Part exchange houses work by allowing homeowners to trade their current property as part-payment for a new build home, with developers purchasing your existing house at 80-90% of market value and deducting this amount from the cost of your new property, creating a streamlined sale and purchase process that eliminates chains and estate agent fees.
Property market data reveals that part exchange schemes offer remarkable time savings compared to traditional house sales, with the process completing in just 4-10 weeks versus the standard 5-9 months for conventional transactions.
Research shows that it takes an average of 50 days to find a buyer in the UK and a further 12 weeks to complete the sale, with almost half of all house sales falling through before completion. Part exchange schemes eliminate this uncertainty, with developers offering between 80-90% of your property’s market value, whilst major housebuilders like Taylor Wimpey, Persimmon, and Barratt Homes report exchange rates where your existing home typically needs to be worth 65-75% of the new property’s price.
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What Is a Part Exchange House Scheme and How Does It Function?
A part exchange house scheme allows you to trade your current home’s value against a new build property, similar to trading in your car when purchasing a new vehicle. The property developer becomes your guaranteed buyer, purchasing your existing house and subtracting its value from the cost of your new home.Â
This arrangement benefits developers by securing guaranteed sales for their new builds whilst providing homeowners with hassle-free transactions without estate agent involvement.
The process works particularly well for homeowners moving up the property ladder who want to avoid the unpredictability of house chains.
Unlike traditional sales where buyers can withdraw up to exchange day, part exchange schemes provide contractual certainty once terms are agreed.
How Part Exchange Houses Work in Practice?
How does part exchange work in practice:
Property Selection and Initial Enquiry
You begin by finding a new property development offering part exchange schemes and checking availability on your preferred plot. Each developer maintains specific criteria regarding which properties qualify for their programmes.
Independent Valuation Stage
Most developers arrange two or three independent valuations of your current property, conducted by local estate agents within 2-3 working days of your application. These valuations determine the anticipated selling price rather than an asking price.
Offer and Acceptance
The developer makes a verbal offer based on these valuations, with acceptance required within 2 working days. This offer reflects a presumed sale within 6-8 weeks and includes all fixtures and fittings.
Legal and Survey Process
Once accepted, solicitors handle contracts whilst the developer arranges surveys for properties over 10 years old. You pay a reservation fee and arrange your mortgage if required.
Exchange and Completion
Contracts exchange within 4 weeks, with a 10% deposit required. You remain in your current home until the new property is ready, completing both transactions simultaneously.
Eligibility Requirements for Part Exchange Schemes
The following table outlines the standard eligibility criteria across major UK developers:
| Requirement Category | Standard Criteria | Additional Notes |
|---|---|---|
| Property Value Ratio | 65-75% of new home price | Maximum part exchange value often £400,000-£500,000 |
| Property Condition | Good structural condition | No major defects, dampness, or roof issues |
| Property Type | Standard construction | Excludes ex-local authority, listed buildings, unusual builds |
| Lease Requirements | 80+ years remaining | Applies to leasehold properties only |
| Geographic Proximity | Local to development | Developers prefer properties in same area for easy resale |
This eligibility framework ensures developers can resell part exchange properties quickly without significant investment in repairs or extended marketing periods. Properties with flat roofs, unusual construction methods, or EPC ratings below E face automatic exclusion from most schemes.
Property Saviour’s Market Insights: What Homeowners Really Experience
Our analysis of property forums reveals fascinating insights about part exchange experiences that developers rarely discuss publicly. Many homeowners report feeling frustrated when developers market their former homes for significantly higher prices than the part exchange offers received.
One Manchester homeowner accepted £250,000 for a property valued at £265,000-£275,000, only to see it marketed at £290,000 within days. However, experienced property investors emphasise that asking prices don’t guarantee selling prices, with many part exchange properties eventually selling for amounts closer to the original offers.
The consensus among property professionals suggests that part exchange works best when homeowners value convenience and certainty over maximising sale proceeds. Several forum contributors highlighted cases where traditional sales took 14 months or failed entirely, making part exchange appear more attractive in hindsight.
Benefits and Drawbacks of Part Exchange House Schemes
Key Advantages Include:
Guaranteed sale with no risk of buyer withdrawal
No estate agent fees or commission payments
Elimination of property chains and associated delays
Ability to remain in current home until new property is ready
Streamlined legal process with reduced complexity
Primary Disadvantages Involve:
Receiving 80-90% of market value rather than full price
Limited choice to new build properties only
Strict eligibility criteria excluding many property types
Geographic restrictions limiting relocation flexibility
Reduced negotiation power once schemes are agreed
How Long Do Part Exchange Houses Take to Complete?
Part exchange transactions complete significantly faster than traditional house sales, with most schemes finalising within 4-10 weeks from initial application. This compares favourably to conventional sales averaging 5-9 months from marketing to completion.
The accelerated timeline results from eliminating buyer searches, mortgage delays, and chain complications that plague traditional transactions. Developers maintain dedicated teams managing part exchange processes, ensuring swift progression through legal and survey stages.
Can You Part Exchange Any Type of Property?
Property type restrictions limit part exchange availability considerably. Most developers exclude ex-local authority properties, listed buildings, leasehold houses, apartments, and properties with unusual construction methods. Additionally, homes requiring significant structural work or those with EPC ratings below E face automatic rejection.
Standard brick-built houses less than 100 years old with conventional layouts offer the best part exchange prospects. Properties must demonstrate easy resale potential, as developers aim to recover their investments quickly through conventional marketing.
Why Do Developers Offer Part Exchange Schemes?
Developers offer part exchange schemes primarily to accelerate sales of new build properties during slower market periods. These programmes guarantee sales for new homes whilst providing developers with additional property stock for investment or resale.
The schemes prove particularly valuable when mortgage lending tightens or economic uncertainty reduces buyer confidence. By eliminating chains and providing certainty, developers can maintain construction schedules and cash flow regardless of broader market conditions.
Alternative to Part Exchange: Property Saviour’s Direct Purchase Service
While part exchange schemes suit many homeowners, they’re limited to new build purchases and carry significant restrictions. Property Saviour offers a more flexible alternative through our direct purchase service, where we buy any house regardless of condition, location, or circumstances.
Unlike part exchange schemes that demand perfect property conditions and specific value ratios, Property Saviour purchases properties requiring renovation, those with complex legal issues, or homes that developers would automatically reject. Our service proves particularly valuable for homeowners facing probate sales, divorce proceedings, or financial difficulties where part exchange schemes aren’t available.
We provide 70-75% of market value with guaranteed completion dates, contributing £1,500 towards legal fees whilst eliminating the uncertainty that affects both part exchange and traditional sales methods.
Part exchange houses work well for homeowners seeking stress-free moves to new build properties, but success depends heavily on meeting strict eligibility criteria and accepting reduced sale proceeds. For those requiring greater flexibility or facing challenging circumstances, alternative guaranteed purchase services often provide more suitable solutions whilst delivering similar certainty and speed benefits.
Sell with certainty & speed
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.Â
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.Â
Sell With Certainty & Speed
- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.Â
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
