SwapKeys.co.uk, the information site on the growing trend towards home and property exchanges as an alternative to the traditional sell and buy routine
FAQ
Q Is the home exchange permanent or temporary? A This is something you need to be very sure on and the intention should be explained on the website you are using. If in doubt, ask and do not forget to use a Solicitor. Q Do I really need a solicitor or can we just meet on the day and swap keys? A You MUST use a solicitor Q Should I use an estate agent as well? A You can, but if you exchange you will probably still have to pay the estate agent their commission under the terms of the agreement you will sign with them. If it is not a "sole-agency" agreement (as effectively this case) they often charge you a higher percentage if they make the sale. It is worth checking. Q Can I swap with people in other parts of the country? A We prefer the term "exchange" but yes you can, it is all down to you and the other person. There is nothing to stop you exchanging a house in London for a castle in Scotland if that is what you both agree on. Q What if the value of the two properties is not equal? A You simply both agree on the valuations of your respective properties and the person with the lower valuation pays the other party the difference. A bit like trading in your car and paying the extra for the new one. Q If the value of our respective homes are roughly equal, does it matter what the valuation is? A The true value will be required by the solicitors in order to calculate any stamp duty required. Unfortunately property exchange is not a mechanism for reducing the burdon of stamp duty. (its the old adage of there being no way of avoiding death and taxes) Q I'm interested in moving abroad, should I still consider a home exchange? A An exchange might still be the best option. A lot of people have moved abroad and for a variety of reasons (health, family etc) are looking to move back. It is really a case of finding the right site for your property and what you are looking for. Q What are the advantages of exchanging my home rather than selling? A The main advantage is that you do not have to pay estate agents fees. Instead you pay a fixed fee up-front. You also won't need to worry whether you are being pressurised to drop your price because the estate agent wants a quick sale so he can have his commission. Q You sound like you "have it in" for estate agents A Far from it. Estate agents provide a valuable service, but is it really as valuable as the charges? I am sure everyone can tell a story about problems or disappointments with estate agents just like any other industry but hopefully by introducing competition and alternative methods of moving home, the estate agents will be "kept on their toes" and improve the service and value for money. Q What if I change my mind? A This is just the same as the buying and selling process. Your solicitor will advise you the point at which you are no longer able to change your mind, usually upon exchange of contracts (different rules apply in Scotland) Q What are the differences in the legal process between England/Wales and Scotland? A This is something you need to discuss with your solicitor, assuming it applies to you.