PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Parent's dream home

Options
doningtonphil
doningtonphil Posts: 443 Forumite
First Post First Anniversary
in House buying, renting & selling
Hello

My in laws are in their mid 70's. They realise they need to move closer to one of their daughters and they spotted a house they love near us.

They thought all was going well when they put theirs on the market (offers over £185000) and had an offer within 48 hours. They have put an offer in in the house near us they love (its in Scotland)

Unfortunately there buyer has just pulled out so they are back to square one.

They are really keen on the house near us. The house they want is £220000. They have £100000 in cash. Their current house has no mortgage and is valued at £185000.

F.I.L still works and recieves a salary from a company that he owns and is one of 2 directors of.

Apart from waiting for another buyer to turn up in the short term, are there any suggestions about how they can fund the move while their house is still on the market?

What is the view of the 'we buy any house.com' types of company? I appreciate they offer below market value, but how far? Any suggestions for any short term mortgage type schemes that could help them, bearing in mind their circumstances?

Hope you can help

Phil

Comments

  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Options
    There are plenty of threads about these quick sale companies already on the board. The advice is a unanimous, "AVOID!" You're offered less than market value and then just before exchange they usually pull the old switcheroo and drop the price further.

    Your in-laws could look at bridging finance, price the property to sell quickly via an estate agent, or put the property up for auction.
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    Options
    Fingers crossed they'll get another buyer quickly and it'll all come together.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Options
    Duplicate thread:

    http://forums.moneysavingexpert.com/showthread.php?t=5653311
  • doningtonphil
    doningtonphil Posts: 443 Forumite
    First Post First Anniversary
    Options
    Thanks for the rpelies. Yes, the hope is that it will come good in the end.

    I think they assumed that, due to all of the equity in theor exisiting property, they would quite easily get a bridging loan of some sort. However it seem bridging loans are very rare thee days.

    Are there any mortgage lenders/brokers that anyone knows of that specialise in this sort of thing?
  • xylophone
    xylophone Posts: 44,499 Forumite
    Name Dropper First Anniversary First Post
    Options
    F.I.L still works and recieves a salary from a company that he owns and is one of 2 directors of.

    Presumably he has a good working relationship with at least one bank - has he approached a manager?
  • doningtonphil
    doningtonphil Posts: 443 Forumite
    First Post First Anniversary
    Options
    The company has a sparse relationship with the bank (only has the company business account with them and that is all handled by a business centre rather than a specific manager) and it is infact the same branch as where his personal account is. Does anyone have a relationship with a 'bank manager' these days?

    He had a meeting with the bank and they advised there is nothing they can offer (don't do bridging loans, only repayment mortgages available ona reasonably short term so massive monthly payments
  • EachPenny
    EachPenny Posts: 12,239 Forumite
    First Post Combo Breaker
    Options
    Does the company your F.I.L owns have cash sitting around?

    I'm not that good with company law and taxation etc, and I imagine someone else would have mentioned it if it was feasible, but would it be possible for him to take a director's loan until their house is sold?
    "In the future, everyone will be rich for 15 minutes"
  • Hoploz
    Hoploz Posts: 3,888 Forumite
    Options
    We have done what Eachpenny suggests, and borrowed cash from our ltd company short term and paid it back within weeks ... But if they don't have a buyer they have no idea how long it could take for the money to be paid back. Much easier to just stay on the standard track and sell to buy. This is the normal way of doing things and usually sellers will understand this.
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    Name Dropper First Post Photogenic First Anniversary
    Options
    Something that hasn't been raised yet. If your inlaws buy before they sell they will have to pay the higher rate of LLBT. However they will be able to claim it back once they sell the place in England.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    What about all these P2P companies out there? Forget the name but there is at least one that specilaises in bridging loans, someone put a question about that recently in the savings and investments forum.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.4K Banking & Borrowing
  • 250.2K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.5K Work, Benefits & Business
  • 608.4K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards