Selling fast?

lincroft1710

If you're willing to accept £50K less than the market value, then you might as well go with one of the WBAH companies, as that is what you would probably end up with!

BungalowBel

When we downsized we bought our bungalow first, with a small mortgage, then sold our house , then paid the mortgage off. OK, we lost some money doing that because of redemption charges, but nothing like as much as you would lose selling it to one of those buy it quick companies.

Could you do that?

Jemma01

https://forums.moneysavingexpert.com/discussion/comment/82000966#Comment_82000966

Search in mortgage compare sites, banks have different tolerance levels. I found HSBC was the cheapest for a tracker when I was shopping 2 years ago. Things change but don't stick to one bank.

It's really not a dream house if it costs you extra 50k, now the total is the house cost + the loss. You might as well increase your budget and search for a house that's 335k, at least when you sell it, you'll get your money back!

Take a minute to think, are you letting your emotions run the show? Do you feel making your partner lose 50k is wise and supportive? That money can go to her pension pot.

TroubledTarts

Crazy to sell a property £50k under value however send me the details we are always after a bargain lol

Titus_Wadd

My brother, 70 got divorced 2 years ago with only his pension and savings, ex got the house and he managed to get a mortgage and is over-paying while he's still working pt before he retires, so if you use a broker there's likely a mortgage solution that would work to let you start the purchase before your place is ready to sell nearer its market value.

Herzlos

https://forums.moneysavingexpert.com/discussion/6668542/selling-fast

You want to buy a house for £285k, and you've got £185k equity + £160k cash?
So why don't you either use the £160k as a deposit on a mortgage on the new house and sell the old one after you've moved, and pay off the mortgage? Or even remortgage the old one to free up the £125k you need to buy the new one in cash? If you're talking about throwing away £50k, that's the way that'll get you in the house you love.

It also wasn't clear, but the house you're selling is your own and the inherited one is where the £160k cash came from, or is there a 3rd house in the mix?

woogeroo

https://forums.moneysavingexpert.com/discussion/comment/82001308#Comment_82001308

OP if you're not in a financial position to just go ahead and buy the 2nd place first without selling first, you're for sure not in a financial position to chuck away 50k just to get a specific house you've viewed. More will come up, probably better ones, in the next 6 months.

You don't sound like you're in urgent need to move for some reason, and you've not said the house you want to buy is unique or special in some way specific to you (next door to family for example).

There are 2nd home mortgages available that could help you accomplish it if it's vaguely affordable with your income, but if not, 50k of money might be a decade of savings for many people.

The house is not that great. At the very least, go have a look at what houses you could get for 285k + 50k, later in the year when you've sold your place at a market price.

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/82000966#Comment_82000966

I am now totally baffled. You have invested cash to bring the house up to standard but are now happy to accept £50K less.🧐

When did you have that moment of realisation?

Most would say I'm not putting any cash into it as I want to realise the funds ASAP, list it, sell it move on.

Especially as you have a long-harboured love of a particular area in Cornwall. An expensive area where getting into the market would ordinarily require you to maximise your funds you can bring in from liquidating other assets. Not accept a £50k smack.

I thoroughly recommend taking a pause. Invest some time and effort in understanding more about financing house purchase, routes, options, pitfalls, affordability etc.

Take a stock check of your current assets and liabilities and be realistic about what you can achieve but DO NOT RUSH into anything that might cost you a significant sum.

£50k = State Pension for 4 years (without inflation).

If you are retiring to Cornwall, what difference does burning that 4years of state pension make to your quality of life?

Bigphil1474

OP, you say you inherited the house - did you? or are you selling it as executors and the proceeds of sale go to the beneficiary. Important, as there may be Capital Gains Tax to pay by you or the estate. Plus it will count as a second property if it is yours so will affect SDLT.

As Herzlos says, use some of the cash inheritance as a deposit, and get a mortgage for the remaining balance. You will have extra stamp duty to pay as it is a second (or third?) property, but you will get that back if you sell your main residence within 3 years (not the second inherited property). There will be an early redemption fee if you repay the mortgage inside of any fixed deal, so go for a short deal rather than a long one.

Bridging loans are extortionately expensive and a big risk if things get delayed - bad idea. Selling through the cash buyer companies is usually a bad idea - they are often just middle men, and it's often easier to sell through an EA. If they market it at £180k, it's good first time buyer territory and you will undoubtedly get some chancer come in with a low offer early on. Just make sure they are proceedable. If you really want a quick sale, it's a good price range for traditional auction (not modern method auction as previously mentioned).

Tbh, don't go looking at houses until you are proceedable. Causes problems like this.

If it was me - I'd get the inherited property on the market with a local EA, keep that house reasonably tidy. Don't forget empty property insurance. Buy the new house with cash and smallish mortgage. Whilst that is proceeding, get your current house decluttered, tidied up and on the market as chain free as it makes it easier to sell. Sell both houses, buy new house, send me a cut of the £50k you've just not wasted 👍️Or more importantly, treat you and the missus to a fantastic holiday using some of that £50k and enjoy your retirement.