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  • FIRST POST
    • spendingmad
    • By spendingmad 14th Mar 17, 6:49 AM
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    spendingmad
    What's is the best property to buy (for 9 month period)
    • #1
    • 14th Mar 17, 6:49 AM
    What's is the best property to buy (for 9 month period) 14th Mar 17 at 6:49 AM
    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

    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
Page 1
    • AnotherJoe
    • By AnotherJoe 14th Mar 17, 6:58 AM
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    AnotherJoe
    • #2
    • 14th Mar 17, 6:58 AM
    • #2
    • 14th Mar 17, 6:58 AM
    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.
    • sparky130a
    • By sparky130a 14th Mar 17, 7:05 AM
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    sparky130a
    • #3
    • 14th Mar 17, 7:05 AM
    • #3
    • 14th Mar 17, 7:05 AM
    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.
    • Pixie5740
    • By Pixie5740 14th Mar 17, 7:07 AM
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    Pixie5740
    • #4
    • 14th Mar 17, 7:07 AM
    • #4
    • 14th Mar 17, 7:07 AM
    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.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • spendingmad
    • By spendingmad 14th Mar 17, 7:11 AM
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    spendingmad
    • #5
    • 14th Mar 17, 7:11 AM
    • #5
    • 14th Mar 17, 7:11 AM
    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. she wouldnt cause a fuss its the DH that feels bad about it.
    • spendingmad
    • By spendingmad 14th Mar 17, 7:16 AM
    • 482 Posts
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    spendingmad
    • #6
    • 14th Mar 17, 7:16 AM
    • #6
    • 14th Mar 17, 7:16 AM
    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.
    Originally posted by Pixie5740
    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 months
    • spendingmad
    • By spendingmad 14th Mar 17, 7:18 AM
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    spendingmad
    • #7
    • 14th Mar 17, 7:18 AM
    • #7
    • 14th Mar 17, 7:18 AM
    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.
    Originally posted by glasgowdan
    Yes thats right - right to port mortgage and get out of early redemption fee, port again in 12 months time
    • ComicGeek
    • By ComicGeek 14th Mar 17, 7:18 AM
    • 140 Posts
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    ComicGeek
    • #8
    • 14th Mar 17, 7:18 AM
    • #8
    • 14th Mar 17, 7:18 AM
    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.
    • Davesnave
    • By Davesnave 14th Mar 17, 7:20 AM
    • 22,344 Posts
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    Davesnave
    • #9
    • 14th Mar 17, 7:20 AM
    • #9
    • 14th Mar 17, 7:20 AM
    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....
    Working subliminally.
    • anselld
    • By anselld 14th Mar 17, 7:21 AM
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    anselld
    Delay the sale and keep looking for a long-term purchase.
    Anything else would be living up to your username!
    • AnotherJoe
    • By AnotherJoe 14th Mar 17, 7:31 AM
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    AnotherJoe
    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. she wouldnt cause a fuss its the DH that feels bad about it.
    Originally posted by spendingmad
    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)
    • Hoploz
    • By Hoploz 14th Mar 17, 7:36 AM
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    Hoploz
    Buy the do-er upper and sell it later for profit. You will never get your money back on a new build after a short time.

    Or delay the sale.

    Or third option - find a better 'dream home.' if this new estate is still only a plan, you don't know what it's going to end up like. Say the house you're after suddenly becomes 'phase 1' and they decide to squeeze in another row right behind it ..... Etc.

    There's absolutely no way I'd upset the applecart in this way to hold out for the hope of what is in effect an 'artist's impression' painting!

    (To be frank I'd never buy a new build. I need breathing space around me and they are always crammed in surrounded by bricks, even when small developments are done they squeeze too many on the site. Not for me.)
    • sparky130a
    • By sparky130a 14th Mar 17, 7:39 AM
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    sparky130a
    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 months
    Originally posted by spendingmad
    Then abort the sale.

    What makes you think this buyer is unique?

    Any house is easy to sell. A willing buyer at the price specified is all that's required.
    • Pixie5740
    • By Pixie5740 14th Mar 17, 7:44 AM
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    Pixie5740
    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 months
    Originally posted by spendingmad
    Any house will sell if priced correctly. You might get less for the house in 12 months but would the difference between the agreed price today and what it sells for later on be less than the cost of buying another property for 9 months? Yes I suspect it would be.

    Another option is to go back to your buyer and explain that your purchase fell through and then get searching for another dream home rather than a 9 month stop gap.
    Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.
    • getmore4less
    • By getmore4less 14th Mar 17, 7:47 AM
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    getmore4less
    how do you get to £30k costs on a £123k mortgage
    • ComicGeek
    • By ComicGeek 14th Mar 17, 8:00 AM
    • 140 Posts
    • 93 Thanks
    ComicGeek
    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 months
    Originally posted by spendingmad
    I didn't think school catchment areas existed anymore. Would the new build that you're looking at in 12 months time do part exchange? Takes out a lot of the hassle, and probably stilll cheaper than two sets of buying and selling costs.
    • spendingmad
    • By spendingmad 14th Mar 17, 8:04 AM
    • 482 Posts
    • 603 Thanks
    spendingmad
    Buy the do-er upper and sell it later for profit. You will never get your money back on a new build after a short time.

    Or delay the sale.

    Or third option - find a better 'dream home.' if this new estate is still only a plan, you don't know what it's going to end up like. Say the house you're after suddenly becomes 'phase 1' and they decide to squeeze in another row right behind it ..... Etc.

    There's absolutely no way I'd upset the applecart in this way to hold out for the hope of what is in effect an 'artist's impression' painting!

    (To be frank I'd never buy a new build. I need breathing space around me and they are always crammed in surrounded by bricks, even when small developments are done they squeeze too many on the site. Not for me.)
    Originally posted by Hoploz
    It is not your 'bog-standard' new build development and the site is the site - no phase two, not possible. it is a small house builder who build developments of under 20 houses. We have looked at a number of their developments and they are nice, well finished etc.

    We would continue to look for something in the mean time and hopefully find something a bit more unique.
    • spendingmad
    • By spendingmad 14th Mar 17, 8:15 AM
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    spendingmad
    I didn't think school catchment areas existed anymore. Would the new build that you're looking at in 12 months time do part exchange? Takes out a lot of the hassle, and probably stilll cheaper than two sets of buying and selling costs.
    Originally posted by ComicGeek
    Yes, they do round here! We have just been moved from the catchment of a 'outstanding' school to one that is in special measures . That doesnt effect us personally but will have an effect on reselling our current home should we decide to stay.

    I am doing the sums and think it will cost us £5.5k to move (to the do-er up-er

    £1400 stamp duty
    £1250 legal fees (to sell and buy)
    £295 valuation fee
    £500 removals
    £2000 estate agent fees

    Cheaper than renting, providing we sell for same price?

    What other costs have i missed??
    Last edited by spendingmad; 14-03-2017 at 8:43 AM.
    • ProDave
    • By ProDave 14th Mar 17, 8:43 AM
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    ProDave
    The big flaw I see in this plan, is the need in 9 months to sell another house and coordinate that sale with the purchase of the forever home. What if that doesn't sell or the sale falls through? you could lose another forever home?
    • Doozergirl
    • By Doozergirl 14th Mar 17, 8:46 AM
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    Doozergirl
    You've forgotten the cost of selling the do-er upper again

    I'm really struggling with the risk and costs of buying and selling another house versus just staying where you are or waiting for the right house.

    Mortgage companies often give you a bit of leeway time to port to another house as well. We were given six months between selling and buying with this mortgage.
    Everything that is supposed to be in heaven is already here on earth.
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