How do bridging loans work?

Doozergirl

nelly wrote: »

Buying a house to live in a certain school catchment area????

I am so close to the point of doing what micheal ryan did!!!!!

this country has lost the plot entirely

People should be demanding ALL schools are good, not demand to move house to get near a good scholl we arnt in Zimbabwe !!!!!!

I really do disspare

Come on nelly, the OP has got 6 months and some schools will always be better than others. Parents will always want their child to go to the very best one.

Children can succeed with the right support from parents in almost any school, but you just want to give them the best chance.

We're surrounded by undersubscribed, good schools and I still sit and despair because another school has more 1's in their OFSTED report. It's only natural - I hope! :rotfl:

panichousebuyer

nelly wrote: »

Buying a house to live in a certain school catchment area????

I am so close to the point of doing what micheal ryan did!!!!!

this country has lost the plot entirely

People should be demanding ALL schools are good, not demand to move house to get near a good scholl we arnt in Zimbabwe !!!!!!

I really do disspare

I do not know how to put this any more clearly than I have but WE ARE NOT MOVING HOUSE SO THAT OUR DAUGHTER CAN GO TO THE BEST SCHOOL!!!!:mad:

All of my daughter's friends live in the catchment area of the wanted secondary school (also my daughter and her friends current primary school catchment). We originally moved house after my daughter had been given a place at her current primary school, we could not appeal for the catchment primary school because it was so oversubscribed. If my daughter and her sister and brother were in the catchment primary school, then we would send her to the catchment secondary school without hesitation as she would be with other children that she knew. As it is she would have to travel by bus to and from school with nobody she knows.

It does make me cross that people just see league table results and nothing else. The children's primary school is a prime example of this. When our daughter started there six years ago it was 17th in the league, nobody really wanted it and sent their children to what they thought was the higher achieving 'better' school which adjoins it. We were more or less pitied because we had CHOSEN the lesser school even though we were in catchment for the other one. Now, however, our school has been first in the league tables for three years, has had 90 applications for 60 places for the past two years and now our youngest son will not get in there because we live out of the catchment area.

Things are not always as cut and dried as they might seem and people might be doing what they are doing for other reasons, it is not always about getting their child into the top school!!!

panichousebuyer

You are right though about all schools having a good standard of eduction, unfortunately I do not think this will ever be the case.

Hull is quite deprived and that does reflect in the school league tables and I cannot see that ever changing.

By the way if I did want the best school for her I would move out of East Hull and go to the West of the city the schools there are a lot better, so as you can see it is not about the school.

Sorry for the long post!

sarah_elton

PasturesNew wrote: »

There never used to be any such rush to move to areas to get into schools.
You just went to the one closest and you bought a house where you wanted/could afford.
Schools weren't on the buying radar.

I guess those league tables have a lot to answer for.

I live in Essex where we still have the 11+. I had a life plan at age 10 to go to Cambridge and become an engineer like my dad. I didn't pass the 11+ and it felt like that was it, I'd never go to a top uni.

Went to the local comprehensive (average to good league table results) and got decent GCSEs. It didn't have a sixth form. All my friends went to the local sixth form college which got really good results. I wasn't ready for the environment (more uni like than school like), and really liked a local comprehensive that had a small sixth form. It always got pretty poor A-level results, mainly because it lost its good students to the sixth form college. I really liked the teachers and the fact that A-level classes were all 5-10 students. In fact I had one to one tuition for Physics for two years as I was the only person doing it! Went there and got 5 A-levels and ended up at Oxford (first person from the school ).

League tables really don't tell you the whole story.

This has nothing to do with the OP who obviously lives near the schools and has a preference based on more than published results. Just a general soap-box moment.

AF2791982

My parents are property developers and they went with these guys:

http://www.acceptances.co.uk/

They were really happy with them I think. I'm keen to get into the property industry but I have to finish my Uni course first.

stev1664

Doozergirl wrote: »

http://www.thisismoney.co.uk/bridging-loans

That explains a lot!

Tassotti wrote: »

Okay, I lend you £200K to finance your new house.

I charge you 1.5% per month ...3K per month until you repay me the 200K (ie sell the house)

If you sell within a month, then okay, expensive, but not end of world.

If it takes 12 months to sell, I am laughing and you probably would not laugh.

I think he could go out and get another bridging loan to replace yours!

property.advert

Dismissing irrelevant items, you have 6 months (maybe 8 maximum) if I have read it correctly.

You cannot afford, nor would I advise a bridging loan. So forget about that.

You say that the vendors have bought their new place already. If they are well capitalised and do not need the money from the sale of your property then appeal to their good nature if you feel it will help.

Would they be interested in a renting it to you ? I ask as I see few if any other options. A 200k property yielding 5% is £10,000 a year or £833 a month. Half that for 6 months.

If you can rent with a fixed price for purchase, then if house prices rise, you will regain some ground. If they fall, you may well be in trouble but there is no way your agreement with the vendor will allow you to pay less if they cannot get more if the property rises in value.

A house exchange with cash from you is another way. Unlikely but possible.

At the end of the day, it is the net position which is important. Discounting your property is better than paying out money each month which it appears you don't really have. You can drop 10k in a year's rent as shown.

I'd do everything to make my property as saleable as possible and hit the market at a fair price but not your selling price. I would tell the agent that you were more flexible if a buyer could be found and completion arranged rather quickly but not desperate. I would also plan to rent somewhere for 6 months from August and cut back on expenditure until then to help with the financing.

6 months costs you 5k or thereabouts and you will just have to finds that if you cannot sell. All other options cost far far more and carry more risk, unless the vendor feels like being particularly helpful.