Exchanged contract - new job offer, HELP!

Kittycuckoo

We have exchanged contracts on a house, due to complete next month. Unexpectedly I have a possibility of a job with much better pay, which is fantastic - apart from the fact that it's at the other end of the country.

What to do? We have to go ahead and complete, I guess, but then should we rent out the new house and rent in the new area? Or just stick it back on the market? Both areas seem to be much the same in terms of property values.

I am getting older and pension prospects aren't wonderful so feel that I have to maximise my earnings but don't want to lose on property investment. I will have a mortgage of around £40k on a £300k house.

I'm totally confused! What would you guys do?

nidO

You're going to struggle to do either easily.

With trying to sell the house, most buyers won't be able to buy it for 6 months as most lot of mortgage companies won't lend on a house that's already been sold in the previous 6 months, so you could well have an empty house for 6 months before selling it.

Similarly with letting the house, on the assumption the mortgage offer you have for it is a residential mortgage you probably won't be granted consent to let for at least 6 months after completion (and arguably completing on the property now with the intention of letting it out is mortgage fraud).

As your loan amount required is very small you could try contacting a broker and ask them to try to source you a BTL mortgage as quickly as possible, there must be lenders who can do so with a short turnaround time, especially with such a low LTV.
Do read up on all the requirements and obligations of being a landlord and running a business before going the route of letting the place out though.

Alternatively if completing on the house with a residential mortgage means potentially losing 6 months of repayments while the house sits empty, you could always write to the vendor and explain your situation and offer them a cash lump sum to pull out of the sale, they might take you up on the offer.

penguingirl

The thing with choices like this is that it's not a choice until you've been offered the job. As you've said, you have already exchanged- although it seems quite a long gap between exchange and completion, is it a newbuild? You now to see if you are offered the job. Only once you've done those things can you decide- if they don't offer you the job the decision is made for you. If you do get (and accept) the job, I think a BTL sounds the best option, even if it's only for a couple of years.

haras_nosirrah

Who is your lender?

If they do btl products and you qualify could you ask if you could switch the rate to buy to let product. They have already valued the house and assessed your income

pinkteapot

Apply for the job. You don't know if you'll get offered it. Might as well see if you get the offer and go from there.

You've exchanged so yes, you must complete.

As already said, you can't sell it within the first six months. Well, you can, but only to cash buyers as mortgage companies won't lend on it, which will so severely restrict your market that you'll very likely get less than you paid for it.

If renting it out you will need consent to let from you mortgage lender (unlikely in the first six months) or to switch to a buy-to-let mortgage.

But, get the job and then worry about it! You can always turn a job offer down.

martindow

Depending on your employer and the job there may be scope for negotiating some sort of package to cover some of the costs.

I agree with the others - get the job first. If it is offered to you see if you can negotiate something as you are committed to buying a house far from where you would need to live. Then decide whether to accept the job or not.