Selling 'help to buy' house??

Jimmyping

Thanks for all your input.... I'm sure there will be a way



Thanks

mrginge

Jimmyping wrote: »

Thanks for all your input.... I'm sure there will be a way



Thanks

No there isn't.

dgtazzman

Do I get this right?

House is worth £160k
You owe £120k on the mortgage
You owe TW 15% of the current value, being 24k

If you get full asking price, after repaying the mortgage and TW, you are left with 16k, out of which you would also have to pay solicitors etc., stamp duty on the grandparent's house (I assume), so you might have around 10k left, just enough to put a deposit down for a mortgage on the 90k house.

125% seems very unlikely. From the article on the BBC website:

'It will only be available to existing customers in negative equity who want to move house.'

'The Financial Services Authority is considering limiting mortgage loans to 100% of a property's value.'

Also the interest rates on the deal are astronomical, compared to normal mortgages, between 7% and 8%.

It all seems very unlikely to work to me. Probably easier just to buy the house on a 85-90% LTV mortgage and try to get an unsecured loan to fix it up, putting the extension off till you have built up some savings.

bazzyb

Jimmyping wrote: »

Surely you can get a mortgage higher than the value of a house to put an extension on, etc ...?

No. ..........

Sparx

Jimmyping wrote: »

Thanks for all your input.... I'm sure there will be a way

No there really isn't..

Good luck.

Jimmyping

There's always a way... Expand your minds!

dgtazzman

Do these mythical ways involve people coming round in black cars with tinted windows to break every bone in your body once you don't pay up in time?

Regulations on legal lending are being tightened by the minute to try to get people out of the holes they've buried themselves in over the last few generations. As I try to teach my wife quite frequently, if you can't afford it, don't buy it.

harrys_dad

Another case of it being very hard to "be especially nice to a new poster".

Jimmyping

dgtazzman wrote: »

Do these mythical ways involve people coming round in black cars with tinted windows to break every bone in your body once you don't pay up in time?

Regulations on legal lending are being tightened by the minute to try to get people out of the holes they've buried themselves in over the last few generations. As I try to teach my wife quite frequently, if you can't afford it, don't buy it.

I know you're trying to help but you're really not...


Thanks again all for the useful advice

dgtazzman

Oh, I am helping, I'm hopefully encouraging you not to do something you are going to regret in the not so distant future, as are many of the other posters in this thread.

Idiom that comes to mind: Don't bite off more than you can chew.

I would certainly recommend you visit a good financial adviser before proceeding with anything.

I do tend to have a rather negative view on things, but in 3 years, as you describe it, you have put nothing aside to repay the equity loan on your house or have you built up any savings, which doesn't set a good precedent for lenders. You would be going from a 120k mortgage, to an 80k-ish mortgage, use the lower payments to put money aside and save for an extension.