Only freedom will do

edinburgher

Can someone sanity check my thought process?

Houses we have viewed so far have either been too small, require too much work, or are in school areas where we aren't confident that DD will get a good eddykayshun.

Our new thinking is to extend our search to look at well finished 2 beds in areas with good schools and high amounts of extended properties.

Basically we're looking for the utility of a house without the upfront cost.

This would be c. £170k. Plan would be to take out an 85% mortgage, ploughing remaining equity and ISA monies into cash for a 2 storey upgrade in 3 years time. We know we could save quite a bit in this time as we have form

That would get us the 2 bed and £35k in the bank now, with 3 years to save another £25k to get 3-4 beds overall and <70% LTV remortgage due to extra beds...

Does that make any sense? I like the idea of moving to an area with great schools, but the £220-250k prices we are seeing just aren't realistic at this point.

pavlovs_dog

I can see the logic in your thought process. Just thinking out loud here...

*have you researched whether the £70k you plan for would actually cover the cost of the type of extension you would need?
* Do you want to live through the disruption of an extension with a toddler and potentially another babe in arms?
* have you/ could you view a non converted 2 bed and a converted house to get a more accurate feel for the space you gain vs the price?
* is buying a ramshackle house in a good postcode with a view to doing it up over time as funds permit definitely a non starter?
* I don't know whether mortgage companies will revalue your house part way through a fix - worth investigating as it could delay you benefiting from improved LTV

helibob

I expect you have thought of this, but would it not be worth putting some of your current savings into the mortgage to get a better LTV and build savings back up while paying less interest?

I have a feeling I've missed something though...

gallygirl

My only thought on the 2 bed is that the plots will be much smaller, unless you get a large corner plot which may attract such a premium it's not a cheap option any more.

Also you'd need to think very carefully about how the existing space could be used - e.g. the living area will be for a 2 bed house, not 3 or 4. Unless you're planning on a big open plan living space (which brings its own extra costs with RSJ's etc) you may not get well proportioned rooms.

edinburgher

Interesting thoughts all.

*have you researched whether the £70k you plan for would actually cover the cost of the type of extension you would need?

If by researched, you mean 'found 2 out of date references on G00gle', yes, fully

* Do you want to live through the disruption of an extension with a toddler and potentially another babe in arms?

He must needs go that the devil drives

* have you/ could you view a non converted 2 bed and a converted house to get a more accurate feel for the space you gain vs the price?

At least one of the two

* is buying a ramshackle house in a good postcode with a view to doing it up over time as funds permit definitely a non starter?

Ah, the mythical 'cheapest house on the block'. No such thing in good Glasgow postcodes, even the cheapest houses are snapped up, perhaps faster than the finished ones! :eek:

* I don't know whether mortgage companies will revalue your house part way through a fix - worth investigating as it could delay you benefiting from improved LTV

No plans to do so, we only take short fixes. A 2 year fix could be left to run at variable for a few months until a potential extension was completed?

I have a feeling I've missed something though...

Yes, my entire post about reasons for possibly high LTV? :rotfl:

My only thought on the 2 bed is that the plots will be much smaller, unless you get a large corner plot which may attract such a premium it's not a cheap option any more.

Agreed. Why do I know what RSJ stands for? Too much TV.

The plan B remains an option if the right property comes along. The one tonight had a mountain in the front garden and a postage stamp for the back garden. The EA's photographer could have a sideline in boudoir photography - very good at making something appear big that is barely there :eek:

ourcornercottage

edinburgher wrote: »

Interesting thoughts all.
Ah, the mythical 'cheapest house on the block'. No such thing in good Glasgow postcodes, even the cheapest houses are snapped up, perhaps faster than the finished ones! :

I've managed it twice recently in a very boyant housing market by being quick off the mark.

Firstly a semi house in a popular suburb all schools outstanding (which is unusual for a city) cost £115k did some work to get it up to scratch sold for £175k

Secondly 4 bed detached in large grounds situated in broadland village where houses are like gold dust got for £280k nothing detached in the village available for under £400k since. We will spend about £50k getting it up to scratch over the next x years.

Did the same with my previous property in Bristol at the height of the boom too. Same approach is to be patient until you see what you want and then move quickly. I sold my flat then looked until I found what I wanted. If purchasers are serious and good property sells quickly they won't mind waiting a couple of weeks and you can use delaying tactics.

On all occasions vendors wanted to sell with no hassle and we made sure they didn't get any. 2 of them were due to previous owners passing away. They definitely exist there's no reason Glasgow should be any different.

My only advise if you go down this route is to not even bother looking until you have an offer as you need to be able move quickly.

helibob

edinburgher wrote: »

Yes, my entire post about reasons for possibly high LTV? :rotfl:

That'd be it. I tend to dip in and out of these threads. I don't know how people keep up with them all.

edinburgher

I suppose my concern is selling our house without a concrete plan to buy another one (fixer upper or no).

Is it possible/reasonable to delay the process by a few weeks, or are the dates for completion/moving etc. usually pretty inflexible?

Watty1

edinburgher wrote: »

Is it possible/reasonable to delay the process by a few weeks, or are the dates for completion/moving etc. usually pretty inflexible?

Here in England you can delay for weeks and weeks - but - isn't the Scottish system a little better run? From memory I think it might be but that is based on an ex who often failed to grasp the real world so might have that wrong

ourcornercottage

I'm not sure of Scottish system but in England they expect delays sorting solicitors / mortgage etc so I just make sure I'm all prepared on everything that can be therefore if there is a delay in finding somewhere nobody cares.

I do track the properties on rightmove but only view when I've recieved an offer although you may want to do some viewings in advance so you can see what you can get for your money.

It's an approach for me that's worked nicely.