What is house part exchange and how does it work?

House part exchange schemes can be a great way to guarantee a quick and hassle-free property sale. The process is slightly different to selling on the open market with an estate agent, so it may not be something you feel very familiar with. This guide will explain how house part exchange works and explore some of the pros and cons to help you consider whether it’s the right option for you.

House part exchange – how does it work?

Part exchange offers you a guaranteed sale for your current property. The sale will be timed to coincide with the purchase of your new home, offering a quick and easy move.

If you’re considering part exchanging a house, there are two ways you can do it. The first and best-known route is through a new build developer, the second is with a property part-exchange company (also known as a cash home buying company). The process will be similar with both, but eligibility criteria will differ. New build developer part exchange schemes have very strict criteria and are only available when buying selected new build plots. Part exchange through a property part exchange company is a more inclusive option. It will enable you to part exchange your current home whether you’re buying a new build or an older property.

Can I part exchange my house?

Whether you can part exchange your house or not will depend on whether you’re able to meet and accept the criteria for the particular part exchange service you’re interested in.

New build part exchange criteria

For a new build property part exchange scheme, you are likely to have to meet the following criteria:

• Buying a property that is included in a developer part exchange scheme.
• Most new build property part exchange schemes will only consider part exchange if the new build property you’re buying is worth at least 30% more than your current property.
• Your current property will need to meet certain criteria eg. most won’t consider ex-local authority properties.
• Most new build home developers will only consider part exchange for properties in the same geographical area as their development. This means it might not be a good fit if you’re relocating to a new area.

Independent part exchange company criteria

Independent part exchange company criteria are likely to be a lot broader and easier to meet.

• Independent part exchange company is likely to be able to accept any part exchange house as long as it’s mortgageable.
• There will be no conditions relating to the value of the property you are buying.
• There shouldn’t be any geographical conditions on where the house you want to part exchange is.

It’s important to be aware that whether you choose to part exchange your house using a new-build developer part exchange scheme or an independent part exchange provider, you will not receive full market value by part exchanging your property. Like with any other kind of part exchange scheme, you will accept a slightly lower price in exchange for the speed, certainty and convenience.

Should I part exchange my house?

If you choose to part exchange your house, there will be several benefits.

• Part exchange effectively makes you a chain-free buyer. This puts you in a great position to negotiate on your next property, whether that’s in terms of purchase price, getting your offer accepted over others, or securing additional incentives in a new build home.
• Property part exchange offers certainty and peace of mind. There will be no viewings and no hassle. You’ll have a guaranteed sale that you know can complete whenever your new home is ready to move into.
• Part exchange will make sure you don’t miss out on securing your next home. In the current market it takes an average of 7 months to sell a property. It can take a lot longer if you’re part of a property chain. Part exchange eliminates that worry and allows you to secure your new home straight away.

It is important to be aware that a part exchange offer will be below market value, however. This means it won’t be the right option for everyone. It’s important for you to consider your options and think about what’s right for your individual circumstances. If speed and certainty are the most important aspect of your move, part exchange can be a great option.

How do I find out the part exchange value of my house?

Each part exchange provider will work differently, so it’s best to approach individual providers to get a free, no-obligation part exchange offer.

Most part exchange offers will come in at around 80-85% of market value.

Be wary of using an online part exchange house calculator. These will be based on applying a set discount to whatever property value you enter, so the price it gives is unlikely to be accurate. The best way to find out how much you might be offered to part exchange your house is to approach the part exchange company or new build developer directly. They will then carry out an independent property valuation and give you an accurate figure.

Can I part exchange my house for a new build?

Yes, you can part exchange on a new build house.

If the development you’re interested in moving to is running a developer part exchange scheme and both the new build home and your current property meet the house builders part exchange criteria you can choose that option.

If part exchange is not available on your chosen home or your current property does not meet the criteria, you can choose an independent part exchange provider instead.

Timing can be difficult to manage when buying a new home. Any hold-ups on site can delay your moving date by weeks, sometimes months. This can be incredibly frustrating if you need to coordinate the sale of your existing property with the purchase of your new home. Part exchange schemes can be a great way to deal with this uncertainty. A house builder part exchange or independent part exchange company will be able to offer flexibility with completion dates to tie in with when your new home is ready. This means you won’t have to worry about your house sale falling through if your new home is delayed.

Can I part exchange my house for a cheaper one?

Yes you can, if you use an independent part exchange provider.

Most house build part exchange schemes will require you to be buying a property that is at least 30% more expensive than the property you want to part exchange. Independent part exchange providers have more relaxed criteria, which means you can use them to upsize, downsize or move to a property of a similar value.

If you’d like a free, no-obligation part exchange offer, you can fill in your details here.

Find out more about:

• Property jargon buster
• What is house part exchange and how does it work?
• Guide to remortgaging
• Selling a property with a short lease
• Buying a listed property
• Stamp Duty – everything you need to know
• How long does it take to buy a house?
• UK property market predictions: will property prices rise in 2025?
• What paperwork do I need to sell a house?
• Japanese knotweed and other garden ‘red flags’