London Dreams

MoneyQueen

I am reading my diary from the start and have done some calculations

Expected house price: £600,000
Deposit Required for a decent mortgage deal = 40% = £240,000
Current house value: £145,000 ( approximate as a house in a must better state than our house sold for £155,000 recently in our street though this is less than what we paid for few years ago)
Expected Fees for buying/selling/ moving= £10,000
Current Mortgage: £58,000
Difference that we need when we sell our house and move to London = £163,000

Some of this will come out of our existing savings but will have to save for the rest. I am trying not to withdraw our Cash ISAs or stop paying into them so as not to loose the tax benefit as DH already pays 40% tax and I also may depending on the yearly bonus I get in a particular year.

I will be posting income and budget/ expenses details in a later post

MoneyQueen

Thanks wantabetterlife. Everyone tells me that it gets better with time but not sure if thats true. I and DH have decided that we will not let this affect our life/ future but it's proving to be very difficult. Another reason why I am back to MSE as this is where I used to spend my free time before I got pregnant and I need to keep myself busy otherwise the sorrow will take over my life. But I am hoping that life will be back to normal at some point though I am sure it will be a new kind of 'normal' for both of us.

MoneyQueen

I have added in the figures for our monthly income and expenditure in Martin's budget planner and here are the results

Household Income: £5595.94
Mortgage Payment: £862 ( consists of approx. £62 as interest payment and rest as capital repayment)
Monthly contribution to Cash and S&S ISA for both of us: £1920
Other household monthly expenditure: £1341.94
Remaining funds for saving towards the future house deposit: £1472

The current mortgage has to run for another six years so after six years we should have £145,000 equity in the house. In addition to that, £1472 monthly over 6 years will give us £105,984 (not taking into account any interest earned). Adding both these figures gives us the total funds we require for the deposit required for the type of house we want to buyin London ( fingers crossed that prices don't increase too much there). Considering the fact that I have ignored our current savings and any interest earnings for the next six years, I am hoping that we will reach the target before six years but as of now, I am taking this period as six years to cover any unforeseen expenses we may have.

MQ

Useitorloseit_2

Sorry to hear of your loss moneyqueen , and I hope things work out for you

tootoo

I see your figures re: moving. Have you included stamp duty anywhere? for a property of £600,000 the fee is at 4% (£24,000).

So truly sorry to hear of your loss.

MoneyQueen

Hi Tootoo, thanks for reminding about the stamp duty. I had completely forgotten about it. Though 4% seems to be too much especially when it equates to £24,000

I have added that to the numbers now. DH also had a look a the budget and corrected a few figures based on what we paid this year for them

Expected house price: £600,000
Deposit Required for a decent mortgage deal = 40% = £240,000
Expected Fees for buying/selling/ moving= £10,000
Stamp Duty = £24,000
Total required a the time of purchase = £274,000

Current house value = £145,000 ( approximate as a house in a must better state than our house sold for £155,000 recently in our street though this is less than what we paid for few years ago)
Current Mortgage = £58,000
Difference that we need when we sell our house and move to London = £187,000

Monthly Household Income: £5595.94
Mortgage Payment: £862 ( consists of approx. £62 as interest payment and rest as capital repayment)
Monthly contribution to Cash and S&S ISA for both of us: £1920
Household monthly expenditure: £700
Household Yearly expenses: £7236
Remaining funds for saving towards the future house deposit: £1510.94

£1511 monthly over 6 years will give us £108,792 (not taking into account any interest earned). This added to the equity in the house of £145,000 is no longer sufficient and we will require an extra £20,208. This will mean either using our existing savings (non ISA) or adding extra few months. I think I will go for the first option though this will mean no emergency funds but I think that should be alright as we will still have our Cash ISAs to fall back on if required.

I had a look at an earlier post in the diary which stated that we wanted to do this in 15-18 months but currently don't think that was realistic and also loosing our son has taught me to enjoy life along with long term future plans as we just don't know what's around the corner. If it all gets too much then we will still have the option to use our ISA funds and make the move earlier but as of now, I am aiming for six years. Though I am hoping that we will earn extra through work bonuses and save more and hopefully be able to move earlier.

MQ

MoneyQueen

Thanks useitorloseit and Tootoo for your kind words

MQ

MoneyQueen

Following are the details of the expenses for monthly and yearly bills for budget purposes for the next six years

Monthly bills

Essentials

Mortgage/Rent £ 862.00
Food and household shopping £ 200.00
Petrol/Diesel £ 100.00
Car Parking £88.00

Utilities

Mobile phones £ 17.00
TV licence £ 30.00
Internet/ Phone/ TV £ 36.00
Electricity/ Gas £ 94.00

Others

Hobbies £ 75.00
Eating out £ 25.00
Fitness/Sports/Gym £ 30.00
Work expenses £ 5.00

Savings

S&S ISA. £ 960.00
Cash ISAs £ 960.00

Yearly expenses

Garden Maintenance. £ 50
Household maintenance £ 1,000.00
Council tax £ 1,500.00
Home insurance £ 220.00
Plumbing/Boiler cover £ 180.00
Car tax £ 170.00
Car insurance £ 321.00
Car maintenance £ 145.00
Breakdown cover £ 20.00
Family days out £ 150
Birthdays £ 100.00
Holidays £ 2,800.00
Clothes shopping £ 600
Haircuts £ 70.00

Total monthly expenses: £ 3482
Total yearly expenses: £ 7236

elantan

i know it sounds crazy... but a flight to London is 1 hour from glasgow and 4 hours by train... could you not just go down and visit family often, or do you not like where you are ?

I LOVE London, i really do, its my favourite city, but i have to admit for me ( and i can only speak for me) it's too noisy, we try and go every year for 4-5 days and i love going when we do, but i have to admit ... when i come home ( central belt Scotland) at first i feel as if i have went deaf, as it is so silent compared to London, but soon i feel a lot of tension leaving my body, it could be because i am more of a country girl ( although i cant live too much in the country side as it would do my head in) but i find even after going into Glasgow for the day i start to feel more stress around me.

Just something to maybe think about, you can get flights down south very cheaply and the train only takes 4 hours as well ... it could be a cheaper alternative for you

either way good luck and i hope you achieve all that you want to

edited to add: sorry just saw you had a two page diary, sorry to hear of your loss i couldnt even begin to imagine the pain ... my thoughts are with you both...

MoneyQueen

elantan, I do plan to go down to London frequently during the next six years but both of us have lived in London before and love it there and would want to live there for long term. We are in Glasgow at the moment and it can get very quiet and boring here. Just hope that we both can get good jobs there.

MQ