Advice needed

HanPop

Hi, just want some advice really.
We have found a new build property house type that we love and we know which plot we want but it won’t be available for completion until October ‘19. They have guessed the plot will be released around April time but won’t be able to give me any more information until maybe a couple of weeks beforehand. To be able to reserve the plot we need to be SSTC. We have our hearts set on this house and I would be really upset to lose it. I know exactly what you can get with other houses in the vicinity etc and I know it is a good size and would be a long term home. So our issue is this - we currently own a three bed semi that is 5 years old and we don’t know when would be the best time to sell. It’s in a good condition and would be suitable for a first time buyer. I don’t want to put our house on too soon and lose a sale or put it on too late and lose the house we want! Also I’m aware that the build may run over so I’m not sure how long a buyer would be willing to wait to move into our property? We will have three young children by then so i don’t want to be homeless whilst waiting for completion! Any advice would be appreciated

hazyjo

Sell now and rent? Many families rent. Or will the developer offer part exchange? You won't (well, 99% sure!) find a buyer willing or able to commit to buying your house in 12-18-ish months' time.

HanPop

I thought about renting but not sure we can afford that, our current mortgage is only £300 a month and renting would double that. They also won’t do part exchange because we want to use help to buy...
I’m worried I’m chancing it too much if I put it on in Feb/March and maybe don’t get a buyer before the plot becomes available. But then again this is our first home and I’ve never sold before so don’t know what it’s like.

Hoploz

Isn't help to buy for first time buyers?

I would say spring time is always the best time to go on the market. It's the busiest time of the year, so as long as you price it correctly it's likely to sell within a reasonable time.

However, with Brexit in March who knows what'll happen ... Including the one you're wanting to buy. ... Plans made now could change.

jennhg88

Hoploz wrote: »

Isn't help to buy for first time buyers?

The equity loan HTB applies to new builds only and you don't need to be a first time buyer, I think you cannot own more than one property though.

Anyway the only solid way to reserve that plot soon is to sell yours and move into rented.
Otherwise you will have to wait until much nearer the time of completion and hope it is still available.

Is HTB the only way you can afford it? Part ex without HTB could be a lot less stressful.

Grezz24

have you looked at selling your house to the builder, that way they sort all that out for you (may not get as much) and that removes any issues you have.

agrinnall

Grezz24 wrote: »

have you looked at selling your house to the builder, that way they sort all that out for you (may not get as much) and that removes any issues you have.

Already asked (post #2) and answered (post #3).

oystercatcher

I know a couple of families who sold and went into rented for a few months while waiting for a new build to complete.

If you think this particular plot is worth having then there are probably others wanting it for the same reasons. How would you feel if someone else reserved that plot and all was left were similar but different ones? It boils down to is that plot worth whatever a few months rent will cost plus the extra moving costs? Would an alternative plot be satisfactory ? The odds are stacked against you waiting to sell in time to grab the best plot on the site.

Cakeguts

There is another thing you need to consider and that is this. When that plot is released next year it could be released at a much higher price than properties on that site are selling for now. The price that they are today doesn't mean that they will be the same next week.

HanPop

Thank you for all of your replies, I just needed others’ thoughts on it.
There will be two of the same house type we want next door to each other released at the same time but that is it and it’s the final phase of the development, I have a preference for one plot but would take the other if I had to. The builders are building in another part of the town after this but in a slightly nicer area and the houses start at £300,000 which we can’t quite afford. I am currently expecting our third child shortly so we need more space downstairs and bedrooms, we could afford an ‘in between’ house i.e a small four bed house full price (we have about £100,000 equity in our house currently) and then a mortgage based on my husbands wage (I’m a SAHM) , but with the help to buy equity loan we can get more of a ‘forever home’ without incurring the costs of moving house twice.
Most replies have suggested renting and maybe that’s what we should do to ensure the plot, I can’t do it too soon though because I need to be applying for my sons school next year and need to be in the area I’m in (the new house I want is also in the current catchment area).

kingstreet

Has anyone done mortgage and HTB affordability calculations for you as HTB impacts what you can borrow.

Lenders will lend you less due to the future cost of the equity loan (normally 3% of the loan is used) and any ground rent and/or service charge.

You'll also have another dependent.

A discussion with an experienced independent broker who understands newbuild and HTB would be a good idea.