Buying a property before selling

Newbie4321

Not sure whether to post this here or on the mortgage board so please forgive me if I am posting in the wrong place.

I am writing to try and get some advice for my parents.

Their house is currently on the market. A house has come up which they are very interested in. It is their dream house, in a location they are very keen to move to.

The downside is its a repossession, and in a very bad state. They have only seen it from the outside so far (viewing arranged for later on in the week, group viewing, lots of interest in property) but it is in quite a bad way. Having spoke to the neighbours we have managed to find out that radiators, wiring etc was ripped out, the conservatory was ripped down and water was left running when they moved out. They have so far been unable to find out if there is a kitchen/bathroom of any sorts.

I am just wondering what their options are if they decide to go ahead and make an offer on the house.

They own their current home outright. The plan would be to take this house off the market temporarily as they would have to remain in this house whilst getting the new house into a habitable state. They would then put the property back up for sale at a reduced price. Even at this price, the current house would more than cover the cost of buying the new one and the renovations.

They have been in contact with a mortgage advisor who has told them they would be able to get a mortgage on the property, with the aim of reducing the price of the current house to sell it quickly, and then paying off the mortgage immediately. The mortgage advisor suggested an interest only mortgage to keep payments down. They are waiting for the advisor to get back to them with more information.

However, the advisor did inform them that if there is no bathroom/kitchen of sorts they wouldn’t be able to get a mortgage on it. I did read last night about some lenders who specialise in renovation projects etc but they are trying to keep costs down and as the mortgage would only be temporary I'm not sure this would be a viable option.

Would remortgaging be an option here? The advisor seemed to think not, but didn't really elaborate on why not.

Does anybody have any other options on a way this may be viable? They are waiting to speak to another advisor but in the meantime I am trying to find as much information for them as possible. It is highly likely the price on this house is going to go up (the house has a lot of land) and my mum and dad are not prepared to get into a bidding war, but they do want to be ready to go in with an offer this week.

Sorry if I have waffled a little, just trying to include as much information as possible.

Thanks.

Gavin_Clay

HI

I would go out and speak to a mortgage broker and look at the option you parents have. I'm not a IFA!! We have helped put people in touch with our team to help them move on with their life. Feel free to contact me for the details Gavin

Flashmanchop

Either a bridging loan or remortgaging their own house.

where will they be getting the funds to do the house up? do they know what the ceiling price is of the property they are interested in, and what will it cost to refurbish.

if they have not done a project like this before there are a lot of issues that may crop up, and at the viewing they may find a lot of developers and landlrods there who may or may not have done it numerous times before.

However dont let that put you off.

Dan-Dan

Gavin_Clay wrote: »

HI

I would go out and speak to a mortgage broker and look at the option you parents have. I'm not a IFA!! We have helped put people in touch with our team to help them move on with their life. Feel free to contact me for the details Gavin

Touting ??