Buying A Retirement Flat Before House Is Sold

My dilemma.  I was widowed about 18 months ago and need to downsize. I have found a retirement flat and would really like to buy.  Due to finding this property very quickly my house in not on the market yet but will be asp.  I have the vast majority of the funds to buy the flat but may have to borrow some money, but not a huge amount, if my house did not sell very quickly. So in theory, I would probably own 2 homes at the same time. What are the implications regarding this? Ideas on borrowing money short term until house is sold. I don't want to miss the opportunity of buying this retirement property. Should I look at companies that buy houses very quickly or is this a definite no, no. Is there any where I could seek free legal advice regarding this matter? CAB are always too busy. I did post under house buying/selling, however was advised to post under this category. What's the best course of action in these circumstances. 
Any advice received with thanks in advance 

Comments

  • Flugelhorn
    Flugelhorn Posts: 5,426
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    Just to say get proper paid for legal advice - CAB are not lawyers.

    Yes you can have 2 properties, will cost 3% extra to buy the new one but you will get it back when you sell the old one + 2 lots of council tax / utilities etc  

    re home buying companies, they will cut 30% off the price or more on day of exchange so unless you can afford to lose that it is not a good route.

    Can anyone in the family help re money in the short term?
  • user1977
    user1977 Posts: 13,359
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    edited 31 October 2023 at 9:41AM

    Is there any where I could seek free legal advice regarding this matter? CAB are always too busy. 
    If you want legal advice then you seek it from the same solicitor you'd be using for your purchase and sale - you're not going to get free advice from the CAB about choosing to move house, and at this stage I'm not sure what legal advice you're seeking?
  • amnblog
    amnblog Posts: 12,389
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    Assuming you have no mortgage on your current property you should be able to borrow the funds you need to complete the purchase quite easily. 

    It will however, be expensive, so you need to make sure securing this particular retirement property is important enough to you. Also, that your current property is likely to sell reasonably swiftly.

    Giving your current property away to one of these emergency purchase companies is not a good idea.

    It is probably worth a chat with an independent mortgage broker.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • MWT
    MWT Posts: 9,135
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    I have found a retirement flat and would really like to buy. 
    Do make sure you have fully understood any ongoing service charges and the way your energy costs will be billed as there can be surprises for the unwary both in terms of the current billing and the way those costs can escalate over the years...
    For example you may find that you cannot have your own energy accounts and will have to pay at commercial rates.
    Hopefully you've got all that clear already so there will be no surprises...

  • No, this is not the case. I think you are referring to mobile homes, where the land owners can determine the cost of utilities.
  • MWT
    MWT Posts: 9,135
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    No, this is not the case. I think you are referring to mobile homes, where the land owners can determine the cost of utilities.

    No, depending on where you are buying from it is not uncommon to find 'Retirement Flats' being charged for some or all of their energy by the operator of the building. 
    If that is not the case for the property you are buying then that is great, just check you can have your own energy account direct with the supplier of your choice and that is one less thing to worry about.
  • Flugelhorn
    Flugelhorn Posts: 5,426
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    No, this is not the case. I think you are referring to mobile homes, where the land owners can determine the cost of utilities.
    depends what sort of retirement property it is - sometimes the service charges can be quite high with you having to pay high tarrif for fuel used to heat and light communal areas 
  • I'm aware of the services charges, they are far less than some I have looked at.  You can choose your own energy supplier for this flat. Flat does not have to be sold back to housing association, if it was resold.  A lot of retirement housing do not allow this, and they take large sum in fees.
  • MWT
    MWT Posts: 9,135
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    You can choose your own energy supplier for this flat. Flat does not have to be sold back to housing association, if it was resold.  A lot of retirement housing do not allow this, and they take large sum in fees.
    Sounds like you've found a good one then, I can see why you are keen not to lose it.

  • Its really good to get other people opinions on this subject, my thanks to all of you who took the time to post on this forum.
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