If you are financially set up, and don’t need a quick sale, selling your own home after you buy another property can be advantageous. You can avoid the cost and hassle of having to rent and move twice before buying your next property.

Alternatively, some people find their dream home and simply must have it, so to get the property they must buy the house before they sell. You might want to ask the vendor for an extended settlement so you have more time to sell your own home. This may be ideal for the vendor too, who may be looking for another property to buy.

The major disadvantage of this option is that you don’t know how much your property will sell for and how quickly it will sell. You may be forced to accept a lower price in order to sell the property in time for settlement. If people know that you are committed elsewhere they may play on your fears and offer a reduced price. So, it is a good idea not to tell prospective purchasers that you have bought a property elsewhere.

If you overestimate the price of your home, you may find yourself in financial stress as your new mortgage repayments may be much higher than you expected (or can afford).

If you don’t get your asking price and cannot sell your home in time for the new property’s settlement, you may need to get bridging finance.

What happens if I delay payment to vendor?

The contract of sale will include a completion date, normally 42 days after a contract is signed, and if you have not paid by this date, you’ll be up for interest on the balance outstanding – typically 10 percent a year, calculated daily. However, if you ask your solicitor to contact the vendor’s solicitor they may be able to come to an agreement to extend the terms and/or waive the interest payments.

What happens if I get the jitters and don’t want to get bridging finance and want to ‘pull out’?

You will lose your whole deposit. Also, if the vendor does not attract the same price in a subsequent sale within 12 months, they may sue you for the difference, and for any reasonable costs incurred in the sale. Alternatively, the vendor may sue you for breach of contract.