|Losing the plot|
Part exchange occurs where the seller and buyer purchase each other’s properties.
Both properties must be allocated a price which reflects current market conditions. The owner of the less-expensive property pays the other the difference on completion.
This type of transaction will often involve a developer although there is nothing to prevent private individuals entering into such an arrangement.
Developers may have strict requirements before they enter into this arrangement and properties with structural faults are usually excluded.
Sometimes you might not be able to get the best price so do get an independent valuation before entering into this arrangement.
Stamp Duty Land Tax is payable by both parties at the normal rates on the agreed price of your respective purchases.
At Hart Brown we can help with all aspects of the purchase. We remove the jargon and make sure you fully understand what you are buying.