Buying new home before selling first

RHodgett

A house has just come onto the market which would be ideal for my wife and I. It looks to be repossessed as there is a sticker on the oven and seals on all of the sinks/toilets. The house is priced at £130k but will probably go for £120-125k. The estate agent says the seller has requested that any buyer will need to exchange within 28days of offer which also makes me think its a repossession.

The problem is I have just got married and my wife and I both own properties. We live in my property which has only £7k left on the mortgage. I had it valued last weekend and the estate agent said he would list it for £120k and it would probably go for asking.

My wifes property is a flat which we are working on at the minute (converting from a 1 bed to a 2bed flat). It has £40k left on the mortgage and would probably sell for around £75k when we are able to list it in a few months time.

My question is, given the short time for exchange after offer what are my options for buying the property if we decide we like it? Or should we completly forget about it?

We don't have much in the way of a deposit at the moment so would it be possible to remortage my house to get a deposit - buy the new house with a second mortgage and then aim to sell our two previous properties? I read that in terms of the new 3% tax, we could pay this and claim it back once we sold our current residence.

Thanks for any advice you can give

G_M

The 28 days is not a strict limit. The bank (yes its almost certainly a repo) will not pull the plug on day 29 provided you are making significant progress. They want to sell.

The risk to you is that they will continue to market it throughout the 28 days and beyons, so if someong richer, or quicker, than you comes along you may lose it at the last minute.

We live in my property which has only £7k left on the mortgage. I had it valued last weekend and the estate agent said he would list it for £120k

Could you re-mortgage and raise enough to buy the repo for cash? That would be a faster option if practicable.

RHodgett

Hi G_M,

Thanks for your help. I don't think I would be able to get enough money together through remortgaging to purchase with cash although I agree this would be the easiest option.

We might just have to forget about it and hope something similar comes along when we have sold the house and have the cash ready to go. I suppose if interest rates go up there will (unfortunately for some) be more repos around.

penguingirl

Remortgage for cash and get a personal loan secured on wife's flat to make up the shortfall? Not cheapest way, but short-term. Also get your house on the market asap.

Lord_Baltimore

I wouldn't risk a precarious financial arrangement. You literally need to get your house(s) in order - sell then buy! If you miss this one, there will be others. A new marriage needs a stable beginning