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    • rudebh0y
    • By rudebh0y 6th Sep 17, 8:06 PM
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    rudebh0y
    What options for my mother-in-law ?
    • #1
    • 6th Sep 17, 8:06 PM
    What options for my mother-in-law ? 6th Sep 17 at 8:06 PM
    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?
Page 1
    • hazyjo
    • By hazyjo 6th Sep 17, 8:13 PM
    • 9,507 Posts
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    hazyjo
    • #2
    • 6th Sep 17, 8:13 PM
    • #2
    • 6th Sep 17, 8:13 PM
    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.
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation
    • Corona
    • By Corona 6th Sep 17, 8:49 PM
    • 815 Posts
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    Corona
    • #3
    • 6th Sep 17, 8:49 PM
    • #3
    • 6th Sep 17, 8:49 PM
    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
    • By Red-Squirrel 6th Sep 17, 8:56 PM
    • 1,613 Posts
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    Red-Squirrel
    • #4
    • 6th Sep 17, 8:56 PM
    • #4
    • 6th Sep 17, 8:56 PM
    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?
    Originally posted by rudebh0y
    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
    • By G_M 6th Sep 17, 9:50 PM
    • 41,034 Posts
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    G_M
    • #5
    • 6th Sep 17, 9:50 PM
    • #5
    • 6th Sep 17, 9:50 PM
    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 .
    Originally posted by rudebh0y
    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
    • By rudebh0y 6th Sep 17, 10:08 PM
    • 7 Posts
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    rudebh0y
    • #6
    • 6th Sep 17, 10:08 PM
    • #6
    • 6th Sep 17, 10:08 PM
    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
    • By agrinnall 7th Sep 17, 8:59 AM
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    agrinnall
    • #7
    • 7th Sep 17, 8:59 AM
    • #7
    • 7th Sep 17, 8:59 AM
    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
    • By gingercordial 7th Sep 17, 10:21 AM
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    gingercordial
    • #8
    • 7th Sep 17, 10:21 AM
    • #8
    • 7th Sep 17, 10:21 AM
    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
    • By xylophone 7th Sep 17, 11:00 AM
    • 22,851 Posts
    • 13,207 Thanks
    xylophone
    • #9
    • 7th Sep 17, 11:00 AM
    • #9
    • 7th Sep 17, 11:00 AM
    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
    • By hazyjo 7th Sep 17, 11:13 AM
    • 9,507 Posts
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    hazyjo
    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?
    Originally posted by xylophone

    Not generally advised, although works for some. Read this thread for reasons: http://forums.moneysavingexpert.com/showthread.php?t=5695667
    2017 wins: Opera tickets; film preview; lipstick; Ideal Home Show tickets + afternoon tea & bottle of Champagne; 2 cases of NKD; notebook; bath rack; books; film Premiere; Broadchurch DVDs; lipbalms; hamper (food/wine/Echo Dot/Jo Malone goodies); Avon lippies; cowhide rug; Windsor luxury break, foundation
    • Slithery
    • By Slithery 7th Sep 17, 11:16 AM
    • 159 Posts
    • 182 Thanks
    Slithery
    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?
    Originally posted by xylophone
    Not unusual. What would be unusual is for the sellers to accept the offer from someone who isn't currently procedable.
    • rudebh0y
    • By rudebh0y 7th Sep 17, 11:47 AM
    • 7 Posts
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    rudebh0y
    Not unusual. What would be unusual is for the sellers to accept the offer from someone who isn't currently procedable.
    Originally posted by Slithery
    So you are saying because of her age she wouldn't get mortage. Even though she owns her own house? And I could be guarantor?

    Her ultimate aim is to move house and still be mortgage free. So lender may not be interested in what would end up being a short term loan.

    Looks like selling and having money ready to buy and so no need for lender is best option .
    • TBagpuss
    • By TBagpuss 7th Sep 17, 12:00 PM
    • 5,864 Posts
    • 7,617 Thanks
    TBagpuss
    How quickly do poperties sell in your Mum's area? She could put hers on the market and price it for a quick sale.

    In terms of mortgages,this would depend on her age and income.

    How much could you help out? Te simplest way would be for you to lend her the money to buy the new property, have a private mortgage secured against the new house for the amount you lend, and for her to pay you back once she sells. She would pay the higher stamp duty on purchase buit could claim this back when she sells her house, and as you would be lending her the money not buying the property,you would not have stamp duty or CGT issues.

    It *might* be possible for her to get a small mortgage and for you to make up the balance - she would need advice from her solicitor about how to manage, and she would have to declare to the mortgage lender that you were also lending her money.

    A bridging loan would be likely to b expensive so again, she'd need to think very carefully about the costs and how affordable they are for her, particularly if it took longer than she anticipated to sell her current property.
    • kingstreet
    • By kingstreet 7th Sep 17, 12:02 PM
    • 31,908 Posts
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    kingstreet
    Age determines the maximum term and therefore affordability.

    Where is the deposit going to come from?

    Does she immediately plan to repay the mortgage once the property is sold because mortgage lenders do not like short-term borrowing.

    SDLT surcharge issue already mentioned.

    If this is serious, start looking for an independent broker now from friend/relative recommendations because incorrect lender selection is going to kill this stone-dead.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • rudebh0y
    • By rudebh0y 7th Sep 17, 12:13 PM
    • 7 Posts
    • 0 Thanks
    rudebh0y
    Shes old and has no income but my thoughts were she could maybe get a loan if i guarantee to pay it until she pays off it in full after her house sale . my thoughts were as she has collateral in her house it may be possible. Really don't know enough about these things hence the thread.

    I don't have enough savings to give her to pay outright. I could remortgage my house to get the funds but it's all getting complicated .

    Need to look into how long properties take to sell around her area.

    Thanks again everyone.
    • teddysmum
    • By teddysmum 7th Sep 17, 12:21 PM
    • 8,204 Posts
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    teddysmum
    Bridging loans are not a good idea and are very expensive.


    A friend of my husband took a bridging loan to part pay for the ideal retirement bungalow, to do up, which became available.


    His pleasant , well presented and situated 4 bedroomed house, at a good local price just did not sell, even after he finished work on the bungalow and he and wife moved in.


    He was still working and his wife had a well paid job, but they found the loan unaffordable, so ended up selling the bungalow and moving back to the house. Any profit from improving the bungalow was swallowed up by the cost of the loan, legal fees, moving costs etc.
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