Want to move but struggling to sell your home? What are your options?

Seen the dream/ forever home? Want to go ahead but your property has not sold yet? Had buyers pull out on you at the last moment? Getting chains to tie up in todays property market is very tough. So, if you do not want to wait, here are some options:-

1) Let to buy

This involves remortgaging on a buy to let basis. It could include raising further funds against the property to help with the onward residential transaction. The amount you can raise will usually depend on the potential rental income so do some research online or speak to a local agent to see what can be achieved. As you have lived in the property before, it will probably be classed as a consumer buy to let so you need to ensure the lender is comfortable with this.

2) Keep your property but sell it to a limited company

If you are going to be caught out with the buy to let tax changes, this is an option to consider. If the transaction occurs simultaneously it may avoid paying the higher tier stamp duty on the purchase but there potentially would be stamp duty involved in purchasing it in the company. However, if you are purchasing a property where the value is substantially greater than the one you currently have, the stamp duty saving may be greater than the cost involved in moving it to a company. In addition, going forward you could have the benefits on owing it in a company as opposed to in your personal name which could have its own advantages.

3) Consent to let

If you do not need to raise any further capital and currently have residential mortgage on the property then you could ask your current lender for their consent to let. The will vary from lender to lender. The mortgage lender for your onward purchase may ask for evidence that this has been obtained.

4) Bridging Finance

Some view bridging as an expensive form of finance. However, used properly it can be an excellent form of short term finance and a way of saving a chain & getting into that dream property. With bridging, the key is the exit strategy. If you do not have one, you could be leaving yourself exposed.

5) Auction

If it goes on the day, at least you have some certainty of when the deal will be concluded. Do your research on the auction house, their previous sales record and the average number of lots they usually have. However, if it does not sell on the day or shortly thereafter, then you have a property on your hands that 'did not sell at auction'. Once potential buyers find that out, that may translate in lower offers.

Even if you do keep your property and pay the higher tier of stamp duty for your onward transaction, if you sell it within a certain period of time, you may be able to claim back the extra paid. More information of this is available from HMRC.

Where tax or tax planning is concerned, it is important to get advice for your own situation from a tax professional / accountant. Therefore, if you are considering your options, if may be worth speaking to them so you can understand the various implications.

The contents of this article are for the purposes of general awareness only and not constitute advice. Readers should take appropriate professional advice upon their own particular circumstances. The author does not accept liability for any errors or omissions.