In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:
- Buyer A exchanges contracts and puts down a deposit.
- Before completing they agree to sell to Buyer B, typically at a higher price.
- Buyer A “reassigns” the contract to Buyer B.
- Buyer B now has the rights to complete the transaction.
If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.
You also don't have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won't offer a mortgage based on contract reassignment, so it's important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.
We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It's important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.
Can you buy from abroad through contract reassignment?
New build developments are an attractive option if you're overseas and want investment property in the UK.
We give you access to lenders who'll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.
If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we're always happy to talk things through.
