Struggling with first house sale/purchase & handling overlap
Discussion
Sorry for the boring post but I've gotten rather stuck and could do with some outside advice (or suggestions as to where to get some!)
The problem of course being that the flat could sell in a week, or it could take a year; meanwhile we are fed up with living in someone else's house and not hugely enthused about doing so again (of course we will if there is no other option) - for example my wife is worried about not making friends or having enough to do and would enjoy the prospect of being able to decorate/furnish our new house as a project; but in rented accommodation you can't really decorate and furnishing it would be inappropriate as we could end up in "our proper house" in three months' time!
We can't (to my knowledge) take out a big enough mortgage to cover buying the "proper" house and then simply pay it off early in one lump when the flat is sold because of my poor starting salary. However what I'm curious about is whether banks do offer short(ish)-term large loans to cover this sort of eventuality, in my naivety I thought such a thing would exist. As long as it costs circa what renting would cost us for the same period it's no problem.
Can we take out any sort of loan or mortgage against the flat as collateral? It seems absurd to have the property sitting there worth more than enough money to be getting on with our lives but doing cock all, simply waiting for a buyer.
We have also considered renting the flat out until it can be sold to cover our own rent up north but the idea of someone living in her dad's house does not sit well with Mrs K (which I completely sympathise with).
So is there another option that I have not been aware of? If people have suggestions for good places to speak to for this sort of advice I would also appreciate it - I'm hesitant to simply walk into my bank as I expect they'd try to put me on the most expensive option!
- My wife and I have lived in Herts in rented accommodation for the last 3 years while I've been studying at University.
- Last year my father-in-law passed away & my wife is the sole inheritor of the estate including his flat in Surrey worth approx 320k.
- The flat had extensive problems with damp which are being sorted through insurance and are due to finally be completed in the next week or 2, after which it can go on the market straight away.
- Last week I accepted a dream opportunity paid internship in Warwickshire which starts in the next 2 weeks. The pay is weak the first year but will be fine in subsequent years.
- We want to end up in our own owned/mortgaged house within 10 miles of work, as soon as possible.
- Stay in our current house in Herts and making a 100 mile daily commute until the flat sells (it's not even on the market yet), then buy a place outright in Warwickshire. Not really a serious option.
- Move house to rented accommodation up north, wait for the flat to sell, move again - could be in less than 3 months.
The problem of course being that the flat could sell in a week, or it could take a year; meanwhile we are fed up with living in someone else's house and not hugely enthused about doing so again (of course we will if there is no other option) - for example my wife is worried about not making friends or having enough to do and would enjoy the prospect of being able to decorate/furnish our new house as a project; but in rented accommodation you can't really decorate and furnishing it would be inappropriate as we could end up in "our proper house" in three months' time!
We can't (to my knowledge) take out a big enough mortgage to cover buying the "proper" house and then simply pay it off early in one lump when the flat is sold because of my poor starting salary. However what I'm curious about is whether banks do offer short(ish)-term large loans to cover this sort of eventuality, in my naivety I thought such a thing would exist. As long as it costs circa what renting would cost us for the same period it's no problem.
Can we take out any sort of loan or mortgage against the flat as collateral? It seems absurd to have the property sitting there worth more than enough money to be getting on with our lives but doing cock all, simply waiting for a buyer.
We have also considered renting the flat out until it can be sold to cover our own rent up north but the idea of someone living in her dad's house does not sit well with Mrs K (which I completely sympathise with).
So is there another option that I have not been aware of? If people have suggestions for good places to speak to for this sort of advice I would also appreciate it - I'm hesitant to simply walk into my bank as I expect they'd try to put me on the most expensive option!
Banks used to do Bridging Loans. Open Ended Bridging loans are not recommended, but if you find the house of your dreams may be. Parents did it in the high rate 1980's; nearly crippling, but mum got the house.
Most rentals will be AST at a min of 6 months.
Instead of a daily commute you could get digs and have a weekly commute until the flat sells.
In my limited experience, from offer to completion will take 3 months. You could take less for a quick sale or consider the auction route.
Finally people in the midlands don't think they are up north
Most rentals will be AST at a min of 6 months.
Instead of a daily commute you could get digs and have a weekly commute until the flat sells.
In my limited experience, from offer to completion will take 3 months. You could take less for a quick sale or consider the auction route.
Finally people in the midlands don't think they are up north
AFAIK Bridging loans only continue at sub prime rates.
LTSB (C&G, Halifax) and Nationwide didn't offer them when I asked last year.
I got round it by mortgaging the "old" house, then using that as the deposit on the "new" one, paying it off penalty free when it was sold. The penalty free rate was a little higher than a stand alone mortgage, and the solicitor has 2 sets of fees to rip me off for.
LTSB (C&G, Halifax) and Nationwide didn't offer them when I asked last year.
I got round it by mortgaging the "old" house, then using that as the deposit on the "new" one, paying it off penalty free when it was sold. The penalty free rate was a little higher than a stand alone mortgage, and the solicitor has 2 sets of fees to rip me off for.
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