Selling and moving lead time

jx4421

Hi,

I currently own a property that has a fully paid off mortgage as of last month. 

Would there be any issue in:
* listing the current property for sale
* once a suitable buyer has been found and contracts exchanged, but not completed, place a bid on another property and apply for a bigger mortgage based on the first sale completing
* once exchange occurs on sale of  property, complete the purchase of new property using the mortgage approved with the expected cash from sale. No extra stamp duty as first property has been sold.
* if for any reason sale falls through, cancel purchase of second property

Basically I am trying to limit the time between the transactions so that I do not need to be without a property for an extended period of time I.e do not wait until contracts exchanged on the initial property before putting an offer in, but at the same time I am attempting to give some lead time to the initial sale so that I know it is likely to complete before bidding on other properties.

Thanks

[Deleted User]

Look online for crystal balls they are quite reasonably priced

jx4421

Perhaps I was not clear - I was _not_ asking if the timelines are accurate but if the mortgage issuer would have any issue with the fact the first property is still technically in the process of being sold.

[Deleted User]

jx4421 said:

Perhaps I was not clear - I was _not_ asking if the timelines are accurate but if the mortgage issuer would have any issue with the fact the first property is still technically in the process of being sold.

That is a question I suppose that only they could answer

MaryNB

Would there be any issue in:

* listing the current property for sale
* once a suitable buyer has been found and contracts exchanged, but not completed, place a bid on another property and apply for a bigger mortgage based on the first sale completing

How are you going to exchange on a property if you don't know when you will be ready to complete? Will you be moving to a rental if you complete on your sale before you complete on your onward purchase? You should be bidding on another property as soon as you accept an offer, don't wait until exchange. Don't exchange until you are ready to exchange on your onward purchase or move into rented. You can apply for a mortgage before you sell no problem (it's how I presume most people do it), you just need to have complete on your sale before (incl on the same day) you complete on your purchase.

* once exchange occurs on sale of  property, complete the purchase of new property using the mortgage approved with the expected cash from sale. No extra stamp duty as first property has been sold.

If you need the cash from your property for your onward purchase you'll need to wait until you completed on it, not exchanged contracts, before you can complete your onward purchase. First property won't have been sold until you complete.

* if for any reason sale falls through, cancel purchase of second property

You can only do this if you haven't exchanged. You'll be in legal and financial trouble if you try to bail after exchange. 


ETA:

jx4421 said:

Perhaps I was not clear - I was _not_ asking if the timelines are accurate but if the mortgage issuer would have any issue with the fact the first property is still technically in the process of being sold.

If you need your house to be sold in order to afford your onward purchase you will need to have completed on the first house (beforehand or on the same day) or look into some kind of bridging loan.