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Help! Face losing 20K deposit.
Comments
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Yes, you are allowed 2 mortgages.
Excellent! Have been offered an 80% LTV mortgage with Abbey at a rate of 5.59 % for 5 years, which I think is quite attractive. However, we would need an extra 20K for the deposit and consolidate some debt to bring in line our affordbility. Is it likely that our current lenders will release equity on our house so that we can get a mortgage on the flat with another lender?!0 -
As stated on the other thread, if you have not already got a formal offer (your application has been completed and accepted) the maximum LTV on this type of property is now 75%.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, 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.0 -
When you exchanged contracts to buy the flat your solicitor should have pointed out the risks in doing this without a mortgage offer and that any offer given would be unlikely to still be valid 2 years time. Did he? Or did you tell him you were cash buyers? Did he know you had a property to sell with a mortgage on it?
Sorry, but if anyone came to me saying that they were intending to do what you have done, I would have given them clear written warnings of the dangers of their proposed course of action, and that you were doing so against my advice.
If your solicitor knew your situation and gave you no warnings then you may be able to sue him if you don't manage to get out of it.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
Richard_Webster wrote: »When you exchanged contracts to buy the flat your solicitor should have pointed out the risks in doing this without a mortgage offer and that any offer given would be unlikely to still be valid 2 years time. Did he? Or did you tell him you were cash buyers? Did he know you had a property to sell with a mortgage on it?
Sorry, but if anyone came to me saying that they were intending to do what you have done, I would have given them clear written warnings of the dangers of their proposed course of action, and that you were doing so against my advice.
If your solicitor knew your situation and gave you no warnings then you may be able to sue him if you don't manage to get out of it.
Yes we were made fully aware of the risks. We had not anticipated that the sale of our house would fall through, hence our current mess!0 -
Cut your losses and run.0
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Trollfever wrote: »Cut your losses and run.
A similar appartment (same spec etc) has sold for £225 K recently, that's a 25K profit in 2 years.
Running would make us lose our 20K deposit, plus any profit we might have gained from the property. Surely there's a cheaper way out of this?0 -
Drop the price of the one you are selling by £10,000 for a quick sale? The original buyer might be able to proceed then? Not ideal, but it could save you hassle and money in the long run.0
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Talk to the EA your house is on with and see if there are any investors that they trust to do a quick sale with you. You might not get the full 93k but it might be a reasonable solution. What would it rent for?
Re-mortgaging onto a BTL is one way out but can lead to trouble. You'd need to keep some cash behind to cover 6 months mortgage payments for the BTL and any costs for the first year or two just to be on the safe side. Best deals at the moment:
http://www.mortgagelinked.co.uk/common/results.asp?ID=FIS&mortType=BUYLET0 -
Drop the price of the one you are selling by £10,000 for a quick sale? The original buyer might be able to proceed then? Not ideal, but it could save you hassle and money in the long run.
The original buyer pulled out because their purchaser got refused a mortgage. Reducing the price is definately an option. But we need to complete in approx 6 weeks! I think that would be asking too much in the current climate.0
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