Take the plunge?

Taxi_2

Hi guys - looking for some advice and this forum seems great! Sorry for the long winded first post.

Me and girlfriend are first time buyers, just looking for your advice on whether its such a good idea to be entering the market right now.

We have had an offer accepted on a property for £124,950
The mortgage is with the underwriters at the moment and we should expect a decision back this week - the mortgage valuation has been completed and valued at the offer price.
The mortgage is 95% LTV 5.34% 3 year fix, no HLC, 3% ERC, fee of £399 - not a bad deal no? (this mortgage is no longer available AFAIK)
We've had a full survey done on the house and it has indicated some problems (asbestos pitched roof coming to the end of its lifetime & flat roof needs replacing ASAP), so I don't think we'll be proceeding unless we can negotiate some sort of discount (we've had quotes from builders and we're thinking of taking these to the estate agent and suggesting meeting half way - sound fair??)

We'll have a bit of spare cash saved up after completion to get through a few bad months if required (and will keep hold of this)
We'll also be saving around £500 a month after everything (love the budget spreadsheet!!)
The house has potential to add a bit of value (eg add gas supply and central heating, space to build a garage (subject to planning of course), new roofs, upstairs bathroom)
The house is also in a great location, 3 bedrooms, garden, on a quiet road in a largeish village (with shops pubs etc) 6 miles from a rapidly expanding city, great schools (primary and secondary) within walking distance.

As an aside,I know the seller is desperate to sell - original price was £140,000 8 months ago, they've already bought their next house, and I get fone calls from the estate agent every day!

So guys, despite the current circumstances, would this still be something worth going for? We're prepared for a period of negative equity perhaps, but 3 years should be long enough for all this to ride out no?
Or are we better off carrying on saving and looking for something in the summer when house prices are really at the bottom (but we wont be able to get such a good mortgage deal)

We've lived in a 1 bed flat w no garden for 3 years saving money after uni, so we're desperate to move (I want to sit in a garden in the sun!!) and I am worried our desperation is blinding us somewhat.

Many thanks for reading - look forward to your advice, even if its 'don't know' or tl;dr lol!

Doozergirl

If it's got space for a garage, it sounds like it has space to extend the house instead. Habitable space is worth more than a garage. Off-road parking would suffice.

payingfornowt

Hi mate,

I am not an expert but I got into a drunken conversation with an estate agent at weekend and was told to keep on renting for two years and make sure I have a 10% deposit before I buy. I know its only one person and nobody really knows for sure, that’s why everybody is guessing.

I suppose if you can afford it and want to own it then it doesn’t matter what the market value is unless it is a short term investment. I’d just be wary of overstretching yourself.

Hope whatever you do works out.

Taxi_2

Doozer
Yeah it could be extended thinking about it, the garage space I had in mind was down the side of the house, so the house could just be extended sideways, there's plenty of room for off road parking even if its extended, its well set back from the road (easily enough for 4 cars on the drive atm)

pfn
We've been renting & saving for 3 years already!
This is definitely not a short term investment, and we are not overstretching ourselves. We'll also have the ability to overpay ~£200 pm from a supplemental part time income I have, but we'll be fine without this anyway - it'll just be a bonus.

Thanks for the quick replies!