, cash buyers aren’t reliant on a sale or mortgage application to proceed.
If your property is on the market or you have agreed on a sale already, you will be in a good position to get your offer accepted on a new home. Having a good relationship with the estate agent working on the property sale will also help to improve your chances of the offer being accepted, as regular communication will show them that you are a serious buyer.
Once your offer on your new home is accepted, your mortgage lender will require a home valuation. You should also have a home survey to check the property’s condition before you go ahead with the purchase.
The next stage of the property purchase is starting the conveyancing process, which includes drafting contracts, local searches and surveys. If you have chosen a proactive and reputable conveyancer, this will help to ensure there are no unnecessary delays.
Making sure you are easily contactable during this stage will also help keep everything moving.
The final stage is setting the dates for exchanging contracts and completion. Choosing a date that works for both the buyer and seller will help ensure this stage goes through without a problem, so it helps to be flexible.
While your sale will likely go through smoothly, property transactions are complex, and sometimes, things don’t go according to plan, especially if you’re buying and selling at the same time. From problems with a survey to a buyer changing their offer at a late stage – or pulling out altogether, setbacks can cost you money and even jeopardise the sale.
You may not be able to do anything about this, but the following tips can help you stay in control of your chain purchase and ensure your sale goes smoothly.
As a first-time buyer, you might be able to complete a purchase in as little as six weeks. However, this is unlikely to be the case if you’re part of a chain – according to figures from Zoopla, it can take around six months, though it could be closer to six months in Wimbledon.
Timings will all depend on the number of people in your chain and the complexity of their purchases and situations. Be realistic about how long it will take to avoid increasing your stress levels. If you need to move for a particular reason, such as school applications or work, consider moving into rented accommodation after you sell.
Stay in touch with your conveyancer and estate agent during the process, returning their calls promptly. It’s worth checking in regularly, particularly if you haven’t heard anything for a week or so. Be careful of badgering them too much, though – too many calls could distract them from carrying out your searches.
The completion date is when all outstanding funds are transferred to the sellers in the chain, and keys are given to the buyers. Completion is often a week or two after you exchange contracts, and many people have fixed ideas about good days to complete a house purchase. In reality, you may need to be flexible – when you are buying and selling a home at the same time, the date will need to work for everyone in the chain.
There’s a lot to do on moving day, so get organised well in advance with a comprehensive checklist of essential tasks. This is true for any home movers, but more so if you are buying and selling property at the same time, when the deadlines may be much more critical.
Sorting through all your belongings before you even put your home on the market will help you stage your house to sell – and make things a lot easier when it comes to packing. Get quotes from removal companies at an early stage and decide what level of service you’ll need. Don’t leave packing to the last minute. You must vacate the property on time, leaving it clean, tidy, and empty of all your belongings.
A failed chain is inevitably stressful when you’re selling and buying a home at the same time, but having an alternative plan can help. Perhaps it’s time to exit the chain, consider a bridging loan if your sale is jeopardised, or to sell and go into rented accommodation if your onward move falls through. Whatever you decide, understand the financial implications before you act.
A big part of minimising the stress of selling and buying at the same time is having a good local estate agent on your side. If you’re looking to sell in Wimbledon, Wimbledon Village or surrounding areas such as Ham, we can help. Contact us today for more advice about managing the process.
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