Can you buy a house with no money up front?

MoominMama

Hello,
I own my house outright with no mortgage but do not have a penny to my name, as my husband died last year and his life insurance paid off the mortgage and I am now a struggling single mother of 3 on benefits.

My house is very run down and in dire need of repair which I of course cannot do as I have no money.

So I would like to sell it and buy a new one, but I don't have so much as £50 to put towards this, is it possible to sell your house without spending ANY money until the sale is complete?

Thanks in advance.

Notmyrealname

No because pretty much all solicitors want at least the search fees up front.

But the problem is how are you going to pay for the new house? You can't pay for it until you sell the old one. You can't get a bridging loan because you're unemployed. You can't get a mortgage to cover the difference in price because you're unemployed and with your house being in a bad state you'll take a real kicking on the price you get, assuming someone actually wants to buy it.

The best option would be to go into rental for a short time. Yes it means an extra move but it solves the problem.

sariebeth

Not really. You can buy a house with no money down (ie no deposit) - but it's not as simple as picking a house and buying it. And even then there are still fees to pay.

If your house is in that bad a condition you may not get very much for it. It's probably better to see what grants and help you are entitled to to do up your own house.

Notmyreal name is right, perhaps selling your house and renting another one is the best way to go if you want a better house. You will get a payout which will cover the rent for a while, and you won't be struggling so much.

Although I wouldn't want to give up home ownership if I could help it.

Just worth saying, dont go down the sale and rent back route. It's a bad idea x

Bigmoney2

sariebeth wrote: »

Notmyreal name is right, perhaps selling your house and renting another one is the best way to go if you want a better house. You will get a payout which will cover the rent for a while, and you won't be struggling so much.

Although if you sell up, the capital from the sale will affect any means tested benefits you receive.

Owain_Moneysaver

Some form of mortgage or equity release on your existing home, to pay for repairs, might be more advisable.

You don't have to pay the (considerable) legal and moving fees.

You don't have to pay stamp duty.

The interest part of repayment on a mortgage may be covered by benefits.

However equity release / home reversion (sale and rent back) and secured loans are not always well regulated and you should definately take appropriate financial advice.

If the disrepair is related to poor heating or insulation then check the energy saving trust website for details of schemes that are available for improving insulation or heating. Some local councils also have schemes for properties that are in serious disrepair (becoming uninhabitable) where they pay for the repair but take a charge on the house which has to be repaid if you sell the house within a certain number of years.

sunshinetours

Are you looking to downsize to say a brand new property as you may be able to p/ex possibly and get developer to pay all your costs. Long shot but if values worked enough in the devleopers favour they could be interested although you would take a hit.

Otherwise as above an equity release type scheme depending on your age may be possible as you are mortgage free.

Sorry to hear of your predicament

MoominMama

Thanks for all the advice :-)

So, it's pretty much as I thought :-(

I've looked into several avenues, I've been passed for a grant by the council to get my windows fixed and all the damp course treated, it's one that I pay back at no extra cost if I sell the house or is wiped off if I live here for 20 yrs, the problem is the grant of £20K is not covering the cost of the work that needs doing, so I've been waiting 8 months and they still can't find anyone to do the work!

If I sold and rented I would lose all my benefits so I would have to live off that money as well as pay the rent with it, I'd be lucky if I saw 8 yrs with what I'd get for my house and I'd have no security for my children.

There's no way I can release some equity because right now, some months I can't afford to buy food let alone pay back a loan.

My house is a Victorian town house that has no carpets, not even nice varnished floorboards, just bare boards splattered with paint, the wind blows through the windows so much the curtains blow, the frames are rotten and a pane has dropped out of my 6yr old's room, the back of the house is riddled with damp to the point the walls crumble when you touch them and I have a mouse infestation I can't get rid of, I'm at my wits end with the house I really am.

I've had my house valued and it's lost £20K in the 3 yrs I've lived here. My husband was a Gas Safe registered plumber, a skilled carpenter and could do basic electrics so he was going to do the house up himself, we never expected him to die suddenly and for us to be left in a semi derelict house :-(

MoominMama

I guess I've got to hope that I either meet a rich man, win the lottery or go on DIY SOS lol

sleepless_saver

MoominMama wrote: »

If I sold and rented I would lose all my benefits so I would have to live off that money as well as pay the rent with it, I'd be lucky if I saw 8 yrs with what I'd get for my house and I'd have no security for my children.

(

If you put the house on the market and manage to sell it, you may be able to use the money to buy somewhere else without losing benefits.

"If capital from the sale of a house is earmarked for home purchase, it is ignored for up to 26 weeks or longer in certain circumstances. "
DWP

Helen1971

I can't add much to what the other contributors have said, but I'm sorry that you're having a difficult time and I hope things work out well for you.

klolav

Seriously.....have you applied for DIY SOS? You seem like just the sort of 'story' that they look for. I mean this in the best possible way. I really feel for your loss and the position you have been left in, and I know this is your life not a story, but how brilliant would that be if they could come and do it all for you!! Might be worth a shot.
I really hope that one way or another your situation can be helped. Sorry I have no solid advice to offer you, but wish you all the best.