Buyer pulls out at last minute

jamgar

Have just gone through the high emotions of finding our dream family forever home, having surveys done etc which entails 2-3k expenditure ony to hear that our buyer is likely to pull out and am absolutely devestated.

I was hoping someone could help answ in some capacity if the following is possible...

Current house we live in is worth £220000 and we are in the fortunate position of having no mortgage.

The house we are looking at buying has been accepted at £408000 and needs approx £70000 of renovation costs.

We have 35000 savings also.

I have a salary of 48k and my wife 26k

Could we remortgage the current property to continue to buy the dream home?

I assume I could raise upto around 75% ltv othe curren house on an interest on basis that the rent should cover and put this towards the new house also on an interest only basis?

I know its out of the scope of this foum to offer advice but bsed on salries etc do you think this could be a possibility??


Would really appreciate any help on this, thanks in advance. btw, I have until may 11th to exchange otherwise i lose the house as going to informal tender and lots of interest.

Dave_Ham

Once again the house buying process is inept and you are the one suffering.

That said your plan is fine.

You raise funds on a let to buy, upto 70-75% of valuation on interest only to put towards new purchase.

You need a broker as most buy to lets only deal with brokers. Your timescale is achievable though...

I wish you well, any questions ask away...

Thrugelmir

Interest only mortgages are now the preserve of the very few. As lenders have clamped down. So this isn't an option.

Is your £35k of savings after all the costs of moving have been taken into account?

jamgar

Thrugelmir wrote: »

Interest only mortgages are now the preserve of the very few. As lenders have clamped down. So this isn't an option.

Is your £35k of savings after all the costs of moving have been taken into account?

Thanks so much both of you for your replies, unfortunately fees incl stamp will be coming out of the savings

Dave_Ham

You still have enough to go at - do not worry.

Interest only mortgages on the let to buy are perfectly acceptable, just not on the your new dream home.

Brings me to ages, obviously if you are in your mid fifties upwards the proposition becomes harder

Thrugelmir

jamgar wrote: »

Thanks so much both of you for your replies, unfortunately fees incl stamp will be coming out of the savings

So you'd need to remortgage to do the renovations costing £70k ?

jamgar

Dave_Ham wrote: »

You still have enough to go at - do not worry.

Interest only mortgages on the let to buy are perfectly acceptable, just not on the your new dream home.

Brings me to ages, obviously if you are in your mid fifties upwards the proposition becomes harder

Ages should be fine, we are mid thirties. Could i do part and part on the new home? As borrowing 300k on repayment over 30 yrs is quite a lot per monthe when yu also take into acct the exposure of the other property also

jamgar

Thrugelmir wrote: »

So you'd need to remortgage to do the renovations costing £70k ?

Yes although if needs be we could reduce it to 50k reno costs and take a long term view

Dave_Ham

The honest answer is possibly, but I do not have enough information to tell you definitively. You can potentially go to 69 with many lenders, although you may have suitable provisions in place in order to facilitate an interest only.

Part and part are not as common now, although still out there..

There are many other variables to consider - at least you will save on expensive Estate Agents Costs as silver lining, although do not use their brokers as a sure fire way to complicate and distort your best solution...

Good luck