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spendingmad
Posts: 488 Forumite
Help!! Bit of a long story but I want to share the backstory so you have full picture.
We have sold our property, which is a fairly difficult property to sell (large 4 bed detached, tiny garden) for asking price after 3 months on the market. We then lost the 'forever home' we were intending to buy. After a few weeks searching we can't find anything that compares. BUT.....we can not go into rented as we are in a long term mortgage deal which will cost us £30K to get out of :eek:
We have seen a new build property which we really like but the development is not out of the ground yet so likely to be 12 months before house is built so we need to buy something in the meantime. The options are
Small 4 bed detached Bovis new build, 1 of 3 remaining plots on site. 2 ensuites and 'average for newbuild' sized garden £329K with £16500 deposit contribution. To the back of the house is a row of affordable housing owned by the local housing trust. We could move in, our furniture would 'sort of' fit but i am worried about being able to resell quickly and not losing money.
or
3 bed 60's semi detached, the 3rd bedroom is a box room, it needs some decorating/uplift, some of our furniture would need to go into storage, but its £187K.
The decision is new build which is no work and reasonable to live in, or older house which we would need to do work to and major compromise with my 11 yo sleeping in box room
Any views, opinions or advice appreciated
We have sold our property, which is a fairly difficult property to sell (large 4 bed detached, tiny garden) for asking price after 3 months on the market. We then lost the 'forever home' we were intending to buy. After a few weeks searching we can't find anything that compares. BUT.....we can not go into rented as we are in a long term mortgage deal which will cost us £30K to get out of :eek:
We have seen a new build property which we really like but the development is not out of the ground yet so likely to be 12 months before house is built so we need to buy something in the meantime. The options are
Small 4 bed detached Bovis new build, 1 of 3 remaining plots on site. 2 ensuites and 'average for newbuild' sized garden £329K with £16500 deposit contribution. To the back of the house is a row of affordable housing owned by the local housing trust. We could move in, our furniture would 'sort of' fit but i am worried about being able to resell quickly and not losing money.
or
3 bed 60's semi detached, the 3rd bedroom is a box room, it needs some decorating/uplift, some of our furniture would need to go into storage, but its £187K.
The decision is new build which is no work and reasonable to live in, or older house which we would need to do work to and major compromise with my 11 yo sleeping in box room
Any views, opinions or advice appreciated
0
Comments
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With a newbuild if selling quickly you are quite likely to take a loss whereas you ought to be able to sell the 60's house for roughly what you paid for it and minor "work" (decorating?) on it might enhance its value slightly.
11 year old sleeping in a box room for a year as a concern ?- definitively a First World Problem.0 -
So how will that work?
Has your lender agreed to suspend the mortgage? If you're not porting to another property and you don't own the existing property..
Surely you sell the house and pay off the mortgage. That's one hell of an early redemption figure.0 -
When you say you've sold your current home have you actually exchanged & completed or just had an offer? If it's the former I would pull out of the sale or delay exchange until I'd found another dream home. If it's the latter then I would take the older home as I think that would be the least expensive option.0
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Hi Sparky - yes we will port the mortgage to either property. We have £123k remaining on the mortgage so either property will fit the LTV ratio.
Anotherjoe - yes I know what you need re 'firstworldproblem' I think because we were set up to move to something fantastic and now we are saying you are going to live in a cupboard for 12 months. :rotfl: she wouldnt cause a fuss its the DH that feels bad about it.0 -
When you say you've sold your current home have you actually exchanged & completed or just had an offer? If it's the former I would pull out of the sale or delay exchange until I'd found another dream home. If it's the latter then I would take the older home as I think that would be the least expensive option.
Pixie - we have just accepted an offer, but we have had school catchment area changes which will affect house values and sale-ability on top of it already being not the easiest house to sell. The price we have got for it I dont think we would get in 12 months0 -
glasgowdan wrote: »So you need to buy so you can port your mortgage over and not have topay the early redemption fee?
I'm not sure what you mean.
Yes thats right - right to port mortgage and get out of early redemption fee, port again in 12 months time0 -
All that hassle to just do it again in 9-12 months, that's crazy. Assuming that you haven't crazily exchanged on your own house before securing a new house (given the mortgage issue!), why not just pull out of the sale and wait 9 months. Surely that's the cheapest and easiest solution, otherwise you're paying all costs twice.0
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Like Pixie I'm not now so sure either option is great; hence deleting my post.
Factor in the costs of moving twice + the hassle....0 -
Delay the sale and keep looking for a long-term purchase.
Anything else would be living up to your username!0 -
spendingmad wrote: »Hi Sparky - yes we will port the mortgage to either property. We have £123k remaining on the mortgage so either property will fit the LTV ratio.
Anotherjoe - yes I know what you need re 'firstworldproblem' I think because we were set up to move to something fantastic and now we are saying you are going to live in a cupboard for 12 months. :rotfl: she wouldnt cause a fuss its the DH that feels bad about it.
Does he feel £10k++ bad about it which is the amount you could easily lose when reselling a newbuild? Either treat the 60's house as a rental, or swallow the costs of reselling the current house.
To contemplate making such a loss on a newbuild because a child will have to sleep in a box room is ridiculous. It also might be good for the 11 year old that she is actually helping the family out with her "sacrifice". Ever seen Grand Designs or similar, where families live in caravans or at InLaws for a year or two whilst they build their dream house? And your DH is worrying about a box room? Tell him to get a grip, seriously, a new build shouldn't even be on the radar (unless prices are roaring away in your area)0
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