buying a second home while still selling my first?

Choccy25

Hi, i thank anyone for their help with this.

We have seen a house which is ideal (bedrooms, location, not too much work to get it right).
However we are only just putting ours up for sale.

I am viewing the house this weekend and if it's suitable, i don't want to miss out.

Has anyone any experience with buying a second home before your fist is sold?

To clarify some points....

1. we are mortgage free right now so i'm not worried about that
2. we do have enough for a 10% deposit now.

issues i'm facing is, stamp duty that would be £500, will be £8000 because of the second home increase (i know i can claim that extra 3% back, but it will eat into the small savings that we currently have, as it would otherwise come from property sale).
2. i am not named on the current house, (we will both be on the new hosue), so my partner will keep old house as his main residence until sold...this should mean we wont have to pay CGT yes?

I mean buying a second house may mean a deposit of £15k + £8k SDLT (which we can claim £7.5k back after selling old house? + the solicitor fees estimating at £2k.
plus we will be resposible for both sets of council tax.

am i missing anything to consider?.

obviously im better to let it go and get this one up for sale and an offer first....but I've been keeping an eye on rightmove since last october and theres been nothing suitable in our price range and area.
but am i seriously being silly?

thank you if you stayed to read and reply 

horsewithnoname

As long as you could get the funds, be it a mortgage or from savings to buy the new home in your sole name then you would be okay. Otherwise do you think it might take a while to sell your current home? Most sellers accept that they might need to wait a bit before it all goes through. 

Mark_d

I think things can get complex and costly.  Is this new house so perfect that nothing else would compare, even at a lower cost?

For me, the first things I'd do is get my house on the market.  Once I agree a sale then I'll spend a day viewing suitable houses and making offers.  I'd be happy with any house I make an offer on...obviously the less perfect the house, the less I'd offer.

If money was no object then I'd buy my dream home right now...and I wouldn't worry about a few thousand pounds here or there

p00hsticks

Choccy25 said:

2. i am not named on the current house, (we will both be on the new hosue), so my partner will keep old house as his main residence until sold...this should mean we wont have to pay CGT yes?

Are you married ? If so you can only have one main residence between you for CGT purposes.

 Do the sums but if the existing home has been his main residence for the entire time he's owned it then there would be no potential CGT liability for nine months after he moves out, and even then it's likely to be zero to negligible.

 And bear in mind that while the old property remains his main residence, the new one won't be so there is a potentially a CGT liability building up for him there for if and when you sell the new property.

SDLT_Geek

Choccy25 said:

Hi, i thank anyone for their help with this.

We have seen a house which is ideal (bedrooms, location, not too much work to get it right).
However we are only just putting ours up for sale.

I am viewing the house this weekend and if it's suitable, i don't want to miss out.

Has anyone any experience with buying a second home before your fist is sold?

To clarify some points....

1. we are mortgage free right now so i'm not worried about that
2. we do have enough for a 10% deposit now.

issues i'm facing is, stamp duty that would be £500, will be £8000 because of the second home increase (i know i can claim that extra 3% back, but it will eat into the small savings that we currently have, as it would otherwise come from property sale).
2. i am not named on the current house, (we will both be on the new hosue), so my partner will keep old house as his main residence until sold...this should mean we wont have to pay CGT yes?

I mean buying a second house may mean a deposit of £15k + £8k SDLT (which we can claim £7.5k back after selling old house? + the solicitor fees estimating at £2k.
plus we will be resposible for both sets of council tax.

am i missing anything to consider?.

obviously im better to let it go and get this one up for sale and an offer first....but I've been keeping an eye on rightmove since last october and theres been nothing suitable in our price range and area.
but am i seriously being silly?

thank you if you stayed to read and reply 

In order for the extra 5% SDLT to be recoverable on a sale by your partner of his existing house, it is important that your partner (as at the date of completion of the purchase of the new house) intends to live in the new house as his only or main residence.  So it might be dangerous for him to carry on living in his old house once you have bought the new one.

dumpster_fire2025

Choccy25 said:

Hi, i thank anyone for their help with this.

We have seen a house which is ideal (bedrooms, location, not too much work to get it right).
However we are only just putting ours up for sale.

I am viewing the house this weekend and if it's suitable, i don't want to miss out.

Has anyone any experience with buying a second home before your fist is sold?

To clarify some points....

1. we are mortgage free right now so i'm not worried about that
2. we do have enough for a 10% deposit now.

issues i'm facing is, stamp duty that would be £500, will be £8000 because of the second home increase (i know i can claim that extra 3% back, but it will eat into the small savings that we currently have, as it would otherwise come from property sale).
2. i am not named on the current house, (we will both be on the new hosue), so my partner will keep old house as his main residence until sold...this should mean we wont have to pay CGT yes?

I mean buying a second house may mean a deposit of £15k + £8k SDLT (which we can claim £7.5k back after selling old house? + the solicitor fees estimating at £2k.
plus we will be resposible for both sets of council tax.

am i missing anything to consider?.

obviously im better to let it go and get this one up for sale and an offer first....but I've been keeping an eye on rightmove since last october and theres been nothing suitable in our price range and area.
but am i seriously being silly?

thank you if you stayed to read and reply 

Are you sure that the vendor is going to accept an offer when you are not proceedable? Quite often vendors won't even allow people to view a property unless they're a first time buyer or their house is on the market. It would be even less common for them to accept an offer without any way of funding the purchase other than crossing your fingers and hoping for a buyer to come along.

At best I think they'd notionally "accept" the offer under the proviso that the house stays on the market until you have a buyer secured which realistically isn't any better than just not accepting the offer at all.

sheramber

You have the deposit but  how do you propose to cover the balance of the purchase price if you have not sold your current house? 

If you intend to get a mortgage then you need to ensure you  have an AIP  to get  an offer accepted.

The easiest way is to sell and buy at the same time.