Help!!! Very frightened FTB!!

cosmic_spice

Hey Poppy - thanks for this! to answer your q's its my dream flat as a single person - nope wouldn't be big enough for kids but I don't want to do that for the next 5 years anyway and I would be selling within 5 years. By myself I have 5% deposit (and all money for costs plus 3 months living costs in savings in case of emergency) which family are making up to 15% and taking the requisite stake in the property. We've had it independently valued by two independent estate agents for £30,000-50,000.

Totally get what you are saying re: the brothel next door but its in a conservation are and its a listed building (the whole area is listed) so its really unlikely anything like that could be happening.

MORPH3US

IMHO (which you might not like) the facts speak for themselves a) there is a possibility (no matter how slight) of redundancy b) you are having to borrow(?) money from family to fund the deposit. You should not be buying.

When you say you have savings for 3-4 months worth of mortgage, what about bills and living costs? These don't just stop if you lose your job. Also 3 - 4 months isn't that long to find a job in the current market depending on what you do.... its damn tough out there for a job, there are more applicants per position than ever.

How come you aren't putting your savings towards the deposit?

Also have you factored in for legal costs of buying a house, stamp duty (if it applies) etc

Yes if you let us know what the mortgage v rent payments are too that would help.

silvercar

Even if you paid a 5% deposit, most contracts require you to pay over the remaining 5% should you fail to complete.

I'd be inclined to come to some arrangement over his redemption fees and complete earlier.

brians_daughter

TBH if you could afford the mortgage on 1/2 your salary i am stuggling to see why you cant save the other 5% yourself.

By your own post you say if wage 1/2'ed you could afford £1005pcm mortgage payment, so that surely must mean you can now have over £1000 pcm disposable income, i would save this money- between now and June thats another 5k to the deposit fund.

TBH i would be saving my £1000 pcm and asking him to wait until you have the full 10% deposit yourself, as you have already pointed out you arent comfortable 'risking' families money anyway

cosmic_spice

Firefox - surely that would be an insane response by a vendor to somebody getting made redundant?! How likely to people think that is to happen?

tyllwyd

If it is a private sale, I think the landlord is trying it on - if he decides to market it through an estate agent rather than selling to you, he's going to have to pay a large chunk of fees to the EA, so he's much better off selling to you and not having that hassle. I'd be inclined to talk it over with the solicitor who is doing the conveyancing for you - maybe there would be scope for drawing up some agreement between you & the landlord to cover the period between now & June which doesn't have as big a commitment as exchanging contracts.

cosmic_spice

Morph3us - surely nobody knows 100% that they are not at risk of redundancy in this market? No job is completely safe right now? I haven't been notified I am risk of redundancy or anything like that.

FYI the 3 months living costs are not going into the deposit because if they do I have no emergency fund. this is the way my family want me to do it.

brian's daughter - An extra £5K saved doesn't get me the 15% deposit I need for the mortgage.

cosmic_spice

Sorry - for clarifcation

Morph3us - I have all the money for stamp, legals etc - thats a separate pot

Above I meant that the flat has been valued at 30-50K over the price I'm paying

Tyllwyd - thats exactly the kind of thing I was wondering - the possibilities of a less risky way of committing...thankyou

Fire_Fox

cosmic_spice wrote: »

Firefox - surely that would be an insane response by a vendor to somebody getting made redundant?! How likely to people think that is to happen?

Read WelshWoofs thread and the many 'off plan apartment' threads, it is threatened and it does happen. This is not not only a risk if you get made redundant, it's also a risk if the property market falls and your bank refuses to lend the full amount. Bear in mind that if you fail to complete, the vendor has a sitting tenant (you) which devalues his property, and who probably can't afford to pay her rent as she is redundant.

I am not an expert but as I understand it, once you exchange contracts you are BOTH legally bound to complete. The vendor can't just disappear and sell to someone else if you fail to complete, he is trapped as much as you are. It seems likely that legal action is essential to dissolve the contract.

poppysarah

cosmic_spice wrote: »

its my dream flat as a single person - but I don't want to do that for the next 5 years anyway and I would be selling within 5 years.

independently valued by two independent estate agents for £30,000-50,000.

conservation are and its a listed building (the whole area is listed) so its really unlikely anything like that could be happening.

Millions of people have said "I don't want kids in the next 5 years" and then ended up falling in love and having a baby within a year.

Selling within 5 years? So you see this as an investment because prices will only go up or keep stable for the next 5 years?

Valued a flat at 30-50k but you pay 1k a month rent? Doesn't sound right at all.
Sounds a bargain - but I agree with what someone else said about if you could get a job on half your current wage and manage then you need to save like a looney for a few months and put the whole deposit in.

(You could clear the mortgage quickly and be in an EXCELLENT position)

But it's listed.
Listed. Listed. Listed. There in lies the problem. What issues are going on that he wants you to not find out about.

Can you have a full survey done on the entire building? Does the roof need work? Is there some communal work needs doing? Windows need replacing and in a conservation area that means megamoney.