Many people ask me “what is part exchange?”
Part exchange is trading your home for a new one. Your current home becomes part payment for your new property. Usually house builders take your old home and sell it later. This works similar to trading in your old car when buying a new one.
It’s a powerful option that few fully understand. I’ve seen the confusion first-hand since 2015.
In this guide, I’ll explain exactly how part exchange works. You’ll discover if trading your current home makes sense.
No estate agents.
No viewings.
No chain.
Just a straightforward way to move home without delay.
Want to know if it’s right for you?
Understanding Property Part Exchange
Part exchange started in the 1980s to help house sales and it has grown more popular when the property market slows down.
How It Differs From Normal Selling
You deal directly with one buyer, not many viewers. This means no strangers walking through your home or last-minute cancellations. The timeline shrinks from months to weeks usually.
Traditional sales take 5-9 months while part exchange often completes in 5-10 weeks.
But you won’t get top market price for your home. Builders typically offer 80-90% of your home’s value to cover their risks and costs.
Who Offers Part Exchange
Big building companies run most part exchange schemes. They have the money to buy your home while building your new one.
Companies like Taylor Wimpey and Persimmon lead the market.
Smaller regional builders sometimes offer it too. They might work with special companies that help manage the process for them.
Things to check before choosing part exchange:
- What percentage of market value they offer
- Any age or condition limits on your property
- Extra fees or hidden costs
- What happens if building work gets delayed
Buying and selling a house can be much simpler with part exchange. You avoid the stress of finding a buyer while securing your new home.
How the Part Exchange Process Works
Trading your old home for a new one can be simple. Here’s how part exchange works from start to finish.
You tell a builder you’re interested in part exchange.
The builder checks if your home qualifies for their scheme. They look at things like location, condition, and value compared to the new home. Most builders want your current home to be worth no more than 70% of the new one.
Your basic details go into their system.
This is just the first step.
The builder wants to make sure part exchange is right for both of you. They’ll explain the benefits and any rules you need to know about.
Independent experts will visit your home.
They look at every part of your property to decide its value. This includes checking the size, condition, location, and comparing it to similar homes sold nearby. Most builders get two or three different valuations to be fair.
The process is usually quick.
Valuers take photos and measurements.
They need to see all rooms and outside spaces to give an accurate price. Some builders use online valuations first, but most still send someone to visit in person.
Lorem The builder presents their offer.
This is usually less than full market value, often around 80-90%. The discount covers the builder’s risks and costs of reselling your home. You can accept, reject, or try to negotiate for more.
You get time to think about it.
Most offers stay open for one or two weeks.
If you decide to accept, you move to the next step quickly. The builder will confirm everything in writing so you know exactly what you’re getting. dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.
Paperwork begins for both properties.
Your old home transfers to the builder while your new one transfers to you. This happens at the same time, making the process smoother. The builder often pays for basic legal fees as part of the deal.
Moving day is simpler.
You don’t need to match up with other buyers.
Your moving timeline works around when your new home is ready. This makes planning much easier than in a normal house buying process, which can take months longer.
Benefits of Using Part Exchange
Part exchange can make buying a new home much easier. Here are the main ways it can help you move with less stress.
Financial Advantages
You save money on estate agent fees.
When you part exchange, you don’t pay an agent to sell your home. This saves you thousands of pounds that would normally go to their commission. You also pay less in legal fees as many builders cover these costs or offer reduced rates.
Your moving costs may be lower too.
No wasted money on failed sales.
With part exchange, you won’t lose money on surveys and legal work if a sale falls through. Everything is wrapped into one smooth deal with the builder.
Convenience Factors
You don’t need to deal with home viewings.
This means no more cleaning your house for strangers to walk through. No more leaving at short notice so agents can show people around. No more feedback from picky buyers pointing out little problems.
Your sale is guaranteed.
The builder becomes your buyer.
You don’t have to worry about finding someone who likes your home or can afford it. The builder takes care of all that, giving you peace of mind from the start.
Elimination of Property Chains
There’s no chain to break with part exchange.
When you sell on the open market, you depend on other people selling their homes too. If anyone’s sale falls through, the whole property chain breaks. This affects everyone in the chain.
You won’t lose your dream home.
The risk of being let down vanishes.
Without a chain, you don’t face the stress of wondering if your buyer will pull out at the last minute. Your new home stays secure while others might lose theirs.
Transaction Speed Benefits
Part exchange moves much faster than normal sales.
The average home sale takes months on the open market. With part exchange, you can complete in just weeks. The builder already has systems in place to move quickly.
You skip the slowest parts of selling.
Finding a buyer takes time normally.
This is all handled by the builder, cutting weeks or months off your moving timeline. You move straight to valuation instead of waiting for interested buyers.
Coordinated Moving Timeline
Your move-in date works around you.
The builder coordinates both the sale of your old home and the purchase of your new one. This means the dates line up perfectly, with no gaps where you’re homeless or paying two mortgages.
Planning becomes simple.
You know your timeline in advance.
This lets you arrange moving vans, mail forwarding, and school changes with confidence. The dates won’t suddenly change because of problems with other people’s homes.
Potential Drawbacks and Limitations
Part exchange isn’t perfect for everyone. Before deciding, understand these possible downsides.
Financial Considerations
You’ll get less money for your current home.
Builders usually offer 80-90% of what your home is worth. This means you could lose thousands of pounds compared to selling the normal way. The builder takes this money to cover their costs when they sell your home later.
You can’t bargain much about the price.
Most builders have set prices they offer.
Unlike normal sales where you can talk about the price with buyers, part exchange prices are often fixed. Some house buying companies offer even less than builders.
Property Restrictions
Not all homes can use part exchange.
Most builders have strict rules about which houses they’ll take. Your home usually needs to be worth no more than 65-75% of the new home’s value. Homes with strange features or in bad shape might be turned down.
Where your house is located matters a lot.
Homes in less popular areas often don’t qualify.
Builders want houses they can sell quickly. If your home is near busy roads, businesses, or has other location problems, the builder might say no to part exchange.
Developer-Specific Challenges
Each builder has different rules for part exchange.
Some offer better deals than others with higher prices or more options. Others have strict terms that limit what you can do or include hidden costs they don’t tell you about at first.
Your choices depend on which builder you pick.
Some builders are helpful while others aren’t.
Some builders are known for making part exchange easy while others are bad at talking to you and take a long time. Look up reviews before choosing a builder.
Restricted Property Choice
You can only buy from that one builder.
Part exchange means you can only buy homes that builder is selling. You can’t use it to buy any house on the market or from different builders. This really limits what homes you can choose.
Only new homes are available.
Older houses aren’t available through part exchange.
If you like older homes with character or want to live in certain neighborhoods where the builder isn’t building, part exchange won’t work for you. You can only pick from new homes they’re currently selling.
Market and Timing Factors
Part exchange isn’t always available.
When houses are selling fast, builders may stop offering part exchange. They don’t need to offer it when homes are selling quickly anyway. When houses sell slowly, they might make their part exchange deals better.
You’re stuck with their timeline.
New homes have building schedules.
Your moving date depends on when the new home will be finished. Building delays happen often and can force you to change your plans. Sometimes you have to sell your old home before the new one is ready.
Eligibility Requirements for Part Exchange
Not all homes qualify for part exchange. Here’s what builders look for when deciding if they’ll accept your property.
- Property Type and Condition
- Financial and Value Requirements
- Ownership and Legal Status
- Regional and Developer Variations
Your home must be in good shape.
Builders won’t accept houses with major problems like structural cracks in walls, dampness, or roof issues. They want homes they can sell quickly without spending money on big repairs. Most builders prefer standard houses rather than unusual designs.
Age matters too.
Very old homes might be rejected.
Most builders prefer properties less than 100 years old. Modern homes built in the last 30 years are the easiest to part exchange. Homes with odd layouts or that have been changed a lot might not qualify.
Too much or too little land can be a problem.
Builders like average-sized plots that match other homes in the area. Unusual boundaries, shared driveways, or rights of way issues might cause your home to be turned down for part exchange.
Your home can’t be worth too much.
Most builders want your current home to be worth 60-70% or less of the new home’s value. This means if you’re buying a £300,000 house, your current home should be worth no more than £180,000-£210,000.
Mortgage situations affect eligibility.
Homes with unusual loans might be rejected.
If your home is unmortgageable for some reason, builders probably won’t accept it. You need to have enough equity in your current home to make the deal work for both sides.
Very cheap or expensive homes may not qualify.
Most builders focus part exchange on middle-market homes. Very low-value properties or multi-million pound houses often don’t fit their part exchange programs.
Freehold homes are preferred.
Leasehold properties with short leases often don’t qualify.
If your home is leasehold with less than 80 years remaining on the lease, many builders will reject it. Freehold properties are much easier to part exchange because they have fewer legal complications.
Shared ownership creates problems.
If you only own part of your property through a shared ownership scheme, most builders won’t accept it. The same applies if you have help-to-buy loans or other government schemes attached to your home.
Part exchange varies by location.
Some areas have more restrictions than others.
Builders in London and the Southeast often have stricter rules than those in other regions. Rural properties might face more limitations than suburban homes.
Each builder has their own rules.
What works with one company might not work with another.
Some builders only offer part exchange on certain developments or at specific times of year. The rules can change depending on how quickly homes are selling in that area.
Always check the current policy.
Part Exchange with Major UK Developers
Every big builder runs their part exchange differently.
Taylor Wimpey offers part exchange on most of their new homes. They usually need your current house to be worth no more than 70% of the new one you’re buying. The company sends two local estate agents to value your property and then makes you an offer based on their findings.
They aim to exchange contracts within four weeks. This is much faster than the normal six plus months for regular house sales.
Persimmon Homes has similar rules for their scheme.
Your home must be worth less than 75% of your new Persimmon house. They sometimes offer extra incentives like paid stamp duty or free carpets when you use part exchange.
Barratt Developments and David Wilson (the same company with different names) have the widest coverage. Their part exchange works in almost all UK regions and comes with a moving service to help pack your things.
Here are some other developers to look up:
- Redrow Homes methodology
- Bellway part exchange options
- Berkeley Group high-end approach
Alternatives to Developer Part Exchange
Part exchange usually only works with new builds and with certain companies. Here are the other main options to sell your house…
| Sale Method | Timeframe | Price Range | Fees | Hands-on Level | Additional Notes |
| Cash House Buyers | 7-28 days | 75-85% | None + legal fees covered | Minimal | Quickest most certain sale route |
| Traditional Auctions | 3-4 months | 75-90% | 2-3% + entry fee + legal fees | Medium | Exchange on auction day, in a physical auction house |
| Modern Method of Auction | 3-5 months | 75-90% | 2-3% + entry fee + legal fees | Medium | Online bidding, more flexible completion |
| Online Estate Agents | 4-7 months | 85-100% | Fixed fee i.e. £500-£1000 + legal fees | Very High | Self-manage viewings & marketing |
| Traditional Estate Agents | 6-9 months | 90-100% | 1-3% + VAT + legal fees | High | Regular viewings, negotiations |
| Assisted Sale (with or without cash advance) | ~12 months | 100% + | Mortgage payments deducted + renovation costs | Low | Can have partial upfront payment, buyer handles all refurb costs |
You can learn more about how cash house buyers work here.
How Property Buyers Today Offers Better Value Than Part Exchange
The main issue for people with part exchange is that you do not get full value on your property. But there are also so many types of houses that do not qualify for part exchange.
If you’re happy to accept less than what an estate agent tells you your property is worth, then another hands off approach to sell your home is with us at Property Buyers Today.
Here are some other reasons why so many people choose to work with us…
Speed
Most house sales take months, but we can buy your property in as little as 7 days.
This quick process is perfect if you need to move soon or want to avoid being stuck in a long chain of buyers and sellers. We have the cash on hand so don’t need to wait for mortgages or a chain to collapse.
Guaranteed Sale
Did you know 1 in 3 sales fall through on the open market?
We know how frustrating it is to get 6 months into a process and have a buyer pull out.
When we give you the final price for your house, that’s the amount you’ll get. Guaranteed!
No Costs
You won’t face any costs with us.
We handle all the expenses involved in buying your property, including legal fees and surveys. You get cash in your bank when the sale is complete, and there are no surprise estate agent commissions to worry about.
No Stress Or Hassle
Our team supports you through the whole selling process.
We keep you updated about what’s happening and answer any questions quickly. You’ll always understand what’s going on with your sale and what happens next.
Free Property Valuation
Our property experts will value your house at no cost to you.
They look carefully at your property and check local market prices to give you an accurate figure. This professional service comes with no obligations.
No Viewings Required
Forget about cleaning and tidying for viewings.
We don’t need multiple visits or open houses to make our offer. This means no strangers walking through your home, and no disruption to your daily life.
All Properties Welcome
Whether your house needs work or is in perfect condition, we’ll buy it.
We have experience with all types of properties and conditions. This means you can sell your house to us no matter what state it’s in.
Professional Legal Service
Our expert team manages all the legal requirements for you.
We work with experienced property lawyers who make sure everything runs smoothly, and put your property at the top of their list. This gives you peace of mind that your sale is being handled properly from start to finish.
