House just been valued

Maisie11

Hello,

I need some advice. We have just had our house valued at between £1.1.£1.2 million. We have lived in the house for 9 years. We would like to release some equity to pay for school fees over the coming years. Our mortgage is £280k. Before anyone asks there are some positives in this valuation.

1. The house next door sold in 2 weeks to a person prepared to offer £1.050 (£60K over the asking price). It is a lovely house but does need some work. I can quite see how someone fell in love with it. The sale completed last week. Ours is about third of the size bigger. Because we live in a small road houses dont come up very often. The last house sold in 2006 and people have tended to build extensions rather than move (we did this!)

2. We live in a very pretty road. Treelined and woods front and back.

3. We would like to put the house on the market in March next year with a proposed move in July 08.

4. The estate agent valuing the house actually sold us the house many years ago. I told him not to overvalue as we would know soon enough if he had! Our house is a tricky one to price up as all the houses in the road are different. By and large they are all biggish houses (4-5 beds). We have parking for approx 8 cars and a double garage. Our garden overlooks woodland and is completely enclosed.

5. If we move we would keep our current mortgage at the same value and just downsize slightly but move to a slightly cheaper area. We are currently 5 mins drive from the M25/M40 but you would never believe it.

I know that some people are holding out to see what will happen to house prices but renting is not an option for us. I have emotional attachments to owning a house and we intend to stay in the next one for 10 years plus.

Of course my fear is that buyers will 'mess' us around. Offer a price, then another after the survey and then another just before exchange.

It is not essential that we move, however the school situation makes it difficult. The schools we are looking at get booked up 1-3 years in advance which is why we need to plan now. I know that some will say that private schools are going to take a hit with the credit crunch but I can guarantee that the schools we are looking at never have problems filling their spaces.

So I am thinking. Should we put the house on the market next March and see what happens? I know we will need to apply for HIP. I believe after 6 weeks we will know what is going to happen and then we can decide accordingly. We would plan to have places at schools in both the new and old area but we need to give a terms notice if we dont take them up which would mean by mid April we would need to decide what we are going to do.

I am sorry if this is complex but any advice would be welcome.

GDB2222

Why sell next year, rather than now? Market falling, so surely better to downsize now than when prices have fallen further?

Maisie11

Sadly the school situation dicates that we need to move next year. We would not get a place at the new school half way through a school year ( I have asked!)

Maisie11

Sadly the school situation dicates that we need to move next year. We would not get a place at the new school half way through a school year ( I have asked!)

Doozergirl

If you're downsizing it really is best to sell now. Waiting only applies to you if you were going to rent.

Giving a terms notice is going to be difficult for you. Without knowing that you're definately moving until exchange you have to either take the risk to mve schools first, or have an awkward commute for a while after you've moved.

EDIT: We crossed posts - I think that awkward commute is going to happen whether it's before you can get a place at the new school or after. Financially, I think you're better moving sooner.

The timescales never happen the way you want them to. With the average chain taking three months to move you would actually have to sell your house almost immediately to be able to move on in the timescale you want. The danger is that because you are downsizing that you will actually artificially extend a chain.

lostinrates

Can't your child board from september? (the kind of school that would never be in trouble is almost certain to offer boarding if it is not mandatory!).

GDB2222

Round where we are in London, a half-hour commute to school is the norm. In fact, my son catches a school coach, and it takes around 45 minutes (plus 10 minutes for him to get to the coach).

lostinrates

GDB2222 wrote: »

Round where we are in London, a half-hour commute to school is the norm. In fact, my son catches a school coach, and it takes around 45 minutes (plus 10 minutes for him to get to the coach).

Ah yes, have ust thoutgh of a few 'good' London schools where boarding might not be possible. Making my earlier post possibly redundant:o

dopester

Maisie11 wrote: »

Hello,

I need some advice. We have just had our house valued at between £1.1.£1.2 million. We have lived in the house for 9 years. We would like to release some equity to pay for school fees over the coming years. Our mortgage is £280k. Before anyone asks there are some positives in this valuation.

1. The house next door sold in 2 weeks to a person prepared to offer £1.050 (£60K over the asking price). It is a lovely house but does need some work. I can quite see how someone fell in love with it. The sale completed last week. Ours is about third of the size bigger. Because we live in a small road houses dont come up very often. The last house sold in 2006 and people have tended to build extensions rather than move (we did this!)

2. We live in a very pretty road. Treelined and woods front and back.

I can understand that you may well have good reason to believe the charm, the location and sheer exclusivity of your house and area will keep asking prices high.

Still you should have some guard towards lulling yourself in to wishful thinking or a false sense of reality, and at least be willing to contemplate the new conditions are causing issues at both the lower and top end of the market.

However you might be correct to some degree in certain areas commanding and receiving top money, even as the crunch gets tighter, and proven by the experience of your next-door neighbour (although you've neglected to tell us the approximate date of when that house sold for £60K over the asking price... unless it was 2006 as you imply that was the time the last house sold).

A quick look at Rightmove at the top end of Buckinghamshie, together with my Property-Bee plugin does suggest downward pressures at that end of the market.

Maisie11 wrote: »

Of course my fear is that buyers will 'mess' us around. Offer a price, then another after the survey and then another just before exchange.

Unfortunately this is just a risk for all sellers.

No one here can give you the reassurance you want that you will be offered top money for your house and it will all go through smoothly and quickly.

I suggest pricing is key to avoiding this. If it does happen, you don't have to accept but of course it does cause some misery and wasted time for the seller.

Maisie11

Hello everyone,

Thanks for all your messages. Our son is only 6 so boarding isnt an option. The new area is 50 miles away so again the 'school run' would be a nightmare.

The house next door completed last week and the new owners are now in so it was a very recent sale.

The house hasnt yet appeared on any Land Registry website because the sale was so recent.

We are of course open to offers but this is our biggest asset and bearing in mind we dont have to move our feeling is that we should risk paying approx £500 for the HIP and some legal fees to test the market but if someone gives us a reasonable offer we will not mess around. We are definitely not the sort of family who will hang on and on for the asking price. If the house doesnt sell then we could stay put for a couple of years or so.

I take your point about the pricing, however people are looking for 'a deal'. The estate agent has suggested putting on for £1.2 and then allow our selves to discount so everyone feels that they have negotiated. To be honest we would sell if we were offered £1 million. The estate agent has an excellent reputation around here.

dopester

Maisie11 wrote: »

The sale completed last week.

Apologies - you did give the time-frame. Thanks.

Good luck.