buying a home with cash but no savings?!?

[caniborrowyouforasec]

Hi I'm posting here for a friend's Dad and have posted here instead of Property for traffic.

He is looking to downsize his house and has found a nice new build some 30 mins away. He has not got a mortgage so will be paying cash but does not have savings (wife recently deceased btw so only him).

Does anybody have any experience of similar circumstances? Can you provide advice/insight? He does not have the money for a deposit. Can you release equity in the home to use for this? Sorry I am no good when it comes to these types of things so appreciative of any advice!

Thanks

Assume he is selling current house?
Therefore solicitors would seal with the buy no issues, he would be given the remainder of the sale in a lump sum.

He can get a bridging loan.

To buy a new build you have to show that you’re in a position to move, so you already have a buyer or a lot have to move out after sale into rented to be able to move. But most new builds when the house plot gets to roof stage they will let you part exchange your home, but your home has to be 70% or less than the value. It’s usually between £500-£2k to reserve. But the site will go through all his options.

Thank you SheRaTheAllPowerful

This makes sense thank you. Just not sure how easy this process will be for him. He does not have savings so no money for estate agent/solicitor etc.

Thank you all, very helpful.

You usually pay on settlement/completion so he'll have funds. If not an interest free credit card for any legal fees etc which he can clear when he sells his house and completes on the new one

ZippyBungleandGeorge

Very good point. Thank you.

New builds sometimes come with incentives like stamp duty paid, so worth asking what's on offer.

You wouldnt necessarily need a deposit; when he sells his house, that money is 'cash' and he is a 'cash' buyer, eg buying it outright.

New builds often take your old house off your hands - cut price of course - to speed things up.

As well as solicitor and estate agents fees after selling his existing home, and buying th enew build, he'll also need to budget for paying stamp duty too.