Help! Movement!

frostyfeet

Snooze wrote: »

:huh:

And how do you work that out? Your comment makes no sense at all in the current climate.

Rob

Because the only reason i can afford to buy to begin with is due to the equity loan. This stops if I dont find a house and complete by september. Yes, i know prices are dropping but no one can guarantee they will drop enough.

Helga14

Don't do it. If your heart isn't in the property then you shouldn't go ahead. You have to live there long term. Also you may struggle to get buildings insurance. £900 is nothing to being stuck somewhere you don't want to be and can't sell.

Doozergirl

loula, we can really help you to find a new kitchen and bathroom at a great price, but we can't help you buy a secure and solid property.

Believe, you can get a beautiful kitchen and bathroom for the price that a regular person would pay for an average one if you know where to shop. You can't buy new ground to rebuild your house at any price.

900se

The other thing to think about is that if it is the drain that has caused the movement - then when it is fixed and the ground dries out, there is a good chance that there will be further movement. You say the owner is going to fix the drain but is he going to repair the original movement - and who is going to repair any subsequent movement? Also, the fact that there has been movement will effect insurance.

We recently walked away from a purchase when similar things came to light - too much of a risk in the current climate and you have the peace of mind that there are a lot of other properties that the owners are currently desperate to sell - and will be open to offers - if you feel you have to buy at the moment.

neas

If you are strapped for cash.. and buying at the peak of the market then... this is very very unwise move.

Mortgages and houses in general need 'slack'/ extra funding for the unknown costs that crop up... one year your roof needs repairing.. one year the boiler needs replacing... + other problems.

I'd walk away and rent for a while....

puddy

whats the goverment scheme you're talking about? sounds interesting, who qualifies?

dopester

jenner wrote: »

whats the goverment scheme you're talking about? sounds interesting, who qualifies?

She is apparently talking about the Open Market HomeBuy from The National Affordable Homes Scheme. (awww how cosy and kind of them)

loula16 wrote: »

I am on the Open Market Home Buy Scheme (Govt. lends 17.5% of the asking price) but this is being phased out in September for another scheme that is nowhere near so good.

However, try to apply some brainpower and forward thinking logic to it.

Remember how when the Government said it was going to phase out MIRAS and gave a date for it, and people panicked and started buying homes for ever more money, causing a mini-bubble (small compared to this one) - and then a mini-crash (compared to this one we're entering) ?

Well this is in reverse it seems to me. The market is in trouble, and when this scheme gets phased out in September for another scheme which offers a lot less "help", that's just another pillar that crumbles in supporting current valuations.

loula16

It's the Open Market Home Buy scheme. It's open to any first time buyer who has registered on their council's housing list. The Govt. loans 17.5% of the asking price of the house - no interest is charged - you have to find the rest via mortgage and/or own money.
The loan is only paid back when you come to sell the house - 17.5% of the sale value.

It's run through Orbit Housing Association but, as I think I said already, it's being phased out in September for a version that's nowhere near so good.

It's allowed me to look at properties that were more money than I could have originally afforded on a 100% mortgage - now even these don't exist!

I'm going back to look at the house again tomorrow with a builder friend to get his opinion. I spoke to the vendor yesterday who informed me that the drains appear to be ok - if that's so, I guess it's an even worse case scenario.

I really wanted to live within walking distance of the city rather than trying to get a bargain new build on the outskirts but I'm beginning to think I have no option.