Housing Advise

celtic86

Hopefully I have posted in correct deptartment,please tell me if I am wrong as its my first post.The situation being that I am currently sitting in my house worth a value of around 80 -90 k my intention is to sell this house but remain in this household until my new house is built.The money I would require to borrow would be roughly 40k over a ten year period,what is the best way of doing this .I would be most grateful if anyone can help.Do I mortgage or take a loan or what.My own house that I am in is bought and paid for,sorry should of mentioned that earlier.

david29dpo

cant see how you can remain in a house you have sold unless you sell to a dodgy company and rent it back. The mortgage you need will depend totally on your income etc.

celtic86

Sorry maybe I have posted incorrect,but my intention is to remain in my current house until I have new one built,then sell to the value of 80 -90 k.The amount it will cost to transfer from old to new is 30k.Sorry if I bambozzled you.

Biggie

hi Celtic86,

Most cost effective way to get the 40k for the new house is to apply for a Mortgage.

You would then need to find a seller for your current house and then exhange contracts with an agreed completion date of when you intend to move.

So have you offered on the new property you intend to purchase ? Has your offere been accepted ? Are they aware that the purchase is on the condition that you need to sell up ?

hearts

If I read you correctly. You wish to rasie 40k as a down payment towards the New Build House. Then when the house is completed sell the old house and put the proceeds towards the New.
Remortage on Interest Only the "Old" house. for the 40k making sure you have no Tie Ins (penalties for early redemption).
There may well be a better way that someone more knowledgeable will point out. ;-)

celtic86

Sorry for confusing everyone.I will try again.My current situation is I am going to build a new bungalow to the value of around 145k.My intention was to sell the current house I am living in,and remain in it until if possible to when new house will be completed.My intentions were then to sell the house for around the 80-90k price range and together with some savings which would then be close to the 100k mark,I would need around 30-40k to borrow .I do not know the situation regarding houses or does it not work this way?

epz_2

as i see it it will cost you 145k to build your bungelow but you have a house worth 90k and savings, in that case you can either take out a 145k mortgage and with no early repayment charges and pay it off once your house sells or sell and rent.

nobody is going to hand over cash for your house and let you keep living there till your place is built, at least nobody you want to do business with.

interest on 90k is ballpark £450 a month interest only so i doubt it would be worth selling first unless its one of thouse gend desighn type places where the budget and times will go mental.

basickly you have plenty of assets (30% ltv ish) but need to speak specialist mortgage broker who can arrange a mortage with the money(and interest payable) given in stages as the build progresses.