If you’re not applying for a mortgage loan, a Cash Only House could be an ideal option. We tell you what are the advantages you can get in case you have the economic capacity to buy your house in cash.

How to buy a house with cash

Most people who buy a home in Liverpool do so through a mortgage loan, given the magnitude of the investment. The latter, as you should know, is a loan of an important monetary amount granted by a financial institution, which must be repaid in a certain time on a monthly basis with fees corresponding to the price of the property and adding the interest rate that is set.

However, given the facilities offered by the institution, the final payment is much greater than the amount of the initial credit, due to the same interests and other factors. Therefore, if you have the economic capacity to solve the purchase of your house in cash without hiring any financial institution, but always considering that your economy is not put at risk, you can benefit from different aspects. We tell you why:

Why a cash only house is so appealing

  • You avoid commission and interest charges
  • You can negotiate better prices
  • You can choose your own notary and reduce writing costs
  • You avoid commission and interest charges

The first clear advantage is that you will avoid all the additional charges and expenses of hiring a mortgage loan, such as interest, commissions and insurance. Buying or sell a house for cash will free you from all these charges and therefore will save you a great expense, making the purchase of your house you get at the right price and only having notarial and deed expenses as additional expenses.

You can negotiate better prices

Having the money in hand for the purchase of your house also benefits the seller, since he can obtain his profit immediately, unlike when the purchase is made through a credit. For this reason, the seller will consider your offer more and you will be able to carry out a better negotiation, benefiting you to acquire your property at a better price, as well as the seller when obtaining cash payment more immediately.

What to do in case you want to sell a house with a mortgage in progress?

“I have a mortgage and I want to move house ” or “I want to sell a house with a current mortgage” The sentences in question represent a more frequent doubt than one might think. In fact, over the years, the needs of singles, couples and families can undergo important changes, in terms of increasing the family unit, economic needs or change of residence. Is it possible to sell a mortgaged house? The answer is yes and there are various solutions for selling a house with a mortgage in progress.

How to sell a house with a current mortgage?

If you decide to sell your home but have not yet finished paying your mortgage, you can still sell it but it is not as simple as you might think. In general, you have at your disposal three ways to pay off a mortgage: and to pay off the loan before the sale, to pay off the loan at the same time as the deed, taking over the loan. Although they are all three valid options, they are not always viable. The bank will assess your financial situation very carefully and more. Even the future purchaser of the property will be subject to analysis and in general, the banks are very strict regarding creditworthiness. For these reasons, we advise you to seek advice and advice from industry experts, such as a real estate agency, to avoid making any mistakes and to remain bound in the sale of your property.

Sell a house with a first home loan

Buying a first home allows the buyer to obtain an important tax relief with regard to VAT, with a reduction from 10% to 4% if you buy from a manufacturer, and from 9% to 2% if you buy from a private individual.

If the holder intends to sell the house with a mortgage before 5 years from the purchase, he would be required to pay the amount of tax relief to which he has benefited, to which to add the 30% penalty. To avoid disbursement, the only way to go is to sell a house with a mortgage and buy another one within 12 months. If, on the other hand, the owner wants to sell an apartment with a loan after 5 years, there would be no sum to pay, nor any other type of obligation against him.

Sell a house with a joint loan

The consent of both owners is required to sell a house with a joint loan. The instalments to be paid to the credit institution should be paid with the proceeds from the sale and the difference would be equally divided between the two sellers. Alternatively, you can change the holders of the loan. This allows the old owners to break free from the burdens to hand them over to new tenants. Obviously, it is not a simple operation as it is the bank that accepts the new conditions or not.

Sell home with an unpaid mortgage

Sell House for Cash with an unpaid mortgage could be really problematic. If several consecutive instalments of the loan have not been paid, the bank reserves the right to take over the property itself and subsequently sell it. Obviously, this condition must be expressly provided for in the loan agreement. The bank sold the property, with the proceeds it will be able to remedy the debt and in this case, the mortgage is considered extinct.

Sell and buy a house with a mortgage

If you have found a new home to live in, but you feel constrained by the presence of the loan on the current property, you can follow the simplest route: first, sell the house and with the proceeds extinguish the loan on it. To proceed with this reasoning, it is essential that the sale results in a return at least equal to the residual loan.

If the buyer agrees to pay the amount equal to the residual debt by bank draft, payable to the bank in which the loan is taken out, selling property sales quick with a loan is convenient for both you and him. Once the check has been received, the bank will cancel the mortgage and the property will be free of restrictions. However, sometimes it happens that, even before being able to sell a house, it is possible to find the right property for one’s needs. Not having the liquidity deriving from the sale of the property, you risk being trapped in the sale.