Found the house I want to buy, haven't sold mine...
Found the house I want to buy, haven't sold mine...
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Gareth1974

Original Poster:

3,481 posts

169 months

Sunday 17th March 2013
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I've been studying the local housing market for many months whilst awaiting a cash windfall from an investment that has just arrived to help fund a move up.

In these months, there hasn't been much on the market in the price range and location I want to buy in, except for one house which looked ideal, but seemed a little overpriced, and a couple of weeks ago it was reduced to a more realistic level.

We went to view it about 10 days ago, and it's exactly what we want, however we only put our house up for sale last week, so at the moment we're just nervously hoping to sell ours before someone else beats us to the house we want. I don't anticipate our house taking a long time to sell as it's well priced and in a popular price bracket, so we might get lucky, but is there anything more proactive I can do than cross my fingers?



scottri

951 posts

212 months

Sunday 17th March 2013
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My uncle accepted a none refundable deposit on his house sale in this scenario. 10k on a circa 450k sale with an agreed end date when the house would be put back on the market. Perhaps you could agree something like this through a solicitor.

Or get a bridging loan if you can afford two lots of payments while your current house sells.

MajorProblem

4,700 posts

194 months

Sunday 17th March 2013
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Drop your house price as low as you can go.

Newc

2,195 posts

212 months

Sunday 17th March 2013
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Taking out an option to purchase as above is worth exploring if the seller will go that route.

Can you get a loan from friends and family ?

If not, then your only other third-party choice will be a bridging loan, in essence a short term mortgage. You will need lots of equity in your current property, good monthly disposable income, and a soft comfy chair to sit down on when you see the rates and fees (well over 15% annualised).

ellroy

7,846 posts

255 months

Monday 18th March 2013
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You mention an investment, most private banks offer portfolio lending against investment assets.

Around 70% LTV and at or around a cheap mortgage rate.

If you've got the funds tied up elsewhere that be worth considering.

Sarnie

8,373 posts

239 months

Monday 18th March 2013
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Gareth1974 said:
I've been studying the local housing market for many months whilst awaiting a cash windfall from an investment that has just arrived to help fund a move up.

In these months, there hasn't been much on the market in the price range and location I want to buy in, except for one house which looked ideal, but seemed a little overpriced, and a couple of weeks ago it was reduced to a more realistic level.

We went to view it about 10 days ago, and it's exactly what we want, however we only put our house up for sale last week, so at the moment we're just nervously hoping to sell ours before someone else beats us to the house we want. I don't anticipate our house taking a long time to sell as it's well priced and in a popular price bracket, so we might get lucky, but is there anything more proactive I can do than cross my fingers?
If your income is sufficient, there is nothing to stop you purchasing the new property whilst waiting for the current one to sell.

Your income would need to be more than the combined two balances when you multiply it by 5. You would still need a deposit and naturally maintain both mortgages until the current one sells.

It's certainly trick but I suppose it depends on how much you don't want to miss out on this property and how confident you are of a quick sale on the current property.

HIS LM

1,357 posts

289 months

Tuesday 19th March 2013
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Gareth1974 said:
I've been studying the local housing market for many months whilst awaiting a cash windfall from an investment that has just arrived to help fund a move up.

In these months, there hasn't been much on the market in the price range and location I want to buy in, except for one house which looked ideal, but seemed a little overpriced, and a couple of weeks ago it was reduced to a more realistic level.

We went to view it about 10 days ago, and it's exactly what we want, however we only put our house up for sale last week, so at the moment we're just nervously hoping to sell ours before someone else beats us to the house we want. I don't anticipate our house taking a long time to sell as it's well priced and in a popular price bracket, so we might get lucky, but is there anything more proactive I can do than cross my fingers?

Yes make an offer to buy at an agreeable price with the vendor on the condition that the property is removed from the market, hopefully yours will sell quickly (if not drop the price) job done

broken biscuit

1,633 posts

231 months

Wednesday 20th March 2013
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We were in a similar, but less rich situation. We wanted / needed a bigger house - kids on way etc. Ours was 99% ready to market - needed a few touch ups etc. We then saw our dream house come on the market as a reposession.
We werent in a financial position to get a bridging loan. Fortunately for us, a relative stepped in, bought the new place, and will sell it to us once ours sells.
The value will have gone up by 20k due to the renovations / repairs I am doing, but thats being used as a family-gifted deposit for us, meaning we dont have to find £15k deposit for the new place.

LeoSayer

7,839 posts

274 months

Friday 22nd March 2013
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How about renting your current house rather than selling it?

Sarnie

8,373 posts

239 months

Friday 22nd March 2013
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LeoSayer said:
How about renting your current house rather than selling it?
I assume he needs the funds out of it to purchase the new house.............

rev-erend

21,623 posts

314 months

Friday 22nd March 2013
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broken biscuit said:
We were in a similar, but less rich situation. We wanted / needed a bigger house - kids on way etc. Ours was 99% ready to market - needed a few touch ups etc. We then saw our dream house come on the market as a reposession.
We werent in a financial position to get a bridging loan. Fortunately for us, a relative stepped in, bought the new place, and will sell it to us once ours sells.
The value will have gone up by 20k due to the renovations / repairs I am doing, but thats being used as a family-gifted deposit for us, meaning we dont have to find £15k deposit for the new place.
Would you not have to pay stamp duty twice though..unless they paid and deeds put in your name.

cailean

917 posts

203 months

Saturday 23rd March 2013
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Sarnie said:
LeoSayer said:
How about renting your current house rather than selling it?
I assume he needs the funds out of it to purchase the new house.............
If the existing house is in a good renting area you could get a BTL mortgage on existing house, rent it and port existing mortgage to new house plus any uplift. If renting is not for you after 6 months or so then sell existing house and pay off BTL mortgage. Of course LTVs and deposits would need to be in an acceptable range for the banks.

Maryben

94 posts

244 months

Saturday 23rd March 2013
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cailean said:
Sarnie said:
LeoSayer said:
How about renting your current house rather than selling it?
I assume he needs the funds out of it to purchase the new house.............
If the existing house is in a good renting area you could get a BTL mortgage on existing house, rent it and port existing mortgage to new house plus any uplift. If renting is not for you after 6 months or so then sell existing house and pay off BTL mortgage. Of course LTVs and deposits would need to be in an acceptable range for the banks.
I thought you could only port a scheme if you are selling the house it is secured on. Lenders would not normally allow a scheme to be ported if you are re-mortgaging to a BTL mortgage on that property.

Gareth1974

Original Poster:

3,481 posts

169 months

Saturday 23rd March 2013
quotequote all
Thanks for the advice from everyone - when I posted this, interest in my house has dried up after a couple of viewings during the first weekend on sale, on Wednesday I decided to lower the asking price by 20k, and since then 5 viewings have been arranged, the first two of those took place this afternoon with both partiesseeming interested, and I've now had an offer of just £2k below asking price from with two more viewings booked tomorrow and another on Monday.

Do with a bit of luck, I won't need to pursue the expensive sounding bridging loan option!

cailean

917 posts

203 months

Sunday 24th March 2013
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Maryben said:
cailean said:
Sarnie said:
LeoSayer said:
How about renting your current house rather than selling it?
I assume he needs the funds out of it to purchase the new house.............
If the existing house is in a good renting area you could get a BTL mortgage on existing house, rent it and port existing mortgage to new house plus any uplift. If renting is not for you after 6 months or so then sell existing house and pay off BTL mortgage. Of course LTVs and deposits would need to be in an acceptable range for the banks.
I thought you could only port a scheme if you are selling the house it is secured on. Lenders would not normally allow a scheme to be ported if you are re-mortgaging to a BTL mortgage on that property.
First Direct don't seem to have a problem with this, other more traditional (not so user friendly?) banks may do.