Help! Just about to loose 26k on deposit on new flat - advise please

LeeSouthEast

My salary is higher than yours and the most the bank will give me (granted I've only seen one) is £170k...

simyboye

GMS and haras,
Many thanks for your help so far.
GMS, you've been to the point and thank you. I've been a complete idiot with regards to this. I thought investing would be safer. The investors I went with negotiated discount hence why I went with them, the equity in them once built... but like you say, my solicitors didn't warn me. Its all making sence now.

And recession or not, I would never get a mortgage... I feel like this has been a complete scam and I got sucked in and about to get blended in a liquidiser.

It gets worse because I have another flat I've put a deposit down on in bradford.

haras_nosirrah

what is the situation with the bradford one? Have you exchanged? What deposit, value, mortgage needed, purchase price etc.

simyboye

Bradford - New Flat
16k dep
68k purchase
99k value

GMS

simyboye wrote: »

GMS and haras,
Many thanks for your help so far.
GMS, you've been to the point and thank you. I've been a complete idiot with regards to this. I thought investing would be safer. The investors I went with negotiated discount hence why I went with them, the equity in them once built... but like you say, my solicitors didn't warn me. Its all making sence now.

And recession or not, I would never get a mortgage... I feel like this has been a complete scam and I got sucked in and about to get blended in a liquidiser.

It gets worse because I have another flat I've put a deposit down on in bradford.

What is the plan for Bradford? I assume Buy to Let as you are looking at residential in London.

Same situation there I am afraid, new build flats and Buy to Let do not mix at present.

Did you not seek any mortgage advice before this? Never ceases to amaze me. Potentially the most important/biggest purchases of peoples lives and they treat it like putting a deposit on a pair of shoes.

There is a Mercedes I like the look of in the dealers. I can do the deposit by putting my car in but have so far resisted the urge as I cannot afford the payments. Seems simple to me.

haras_nosirrah

Ok

with the Bradford one if the values are as they say...

Up it to a 17k deposit - you should be able to get the mortgage on this one. Sell immediately to release the 31k equity (although you probably won't get 99k - prob closer to 90k as people make offers. With the deposit and your equity you would have £35-40k after taking sales costs into account use this on the London one. You would then have a 61-66k deposit (25%) on the London one and although you would still need help with a second person on the mortgage your chances would be better.

It is a big IF though if the Bradford one is worth what you say. Check rightmove for other properties as the key would be to sell ASAP.

You need time from the developer for the London place. This is the only way round it I would see but is a complete long shot.

simyboye

Well, I was advised to get edgware sorted first then look at bradford. But now due to lack sound advice and me not thinking this one through will look to get bradford as a 2nd residential home.
But I will still have the same problems with bradford wont I? Only it will be a smaller deposit.

simyboye

Guys, I really appreciate your help here. Truely I do.
Is there anyway I can drag out on the Edgware development? Its going to be tight as a tight thing with bradford.

haras_nosirrah

the key difference between bradford and edgeware is that the mortgage is possible at bradford owing to you (with a 17k deposit) having 25% deposit. This as well as it being 1.6 times income means that it will be possible (as long as credit score is ok) to complete on this one. You must then sell immediately to release the equity to help you get Edgeware. Put Bradford down on a residential mortgage (if you haven't completed you won't own another property) and do not rent it out or anything - you must sell!!!

You will not be able to get Edgeware sorted without releasing the equity from the Bradford one by selling it.

haras_nosirrah

if selling bradford first (and you will have to price to sell) is possible you might be able to go to the developers with the figures (you will still need a 2nd person on the mortgage there) and say 'this is the problem, this is how I am going to sort it but I need more time)

they don't have to say yes.