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

GMS

You cannot afford 2 mortgages, you cannot even afford the first one.

You cannot have a 2nd residential home on your salary.

You seem to be having your judgement clouded by the so called discounts. These are not realistic valuations or the discounts would not apply. Do you really think you would get the supposed full valuations for the flats if you sold them? Of course not.

Mortgages are very difficult to raise on new build flats hence the discounts. Lenders still class as new build for up to 3 years so you have no chance of selling on a property which is generally a starter/FTB home under these circumstances.

GMS

Simon

What is your residential status at present? Do you own a property or rent?

Do you live in London or Bradford?

Do you have any children?

Do you work for a well known/large company?

haras_nosirrah

GMS

Am not talking about him getting two mortgages. Am talking about him getting a mortgage on Bradford to enable him to complete on it. Selling it and discharging the mortgage and then with the increased deposit trying to get a mortgage on Edgeware with the help of A N Other on the mortgage.

As I say... A complete long shot relying on the developer at Edgeware waiting, the Bradford flat being worth the 90k value, finding a buyer etc but if he is lucky it may be possible.

GMS

haras_nosirrah wrote: »

GMS

Am not talking about him getting two mortgages. Am talking about him getting a mortgage on Bradford to enable him to complete on it. Selling it and discharging the mortgage and then with the increased deposit trying to get a mortgage on Edgeware with the help of A N Other on the mortgage.

As I say... A complete long shot relying on the developer at Edgeware waiting, the Bradford flat being worth the 90k value, finding a buyer etc but if he is lucky it may be possible.

haras that was not a reply to you. I was typing as your post went up. OP stated ....

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.

OP mentioned 2nd residential mortgage, not you.

I would be astounded if either flat raised anywhere near it's valuation. As we both know, new build flats are bottom of lenders preferred properties by a long way

haras_nosirrah

no problem GMS


Was it the developers solicitor you used OP? I am surprised they never mentioned the dangers of exchanging without knowing you can get the mortgage. Surely there is some comeback there on them? (although you should have done your research and known it wasn't possible to get the mortgage ... one go on an online mortgage calculator would have told you this)

You say you have had bad advice. Who has been advising you op? A mortgage broker, developer, discount club or fat bob down the pub?

silvercar

If your lender sees your work address as anywhere near London, I can't see them giving you a residential mortgage on a place in Bradford. Claiming it is going to be your second home is not convincing, how many people want a second home in Bradford?

Can't you stick with Plan A and make a desperate attempt to flip the edgware place before you need to complete? Tell your solicitor (the one who told you to exchange with no likelihood of a mortgage) to delay as much as possible.

haras_nosirrah

Flipping would be the best thing to do if it is possible. Has the developer got anyone you can contact. Have you tried to sell and have you had any interest op?

simyboye

Its James, not Simon

What is your residential status at present? Do you own a property or rent? I have a house which I'm renting out.

Do you live in London or Bradford? I live 30 miles from London.

Do you have any children? Nope

Do you work for a well known/large company? Yes

haras_nosirrah

Do you have a mortgage on the house you are renting out op?

Is this under a btl or residential mortgage?

simyboye

My contract with Edgware does not allow the flat to be sold. But the only reason i would have put my money in was because I was able to flip/ sell before I had to raise a mortgage... my own fault on this one because I didnt fully read the contract. However the investor told me I could flip it.