A guide to housing part exchange
Are you thinking of selling your home and yearning for a quick, stress-free sale? If so, housing part exchange might just be the ideal option for you. Read our helpful guide, complete with what house part exchange entails, what the benefits are and key things to consider.
What does part exchange mean on a house?
Housing part exchange is very similar to part-exchanging your old car, but it applies only to new homes that have never been lived in, not to resale homes. For example, if a developer is selling new homes, you can buy a brand new home from them, exchanging your old home, often at fair market value, for part of the price. You transfer ownership of your old home to the developer, and the home’s value is applied toward the payment. It’s a simple and stress-free way to move house without having to worry about selling your existing property and the uncertainties that come with it.
Benefits of house part exchange
- There will be no chain, which eliminates the risk of the sale falling through
- The process is much smoother and quicker than a traditional sale/purchase, making part exchange ideal for those wanting a quick sale
- You won’t have the stress or cost of putting your house on the market (no estate agent fees and no getting your house ready for viewings on evenings and weekends, eating into your spare time)
- You can typically live in your current home until your new one is ready
Can I part exchange my house?
You might be wondering whether your home is eligible for part exchange, and the answer depends on your current property. It will need to meet the new build developer’s criteria, and this will vary with different companies, but you’ll need to meet the standard basics below:
- Developers will require that your current home be in a good, sellable condition with no major structural work needed
- Your home’s equity must cover your existing mortgage
- The value of the new property must be at least 30% more than your current home, meaning you can’t buy a home cheaper than the one you’ve got
- Your current property must be located in an area covered by the developer of your new home (typically in England or Wales)
- You need to be the current owner of the property
Things to consider
- You may not receive the full market value for your current home, so it could be more cost-effective to go for a traditional sale/purchase
- Your current home will need to be in good condition, which isn’t a requirement when opting for a traditional sale (although it would affect the amount of interest your home receives and how easily it sells)
- Your current home needs to be worth roughly 70-75% of the new build’s price
- You need to be able to cover the remaining balance of the new home’s price (however much is left over once the price of your old home has been deducted), by either paying in full or getting a mortgage on the remaining amount
Do County Town Homes offer part exchange?
Yes, we offer part exchange on select developments and plots, subject to availability, and your current home must meet the criteria. Read our full part exchange T&Cs to find out if you’re eligible and discover our properties below that are available for part exchange:
Sell your home without the hassle
Learn more about part exchanging your house with County Town Homes. Discover the part exchange new-builds listed above that are part of the scheme, and find your dream part exchange house! Get in touch with any questions you may have, and our friendly team will be more than happy to help!
