How a Sale to a Cash-Funded Buyer Works
When a buyer is funding a purchase from their own resources, there is no mortgage lender on their side to approve the loan or value the properties. That removes one of the more common reasons a sale is delayed or falls through. It does not remove every risk: buyers can still change their minds before exchange, and the legal work on a multi-property sale takes time.
The process usually runs as follows. You tell us about your portfolio – the number and type of properties, their locations, tenancies, rental income and any known issues – and we give you a portfolio appraisal: our indicative market view of the portfolio. This is a desktop market appraisal, not a RICS Red Book valuation. If you wish to proceed, you receive our written terms of business, explaining what PSC does, how PSC is paid, and whether PSC or anyone connected to it also acts for or is paid by the buyer. We then complete the usual identity and anti-money-laundering checks.
We introduce your portfolio to suitable investor buyers in our network who have signed a non-disclosure agreement. Interested buyers carry out their own due diligence and, if they wish to proceed, make an offer. If you accept, both sides instruct solicitors and the conveyancing begins. Portfolio sales commonly take several months. Timescales depend on the number of properties, tenancies, lenders, searches and the buyer's funding. A smaller sale to a cash-funded buyer can sometimes move faster, but we do not promise a fixed timescale.
What a Cash-Funded Buyer Can Offer
Fewer Moving Parts
Without a mortgage application or lender valuation on the buyer's side, there are fewer steps that depend on third parties. For a smaller or straightforward portfolio this can shorten the process, although the conveyancing, searches and any lender redemptions on your side still need to be completed.
More Certainty
A buyer who does not rely on lending is not exposed to a mortgage offer being withdrawn or reduced. No sale is certain until contracts are exchanged.
Discretion
A sale to a buyer introduced by PSC does not involve advertising on public portals or boards outside your properties. We handle your information discreetly and share details only with those who need them – such as solicitors, lenders and serious buyers who have signed a non-disclosure agreement. Tenants must be told about their new landlord when the sale completes.
Clear Terms on Fees
How PSC is paid is set out in writing in our terms of business before you agree to anything, including whether any fee is paid by the buyer. You will also pay your own solicitor's conveyancing costs and any lender redemption costs.
Who Are the Buyers We Introduce?
The phrase "cash buyer" is sometimes associated with firms offering very low prices for a quick sale. PSC works differently: we do not buy property, and we introduce your portfolio to investor buyers in our network. These may include:
- Portfolio landlords looking to add tenanted, income-producing properties to their existing holdings.
- Property investors who buy residential property as a longer-term investment.
- Experienced investors interested in properties that need work or have more complex tenancies, priced accordingly.
Before your portfolio details are shared, buyers sign a non-disclosure agreement. You and your solicitor should still carry out the usual checks before exchanging contracts.
Understanding the Price
It is important to be realistic about price. A cash-funded investor will base an offer on the properties, the tenancies, the condition and the return they need. For some properties, an open-market sale through an estate agent may achieve a higher price because it reaches a wider pool of buyers, including owner-occupiers.
When comparing routes, consider the full picture: the price, the likelihood of the sale completing, the time involved, the costs of each route and the effect on your tenants and management. Price depends on the properties, tenancies, condition and the buyer's funding; we will explain how any offer compares with open-market evidence.
If we think another route – such as an open-market sale or auction – would suit your portfolio better, we will say so. The decision is always yours, and you should take independent legal and tax advice before acting.
Considering a Sale to a Cash-Funded Buyer?
Ask for a no-obligation portfolio appraisal. We will give you our indicative market view and an honest opinion on whether this route suits your circumstances.
Frequently Asked Questions
PSC introduces your portfolio to an investor buyer in our network who is funding the purchase from their own resources rather than a mortgage. PSC does not buy property itself. The buyer carries out due diligence and, if they wish to proceed, makes an offer. If you accept, both sides instruct solicitors and the sale proceeds to exchange and completion, with PSC coordinating between the parties.
Often they will. A cash-funded investor prices in the condition of the properties, the tenancies and the return they need, and an open-market sale through an estate agent may achieve a higher price for some properties. Price depends on the properties, tenancies, condition and the buyer's funding; we will explain how any offer compares with open-market evidence so you can decide.
Our network is made up of investor buyers, such as portfolio landlords and other property investors. Before details of your portfolio are shared, buyers sign a non-disclosure agreement. You and your solicitor should still carry out the usual checks before exchanging contracts.
Yes. Many investor buyers are looking for tenanted property and the rental income it provides. Tenancies continue under the new owner, and tenants must be told about their new landlord when the sale completes. Your solicitor and the buyer's solicitor deal with the legal transfer.
How PSC is paid is set out in writing in our terms of business before you agree to anything, including whether any fee is paid by the buyer, and whether PSC or anyone connected to it also acts for or is paid by the buyer. You will also pay your own solicitor's conveyancing costs and any lender redemption costs.