Selling House to friend

Richard_Webber

Hi All

My friend is currently renting my house and with the new mortgages being offered that will allow a 5% deposit he has requested to buy

Unfortunately I have a penalty on my mortgage until nov 2014 of 3.5k

is there anyway he could still buy my house for the market value and transfer the mortgage to him to avoid the penalties

~Beanie~

No. He would have to get his own mortgage and you would have to pay yours off.

You could always add the 3.5K onto the asking price, or suggest that he goes halves? He probably won't but its worth a try!

dimbo61

Ask him to carry on renting until November 2014 and he mayne able to save 10% and get a normal mortgage at a cheaper rate!
£3.5K is a lot of money

Richard_Webber

yeah I don't really want to have to pay 3.5k to sell!

we could wait until nov2014 but with these new mortgage schemes its been suggested that prices might increase. good for me but not for my friend:-)

JimmyTheWig

Would it be possible to agree a price and exchange contracts now to complete in November 2014?
[I'm guessing that there would be a problem in that the friend's mortgage offer would expire between exchange and completion, but are there ways around this?]

Richard_Webber

its a good point.

house sales can drag on so I wonder how long is legally allowed between agreeing the sale and completion

only issue I can see is that if prices rocket in a year it will be hard to stomach. in some ways I would like the sale completed asap but its looking like it wont be possible

if the house valuation comes back higher than I expect I might be able to take the 3.5k hit

TBagpuss

How much wpould you pay in estate agents commission if you sell on the open market rather than to a friend (if you let via an agent, double check they are not entitled to comission if you sell to a tenant they manage)

You could then offset the amunt you'll save on the estate agents comission against the ERP and then depending what the remaining figure is, you could either split the difference with your friend, offer to sell now but up the asking price by that amount, or wait under nearer the time and then offer him first refusal on the basis that you will otherwise put it on the market next October with a view to completion after November - he risks prices rising, you risk him bot buing and your having a void period after you give him notice nad before you get a buyer.

Richard_Webber

estate agent will be about 1% if I sell on open market which will equate to 1,750
no agent fees as I privately rent to him

I think it will be wise for me to discuss whether my friend is willing to stump up 50% of my charges if he wants to buy now or risk it and wait until nov2014

I know in the long run waiting until Nov is the right option for me if we cannot come to some sort of agreement where we share the ERP now

kingstreet

A mortgage offer lasts six months, typically,

Richard_Webber

that's good to know thanks:-)

Riggster

kingstreet wrote: »

A mortgage offer lasts six months, typically,

All depends on the lender. I'm with a nice traditional Building Society. They originally offered me a mortgage in October 2012 for 3 months. Due to unforeseen/crazy circumstances, they extended it for another 3 months, then another month, then another month when my solicitor explained and then we completed on 28th June. Interestingly they didn't request another survey, just some searches re-done...