Can I buy before I sell? Brain freeze!

ellersb

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Doozergirl

I hate it when I type out a long reply and it goes missing :wall:

Firstly, you'd be mad to buy a house before selling another in this market. Not much is selling and it's hard to put a price on the stuff that does sell. Owning two properties that are falling in value will put strain on you financially and because of the unknowns you'd need a lot of equity in your flat to know that you can raise enough of a deposit and raise enough for a new mortgage on the new house.


If you decide that are indeed mad and have relatives mad enough to buy you a house then they should buy the house in your names. When you sell your flat, you pay off that mortgage and give all the change left over to your relative. Because the mortgage on the flat is paid off you can then raise a mortgage on the new house. When the money comes through, you give it to your relative.

If your relative loves you and trusts you enough to lend you the money to buy an entire house then they'll love you and trust you enough to put it in your name. If they buy it and sell it to you then there's a second set of pointless conveyancing costs to be paid and, if the value is high enough, stamp duty as well which is pointless if they are willing to purchase the house for you in the first place.

You can draw up a deed of trust that says that the money is a loan to you and that you need to pay it back to them.

Honestly though, it's too risky in this market and if it didn't take you long to fall in love with this house it won't take you long to fall in love with another. Anyway, if you do price your flat aggressively, it's entirely likely that you can buy this house the proper way.