Buying a house when selling

minipenny_2

Hello,

I'm hoping you can help. I'm getting really confused.

We are selling our house

We want to buy a new house.

We have no deposit as its in the current house (if that makes sense)

Can we still move? Or would we have to sell and rent and then wait for the money to be iin our bank account before we can apply for the mortgage on the new property?

Thanks in Advance!

irishcol

minipenny wrote: »

Hello,

I'm hoping you can help. I'm getting really confused.

We are selling our house

We want to buy a new house.

We have no deposit as its in the current house (if that makes sense)

Can we still move? Or would we have to sell and rent and then wait for the money to be iin our bank account before we can apply for the mortgage on the new property?

Thanks in Advance!

If when you sell your house, you'll have enough left over (after paying the mortgage and any fees) to cover the deposit (let's assume 10% minimum) then you can go ahead and buy at the same time as selling. That's what a lot of people do - it's known as being in a chain, where purchase of one house depends on the house "below" being sold.

The longer the chain, the more chance of something going wrong due to one of the buyers pulling out (either changing their mind, finding something wrong in a survey or not getting the mortgage).

For that reason, some people do decide to break the chain and go into rented / stay with family once their house has sold, before looking to buy the nexthouse "chain free".

minipenny_2

Ahhh thanking you kindly. I thought this was the case but the more I read on ol google the more I confused myself!

We have plenty for deposit after fee's (and paying off all debt)

So I suppose rented is an option just in case we need to leave quicker than we can buy. Thanks again for clearing it up for me

Littleweedj

Depends on where you live. The English and Scottish systems are different.

You don't have "chains" in Scotland. It's one seller and one buyer - simples!

If a legal bid is made and accepted then a buyer can't pull out without incurring penalties.

minipenny_2

oops sorry should have stated that ....... I'm in England! Glorious Chain ridden England lol

irishcol

minipenny wrote: »

Ahhh thanking you kindly. I thought this was the case but the more I read on ol google the more I confused myself!

We have plenty for deposit after fee's (and paying off all debt)

So I suppose rented is an option just in case we need to leave quicker than we can buy. Thanks again for clearing it up for me

No problem.

Just to add - it's normally better to wait to get a proceedable offer on your place before starting to put offers on somewhere to buy. And it's prefectly acceptable to tell propsective buyers that you will be looking to buy somewhere else, so they know they're going to be in a chain.

Sometimes, you might find a buyer who is willing to pay extra if you agree to sell to them and then move out, rather than starting a chain. Before we bought this place, we offered on another one - I "added" £5k onto my offer, to cover moving and renting costs.

Littleweedj

Perhaps the Scottish system is better in that you know exactly where you are in the process as it is one to one. Plus once a legal bid is made and accepted there is absolutely no lowering or increasing an offer.

minipenny_2

irishcol wrote: »

No problem.

Just to add - it's normally better to wait to get a proceedable offer on your place before starting to put offers on somewhere to buy. And it's prefectly acceptable to tell propsective buyers that you will be looking to buy somewhere else, so they know they're going to be in a chain.

Sometimes, you might find a buyer who is willing to pay extra if you agree to sell to them and then move out, rather than starting a chain. Before we bought this place, we offered on another one - I "added" £5k onto my offer, to cover moving and renting costs.

Thats really good advice thanks. :cool:

I'd be happy to move if someone ups their offer accordingly - In fact I might slip that in on the viewings........:rotfl: