FTB seeking advice about steps as a cash buyer, and avoiding delays

[GollyParton]

We are first time buyers looking to buy our first home, and are fortunate to be cash buyers. We are living in a rented house currently. We are in England and have children.

Can anyone please talk me through the steps? I've been looking online for information but most guides are aimed at people needing a mortgage.

We hope to complete the process quickly - we don't want to be sitting in a chain, gazumped, have heard some horror stories from friends - so any advice about how to reduce the chance of delays, or spot situations where delays are likely, would be helpful.

What kind of timescale would be expected if we are buying a house that is currently empty eg probate, or one that is currently owner occupied? At what point should you give notice on your tenancy agreement (on 2 month tenancy)?

We haven't offered on a house yet but are doing viewings - the type of house we would prefer doesn't come up that often so want to have best chance when we make an offer. Are there ways to make our status as cash buyers more appealing to Sellers? Friend says sometimes people falsely claim to be cash buyers but aren't, would we show the Estate Agent bank statements?

Thanks for any advice.

One of the big things we learnt was not to give notice on your current place until you’re sure of your move date. We gave our notice the day we exchanged contracts it should have been 3 months notice but landlady said if they found someone else before that she would accept shorter notice. It also gave us a couple of weeks to get the new place painted and start to move things in more slowly which was nice.

Around here EAs verify that you’re a cash buyer or how much you deposit is.

All you need to do is find yourself a solicitor to do the paperwork for you. You’ll also need to find your own surveyor once your offer has been accepted.

The speed depends on whether there’s a chain (might take several months) or the vendor’s solicitor (some can be quick other rubbish).

Personally, if you’re on a 2 months’ notice, I wouldn’t hand it in until you’ve exchanged contracts and your purchase is guaranteed. That will also give you time to carry out any works once you’ve got the keys to the new house.

Yes nobody wants to be stuck in a chain or risk getting gazumped, unfortunately it is part of the risk of the English system of buying houses.

Probate can take longer than chains, and family members without an emotional attachment to a house can leave you more at risk of being gazumped because they want to maximise their inheritance.

The process is the same for cash buyers, but you can ignore the mortgage application stage and it will be up to you to make sure you do your due diligence (e.g. survey, checking search results) as often problems are identified by the lender refusing the mortgage. Make sure you understand everything the solicitor forwards to you and if you don't, speak to them about it. Often solicitors will give you the facts about a situation and not advise you, so for example if a search picks up something they will tell you the results but not necessarily tell you that it could impact the value of the house.

My experience of cash buyers is that not all are truthful. Estate agents do have to check the source of funds, for money laundering purposes, but ours were supposedly vetted cash buyers and then changed their minds delaying the process. We accepted a lower offer because they wanted to move quickly and they were the ones who held us up!

Generally there probably isn’t much you can do to speed the process up (usual hold ups are things like searches coming back, mortgage approvals). You need to make sure you organise everything promptly, survey etc. And being a cash buyer you will need to transfer your deposit to the solicitor so that exchange can happen.

The process is exactly the same for cash buyers other than the mortgage application. You'll still need to prove your funds to the EA when you submit an offer in the same way that people getting mortgages have to prove their deposit.

The best thing you can do is be organised with getting your ducks in a row (survey, solicitors, moving etc) and hope the rest of the buyers do the same. When we bought our first house there was no chain and it took about 4 months. When we bought our second house there was a chain of 5 and we were in the house in 7 weeks even though we were the second rung of the chain. There's so many aspects of house buying that you personally can't control regardless of your finances, so just focus on those that you can. In our experience the EA or solicior should give you rough guidance you about when to give your notice as they will know where all of the other parties are in the chain and how close to exchange they are, then how much time they need for completion but there may be something that they're unaware of which could change plans.

As a cash buyer you still need to evidence proof of funds in the same way as if you had a mortgage and evidence where the money has come from to enable you to be a cash buyer - so proof of an inheritance or that you have earned enough to acquire savings over time.

The process doesn't always go faster just because you are a cash buyer buying an empty property. You are still reliant on the seller completing their paperwork in a timely manner, solicitors, surveyors and searches etc, although the lack of a chain should make things easier and faster.

Good luck.

I recently bought a house for cash. We were delayed due to covid, but it should have taken about 6 weeks. However, there were only two properties in the chain as I had nothing to sell. You cannot control how long searches and enquiries will take so make sure you have a decent solicitor. Estate agent will need proof of funds and source of funds (bank statement and tax returns will suffice) and solicitor will need the same information. You need to organise your own survey so you are in control as to how long that will take and any issues can be addressed promptly. My surveyor got the report to me in five days.

We were FTB with no chain and cash buyers and the process took 3 months for us from offer to completion. It probable could have gone quicker, the two main reasons it took longer was that our solicitor was a bit rubbish and once I realised this I was double checking all her work. And secondly we were buying a flat and all questions had to go through a management company that was also quite slow in answering.

If you don't want a chain then don't buy from a seller that still needs to find a house. We bought from an elderly woman that was going to a care home so we had no chain. If you see a house you like just ask what the sellers situation is. If you want a really quick sale maybe look at auction houses.

We had to provide proof of fund and as we were getting help from relatives they had to send proof of funds as well. Also they will want 3 months (I think it was 3 maybe it was 6) of bank statements to show where the funds have come from. So if you have been moving it between bank accounts they will want the bank statements for all the accounts it has been in within those months.

Hi OP, we had cash for our last purchase. Unfortunately the house we loved, which the EA had told us was chain-free, ended up not being - instead of moving in with her daughter as we'd been promised, the elderly owner was moving into a retirement home and there wasn't a flat available immediately. So there were a lot of silly excuses given for delays until we eventually clocked what was going on...

All you can do IMHO is make your position clear to EAs before you view and make any offers come with a timeframe - i.e. we're offering £X,000 if completion happens in 4-5 weeks, dropping to £Y,000 if it takes longer.

Do also get conveyancers that you're confident in to handle your side of the legal bit - we used a local firm recommended by the EA for this purchase and they were CRAP - lots of "we can't send you this document by email because it's very long and we don't have the support staff to scan it" hicksville NONSENSE! For a quick outcome you do need to feel confident that your conveyancers are working for you and to your schedule.

In terms of your tenancy, if you get on ok with your LL then I'd let them know you're looking/have made an offer etc. Most reasonable people will be flexible with notice periods if they can get another tenant in and not lose money.

Overall I'd say that buying a house is inevitably stressful and there's not too much, even with cash, that you can do to completely avoid the stress. I personally wouldn't restrict yourself to probate/chain-free if something you love comes on the market with a small chain - the house itself is more important than the process of buying it, IYSWIM!

It does get less scary the more you do it! You're in a strong position and I wish you all good luck

I’ve completed on a chain free empty properties in two weeks so it is doable. You need a proactive solicitors on either side and don’t serve notice on your rental until you’ve exchanged.

All you need to do is find yourself a solicitor to do the paperwork for you. You’ll also need to find your own surveyor once your offer has been accepted
Great, thank you. We know people in the new area who have bought and sold many times, so will hopefully get some good recommendations.

Probate can take longer than chains, and family members without an emotional attachment to a house can leave you more at risk of being gazumped because they want to maximise their inheritance.
Hmm that's a good (and frustrating) point. I had assumed an empty house would be quickest.

The process is the same for cash buyers, but you can ignore the mortgage application stage and it will be up to you to make sure you do your due diligence (e.g. survey, checking search results) as often problems are identified by the lender refusing the mortgage.
Ah ok, so the bank giving the mortgage would usually identify if any problems in the survey and searches impact the value of the house (so you could try and renegotiate), but as cash buyer this is on you?

I’ve completed on a chain free empty properties in two weeks so it is doable

Music to my ears :)

Do also get conveyancers that you're confident in to handle your side of the legal bit
Are the conveyancers the solicitors who do the searches for problems like boundary disputes? So you find one solicitor and one surveyor and otherwise deal with the estate agent? Are there any more people we need to source?

All you can do IMHO is make your position clear to EAs before you view and make any offers come with a timeframe
That's interesting, I think dh is keen to make offers with a timeframe, although as few properties that tick all our boxes are coming up it's a balance of how long to wait for one. If things are genuinely moving forward slowly we would rather stay here in rented home longer, but don't want to be in a position where we wait and then for whatever reason don't end up getting the house in the end and have to start again.

@GollyParton you don’t need a solicitor/conveyancer to be in the same area as the house. Sometimes it’s easier to use one local to you so you can drop off documents more easily

Basically it’s a long process that can be done quickly with motivated legal teams and buyers/sellers. Although the solicitors often get a bad rap for being ‘slow’ I don’t think that’s particularly fair. Some are genuinely terrible, but many work hard with an insane workload. Searches and information can be slow, and buying a deceased estate is not necessarily quick - answers to queries can take ages or just not be very helpful (because the people selling the house don’t know enough about the house). Our purchase was complicated by the ownership of the solar panels on the roof (they are owned outright but no paperwork was forthcoming - the sellers didn’t realise the importance of the paperwork so didn’t prioritise locating it until I said we wouldn’t be able to complete without it).

That's helpful info, thanks @Flamingolingo.

One thing that has been nice about renting is the ease and quickness of moving, assuming you are in an area with a good supply of rental options in your budget. Buying is a whole new experience for us. Although I guess the benefit is that once you're in, you can stay as long as you like.

It seems the key point is to be clear with the Estate Agent about our desire to complete the process quickly, to try and match with a Seller wanting the same. And that probate houses aren't necessarily quicker than a lived-in house, depending on the motivation and situation of the different Sellers.

I suggest you prepare yourself for the fact that bring a cash buyer does not always put you at the front of the queue. House buying can be a rollercoaster, or things can just sail through, so much depends on where you are looking, how much competition you have, what type of property you are looking at, every sale is different and usually something holds the process up at some point.
You can be upset by not getting a property you really want, or find out the property has a lot more issues that you realised, or have really slow sellers, anything can happen.
Be realistic and hopefully you won’t feel disappointed if things take longer or go wrong.
I’m afraid to say many FTB are unrealistic and some cash buyers think they have the upper hand and it doesn’t always work that way, some houses get lots of offers and the buyers choose who to go with, it’s not always the most money offered or cash buyers, some sellers want a connection with the people who are buying their house so choose based on that, others see it as a business transaction and just want to either move fast or get the most money they can get.
It can be an emotional process and you should be prepared for that (take a look on the buyers/sellers rollcall thread if you want to see how others have progressed).

I have always been a cash buyer, the time can vary considerably depending on where and who you are buying from , the last place was chain free yet took 4 months because the older lady who lived there faffed about moving into her other house and took ages each time she needed to sign anything her end . I took proof of funding ( dated that day ) with me to the viewing and once I had decided I wanted the property and negotiated the price I showed the proof of funding to the EA , my side was up to speed but you can never account for the other side
My preference in purchasing is from auction , at least you know it's yours or not at fall of hammer , usual time from fall of hammer ( exchange ) to completion is 4,5 or 6 weeks but quite often they are willing to push forwards to 2 weeks ( 10 working days ) but these properties do usually require work and it's pot luck if they come up in the area you desire at the right time . Again you will need to show funding at the auction before bidding usually as 10% of the purchase price in readily available money ( bankers draft / debit account )
I don't know about the length of rent notice as I've never rented but usually keep my previous property until I have the next one ready

It can be an emotional process
Yes I'm starting to see this. I can imagine getting emotionally invested in each place we offer on.

We are looking in an area which is very popular, properties go off the market quickly (although checking sold data for places we've liked in the past, it was some time before they were actually sold) and the houses are all older so might be more likely for 'issues' to come up in survey and searches. And there is a limited amount in our preferred price range (although paying more for a 'better' house wouldn't be better for us if that makes sense, the extra things wouldn't be things that we would choose to spend more money on, so whilst we could afford to spend more it wouldn't make us happier with the house).

We will see how it goes with the properties currently on the market that we are seeing, and if no offers accepted I guess we'll have to discuss whether to stay here whilst we continue searching, or widen our criteria. Probably would choose to stay here and continue searching with a time limit.

We're coming to the end of the process as cash buyers. It's been a long process, despite buying an empty, chain free property. Solicitors, surveyors, basically everyone have big backlogs they're only just getting through.

You need to make it clear from the start you want to move quickly. But even with everything in your favour, delays happen.

There are lots of things that can happen outside of your control. Sometimes your offer won't be accepted but another buyer favoured who isn't a cash buyer, due to things such as them selling with the same EA, or all kinds of other things you just can't do anything about.

Things you can do to put yourself in the very best position (and make clear when making an offer that you have done these in advance, so sell yourself as a proactive, knowledgeable buyer)

• have a solicitor ready to appoint
• have your proof of funds ready to show - so evidence of savings in various accounts, plus source of income over 3-6 months
• if you need a mortgage, have one in principle agreed already

Of course some sellers do t want a speedy completion but a very slow one! Be aware of that too.

• don't be the person slowing things down. So always read and respond to requests for info from EA or solicitor on the day it arrives. Aim to turn things around on the day they arrive or to have taken steps necessary in order to make turn around as fast as possible. Get a stock of stamps, large envelopes etc in ready for lots of returning hard copies of documents. Be speedy in pursuing a mortgage if you need one and getting a survey done promptly. Follow up the EA and solicitor rather than waiting for them to contact you.

• Some solicitors work and sell themselves on the basis of speedy working. I used one once who emphasised that sales fall through due to speed issues and that they got double the national average to completion and in half the average time. You can look out for these kind of services. Some will offer certain expedited aspects - you can pay more for extra speedy attention. So many complain about solicitors being like snails, that getting the right ones does seem important. BUT, if the solicitor on the other side is a snail, there are limits to what you can do again.

• be a great and clear communicator. Put everything in an email and ask all questions sooner rather than later and follow up on answers if you need to. Be clear when offering if you require things to be I c,used or to work to a certain timescale. At the same time, do t be an arse and demand stupid, unachievable things. Maintaining contact with the EA after the offer is accepted can be useful too - they will go direct to the seller if needed, whereas the solicitor won't - and sometimes doing this can ensure clearer communication, especially when there seems to be a blockage or problem.

• realise buying takes time and effort. You will have to put things aside so you can do paperwork immediately it arrives and keep track of what's going on. You do need to keep driving things forward and if you don't, it will be slower and there is more risk of things going wrong.

• After all this, there are are no guarantees - things can go wrong and it can all fall-through. So hold quite lightly to the idea of the property because it's not yours or guaranteed until you exchange. Knowing that can mean you feel less outrage and fury if it does go wrong....you shave to be realistic and not let emotion run away with you.

You can communicate the desire to have a speedy transaction all you want to the EA but ultimately they work for the seller and not for you so will spin you whatever tale they want to keep you happy.

When we sold our first house, I was adamant that ideally I wanted to sell it to a couple or young family who were going to live there rather than sell it for a bit more money to someone who was a cash buyer who would most likely either flip it or rent it out. We'd lost out a lot to cash buyers the first time around and wanted to do our bit for karma. You're in an odd position as you're FTBs but also cash buyers so I'd be clear to convey to the EA that you want to make it your family home and it's you and your children who will be living there. I suppose this might also depend what area you're in - we are in SW London and very few people have 500k available to buy a 2 bedroom house whereas if you're looking at a family home for say, 150k that's more realistic to have available given that's like a deposit amount here.

Being a cash buyer frees you from waiting for the mortgage but that's the only thing - searches take as long as they take. I'd say 3 months at least. You can say you want to complete in a couple of weeks but as so much of it is out of your hands it's a pointless claim to me!

Not being in a chain would limit your options for houses greatly, you'd have to look for empty properties or - as a previous poster has already highlighted - properties being sold for probate which come with the hassle of probate already attached! If the property is not empty, they need to find a house to move to and that might be in a chain ...

3 months for the whole thing, not the searches - that looks odd reading it back! Your conveyancer will be able to give you an idea of the searches, some are really quick and others --the council- - can take a few weeks.

When I was a cash buyer the whole process took 7 weeks. The vendor was pushing for 6 but I was waiting for the results of a survey.

I was in rented accommodation and there was an overlap by about two weeks where I owned the new property but was still paying rent. Maybe I could have timed it better but there is always a concern that things might fall through at the last moment. It did give me time to move gradually and clean up etc.

Don’t go for the cheapest solicitor. If they are cheap then they will have a lot of clients, and be busy. I’ve sold two properties in the past two years.

For the first, I used a solicitor who was cheap, in Lancashire. But she sent all letters via the typing pool, and they might take ten days to arrive after she’d dictated them.

Second property I used my local, pricey solicitor, here in the SE.
Everything was dealt with by return of post or email.