When should we sell? UPDATE We are now selling - ADVICE PLEASE?

LouBlue

Hi everyone.

Some advice on timing please.

Our 2 year fixed rate finishes on 1 May 2008. We want to sell our flat but obviously do not want to stump up the £3500 for the early redemption payment. So when should I put the flat on the market, is it too soon? Flats go very quickly in my road, although I know that is not a given. We are going into rented for 6 months, so will not be transferring to another mortgage. If we sell it before 1 May, we will then be paying rent, so if we don't pay the mortgage off til 1 May, we will be paying rent and the mortgage. Though I suppose we will have the proceeds from the flat to keep paying the mortgage til 1 May but obviously the mortage will go up by about £200 due to rate finishing.

I may have answered my own question but I just wanted to make sure. Should we put it on the market now or wait a bit.

Many thanks

King_Of_Fools

You will not be able to sell but not pay off the mortgage as it is secured on the flat.

itsgototstop

Can you not put it on the markey but make sure you do not complete until May?.

LouBlue

itsgototstop wrote: »

Can you not put it on the market but make sure you do not complete until May?.

So what you are saying, if we sell it straight away, we stay in it and ask for completion on 1 May?

Sorry if I sound thick but its very important to get it right and I want to have all my bases covered.

itsgototstop

LouBlue wrote: »

So what you are saying, if we sell it straight away, we stay in it and ask for completion on 1 May?

Sorry if I sound thick but its very important to get it right and I want to have all my bases covered.

Yes, it might well take 3/4 months to complete anyway but we are nearing beginning of february so by the time you get a HIPS and EA has taken photo's etc and measured up you may not get viewing until mid February....offers if all goes well end Feb or March time will go quickly!!!!

LouBlue

itsgototstop wrote: »

Yes, it might well take 3/4 months to complete anyway but we are nearing beginning of february so by the time you get a HIPS and EA has taken photo's etc and measured up you may not get viewing until mid February....offers if all goes well end Feb or March time will go quickly!!!!

Thanks for that.

Damn, I can't put off the spring cleaning any longer then.

LouBlue

Just had a thought, will ring my mortage company and check with them exactly when I need to pay the mortgage off so I don't end up paying more than I have to. It might not be as obvious as to pay them on the last day of April.

donkeyman18

Just factor the redemption penalty into what (if any) offers you receive.

In a falling market, and it is a falling market, then a couple of months and a few bad headlines could affect your selling price by more than £3.5k

I'd stick it on now at and see what happens. You don't HAVE to sell, but if a good buyer comes along, with no chain, a good offer and a cash deposit then you might not want to turn them away.

Don't look on the £3.5k as half of a new car, think of it within the deal as a whole.

Magic_Dragon

Hiya

We are in a similar position. My fixed rate runs out 1st April. We have been on the market for 2 weeks. Only 2 viewing so far ......

I would stick it on now and see how you go. If we get an offer very quickly I will stipulate not to complete before 1st April. My EA said on average its take 8-12 weeks from offer to completion.

LouBlue

Thanks everyone and good luck to you too, Magic Dragon.

boinging_2

Plus check with your lender about the early exit fee. When I sold last August, they said they would repay the fee if I took the mortgage back up with them within 12 months.

Plus don't forget in a falling market as you are trading up you will save a larger amount from the falls.

(i.e. sell at 10% less on a 100K flat loses you 10K, offer 10% less on a 250K house saves you 25K. Overall your 15K up).