What options for my mother-in-law ?

rudebh0y · 6 September 2017 at 8:06PM

Hi ,

My mother in law is looking to buy a house a bit nearer us that has come on market recently. She owns her current house but will have to move quickly to secure house. The sale of her house should cover the new one. What are her options ? I was thinking bridging loan but that may be expensive option. I can help out financially if that is an option also . Just trying to find out best / least expensive way for her to move. Anyone been through this before?

hazyjo · 6 September 2017 at 8:13PM

Get hers on the market asap. There will be other houses if she loses this one. I've had sales take up to a year due to various issues with chains, etc. Bridging loans are for very short term periods, not advised for situations like this.

[Deleted User] · 6 September 2017 at 8:49PM

A lower stress option might be to wait until she's sold her house, and plan for her to move into a short term rental property (or even in with you ??) until she finds a house to buy. Although rent may seem like "dead money", this will put her in the position of being a cash buyer and able to move quickly, which is a strong position to be in as a buyer and she may even be able to negotiate a reduction in the price as a consequence.

Red-Squirrel_2 · 6 September 2017 at 8:56PM

rudebh0y wrote: »

Hi ,

My mother in law is looking to buy a house a bit nearer us that has come on market recently. She owns her current house but will have to move quickly to secure house. The sale of her house should cover the new one. What are her options ? I was thinking bridging loan but that may be expensive option. I can help out financially if that is an option also . Just trying to find out best / least expensive way for her to move. Anyone been through this before?

Was she wanting to move to your area before this house came on the market or was it a case of seeing the house and being tempted?

If the latter, I strongly suggest forgetting about the house currently for sale and that she thinks seriously about whether she actually wants to move even if she had never seen this house. The decision to move area should come well before looking at individual properties!

G_M · 6 September 2017 at 9:50PM

rudebh0y wrote: »

Hi ,

My mother in law is looking to buy a house a bit nearer us that has come on market recently. She owns her current house but will have to move quickly to secure house. The sale of her house should cover the new one. What are her options ? I was thinking bridging loan but that may be expensive option. I can help out financially if that is an option also .

1) buy new property using a mortgage (or 2nd mortgage if she already has one).

2) sell current property and buy new one (at delayed timescale)

3) borrow money from you to buy new property (at zero or low interest rate)

4) borrow money elsewhere (bridgng loan) to buy new property (at high interest rate)

5) use her savings to buy property

rudebh0y · 6 September 2017 at 10:08PM

thanks for all the replies,

The problem about selling up first as there is not many come up for sale in our estate. In fact this house is first for a year or so, so she could be renting for a long time.

Also would her age be an issue getting a mortgage, even though she owns her house of similar value. ? Maybe I would have to be guarantor ? It's all of a sudden and as I said would have to move over next few days or weeks to have a chance of property .

agrinnall · 7 September 2017 at 8:59AM

From what you've told us I doubt if the EA for the property she's hoping to buy would consider her proceedable at the moment so probably wouldn't recommend her as a buyer to the seller. And if houses there are as rare as hens teeth they might well have a lot of other people wanting to buy it. I really think selling and renting would put her in a much better position when the next house comes along.

gingercordial · 7 September 2017 at 10:21AM

Bear in mind if she buys this one before selling her existing home she will have to pay the higher rate stamp duty and then claim it back later when she sells, so that will be a cash flow issue to consider.

If you buy it for her (or end up on the deeds in any way as a part owner) it will be a second home for you and no refund available on the sale of her old house.

xylophone · 7 September 2017 at 11:00AM

The vendors of this property may be lucky enough to find a cash buyer /FTB but cannot rely on this.

They would normally accept ( and be resigned to) being part of a chain.

It cannot be that unusual for a person to see a house for sale that he'd like to buy, put in an offer and then get his own property on the market asap?

Perhaps MIL should follow this route and hope for the best as most people must?

hazyjo · 7 September 2017 at 11:13AM

xylophone wrote: »

It cannot be that unusual for a person to see a house for sale that he'd like to buy, put in an offer and then get his own property on the market asap?

Perhaps MIL should follow this route and hope for the best as most people must?

Not generally advised, although works for some. Read this thread for reasons: http://forums.moneysavingexpert.com/showthread.php?t=5695667

Slithery · 7 September 2017 at 11:16AM

xylophone wrote: »

It cannot be that unusual for a person to see a house for sale that he'd like to buy, put in an offer and then get his own property on the market asap?

Not unusual. What would be unusual is for the sellers to accept the offer from someone who isn't currently procedable.

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What options for my mother-in-law ?

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