The nightmare scenario for many people is when the sale of their house fails at the final hurdle, leaving them without the necessary funds to purchase their new home. A study by Which? discovered that about one in three house sales falls through.
If this has happened to you, you probably felt frustrated and angry, especially if it threatens the purchase of your new dream home. People often move because they are starting a new job in a different area. If a house sale falls through, they may have to rent for a while until the house has been sold and they can purchase a new home.
House buying and selling is regarded by many as a stressful experience, and this is made worse by a house sale falling through.
Why do house sales fall through?
There are a number of reasons why house sales fall through.
If you have a buyer for your house, the sale is not guaranteed until contracts have been exchanged and there is a completion date. This can take up to three months from the initial offer, with the buyer able to drop out at any time. If the buyer finds a house they like better than yours, there is nothing legally stopping them cancelling the purchase of your home.
A buyer is often dependent on the sale of their home to finance the purchase of yours. If the buyer of their home drops out, this could put them off buying your home, or delay the purchase while they wait for another buyer. This is known as a house buying chain and is the main reason why sales fail.
Another reason is when a surveyor’s report finds serious faults in your home. A buyer could fall ill or lose their job, and it has been known for a couple buying to split up before contracts are exchanged.
For these and many other reasons, there is a lot of uncertainty in house selling.
What are the options?
There are property buying companies that will purchase your home quickly, but usually you will only get 75% of the value of your property.
If you have a well-off relative, they could lend you the money until your house is sold, but this is rare.
The best option is bridging finance. This will provide the money to complete the purchase of your new home and can be repaid after your home has been sold. You will have to pay interest, but for only as long as you need the loan, which is usually less than six months. Bridging loans can be arranged quickly for the funds to be ready to complete the purchase of your new home.
Ascot Mortgages can help
Yes, a house sale collapsing can be stressful, but a bridging loan can ease the stress by providing the means to move into a new home.
There are many bridging lenders willing to help. Whether you are employed or self-employed, Ascot Mortgages has relationships with a wide range of bridging finance lenders to find you the best loan deal.