Viewings and Offers

ironlady2022

Hi All,

RM ad went out on 25/04 with asking of 'Offers over £290k', 8 viewings were booked within 48hrs. 7 last night (28/04) and 1 on Sunday (01/05).

2 cancelled last night - 1 wanting to reschedule for Sun.

5 became 4 after the first person saw the exterior of the terraced house and decided it was too small without going in. 2 offers came in

Buyer 1 @ £290k (apparently this Guy offered across the estate, and did not wish to increase his bid last year, but wishes he did as he is in rented accommodation 3miles away) - EA says he was direct to the point and calling the shots a bit. 
Buyer 2 @ £292k (lives on same estate, would rent out his 3 bedder)

The other two will submit their offers via email today. EA has advised and I trust her implicitly as she is really good, that out of the 4, Buyer 1 would probably be the most difficult to deal with. He's 'nice' but not as nice as the others.

If all 4 offers come in, then we will go to best and final. All 4 are chain free - so that is really good. 

I shall also wait for the 1/2 viewings on Sunday - this I shall host myself.

So overall, a good start, with a 100% hit rate on ppl viewing the home!

babyblade41

Buyer 2 sounds a bit tricky, he will need to change his mortgage to a BTL then get a mortgage offer to buy yours.
Buyer 1 is proceed able , (you don't have to like them) he sounds eager so for me buyer 1 sounds like he's in a far better position than buyer 2 

ironlady2022

babyblade41 said:

Buyer 2 sounds a bit tricky, he will need to change his mortgage to a BTL then get a mortgage offer to buy yours.
Buyer 1 is proceed able , (you don't have to like them) he sounds eager so for me buyer 1 sounds like he's in a far better position than buyer 2 

Thanks for this. I didn't think about the change to BTL mortgage but you are right. 

Is the process easy?

And he would just apply for new mortgage?

So in that respect, he's got an extra step in the process compared to Buyer 1.

Buyer 1 has sold his house to rent to get himself in better position. He's got a £200k deposit and income of £90k pa so he's in a good position to borrow. He could be a cash buyer but prefers a smaller mortgage. £300k is my magic number! 

babyblade41

I know very little on mortgages but buyer 1 sounds even better given the figures .

Sometimes the highest offer isn't always the best option, there is always the problem of a different valuation from the lender who, now are making their lending criteria a lot tighter 

My buyer had a 30/70 % LTV , both high earners but mortgage offer took over 4 weeks with lots of questions from the underwriters 

For me buyer 1 is in a far better financial position & can proceed immediately with no chain his end 

ironlady2022

babyblade41 said:

I know very little on mortgages but buyer 1 sounds even better given the figures .

Sometimes the highest offer isn't always the best option, there is always the problem of a different valuation from the lender who, now are making their lending criteria a lot tighter 

My buyer had a 30/70 % LTV , both high earners but mortgage offer took over 4 weeks with lots of questions from the underwriters 

For me buyer 1 is in a far better financial position & can proceed immediately with no chain his end 

Yes, i agree. 

I like the idea of Buyer 2 living on same estate as i know his house will rent out easily, but had not factored in the change to BTL.

I'm still waiting on the last two email offers with two additional viewings on Sunday so I don't have the full picture as yet. 

I've done an excel document so i can rank the Buyers in order of preference so I'm going to put Buyer 1 over Buyer 2 after the feedback. 

Noneforit999

mayling03 said:

babyblade41 said:

Buyer 2 sounds a bit tricky, he will need to change his mortgage to a BTL then get a mortgage offer to buy yours.
Buyer 1 is proceed able , (you don't have to like them) he sounds eager so for me buyer 1 sounds like he's in a far better position than buyer 2 

Thanks for this. I didn't think about the change to BTL mortgage but you are right. 

Is the process easy?

And he would just apply for new mortgage?

So in that respect, he's got an extra step in the process compared to Buyer 1.

Buyer 1 has sold his house to rent to get himself in better position. He's got a £200k deposit and income of £90k pa so he's in a good position to borrow. He could be a cash buyer but prefers a smaller mortgage. £300k is my magic number! 

We picked a buyer who was doing the same thing, remortgaging for a BTL and taking out equity to buy ours.

It took 11 weeks of back and forth for the lender to decide they would lend but for less than they needed which made it impossible for them to continue. Our EA told us 8-12 weeks to get a BTL mortgage offer was not unusual. 

Now they are having to sell their house to buy ours, effectively delaying the process by several months.

I am sure plenty of BTL's go through without issue but I wouldn't pick one again, not in a million years. 

ironlady2022

Noneforit999 said:

mayling03 said:

babyblade41 said:

Buyer 2 sounds a bit tricky, he will need to change his mortgage to a BTL then get a mortgage offer to buy yours.
Buyer 1 is proceed able , (you don't have to like them) he sounds eager so for me buyer 1 sounds like he's in a far better position than buyer 2 

Thanks for this. I didn't think about the change to BTL mortgage but you are right. 

Is the process easy?

And he would just apply for new mortgage?

So in that respect, he's got an extra step in the process compared to Buyer 1.

Buyer 1 has sold his house to rent to get himself in better position. He's got a £200k deposit and income of £90k pa so he's in a good position to borrow. He could be a cash buyer but prefers a smaller mortgage. £300k is my magic number! 

We picked a buyer who was doing the same thing, remortgaging for a BTL and taking out equity to buy ours.

It took 11 weeks of back and forth for the lender to decide they would lend but for less than they needed which made it impossible for them to continue. Our EA told us 8-12 weeks to get a BTL mortgage offer was not unusual. 

Now they are having to sell their house to buy ours, effectively delaying the process by several months.

I am sure plenty of BTL's go through without issue but I wouldn't pick one again, not in a million years. 

Yes thank you, v useful. I've not fully understand what actually needs to happen from their point of view. I thought, o they don't need to sell their house, which is an advantage!

You would have thought, it's 2 separate applications which should be easy. I guess it is harder if he's a first time buy to let investor. 

Slinky

We sold ours to somebody who kept their existing house for a BTL and took out a mortgage on ours, so there were 2 mortgages involved. Fortunately for them we weren't in a huge hurry to move due to holidays, but it got a bit tense when exchange kept being put back because of the need to co-ordinate their solicitors receiving both lots of money.  Agreed sale in early April, completed mid July, with exchange the week before.

ironlady2022

Slinky said:

We sold ours to somebody who kept their existing house for a BTL and took out a mortgage on ours, so there were 2 mortgages involved. Fortunately for them we weren't in a huge hurry to move due to holidays, but it got a bit tense when exchange kept being put back because of the need to co-ordinate their solicitors receiving both lots of money.  Agreed sale in early April, completed mid July, with exchange the week before.

In theory, it should be pretty simple. 

When you say two lots of money, I'm guessing, releasing equity on their existing house which they would turn into BTL and then new residential mortgage from the bank. 

Slinky

mayling03 said:

Slinky said:

We sold ours to somebody who kept their existing house for a BTL and took out a mortgage on ours, so there were 2 mortgages involved. Fortunately for them we weren't in a huge hurry to move due to holidays, but it got a bit tense when exchange kept being put back because of the need to co-ordinate their solicitors receiving both lots of money.  Agreed sale in early April, completed mid July, with exchange the week before.

In theory, it should be pretty simple. 

When you say two lots of money, I'm guessing, releasing equity on their existing house which they would turn into BTL and then new residential mortgage from the bank. 

Yes I'm assuming they took a mortgage out on our house, although they never had a physical survey of it.

ironlady2022

Slinky said:

mayling03 said:

Slinky said:

We sold ours to somebody who kept their existing house for a BTL and took out a mortgage on ours, so there were 2 mortgages involved. Fortunately for them we weren't in a huge hurry to move due to holidays, but it got a bit tense when exchange kept being put back because of the need to co-ordinate their solicitors receiving both lots of money.  Agreed sale in early April, completed mid July, with exchange the week before.

In theory, it should be pretty simple. 

When you say two lots of money, I'm guessing, releasing equity on their existing house which they would turn into BTL and then new residential mortgage from the bank. 

Yes I'm assuming they took a mortgage out on our house, although they never had a physical survey of it.

No physical survey, was it covid times?