How much cash would we need to buy our rental?

shamac

Have the option to buy the house we are currently renting for £275k, bearing in mind we will have no moving fees, how much cash would you say we need to cover this including deposit which will give us a decent mortgage rate plus legal stuff?? Have good credit rating and 90k income so should be talking about a normal not sub prime mortgage.

Wobblydeb

Go on, I'll play ..... here's my guess.

Deposit 68,750
Stamp Duty 8,250
Legal Fees 1,200
Survey 665
Arrangement Fee 995
Household Insuranc e 350
Moving Costs
TOTAL = 80,210

I'd be aiming for 25% deposit to get the better deals The rest you can get quotes on (e.g. legal fees)

Yorkie1

Decent mortgage rates start at about 15% or more, so that's minimum £41250 deposit.

Stamp duty £8250 (comes down to £2500 if you buy at £250K or less).

Solicitors fees etc probably about £1K.

Plus the other bits Wobblydeb mentioned!

somethingcorporate

You'd be a fool to buy it at £275k with the stamp duty threshold so close by!

shamac

Other similar houses in the area sell for £300k plus, landlord has offered us the opton to buy at a reduced rate.

somethingcorporate

Sounds fishy to me, why would he want to lose out on £25k+ from the kindness of his heart?

Wobblydeb

shamac wrote: »

Other similar houses in the area sell for £300k plus, landlord has offered us the opton to buy at a reduced rate.

Sounds good - we're looking at buying our rental, but the owner wants top wack!

mark5

I agree with the other comments, unless the house is being offered to you way below its true value it probably wouldnt sell for more than 250k with the current stamp duty rules.

The seller will also save on estate agents fees and lost rent between the time you move out and the time the house sale completes.

mynameisclare

shamac wrote: »

Other similar houses in the area sell for £300k plus, landlord has offered us the opton to buy at a reduced rate.

Do the other houses have sitting tenants? Does that change the valuation?

sp1987

You're in there as tenants which is going to bother most people other than you. Value thus lower.

ukcarper

mark5 wrote: »

I agree with the other comments, unless the house is being offered to you way below its true value it probably wouldnt sell for more than 250k with the current stamp duty rules.

The seller will also save on estate agents fees and lost rent between the time you move out and the time the house sale completes.

Plenty of houses sell between £275k and £250k it all depends on the true value of the property.