options...your view..this is a good one!!

stevenha

Hi there

We just accepted an offer on our flat on being just over 2 weeks on the market for full asking price, we got very lucky believe me, cash buyer. We priced realistically but we did do a lot to it which was the big selling point.

Now what should we do, bearing in mind if we sell up and run with the money we will have to pay mortgage penalty fees.

With regards to whats happening in the market we are considering two options.

1)
Purchase a house in coming weeks, use equity and hopefully get a good deal on the new house. Remortgage in May (when its due).

2)
Sell up, take the money, pay the mortgage off with the penalty fees (4k) make about 22k net profit on sale. Rent and then start looking in 6-12 months and use the deposit then to purchase a house (which would be about 10% of teh value).

So what do you think??

If we go for option one houses go for about 240k here...whats a good realistic offering price??

Any help and advice would really be appreciated.

Many thanks

Steveo

boinging_2

stevenha wrote: »

Hi there

We just accepted an offer on our flat on being just over 2 weeks on the market for full asking price, we got very lucky believe me, cash buyer. We priced realistically but we did do a lot to it which was the big selling point.

Now what should we do, bearing in mind if we sell up and run with the money we will have to pay mortgage penalty fees.

With regards to whats happening in the market we are considering two options.

1)
Purchase a house in coming weeks, use equity and hopefully get a good deal on the new house. Remortgage in May (when its due).

2)
Sell up, take the money, pay the mortgage off with the penalty fees (4k) make about 22k net profit on sale. Rent and then start looking in 6-12 months and use the deposit then to purchase a house (which would be about 10% of teh value).

So what do you think??

If we go for option one houses go for about 240k here...whats a good realistic offering price??

Any help and advice would really be appreciated.

Many thanks

Steveo

1) Check with your lender first. Ours would pay back exit fee's if we take up mortgage again within 12 months.

2) 22K in 6% savings account will pay about £75 a month net, plus renting will be a lot cheaper than your mortgage, so make sure you save hte difference!

stevenha

Good advice...thing is its northern rock who is our current lender so dont think they will be here in 12 months time lol

what would you do in our situation?

boinging_2

I'm in your situation, I sold and got out. I was lucky.

I "downgraded" as well when it came to renting. i.e. went from mortgage on a two bed house to renting a one bed flat. This is saving me another c£300 a month (on top of deposit interest).

The market is definately dropping here is the cotswolds, I've seen the real life examples and even had an email from an EA where they had repriced a load of house because of "market conditions". I really want to buy another house, but will do so when the time is right, I've worked hard for the equity I have buying now could see that wiped out in 12 months.

Running_Horse

stevenha wrote: »

what would you do in our situation?

I would ignore price hype and do what was right for my family.

stevenha

well we offered £225k...it was rejected....offered £230k..rejected. We have walked away. Their house needed work, it was on for £249,950 and has been on since August this year.

Oh well they could have had a sale with a buyer on no chain...their property was vacant and she already moved into her new house and needs to sell...she didnt want to sell at that price.

http://www.rightmove.co.uk/viewdetails-16896770.rsp?pa_n=false&tr_t=buy

Gorgeous_George

You could wait and rent in the meantime. There's a risk that prices will rise and your banked equity may not be enough for a deposit.

Buy now and there's a risk that prices fall sharply and you miss the chance of being a smug STR.

Even optimists and those with a vested interest are only predicting a stagnant housing market.

I'd wait.



GG

mr.broderick

stevenha wrote: »

well we offered £225k...it was rejected....offered £230k..rejected. We have walked away. Their house needed work, it was on for £249,950 and has been on since August this year.

Oh well they could have had a sale with a buyer on no chain...their property was vacant and she already moved into her new house and needs to sell...she didnt want to sell at that price.

http://www.rightmove.co.uk/viewdetails-16896770.rsp?pa_n=false&tr_t=buy

Crazy i'd have snapped your hands off.

PasturesNew

boinging wrote: »

I'm in your situation, I sold and got out. I was lucky.

I did too

boinging wrote: »

I "downgraded" as well when it came to renting. i.e. went from mortgage on a two bed house to renting a one bed flat. This is saving me another c£300 a month (on top of deposit interest).

I did this. Went from a 6-bed house down to a bedsit. This is making me about £900/month better off (difference in cost + the savings interest (after tax) that I am getting). Although that sounds absurd when I write it down, I can't believe it ... but there it is in black and white. Blimey.

boinging wrote: »

I've worked hard for the equity I have buying now could see that wiped out in 12 months.

Me too. I stayed indoors for 5 years unable to afford to leave the house, building up that equity. Not going to chuck that down the drain in a hurry.

PasturesNew

stevenha wrote: »

well we offered £225k...it was rejected....offered £230k..rejected. We have walked away. Their house needed work, it was on for £249,950 and has been on since August this year.

Oh well they could have had a sale with a buyer on no chain...their property was vacant and she already moved into her new house and needs to sell...she didnt want to sell at that price.

http://www.rightmove.co.uk/viewdetails-16896770.rsp?pa_n=false&tr_t=buy

You had a lucky escape. See that kitchen!

dannyboycey

I'd wait every time. But (BIG but) you need to make sure you save as much as possible during that time as you will find you have more cash to spare with rent being cheaper than your mortgage.

If money burns holes in your pockets, choose wisely, otherwise you could go back to square one.