Want to move house... awkward situation?

samo8076

Hi everybody...

My Girlfriend and I want to buy our first house together..she has around £2000 for a deposit where as i dont. I currently own a 1 bed bungalow (only 2 years old) so i would be using what ever money i make from this as my deposit.

Now here comes the awkward part..i own the bungalow on a 50% shared ownership scheme, so therefore it can only be bought by a first time buyer, and also the housing association have to also approve the buyer.

My house is not currently for sale, but will be as soon as i get my head around things i.e mortgage etc.

So, can anybody give me some advice as what my first step should be is? I.e should i speak to my mortgage people, get the house valued etc etc? Also has anybody been in a similar situation?

Thanks

BitterAndTwisted

Shared ownership and only been in there for two years. You'll be lucky not to make a loss on it.

Speak to your HA in the first instance, then get an EA round to do a valuation.

Have you looked into what mortgage you may be able raise? These days lenders are looking at 15% deposits or more. Do you think you could raise that much plus all of the other expenses you will have to pay for?

samo8076

my area has had a massive increase it seems with house prices since i first moved in, plus there are some new build bungalows exactly the same but across the road starting at £15,000 more than i paid for mine, so im hoping at least i should be able to get the same price for mine.

we have looked into a mortgage with my existing provider and they seem confident we can get one together. We have not looked into fees etc just yet.

casper_g

samo8076 wrote: »

my area has had a massive increase it seems with house prices since i first moved in, plus there are some new build bungalows exactly the same but across the road starting at £15,000 more than i paid for mine, so im hoping at least i should be able to get the same price for mine.

Sorry to be the bearer of bad news, but I think the chance of you selling your two-year-old property for the asking price of an identical new-build is nil.

Marvel1

casper_g wrote: »

Sorry to be the bearer of bad news, but I think the chance of you selling your two-year-old property for the asking price of an identical new-build is nil.

This, if I had a choice of the two for the same price, I would rather go for the new build rather than the 2 years old one.

Jebrelli

A deposit of £2,000 is unlikely to be enough. Your estate agent fees and solicitor fees alone would probably exceed this.

samo8076

Jebrelli i appreciate that £2000 wont cover the costs, hence im keen to use the money made from my property towards the deposit

pjcox2005

Samo8076 - I think people are struggling with the numbers you provided which suggests moving won't be a possibility.

In terms of deposit, I make it you'll have:

Girlfriends - £2k
Your deposit - Sale of bungalow for £15k more (Max v unlikely) would mean you split that with housing association (presumably) 50:50. Assuming you've made no overpayments, then the mortgage for the first 2 years will mainly be repaying interest. Therefore max deposit you'll have feels like £7,500.

Total deposit - £9,500.

Less fees - (£2,000) as an example.

Remaining depost £7,500. The majority of lenders require at least 10%, so would lend c.£75,000 (very basic assumption, obviously depends on credit checks, wages etc.).

Would £75k be sufficient to buy property (and the type you want) in your area?

pjcox2005

If that is sufficient, then I think my first step would be a budget for what mortgage payments the two of you could afford once bills etc have been paid. From that look at likely values of property in the area to get an idea of value, and similarly check the shared ownership scheme for how any uplift in value (if any) would be split and if there are certain restrictions on the sale.

samo8076

Thanks pjcox2005..

overall we are hope to raise between £10,000 - £15,000 for all fees, however judging by various posts/topics that would only be enough to secure a mortgage of around £100,000??? together our total income is around the £35,000 mark..the average property in the area we want to buy is around £110,000

RAS

So you need, £16.5K deposit, plus legal fees on two properties plus estate agents' fees and moving costs. At least £20K, preferably £25K.