When & Why a Quick Sale to a Professional Cash Buyer Makes Sense

Whether its necessity or motivation, there are usually three variables that drive a cash transaction to a trade buyer; property condition, suitability for mortgage lending, or the seller’s personal circumstances.

Funding, practicality of required building works, and purchase timescales are all factors that can exclude the majority of the market. Sadly, this is largely the owner occupier market and those who will pay full market value.

Increasing building compliance legislation and frequent tightening of legal advice to lenders not only restricts a buyer’s ability to borrow against a more ‘challenging’ property, it creates significant delays in the conveyancing and mortgage application process. With separate lawyers advising both buyer and their lender, even a straight forward home purchase can take months.

The Property:

Subsidence,  dry and wet rot, damp, Japanese Knot Weed, unfit kitchen and/or bathroom appliances are all examples cited by surveyors advising banks against lending. However, substandard wiring and non compliant gas appliances can also invite retentions or down valuations. Short leases (below 75 years unexpired) and occupancy status (protected ‘sitting tenants or anyone with an undocumented tenancy) can also preclude a buyer requiring mortgage funding, not to mention defective titles, historical unilateral notices and complex financial charges.

Professional cash buyers have broader shoulders, greater financial flexibility, and experience of building work. At Clarence Property Group, we have decades of experience unscrambling every imaginable defect, both building and title, tenure and occupancy.  What deters the average layperson from proceeding, is an everyday occurrence and solvable problem to a cash buyer in the trade.

Seller’s Personal Circumstances: 

Inheriting an unmodernised property can be an onerous task and responsibility, with pressure from family members to settle the estate at the earliest opportunity. It is also a process with many costs, funeral, legal and often outstanding care invoices. Inheritance tax liability has a time scale that often doesn’t work well with problematic and lengthy property sales. Late payment incurs interest, eating into the beneficiaries inheritance.  A quick cash sale provides a more certain path to meeting tax due dates and avoiding unnecessary interest.

The sale of a valuable property asset can also be lifeline to those in financial difficulties and, to the right buyer, a rapid debt solution.

In our everchanging political climate, changes to property taxes and capital gains tax can often create a time pressure to sell quickly to avoid costly changes to the sellers tax liability. Whether it it’s an inherited property, unwanted buy to let investment, or simply a matured investment, the tax man will be waiting!

Moving for School catchments, moving overseas, securing an onward purchase are all circumstances that may be time pressured and not compatible with lengthy and traditional sales via local agents.

Cash Buyers have no related transactions, and are not delayed by third party funders or their legal representatives. Clarence Property Group offer a transaction timescale to match the needs of the seller, from 24 hour exchange of contracts and with flexible completions dates to meet  the sellers needs.

The Cash Buyer:

Years of property industry experience means a robust ability to understand building, title, tenure and occupancy issues. Liquid funds available for immediate purchase means agility in time scale, to match the often pressured timescales of the seller. Cash funding removes third party mortgagee involvement, thus reducing purchase timescales dramatically. Experienced trade buyers employ competent and attentive solicitors to complete the legal process without delay. An experienced trade buyer will also take a view on missing documents and title defects,  where mortgage buyers simply won’t or aren’t able to, when their lender insists on conveyancing perfection.

Get in Touch:  

We are a specialist cash purchaser of property across London and the South East. We would welcome enquiries from you or your representative if you have a suitable property. Complete an enquiry form by clicking the Get in Touch Tab at the top.