Wanting to reserve

Bethan1991

Hi, I’m just looking for a bit of advise on what I could do about reserving a new build property.

We’ve had our hearts set on a property in our area since before it was released. We’ve been in loads of times since the building site started to enquire about this particular property, the problem is that they’ve released it wayyy earlier than they originally said. So we rushed to get our house on the market and are now luckily sstc.

We’ve been to see someone about a mortgage and to see if we can afford it and all looks good. We’ve even been approved more or less by their financial advisor but we have a big problem. Basically my husband inherited a house (which he will get half of along with his brother) last September and is currently on the market but is not yet sold and we need the equity from this to put towards the new house. The house we want won’t be complete until Autumn and they told us it’s likely to be the end of October and the people that have bought our house have had to go out of their way to extend staying their rented place and have very kindly done that so we can stay in our property until the one we want is completed.

We just keep being told that we can’t reserve until my partners other property has been sstc also and we are so nervous that someone will get in there before us and it will all be for nothing.

We did think of help to buy but we’re not eligible because of my partners other property. I’m just loosing my mind waiting for someone else to reserve. I really don’t want to pull out of our sale but we just don’t want any other property as it’s in an ideal place for my little girl whose starting school (across the road from it) in September and my partners parents are across the road also.

Does anyone know if there would be another way to reserve with out the other property being sold? Any help or advice would be greatly appreciated!

Hope I’ve explained this well enough... 😬🙈

Many thanks,
Bethan xxx

Comms69

Reserving is down to the developer and we cant help with that. But would the brother buy you out?

Bethan1991

Yeah it’s a bit of a tedious one. I get it’s because they are trying to protect themselves though... He’s not in a position to do that unfortunately 😭.

Comms69

Bethan1991 wrote: »

Yeah it’s a bit of a tedious one. I get it’s because they are trying to protect themselves though... He’s not in a position to do that unfortunately 😭.

Ultimately the cheaper it is, the quicker it will sell.


Perhaps you could lower by a bit and 'borrow' the difference from the brother, to be paid back monthly


other than that, you'd need to borrow more from your lender

Verix

You might be able to find a way around this. If you can get a BTL mortgage agreed on the inherited home as a back up so that if you aren't able to sell in time you can rent it out instead. If it is rented out and self-financing then mortgage lenders for your new property likely won't take it in to consideration; this should then be acceptable to the builder.

The risk with this is that when you reserve you are probably going to be asked to exchange in 4-6 weeks. If you do exchange you are then legally liable to buy the property. So you'd have the pay the higher rate of stamp duty on the new home in all likelihood if you can't sell in time, but you could claim this back once the inherited house eventually sells.

Bethan1991

They’ve already lowered it once so I doubt they will want to again but my partners brother is wanting to move too so he will need all of his half for that. 🤦!♀️

Thank you for the reply 💕

Bethan1991

Verix wrote: »

You might be able to find a way around this. If you can get a BTL mortgage agreed on the inherited home as a back up so that if you aren't able to sell in time you can rent it out instead. If it is rented out and self-financing then mortgage lenders for your new property likely won't take it in to consideration; this should then be acceptable to the builder.

The risk with this is that when you reserve you are probably going to be asked to exchange in 4-6 weeks. If you do exchange you are then legally liable to buy the property. So you'd have the pay the higher rate of stamp duty on the new home in all likelihood if you can't sell in time, but you could claim this back once the inherited house eventually sells.

I’m not sure I really understand this, do you mean a BTL mortgage for my husbands brothers half to buy home our? Sorry I’m not very up to speed with these sort of things. I’m probably just being a bit naive in thinking there could be an easier way round it 😭 thank you so much for the reply 😊 x

Verix

Basically what you can do is have your husband and his brother take out a BTL mortgage on the inherited property. You have the mortgage offer then sitting there which can be used in the event you are unable to sell this property in time. There is a good chance there won't be any fees to get a BTL mortgage offer in place. This would then give a developer confidence that you are not dependant on the sale of that house because if it doesn't sell you would rent it out.

I would recommend speaking to your mortgage broker about the option because it would be far from simple, however if you are determined to reserve on the new build this could be a way of doing it. Has the builder recommended a new build specialist broker as they may have experience doing things like this.

ethank

Has the inherited property been transferred into your husbands name as yet or is it being sold by the Estate?

Bethan1991

ethank wrote: »

Has the inherited property been transferred into your husbands name as yet or is it being sold by the Estate?

We’re just waiting to hear back from the solicitors about that. As far as we know the house is still under his Grandads name and we got told by his Aunt (who is the executor) that they didn’t have a choice to keep it, they had to sell it but I’m not sure why that is?

Do you think this would make us eligible for the help to buy scheme?

Bethan1991

Verix wrote: »

Basically what you can do is have your husband and his brother take out a BTL mortgage on the inherited property. You have the mortgage offer then sitting there which can be used in the event you are unable to sell this property in time. There is a good chance there won't be any fees to get a BTL mortgage offer in place. This would then give a developer confidence that you are not dependant on the sale of that house because if it doesn't sell you would rent it out.

I would recommend speaking to your mortgage broker about the option because it would be far from simple, however if you are determined to reserve on the new build this could be a way of doing it. Has the builder recommended a new build specialist broker as they may have experience doing things like this.

Ahh ok, yes I understand now. Yeah they have got their own. I will have a look into this also, thank you! 😄 x