Selling and having to buy 3 months after due to Early Repayment costs

Biciitalia

Good evening from Naples,

I have a house in the Uk which up until December was being rented out.

It has been empty for 4 months so we decided to sell and move to a bigger city for jobs when we return to the Uk next year however due to the Early Repayment Charge we have to buy a new house within 3 months (will rent this out until our return).

The house we are selling roughly gives us 40000 equity towards our next house which will cost 185000. The question is this - do I put away savings to make up the difference to get a 75 percent mortgage or make overpayments on my current mortgage?

Any tips on making a house attractive to sell would also be appreciated - have had feedback that it wasnt clean - I would be more happy that it had a Moben Kitchen, reclaimed flooring throughout and a new heating system, windows and doors still under warranty etc than that but any tips would be greatfully received.

Cheers

Dave

silvercar

The house we are selling roughly gives us 40000 equity towards our next house which will cost 185000. The question is this - do I put away savings to make up the difference to get a 75 percent mortgage or make overpayments on my current mortgage?

If you reduce the mortgage will you have ERCs on the reduction?

A new purchase is a new lendling decision, so you need to find out the LTV you will need on the new place to get the mortgage. BTL LTV are really low at the moment, some lenders currently have a max 65% LTV.

Any tips on making a house attractive to sell would also be appreciated - have had feedback that it wasnt clean - I would be more happy that it had a Moben Kitchen, reclaimed flooring throughout and a new heating system, windows and doors still under warranty etc than that but any tips would be greatfully received.

The longer it is empty the more it is costing you. Can you justify leaving it empty while you refurb? Give it a good clean and market it, houses are taking a while to sell at the moment.

One thought if you are letting it initially you will need a BTL mortgage. If you are going to move in in months rather than years, it may be worthwhile not letting it and getting a residential mortgage, the rates are lower. It may be even worth paying the ERCs and not buying for a while.

Doozergirl

Clean is the most important thing. Even if it's rough, people are less put off if it's clean and looked after.

Lived in look sells best and a really good look at the market and what is actually selling will help you price it well.

Dirty could mean 'lived in' if it's empty. When a house is empty it need to be immaculate otherwise it will look dirty.