Part Exchange: Is Trading Your Home Worth It (or Are You About to Pay for Peace and Quiet)?
If you’ve ever been in a property chain, you already know the vibe: everyone’s pretending they’re fine, while quietly spiralling because someone’s buyer’s buyer “just needs one more document” (aka: the chain is held together with hope and a half charged phone battery).
And yes UK property chains collapse a lot. Like, enough that it’s not “rare,” it’s “why do we do this to ourselves?” territory.
So part exchange comes along looking like the grown up solution: you basically trade your current house to a developer and buy their new build in one neat little bundle. No estate agent. No endless viewings. No waiting for Dave at number 14 to finally sign something.
The catch (because there’s always a catch): you’ll usually take 5-15% less than market value for your current place in exchange for speed and certainty.
Let’s talk about what that actually means in real life, not brochure land.
Part exchange, explained like you’re not trying to earn a law degree
Part exchange is basically the “trade in” model you get with cars… but with your actual house.
Here’s the simple version:
- You find a new build you want (a plot on a development that offers part exchange).
- The developer agrees to buy your current home directly from you.
- They give you a value for your home and that amount comes off the cost of the new build.
- You pay the difference (cash/mortgage/whatever your plan is).
The developer is both your buyer and your seller, so the whole chain-y nightmare is dramatically reduced. You’re not waiting on a stranger’s mortgage offer or their sudden decision to “take a gap year and move to Portugal.”
You also skip:
- estate agent fees
- the performance art of “living in a show home” for six weeks
- last minute chain wobble panic
It sounds dreamy. And it can be. But developers are picky. Like “won’t touch a weird roof” picky.
Will you even qualify? (A quick reality check)
Developers aren’t running a charity (shocking, I know). They only want homes they can resell easily and quickly because they don’t want to become accidental landlords of your quirky passion project property.
In general, you’ll have an easier time getting accepted if:
- Your home’s value is about 65-80% of the new build price. (So if the new build is £400k, your home typically needs to be somewhere around £260-£320k-ish. Builders vary, but that’s the vibe.)
- Your property is “normal” construction. Standard brick house? Great. Anything that screams “grand designs episode”? Not so much. Flat roofs and unusual builds often get a hard no.
- Leaseholds usually need a decent lease left often 80+ years.
- You have to already own a home. First time buyers can’t part exchange because there’s nothing to trade.
Location matters too. If you’re in a slow market or somewhere remote, they might reduce the offer… or pass entirely.
Also: each builder has their own rules and timelines and they can be tight. Some want you to accept offers within a couple of days. Which is… intense. Like, “I hope you weren’t planning to think” intense.
The actual process (aka: the part where everything suddenly has a deadline)
While each developer does it slightly differently, the play by play usually looks like this:
1) You reserve the plot + apply
You pick the new build from homes for sale in Hooton and pay a reservation fee (often £500-£2,000) to hold it while they assess your home.
They’ll usually want access quickly for valuations sometimes within a few working days so yes, you may be hoovering at speed and hiding laundry like your life depends on it.
2) They value your home (for a fast resale, not a top dollar unicorn)
The developer typically gets independent valuations (often two). But here’s the thing: they’re valuing your house based on what it’ll sell for quickly, not what it might sell for if you staged it, marketed it for weeks, and waited for someone to fall in love with your “cosy reading nook” (chair in corner).
Then you’ll get an offer… and a very specific acceptance deadline.
Put it in your calendar. Tattoo it on your hand. Do not “circle back” in three days.
3) Surveys + legal stuff (the unglamorous middle)
Once you accept, they’ll do a more in depth survey. If it turns up major issues, the developer can:
- reduce the offer, or
- withdraw completely (depending on the terms)
Meanwhile you’ll be sorting:
- conveyancing
- mortgage arrangements
- paperwork you didn’t know existed until now
4) Exchange + completion (the point of no return)
In many part exchange deals, both sides exchange contracts on the same day. Once you exchange, you’re committed. Backing out gets expensive fast.
One detail people miss: your deposit is often calculated on the difference between the part exchange value and the new build price (not always, but often). Ask your solicitor to explain exactly what you’re paying and when don’t just nod while silently panicking.
Completion depends on whether the new build is finished:
- If it’s ready, you’ll get a fixed date.
- If it’s still being built, completion usually happens soon after it’s signed off (often within about 10 working days of notice).
The good part: you typically stay in your current home until the new one is ready no awkward “where do we live for two months?” rental limbo.
The “sneaky paperwork” bits people argue about later
A few terms that matter more than you think:
Reservation fee
Usually non-refundable unless the developer rejects you under their criteria. If you just change your mind? That’s generally on you.
Retention sum
Sometimes they hold back a small amount (often around £500) until they inspect your old house after you move out. If you’ve left damage or removed something you weren’t supposed to, they can deduct from it.
Fixtures and fittings (aka: don’t start a war over a greenhouse)
This is where people get spicy.
Assume anything “attached” or established could be expected to stay light fittings, built ins, garden structures, certain plants… even things like speakers or sheds depending on what was agreed.
If you want to take it, get it in writing. Not “I mentioned it to the sales guy.” Writing. Email. Paperwork. Something you can wave politely when someone acts confused later.
Let’s talk money: what you save, what you lose, and what might surprise you
The discount: yes, it’s real
In most cases, expect 5-15% below market value for your current home.
- Hot market + easy to sell house? You might be closer to 5%.
- Slower market or “harder” property? 10-15% is common.
That discount is essentially your payment for:
- certainty
- speed
- no chain drama
- the developer taking on resale risk and costs
And no, negotiating is not usually a fun time. Some developers treat their offers as basically final.
If you want a sanity check before you fall in love with a plot, paying for your own independent valuation can be a smart move. It’s not about being dramatic it’s about having a baseline so you don’t accept a lowball offer just because you’re tired.
What you’ll still pay
- Conveyancing (often £1,000-£2,500-ish depending on complexity)
- Stamp duty and here’s the kicker: you typically pay stamp duty on the full price of the new build, not the “difference.”
So if your new build is £400,000 and your part exchange is £300,000, stamp duty is usually based on £400,000. That catches people off guard all the time.
What you might save
- Estate agent fees (often 1.5-3% of sale price)
- The cost (and emotional damage) of endless viewings
- Potential temporary accommodation if timings don’t line up in a normal sale
What can go wrong (because I’d rather you know now than cry later)
Even though part exchange simplifies things, it’s not magic.
The big deal wobblers are:
- Survey issues: structural problems, safety issues, weird unexpected defects. These can change the offer or kill the deal.
- Mortgage problems: if you can’t secure the mortgage you need especially after exchange you’re in a scary spot.
- Deadlines: acceptance windows can be short. Miss one and you can lose the offer (and possibly your reservation).
- Condition/what’s included disputes: this is why we do the boring “in writing” thing.
None of this is meant to scare you just to stop you from walking in thinking it’s all smooth sailing and free prosecco and skipping buyer experiences after the collapse.
So… should you do it?
Here’s my honest take: part exchange is for people who value certainty and speed more than squeezing out every last pound. And that is a totally valid choice, by the way. Peace has a price.
Part exchange is a great fit if:
- you want a predictable timeline
- your home is easy to resell (standard house, standard area, nothing too quirky)
- you’re moving up the ladder and can absorb the discount
- your local market is sluggish and you don’t want to play “wait and see” for months
I’d lean toward selling traditionally if:
- your home is unique and could sell for a premium
- the discount would break your budget for the new place
- you’re in a super hot market where buyers are throwing offers around
- you need maximum flexibility (part exchange can be very “their timeline, their rules”)
In short: part exchange buys you calm. Only you can decide if calm is worth 5-15%.
My “don’t regret this later” checklist (do this before you reserve anything)
If you’re even thinking about part exchange, do yourself a favour and:
- Get your own valuation (even just for confidence).
- Read the developer’s terms like your bank balance depends on it (because it does).
- Get your certificates in order (EPC, Gas Safe, electrical whatever they require).
- Run the numbers honestly, including stamp duty on the full purchase price.
- Decide what you’re paying for: more money, or more certainty.
And if you’re the kind of person who would happily pay a bit extra to never again clean your grout at 10pm because “a viewing might happen tomorrow”… yeah. Part exchange might be your love language.
