A recession success story...

bendix

Right. OK.

So in other words, you haven't sold your house at all.

I tell you what, if it makes you feel any better, I'll outbid the current offer and give you £300,000 for the place. Do you accept my offer?

We can talk about the pesky details like me handing over the money at a later date. In the meantime, go and enjoy it.

kennyboy66_2

bendix wrote: »

Right. OK.

So in other words, you haven't sold your house at all.

I tell you what, if it makes you feel any better, I'll outbid the current offer and give you £300,000 for the place. Do you accept my offer?

We can talk about the pesky details like me handing over the money at a later date. In the meantime, go and enjoy it.

In Scotland. once the missives are concluded (and the offer is the first missive) then the contract is legally binding. The best approximation is exchanging contracts in England.

So saying "you haven't sold you house" is a bit like saying the deals only done when you have withdrawn £247k out of the cash point.

mitchaa

bendix wrote: »

Right. OK.

So in other words, you haven't sold your house at all.

I tell you what, if it makes you feel any better, I'll outbid the current offer and give you £300,000 for the place. Do you accept my offer?

We can talk about the pesky details like me handing over the money at a later date. In the meantime, go and enjoy it.

As said above by Kenny, its as good as sold due to the legal protection of the Scottish system. It has its downpoints, but seller protection has always been a big advantage of the housing market in Scotland.

Thrugelmir

mitchaa wrote: »

We are only 26, so not ready to downsize for a good 40yrs yet. The wife has another 2 children planned for the future so need a nice family home. Not that we didn't have 1 before, but it was time to move on as we needed to start thinking about schooling catchment areas etc and being stuck out in the sticks leaves you with restricted choices. Its also a bug*er having to get in your car just to go and buy a newspaper.

Looking at maximum of £400k, minus the £100k inheritance - £77k equity - £20k in savings, leaves us with borrowings of around £215k or so, so pretty much where we started off meaning our monthly premiums should actually go down rather than where they are at the moment. (Better LTV)

In Scotland when an offer is made, it is legally binding so yes pretty much done and dusted. The offers over system is a little confusing just now, it used to be 20% over the OO price. We had our house valued at £255k and the EA advised us to put it on the market for OO £255k to try and get close to it as possible. Yesterday morning we received an offer of £240k, refused and said the minimum we would go to was £250k, they counter offered with £247.5k and that was that, took about an hour all in. (Would have dropped to £245k if they'd pushed)

We needed a home report to sell yes and this included the valuation for the buyer. When/If we buy again, we would not need to fork out for a valuation on the new property as its covered in the sellers home report and is good enough for all the mortgage lenders. Although it's a pain in the !!!! at £500 or so, it saves the hassle of numerous valuations. Not sure if it's the same in England? I heard you have home reports but you need an independent valuation carried out by the mortgage company?

We are pleased but it looks like a xmas move, bloody typical.

You've grossed a £32.5k profit on the transaction. Guessestimating at the costs you would incurr, purchase costs of your existing property say £4k, sales costs £5k and the purchase of proposed new property £9k and the ERC £5k. That totals £23k. So allowing for mortgage interest incurred so far, the actual profit you have made is negible.

Hence why I suggested downsizing. The time to trade up is when prices have fallen not at peaks.

inspector_monkfish

its only a success story, because you are fortunate enough to have inherited £100k !!

mitchaa

Thrugelmir wrote: »

You've grossed a £32.5k profit on the transaction. Guessestimating at the costs you would incurr, purchase costs of your existing property say £4k, sales costs £5k and the purchase of proposed new property £9k and the ERC £5k. That totals £23k. So allowing for mortgage interest incurred so far, the actual profit you have made is negible.

Indeed yes, but ill be barely out of pocket either.

ERC will not apply if we port the mortgage, but the biggy here is the 3% stamp duty that we would be liable for which further eats into any profit made.

£32,500 profit - £12k SD - £8k legal/selling/buying/moving costs and there's only £12k or so left. I suppose you could whittle down further and include my 1st set of purchase/legal costs and the interest paid on the mortgage in the 30mths or so since purchase and i'd sure be into a negative figure but hey, imagine the £32.5k buffer was not there but in fact the other way, then it would have cost us a lot of the inheritance received to move anywhere.

Thrugelmir

inspector_monkfish wrote: »

its only a success story, because you are fortunate enough to have inherited £100k !!

and be wise in how you utilise it.....

mitchaa

Thrugelmir wrote: »

and be wise in how you utilise it.....

The reason for my thread.

I could potentially have £190k or so sitting in a bank account earning interest and renting, or it could be all thrown back into housing in order to move more central.

I have my doubts about rebuying but its the wife that is like a bull in a china shop. Full steam ahead at the moment, afterall, it is her inheritance, not mine.

HAMISH_MCTAVISH

mitchaa wrote: »

As said above by Kenny, its as good as sold due to the legal protection of the Scottish system. It has its downpoints, but seller protection has always been a big advantage of the housing market in Scotland.

It is indeed, the English seem to have a hard time grasping the way the Scottish legal system works, and the fact that agreements up here are legally binding.

Anyway.... A couple of points, I see you are looking at Hilton and Westhill. Two VERY different areas!!!!! With very different School options for kids.

As for STR, we know Aberdeen's market was highly seasonal for the last 2 years, and purchasing in Dec/Jan could be 10% cheaper than purchasing in summer if that repeats.....;) Might be worth a 6 month punt in rental with a view to buying in January/February no matter what?

The downside potential is quite large though, if it doesn't work out, can't find the right place, get delayed until spring, etc, you could be down by 20K or more over just buying now.

Tough call. I'd probably buy now, as I don't think the winter falls will be as big this year as last, and I think next spring's bounce will be a big one. But I would delay completion and handover as long as possible to try and get a purchase as close to Dec/Jan as possible.

Thrugelmir

mitchaa wrote: »

The reason for my thread.

I could potentially have £190k or so sitting in a bank account earning interest and renting, or it could be all thrown back into housing in order to move more central.

I have my doubts about rebuying but its the wife that is like a bull in a china shop. Full steam ahead at the moment, afterall, it is her inheritance, not mine.

There was always the option of sitting tight and discharging your existing mortgage. As if you say prices may well stagnate locally. Why rush?