Avoiding a two sale chain?

cloo

Less money saving, more stress saving....


My husband and I are looking to start the moving process this year (possibly soon if a worthwhile property becomes available) and our situation is that we have two properties to sell - the house I used to live in, which is mortgage-free and has been let since late 2005, and our current flat. Yes, I know we should have lived in the mortgage free place, but my husband refused to live in that part of town.

I anticipate, once the dust has settled with fees etc, my old house should leave us with just over £200k – the majority of the deposit for our next home. It’s harder to say about our current flat – we bought it at the peak of the market but I think our area has kept its value quite well and as such I expect to see at least our deposit back - £70-80k. It’s vaguely possible we’ll see more than that – we know that garden flats in our location are in high demand and short supply. It looks as though, overall, we’ll be looking to buy a property at £600-650k.

At the moment, our plan would be sell my rental house first, then put ours on the market when the first deal looks to be nearing conclusion, to save us the horror of our purchase being dependent on two simultaneous sales (and of being less attractive buyers), though this plan could be derailed if a good opportunity for us to buy arrives sooner rather than later. But I am wondering, seeing as my house provides us with the majority of the deposit, is there any way we could conclude a purchase of a property without our flat sale having completed, but still potentially the proceeds from our flat sale somehow? I’m aware of bridging loans, but not sure if that’s the answer here. It just seems as though there might be a way of using our situation to save ourselves and any vendors we’re dealing with a potentially complex chain I'm aware that possible solutions will all come with a cost of some kind, though.
One possibility might be, if we buy somewhere needing work, that we simply use my house as a deposit and any money from the flat goes towards remedial work, but we might miss an advantage there, especially if the flat sells for more than expected.

Are there any smart options? Or do we just have to sell both places and pray?

dimbo61

Simple answer is to put both properties on the market now!
See which sells first !
If you have to move into your old home then do so to save money.
Rent if you need too for 6/12 months
You will be in a stronger position if you have £270K cash deposit to put down and chain free
Sell

G_M

cloo wrote: »

Less money saving, more stress saving....


My husband and I are looking to start the moving process this year (possibly soon if a worthwhile property becomes available) and our situation is that we have two properties to sell - the house I used to live in, which is mortgage-free and has been let since late 2005, and our current flat. Yes, I know we should have lived in the mortgage free place, but my husband refused to live in that part of town.

I anticipate, once the dust has settled with fees etc, my old house should leave us with just over £200k – the majority of the deposit for our next home. It’s harder to say about our current flat – we bought it at the peak of the market but I think our area has kept its value quite well and as such I expect to see at least our deposit back - £70-80k. It’s vaguely possible we’ll see more than that – we know that garden flats in our location are in high demand and short supply. It looks as though, overall, we’ll be looking to buy a property at £600-650k.

At the moment, our plan would be sell my rental house first, then put ours on the market when the first deal looks to be nearing conclusion, to save us the horror of our purchase being dependent on two simultaneous sales (and of being less attractive buyers), though this plan could be derailed if a good opportunity for us to buy arrives sooner rather than later. But I am wondering, seeing as my house provides us with the majority of the deposit, is there any way we could conclude a purchase of a property without our flat sale having completed, but still potentially the proceeds from our flat sale somehow? I’m aware of bridging loans, but not sure if that’s the answer here. It just seems as though there might be a way of using our situation to save ourselves and any vendors we’re dealing with a potentially complex chain I'm aware that possible solutions will all come with a cost of some kind, though.
One possibility might be, if we buy somewhere needing work, that we simply use my house as a deposit and any money from the flat goes towards remedial work, but we might miss an advantage there, especially if the flat sells for more than expected.

Are there any smart options? Or do we just have to sell both places and pray?

Are you planning to sell the rental vacant?

Or do you plan toput it on the market while the tenants are still in situ?

:eek:

thelem

Could you afford to take out a 75% BTL mortgage on your rental property, and use that as the deposit? Combined with the sale of your home, that should give you more than a 30% deposit on your new place.

cloo

Interesting suggestions... we can't move to rental house, in another part of town and daughter in local school/son in local childcare.

Not sure about remortaging rental - quite keen to be shot of responsibility for it, but should maybe consider.

Don't know yet how I'm selling - I'm going to ask local agents round rental house who's buying, and how many landlords looking. I have a great tenant who's been there 7 years now, so it may make sense to aim at a landlord buyer. I will also offer to tenant to buy if she makes a good offer, as it's plausible she might want to go for it. Basically, buyers for the property are overwhelmingly likely to be first timers or landlords, I'd say.

Renting is an interesting thought that hadn't really occurred.