It is often the case that when someone sells their home, they tie in the purchase of their next property at the same time. However, there are plenty of reasons not to buy immediately. We look at the sale process and answer the question, What happens if I sell my house and don’t buy another?

At Lockings Solicitors, our experienced property team has been handling conveyancing transactions in East Yorkshire and beyond for many years. We provide a modern and proactive service, ensuring we explain matters in plain English and that you can contact us as needed to ask questions or discuss concerns.

We will always keep you updated on progress and we aim to complete promptly without avoidable delays. Our expertise means we are able to resolve difficulties effectively and deal with complex and high-value transactions.

We are accredited by the Law Society’s Conveyancing Quality Scheme, which recognises both legal excellence and outstanding service standards.

We offer a FREE initial chat so that you can ask us any questions you may have about conveyancing and selling a house. Call us on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire and York area.

Why sell a house without buying another?

It may be that you are selling an investment property or selling a probate property and there is no need to buy another house. It could also be the case that you haven’t found the right property to move into yet, but you still want to go ahead with your sale.

Selling a house without buying another immediately can have some benefits. These include:

• You will be in a strong position when you do find a property to buy. If you don’t need to tie in a sale, sellers might prefer you to other potential buyers who come with a chain attached. In some cases, they might even be prepared to accept a lower offer from someone who is chain-free.
• There is less of a risk that your buyer will pressure you into accepting a lower offer at the last minute. Known as gazundering, buyers occasionally threaten to pull out if a seller will not drop the price. If you have a related purchase, there will be pressure to comply to avoid the chain falling through. Without a related purchase, buyers are less likely to try this.
• Your purchase could be faster if you have already sold. Tying in a sale means that you could be relying on several transactions below you in the chain. The more parties in the chain, the bigger the risk of delays occurring.
• You will reduce the risk of your purchase falling through. If you were to lose your buyer partway through the transaction, it is likely that your seller would put their property back on the market. This could be expensive for you if you have already started work on the purchase, for example, paying a mortgage application fee and ordering a survey.
• You won’t be pressured into buying a property you aren’t certain about just because you have a seller waiting to proceed. If you sell first, you can take your time to find somewhere that is right for your needs.
• You will know exactly how much money you have available. It is sometimes the case that mortgage penalties or a last-minute price reduction can mean you have less money than you were expecting from your sale. If you have already completed, you can budget accurately when you make an offer on another property.
• If you do buy at a later date, there can be less risk of being gazumped. This is where a seller accepts a better offer from another potential buyer partway through the conveyancing transaction. If you are proceeding promptly and have no related sale, a seller is less likely to consider other offers.
• Some sellers are only interested in buyers who are ready and able to go ahead quickly. This could preclude you if you were relying on a related sale.
• If property prices are falling, you could be better off if you wait to buy. Obviously, there is a risk that prices could go in the opposite direction though, so you need to take that into account as well.
• Selling and buying at the same time can be quite stressful, particularly if someone in the chain is pushing for a fast completion. If you are selling only, a lot of the pressure will be removed and it can be a much easier transaction.

The property sale process

If you would like us to do your house sale conveyancing, you can speak to us when your property goes on the market. We will be able to let you have the initial paperwork for completion so that we are ready to send the contract package out as soon as you accept an offer.

We have a secure conveyancing portal to enable you to return the information we need at your leisure. We will open a file in readiness and you can fill in the property information and fixtures and fittings forms that your buyer’s solicitor will need.

Once you accept an offer for your property, you can give our name to your estate agent. They will pass our details on to your buyer’s solicitor and we will send out the contract package.

Your buyer’s solicitor will go through the information we provide, ask us any questions they may have and arrange for searches to be carried out.

Once they have everything they need, including survey results and their mortgage offer, and everyone else in the chain is ready to go ahead, we will be able to exchange contracts.

We will discuss completion dates with you before exchange so that you can make arrangements for removals and, where necessary, property rental. When contracts are exchanged, the completion date is set.

Your mortgage lender will let us have a statement showing the amount they will need to redeem their loan. We will provide you with a full statement showing all of the costs, including your estate agent’s invoice, which we will pay on completion.

On the day of completion, once we receive the purchase money, we will notify you. When you have vacated the property, you can leave the keys with the estate agent.

What happens if I sell my house and don’t buy another?

If you sell a house and don’t buy another, you will need to find somewhere else to live if this was your main home. This could mean taking on a rental property, and you may have to commit to six months. There is a risk that property prices could increase during that time.

You will be mortgage-free and have a lump sum, which could provide some interest. If you are able to move in with family, a break between selling and buying a house can give you the chance to save.

Contact our East Yorkshire solicitors for selling a house

If you are thinking of putting a property on the market, our house sale solicitors will be happy to hear from you.

You can ring us for a FREE initial chat on 01482 300 200, email us at welcome@lockings.co.uk or fill in our Free Online Enquiry and we will call you back promptly. We have offices in Beverley, Hull and York and represent clients across the East Yorkshire and York area.