Buying A 3-Bed London Home With Cash
Buying a 3-bed home in London with cash is still ‘king’ and especially at the moment with higher interest rates…
So, what is a ‘cash buyer’…?
A cash buyer is simply someone who completes the purchase (cost of the property, stamp duty, etc!) with cash - money in their bank - without the use of a mortgage.
* Please note that you can’t pay stamp duty with a mortgage - it must be with cash!
You still have to go through the usual process of finding a 3-bed property, putting an offer an a property, have a survey carried out and exchange contracts (as well as many, many other boxes to tick off along the way!)…
Essentially, the only thing that you don’t have to go through is the mortgage process - applying for and being accepted for a mortgage.
3-bed properties with a lease (and most definitely those with a short lease!) typically take longer to purchase than a freehold house…
“Please note that you can’t pay stamp duty with a mortgage - it must be with cash!”
Keep in mind that sellers love cash buyers due to the added security that they bring to the purchase.
There’s a number of things that can go wrong with a mortgage application, which of course aren’t applicable with an all-cash offer and purchase.
Naturally not having to take out a mortgage (and buying with cash!) means that you won’t be paying a monthly mortgage payment, as well as interest on the loan.
Something to think about is that your money will be tied up in the property, at least in the short-term. If you haven’t bought well or you’ve simply bought the wrong property your cash is tied up…
A couple of options are:
Either buy with cash now and take out a mortgage after purchasing with cash. If interest rates are low, this can be a sensible option, as you’re a cash buyer and you have all of the benefits of being a cash buyer, but then you can take money out and have cash readily available again when you take out a mortgage.
You can buy with a mortgage (and not use just cash!), but you could pay a particularly large deposit, which would keep your monthly mortgage payments low.
An all-cash offer is one of the fastest and most effective ways to purchase a 3-bed London home…
Have you ever been tempted to buy a 3-bed home in London with cash, if you could afford to?