Part exchange house – How it works

What are part exchange homes schemes?

  • Sell your house in as little as 7 days
  • We'll handle all your fees
  • Absolutely NO obligation

A guide to part exchanging your home & how it all works

Part-exchange services can be really useful if you’re wanting to sell a house quickly in exchange for a house you’d prefer.

People part-exchange their cars all the time. It saves them the hassle and cost of selling privately or via an agent. You can do exactly the same thing with houses. If you’d like to buy a new property and have an older property to sell, you could consider a part-exchange program.

There are many property developers these days that offer this option. Part-exchange programs are said to help people buy and sell property with minimal hassle because you don’t have to put your property on the market yourself or wait around for a buyer.

The property developer is assigned the task of doing the leg work for you. There are, however, a number of factors to consider when deciding if part-exchange is right for you.

Using a traditional estate agent can be a long drawn-out and expensive process, plus there’s no guarantee that a buyer won’t pull out at the last minute, breaking the chain. However, there are other alternatives to part-exchange, such as quick cash buyers.

Part exchange of your house - how it works

Navigating the process of selling a property can often be challenging and uncertain. The reality is that house chains frequently experience disruptions as buyers withdraw, leading to frustration and disappointment.

Consequently, there has been a significant surge in interest surrounding part exchange home schemes in recent years. Opting for a part exchange allows you to bypass much of the uncertainty associated with traditional house sales.

By doing so, you can sell your property swiftly and alleviate a considerable amount of stress when purchasing a new build home. In this comprehensive guide, we delve into the intricacies of part exchange schemes, shedding light on their workings and benefits, enabling you to make an informed decision.

What does part exchange mean?

Buying a part-exchange property means trading in your current property and getting a part-payment towards a new build property. There are a number of property developers offering this option.

They will commission two local estate agents to come and value your property – this will be a selling price and will be around 65% of the market value. Once you accept the offer, a survey will be carried out and, unless any serious issues are revealed, you could complete within around 4 weeks.

What do I need to know about part exchange?

Understanding the intricacies of Part Exchange

When considering part exchange as a selling option for your property, it's important to delve deeper into how this process works. Much like any property sale, the negotiation typically takes place between the seller (you) and the buyer, which, in the case of part exchange, is typically the new build property developer.

The developer agrees on a price to purchase your house, facilitating the smooth sale of their new build property. 

Fair price considerations

Developers often claim to offer a fair price under part exchange schemes, basing it on the current market value of your home. However, it's crucial to recognize that the price you receive is likely to be less than the market value. Remember, developers aim to generate a profit through this scheme.

Their profit potential hinges on two factors: how much they pay for your current house and how much you pay for the new build property. By combining these figures, they can potentially yield a more substantial profit. Typically, you can expect a discount of around 20% from the true market value.

Intricacies of developer's selection process

The developer holds a strong negotiating position and will apply certain rules when selecting which houses they purchase through part exchange. These rules dictate their preferences and criteria for selecting suitable properties.

It is important to familiarize yourself with these rules and understand the parameters within which the developer operates. Further information regarding these criteria can be found below.

By gaining deeper insights into the dynamics of part exchange, you can make informed decisions about whether this selling option aligns with your goals and expectations.

The part exchange valuation process

To initiate the part exchange journey, most developers will enlist the services of two independent estate agents who will conduct a comprehensive evaluation of your home.

This crucial step must be completed before the developer can present you with a formal offer. However, it's essential to exercise caution, as these agents are instructed to provide a "selling" price rather than an "asking" price.

In other words, they will determine the value that the developer can realistically achieve within a few weeks of marketing by selling at a highly competitive price.

Once the developer is satisfied with the valuation of your property, they will extend an offer to part exchange your house. At this stage, you will face a significant decision: whether to accept the overall offer or explore other avenues.

If you choose to accept, you will then need to arrange a mortgage specifically for the purchase of the new build property. provides a useful guide on re-mortgaging, which can be downloaded as a free PDF resource.

It's important to note that any offer made by the developer is subject to a detailed property survey, akin to any other conventional house sale. It is during this phase that the developer may request a reservation fee or deposit from you.

This requirement serves the purpose of demonstrating your commitment as a serious buyer.

By understanding the intricacies of the part exchange valuation process, you can navigate this stage with confidence, armed with the knowledge necessary to make informed decisions about your property transaction.

What is a house part exchange calculator?  

A house part exchange calculator is a valuable tool designed to assist homeowners considering a part exchange scheme.

It serves as a helpful resource in determining the potential financial aspects and feasibility of participating in such a program. Let's delve deeper into its purpose and the reasons why someone might find it beneficial.

A house part exchange calculator is primarily used to estimate the value and potential equity release associated with a property when engaging in a part exchange transaction.

By inputting relevant details such as the current market value of your home, the purchase price of the new build property, and any additional costs or incentives involved, the calculator can provide an approximate valuation and an estimation of the funds you can expect to receive in exchange for your property.

The calculator takes into account various factors including the market conditions, the developer's profit margin, and any discounts applied to the part exchange offer.

It allows homeowners to assess the financial implications of entering into a part exchange agreement and make an informed decision based on the calculated figures.

Having access to a house part exchange calculator offers several advantages. Firstly, it provides a clear understanding of the potential value of your property in the context of a part exchange, enabling you to evaluate whether the offer aligns with your expectations and financial goals.

It eliminates the need for guesswork or relying solely on developer valuations, empowering you to make a well-informed decision. 

As leading property buyers, we buy any home!

How does part exchange of your house work?

Part-exchange schemes are just like any other property transaction, except that the property developer is your buyer.

To be considered for a new-build property, your house must be in a decent condition and worth 65-70% of the new property’s market value.

Two independent estate agents will visit your property to value it. They will decide if the property value is enough for it to be sold on.

Most developers state that they will offer you a fair price and many vendors are happy to accept because it means a hassle-free sale and a brand-new home.

However, it is worth noting that you’ll be limited as to which new-build property you get. They usually have fewer rooms or smaller gardens. There’s no guarantee that your property will be accepted which is why using a quick cash buyer could be an alternative to consider.

We will buy any property, in any condition and will pay up to 80% of the market value of the property. You can then go on to buy any property you like or just use the cash for an alternative project. The choice is yours.

The steps to part exchanging are fairly simple:
  • 1. Get in touch with a developer that offer this service
  • 2. Choose a new home that suits your requirements
  • 3. The developer will then arrange for independent valuations to take place on your property
  • 4. Once they have this information, they'll make you an offer
  • 5. Once accepted your home will be purchased, usually within 8-10 weeks
  • 6. You're ready to move into your new home

Who can part exchange their property?

There are different sets of rules for each developer when it comes to eligibility, however we've put together a list of a few that you usually will be subject to:

  • You must own your home

  • Your property can not be worth more than the one you are looking to purchase

  • The property you are trying to exchange should be worth around 60-70% of the asking price of the property you are trying to buy

  • The location of your property will be a deciding factor

  • They may also reject the house if it is in a bad condition

  • If your home is non-standard construction or has a flat roof it may be rejected

Keep in mind that when you part exchange you won't be offered full market value for your property. It also only typically suits people who are wanting to move up the property ladder, if you are downsizing then you may want to look into alternative options to sell your home as a lot of developers won't accommodate this.

What to look out for when part exchanging your house?

Having explored the process of selling your house through a part exchange arrangement for a new build property, it may seem like a straightforward solution.

However, it's crucial to be aware of potential downsides and exercise due diligence throughout the process. Several aspects of a typical part exchange scheme warrant careful consideration, as highlighted by an article in The Guardian back in 2014.

While a part exchange scheme may appear to be a blessing for those struggling to find a buyer, desiring a chain-free transaction, and aiming to avoid estate agents' fees, it's essential to recognize that developers or builders offering part exchange options have their own motivations and benefits in mind.

The Guardian article emphasizes that the purchase price determination within such schemes is often shrouded in vagueness, leaving sellers uncertain about the valuation process.

To safeguard your interests, it is advisable to conduct your own research and determine the worth of your home independently before committing to a part exchange contract. Seek at least one independent valuation, which can be obtained by engaging a local estate agent to evaluate your property.

It may be helpful to inform the agent of your intentions, as they might charge a nominal fee for their services but provide valuable written insights in return.

Another article by What House? cautions that opting for a part exchange scheme could result in receiving less for your property compared to traditional selling methods.

The independent valuations obtained by the developer are intended to determine a sale price for your home rather than an asking price. As a result, the offer you receive is generally below the market value of your property.

By remaining vigilant and well-informed throughout the part exchange process, you can navigate the potential pitfalls and make informed decisions that align with your financial goals and expectations.

Is part exchanging your home a good idea? The pros & cons

✔ No estate agent fees✖ Sometimes difficult to secure a house repayments against a new build as they can be considered as depreciating in value fairly quickly
✔ Avoid a property chain✖ You are limited as to which property you can choose – usually smaller or with less of an outdoor space
✔ Get a brand-new property✖ No guarantees that your current property will be accepted
✔ Minimal stress process✖ Building might not be completed in the timescale specified, by which time your current property may have been sold
✔ Certain perks such as custom fixtures and fittings or being exempt from stamp duty✖ You won’t get near market value for your property
✖ Developer might not be part of The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute
Completely FREE no obligation cash offer in 24 hours

Part exchange house schemes – What are the rules & how do they work 

Understanding the rules and operations

Participating in a part exchange house scheme typically requires that your current property is in good condition. Developers are interested in acquiring properties that can be swiftly resold, enabling them to realize their profits and maintain a healthy cash flow for future endeavours.

For instance, certain developers may only offer part exchange when the value of the house you intend to trade in does not exceed 70% of the selling price of the plot of land you are purchasing.

It's important to note that each new house developer will have their own specific requirements regarding the value of the property you plan to acquire, so it is crucial to carefully review and understand their detailed guidelines.

Challenges of leasehold properties

Leasehold properties can present challenges within the context of part exchange. Developers may insist that a fixed term, typically exceeding 80 years, remains on the lease. Leasehold properties, often flats but occasionally houses, are owned for a specified period, after which the ownership reverts back to the landlord.

It is worth noting that leasehold properties, especially in the context of shared ownership schemes, have been the subject of controversy in recent years. For further information on leaseholds, the government website offers valuable insights.

It is essential to recognize that each developer offering a part exchange contract will have their own unique terms and conditions, tailored to their specific requirements and preferences.

The valuation stage of your existing property holds great significance. Following the valuation, the developer may reject your property if they anticipate difficulties in selling it.

Furthermore, if the building survey reveals significant issues such as structural faults, your property may also be deemed unsuitable for sale.

It's important to manage your expectations regarding the selling price in a part exchange scenario, as it is highly unlikely to match the full market value of your home.

However, the convenience of avoiding the hassle of selling your property is a key benefit provided by the developer if they agree to accept your house in part exchange.

By familiarizing yourself with the rules and workings of part exchange house schemes, you can make informed decisions and navigate the process effectively, ensuring a smooth and satisfactory property transaction.

Advantages of part exchange house schemes

Selling your home through a developer's part exchange scheme presents several advantages worth considering:

Elimination of Estate Agent Fees

By opting for part exchange, you can bypass the involvement of estate agents and the accompanying fees. Estate agent fees typically range from 1% to 3% of your home's sale price. Saving this substantial amount of money can amount to thousands of pounds, which you can retain for other purposes.

Expedited Selling Process:

Speed is often a crucial factor in house sales, and part exchange offers a swifter process compared to traditional routes. Additionally, with part exchange, you directly engage with the ultimate buyer—the new build developer. This direct interaction can streamline the negotiation and transaction process, ensuring a timely sale.

Minimised Property Chain Complications:

Part exchange minimizes the frustration associated with property chains. You no longer have to endure the agony of being informed that a potential buyer, whom you never met and had no influence over, has withdrawn from the transaction, leading to the collapse of your house chain. With part exchange, the reliance on external buyers is eliminated, reducing the chances of chain-related complications.

Simplicity and Chain-Free Transaction:

Opting for part exchange offers a simplified selling process, free from the constraints of a property chain. You can avoid the complexities and uncertainties typically associated with coordinating multiple transactions. Assuming the developer agrees to purchase your house, the most exciting aspect is that you will eventually move into a brand-new property at the end of the process.

We'll buy your house in 7 days!

Part exchanging your house - a better alternative

If you prefer to avoid the intricacies associated with a developer's part exchange scheme, there are alternative methods to expedite the sale of your property. While part exchange schemes offer benefits, it's important to acknowledge their limitations as well.

A highly effective alternative is to seek out the right property buying company. It's worth noting that not all property buying businesses are created equal in terms of guarantees, quality, and service.

The Property Buying Company, as a professional house buying company, can be a reliable solution if you desire a quick and hassle-free sale, bypassing negotiations with a housing developer.

Regardless of the condition of your home, we are prepared to make you an offer. Our home buying process is designed to be straightforward, ensuring a smooth and rapid sale experience. We prioritize communication and keep our customers informed at every stage of the buying and selling process.

With over 20 years of experience in buying properties directly from homeowners, The Property Buying Company has demonstrated a steadfast commitment to customer service. When you choose to sell to us, we deliver on our promises without making false assurances.

Our dedicated team ensures you are fully informed throughout the sale, right up to completion. We go the extra mile to make the process as stress-free as possible, offering you peace of mind during this significant transaction.

By exploring the option of cash fast property buyers like the property buying company, you can benefit from a streamlined selling process, regardless of the condition of your property. With a focus on exceptional customer service and a track record of fulfilling commitments, we provide an alternative avenue for achieving a swift sale while avoiding the complexities associated with a developer's part exchange scheme.

Exploring a viable option

Although part-exchange schemes offer a seemingly stress-free property sale and a brand-new home, there are other options. If you want to sell your property quickly and aren’t necessarily interested in your onward property being a new build then a quick cash buyer, like The Property Buying Company, could be the right choice. 

Although it isn't the case with all of them, a lot of these large development companies that offer a part exchange scheme often offload and sell the properties they purchase to companies such as ourselves, acting as a middleman - so you can imagine the margin that they make when it comes to offering on your property.

If a quick sale is what you are interested in, then it's definitely worth having a chat with us as well! 

We’ll buy any property, in any condition for cash, in as little as 7 days! It's both quicker and easier than part exchanging. 

You’ll receive a cash sum that you can use towards a new home or to fund a totally different project, you won't be limited to buying with just that developer. 

The choice is yours, but all fees are included in the service so what we offer you is what you’ll receive. Plus, we can help you move if you need that additional support. Get a hassle-free service so you can get back to the important stuff. Get in touch with a member of our team today on 0800 024 8444

Part Exchanging FAQs

Do developers pay stamp duty on part exchange?

If the developer plans to sell on the part exchanged property then they do not need to pay stamp duty.

Can you do a part exchange with a help to buy?

No, the help to buy scheme is only available to first time buyers who don't own another property and in order to part exchange you need to own the property to do so.

Is part exchanging your home a good idea?

If you are looking for a quick move and want to buy a new build then part exchanging does make sense as there's no getting caught in a property chain.

Is part exchanging your home worth it?

It depends, for ease and speed then yes, however developers will typically offer you lower than what your property is worth or you'll end up paying over the odds for your new one in order to cover the costs they incur by having to deal with your property. If you are willing to part with some of your equity then it could be a worth while option to explore.

Want to sell in 7 days?we'll buy your home!