Personal Loan to Buy My Home

DaleA

Rollingstart wrote: »

I would be very careful. Don't forget that you'll be responsible for paying for planned maintenance or improvement to the property and also the estate.

They should be able to give you an idea of this cost for the first five years, it may be nothing but it could be several thousand. Maximum I know of is about 15k.

I know how you feel, I'd like to buy my house under right to buy but it's awkward given costs.

Using a personal loan just isn't viable, as lenders are very specific as to what they can be used for.

Thanks for your concern but I think I have the figures under control.

Costs for the first 5 years should be around £55 per month (including compulsory rebuilding insurance). My current rent is just over £320 per month. This leaves a gap of £275 for mortgage payments. The estimated repayment is about £210 per month over 8 years (first 5 year fixed) which should leave me about £65 per month better off.

Upfront costs will be £99 for the arrangement (might include the survey fee) plus £30 for the money transfer (which would be free using Faster Payments) and the dreaded solicitor's fee for them at a conservative £200 + V.A.T. (maybe up to £100 more if they have to deal with the new Land Registry to pay for the registration in my name). Because of the low value of the property the mortgage advisor has agreed to just take the procurement fee of about £80 (paid by the mortgage company). So with a bit of luck I could get away with £489 in fees.

DaleA

DaleA

In the end my folks dug deep and managed to scrape together enough money together enough money to give me a loan for my flat.

Because I did not have to get a mortgage I was able to save on the purchase costs. When a mortgage was involved I had been given an all-in quote of £809, including £510 just for legal fees (Including VAT). The rest to be made up of fees they would have had to pay on my behalf (disbursements), including fees for registering the property afterwards.

Excluding postage/delivery costs I have had to pay out the grand total of one pound so far for the K16 - bankruptcy search on myself which is a requirement of RTB sales. I got round the BACS transfer fee of £40 by just doing a normal (online banking) transfer to the Council's holding account a couple of days prior to the sale. The only slight hiccup was that they also wanted advance payment of the service charges up to the next 6 month payment date (which was October for me) so I just estimated that using the figures they had given me (as they had not not be able to prepare an invoice in the month I had given them to complete the sale) and added that to the purchase price. When the invoice did come (a fortnight after the sale) they just took the payment from the remainder in the holding account without any fuss after I phoned to explain the situation. The only other financial thing I had to deal with was make sure my rent was fully paid up on the day of the transfer.

As for the actual sale itself all that happened was the legal department sent me an official copy of the Land Registry title (to the whole building), the plans showing my flat and the leasehold document. Since it was stipulated that I could not alter the contract, all I could do with it was put the sale date on, sign it and have it witnessed. I then took it back to the council (along with the K17 form the Land registry had sent me in response to the K16 form I had sent) and that was that. All I had to do then was wait for the official transfer date. About 10 days after the sale date I got the leasehold document that I had signed returned but it now it had a big red seal of the council and had been signed by them.

The last bit is going to be the trickiest and that is registering the flat in my name. I know it is going to take an AP1 form and an ID1 form as proof of my identity (for proof of the councils identity I had to get their solicitors name and their Land Registry ID number, which they supplied by email). I will also have to send the original lease back with it but I am uncertain if the application requires anything else apart from a cheque for the £40 fee. To get round paying a local solicitor to complete and verify my ID1 form I may just take a day and apply in person as the train fare would only be about £6 - £7 pounds, which is less than a solicitor would probably charge.

Wish me luck.

Dale A

Tixy

You might want to post on the home buying section of the forum with regards to the land registry forms etc

Land_Registry

AP1 and ID1 are the correct forms and it would be a certified copy of the lease you should lodge if you want to hang on to the original

You would also need to consider the freeholder's title and any restriction which need to be complied with and of course any new mortgage paperwork