Upgrading Your Property: Buy/Sell or Sell/Buy?

1. Sell First, Then Buy

Selling your current property before purchasing your next one is the safer financial approach. It ensures you know exactly how much money you have for your new purchase and avoids the risk of carrying two mortgages at once.

Pros:
✔ No risk of owning two properties simultaneously.
✔ Clear budget for your next purchase.
✔ No need for bridging finance, making the mortgage process more straightforward.

Cons:
✘ You may need to move into temporary accommodation if you don’t find a new home immediately.
✘ The hassle of moving twice (once to a temporary home and again to your new property).

This option works best if you prefer financial security and don’t mind the inconvenience of a double move.

2. Buy First, Then Sell

Buying a new home before selling your existing one means you only have to move once. However, you’ll need to secure a bridging loan to cover the cost of owning two properties simultaneously.

Pros:
✔ No need for temporary housing.
✔ Less pressure to find a new home quickly.
✔ More time to prepare your current home for sale to maximize its value.

Cons:
✘ Requires bridging finance, which can be costly and complex.
✘ If your home doesn’t sell quickly, you may face financial strain from paying two mortgages.
✘ Uncertainty in how much you will get from your home sale.

This strategy is ideal for those who have strong financial backing and want to avoid the stress of moving twice.

3. Buy and Sell Simultaneously

If you time things perfectly, you can buy and sell on the same day, minimizing the stress of temporary accommodation or bridging finance. However, coordinating settlements can be tricky.

Pros:
✔ No need for temporary accommodation or bridging finance.
✔ A seamless move from your old home to the new one.
✔ Reduced financial risk compared to buying first.

Cons:
✘ Requires precise timing and coordination between both transactions.
✘ Delays on either end could disrupt the process.
✘ Additional legal and logistical complexities.

To make this work, discuss the timeline with your solicitor, real estate agent, and mortgage adviser well in advance.

Get Pre-Approved Before You Act

Once you decide on the best approach, getting a pre-approval from your bank is crucial. This ensures you know how much you can borrow and gives you confidence when making offers.

Get in touch with us today to discuss the best strategy for your situation!