Second property SDLT

littlegreenfrog_2

Lila2708 wrote: »

Hi OP, we are in a similar boat I suppose. I have just posted about this. Our first property sunk into negative equity (down by 17k) and the only way we can move is by renting our existing property and staying in my parents to save for a deposit so we can have a home in an area we want close to our friends and family. As its been a recent decision we were also unaware of the stamp duty increases and found out today that its actually going to cost us £7,500.
We haven't set out to deprive anyone of owing a home, its not for investment purposes or for a nest egg and we don't want to own other properties. We just want a nice house for our family and now because of this new rule we will be crippled financially if we do and yes it does feel bloody unfair.
But apparently some people this we deserve it

If you're moving back in with your parents to save another deposit then you're not going to buy your next house for a while. I don't know how much your mortgage repayments are or how much you could let your house out for, but you have options. If you can get tenants in to cover your mortgage repayments then you will continue to build equity in your home and you can be busy saving money at the same time whilst living with your parents. By the time you're looking to buy another house, the value of your house might have come back up again. I know it's a tough situation to be in, but try not to worry about things which are beyond your control. Sit tight and see what happens.

Baxter100

Free accommodation with parents.... getting someone else to pay off mortgage on your house.... unfair?

fed_up_and_stressed

Lila2708 wrote: »

Hi OP, we are in a similar boat I suppose. I have just posted about this. Our first property sunk into negative equity (down by 17k) and the only way we can move is by renting our existing property and staying in my parents to save for a deposit so we can have a home in an area we want close to our friends and family. As its been a recent decision we were also unaware of the stamp duty increases and found out today that its actually going to cost us £7,500.
We haven't set out to deprive anyone of owing a home, its not for investment purposes or for a nest egg and we don't want to own other properties. We just want a nice house for our family and now because of this new rule we will be crippled financially if we do and yes it does feel bloody unfair.
But apparently some people this we deserve it

Plenty of people can't afford to live in their preferred area

I'm sure the people in Africa who haven't even got fresh water would pray for you if you ask them nicely.

Alec_85

It feels unfair is all I'm saying- to go from 0 zero extra sdlt this month, then an extra £6k next month feels like an unfair charge, especially when I had thought this idea to be a sensible plan for the future. The property I'd like to rent out is in an area where young professionals are rife and all they really want to do is rent for a year or two. There is actually a market for rentals because of the demand, not just because there's no house for them etc.

Some people appear to be very quick to judge on here.

I have very much done the maths (I'm an engineer so was very quick to make a spreadsheet!). Rental income is going to be approximately £800, BTL mortgage is less than a third of that. All I want is for this property is to pay for itself, not to have additional cash at the end of it. But as it stands I will make a profit, decreasing somewhat over the next few years whilst the tax relief on interest reduces... But again I won't be in the negative.

I've put money in other investments in the past and have seen them drop drastically, and then do the opposite, it's very much a risky business. I feel this property is a risk, but a low one, but over the long term to be sound. But regardless I'll give it a year, see how it goes and then maybe decide to sell, least then I'll get my £6k back!

Lila2708

Wow people on here are mean! I'm
not moving because we are in negative equity, we are moving because we want a nicer house and a garden for our little girls to play in and to be nearer to my family. I've been on this forum barely a few hours and you've managed not only to leave me in tears (you don't know me or my situation) but someone who won't be returning to a site that I thought might just be able to offer me a bit of advice. Never mind

HappyMJ

Alec_85 wrote: »

It feels unfair is all I'm saying- to go from 0 zero extra sdlt this month, then an extra £6k next month feels like an unfair charge, especially when I had thought this idea to be a sensible plan for the future. The property I'd like to rent out is in an area where young professionals are rife and all they really want to do is rent for a year or two. There is actually a market for rentals because of the demand, not just because there's no house for them etc.

Some people appear to be very quick to judge on here.

I have very much done the maths (I'm an engineer so was very quick to make a spreadsheet!). Rental income is going to be approximately £800, BTL mortgage is less than a third of that. All I want is for this property is to pay for itself, not to have additional cash at the end of it. But as it stands I will make a profit, decreasing somewhat over the next few years whilst the tax relief on interest reduces... But again I won't be in the negative.

I've put money in other investments in the past and have seen them drop drastically, and then do the opposite, it's very much a risky business. I feel this property is a risk, but a low one, but over the long term to be sound. But regardless I'll give it a year, see how it goes and then maybe decide to sell, least then I'll get my £6k back!

I would not rely on your tenant moving out and selling within a few months. You might lose more than £6k trying to speed that process up. You've got to give no less than 2 months notice requiring possession then when they ignore that you've got to go to court to regain possession which can take months. What if once the property is empty and your purchaser falls through, you've got no tenant and the 18 month time limit is up? Your tenant also does not have to allow viewings they are entitled to peaceful enjoyment of their property and they are entitled to not allow you entry for the purpose of a viewing.

Lila2708 wrote: »

Wow people on here are mean! I'm
not moving because we are in negative equity, we are moving because we want a nicer house and a garden for our little girls to play in and to be nearer to my family. I've been on this forum barely a few hours and you've managed not only to leave me in tears (you don't know me or my situation) but someone who won't be returning to a site that I thought might just be able to offer me a bit of advice. Never mind

It looks like the advice is to sell but that's not the answer you're looking for.

littlegreenfrog_2

Lila2708 wrote: »

Wow people on here are mean! I'm
not moving because we are in negative equity, we are moving because we want a nicer house and a garden for our little girls to play in and to be nearer to my family. I've been on this forum barely a few hours and you've managed not only to leave me in tears (you don't know me or my situation) but someone who won't be returning to a site that I thought might just be able to offer me a bit of advice. Never mind

Yeah some people have been pretty harsh.

I would try not to worry too much about your situation right now though. If you can live with your parents for a while then you are in a better position than many people as you will be able to get tenants to pay your mortgage while you start again saving for a deposit.

But I completely understand why staying with your parents is not an ideal solution and with a young family you want your own space in the long term. I hope it all works out for you.

kinger101

Alec_85 wrote: »

I feel this property is a risk, but a low one, but over the long term to be sound. But regardless I'll give it a year, see how it goes and then maybe decide to sell, least then I'll get my £6k back!

A year is not long term. You might as well just save yourself a whole lot of hassle (buying then selling, and all it's associated fees) and set fire to £12K in your back garden.

Alec_85

HappyMJ wrote: »

I would not rely on your tenant moving out and selling within a few months. You might lose more than £6k trying to speed that process up. You've got to give no less than 2 months notice requiring possession then when they ignore that you've got to go to court to regain possession which can take months. What if once the property is empty and your purchaser falls through, you've got no tenant and the 18 month time limit is up? Your tenant also does not have to allow viewings they are entitled to peaceful enjoyment of their property and they are entitled to not allow you entry for the purpose of a viewing.

Part of the risk I suppose! But hopefully we won't need to sell it

Alec_85

kinger101 wrote: »

A year is not long term. You might as well just save yourself a whole lot of hassle (buying then selling, and all it's associated fees) and set fire to £12K in your back garden.

I know a year isn't long term...


I want this to be long term, however if things just don't work out in the 1st year then I can re-evaluate, just like I will be doing continuously. I know I won't be able to walk away from the apartment for 20 years, come back to it, with the mortgage paid off and a stash of cash in my pockets. Ideally I'd the mortgage paid off.