A challenge of coordination, not an impossibility
Selling your current house and buying a new one at the same time: this is the plan of most owners who move home. And it is often a source of worry. What happens if you sell before you find something? Or if you find something before you have sold?
The good news is that this situation is common and that there are ways to manage it calmly. The key is anticipation and good coordination between the different parties.
The two main scenarios
Selling before buying
This is the safest scenario financially. You know the proceeds of the sale before committing to a purchase. But it means finding a temporary housing solution if you do not immediately find the ideal property. A short-term let, staying with family or friends, or negotiating a longer period before vacating with the buyer.
Buying before selling
This is the scenario that ensures you do not miss the ideal property. But it means financing two properties at the same time for a while, which requires either sufficient own funds or a bridging loan. It is a financial risk to assess carefully with your banker.
The bridging loan: how does it work?
A bridging loan is a short-term loan that allows you to finance the purchase of a new property before you have received the proceeds of the sale of the old one. The bank advances part of the estimated value of the property to be sold, which the borrower repays as soon as the sale is completed.
A bridging loan has a cost: interest for the duration of the loan, and sometimes arrangement fees. It is granted for a limited period, generally one year, sometimes longer depending on the bank. If the sale is delayed, the situation can become tight. That is why it is essential to have a realistic valuation of the property to be sold and a plan B in case of delay.
For the exact terms and applicable rates, consult your banker or a mortgage broker.
Coordinating the dates
Coordinating the dates is often the most delicate point. Ideally, the signing dates of the deeds for both transactions should be aligned. In practice, this is rarely possible to perfection. You therefore need to plan transitional solutions.
A few useful levers:
- Negotiate a longer period before vacating with the buyer of your property, to give yourself time to find and complete your purchase.
- Negotiate a longer signing period with the seller of the property you are buying, to wait for your sale to be completed.
- Plan a temporary housing solution if the dates do not align perfectly.
The role of professional support
In a simultaneous purchase and sale, professional support makes a real difference. An agency that knows the local market well can help synchronise the two transactions, anticipate timescales and find creative solutions when the dates do not align.
YOUHOME supports owners through these complex projects. The aim is to manage both sides of the transaction methodically, to avoid deadlocks and protect the client's interests.
