Catastrophic Missive Fees

Debt_Free_Chick

I'm not so sure that the solicitor is "to blame" here. After all, the OP has a mortgage offer so as far as the solicitor is concerned they have the means to buy the new property.

Plenty of people buy a second home (e.g. btl) and I'm not convinced its for a solicitor to ask "are you sure you wanna do this?" Indeed, I'm not sure it's anyone's "job" to ask that question.

The OP has bought a second property - and got a mortgage to do that.

If it were possible to wind the clock back to the day that the missives were signed, I wonder whether any of us could have persuaded the OP not to do it

siowenson

It's scotland so I think people expect offers at more than the advertised... but do they stamp duty at 125k there - if so very odd....

maybe Persimmon can theoretically only pay 128k but in practice want to give less?

a 7k shortfall isn't that big but if they are relying on a mortgage offer applyign for a loan may cause the mortgage to be returned to underwriters, they credit check to see if applied for further credit - probably best if they found it from savings/family...

You've hit the nail on the head there m8.
I cant accept the p/x from persimmon even if it was at £128k because my morgage advisor has told me I would need to come up with £9k to get the 90pc morgage for the new house - they said I wont be able to get a morgage without a 10pc deposit. I have around £2k savings and my oh's parents are willing to lend £2k but I wouldnt want to put our parents on the spot by asking for the rest, even if they could afford it.
I need to sell the flat, move into her parents and then that way we can afford the fees to persimmon untill they sell the new house.

You CANNOT wait and see if it sells by the 23rd... you have to assume it wont and make alternative plans. If you don't you will loose everything and it will be entirely your own fault. DOING NOTHING IS NOT AN OPTION.

What do you suggest? I cant see any other options.

There is an assumption that the person entering into the transaction has sufficent mental function to grasp the basics - in this case I'm beginning to wonder.

What did I do wrong?
Back in november when flats similar to mine were selling for £132k+ (when only being on the market for weeks) I put my name down for a new house AFTER speaking to a morgage advisor(MA) about the finances and being told we would have no problem getting a morgage. That same MA, First Morgage, advised me to not put my flat up for sale straight away but to wait untill march. I have a thread on this forum somewhere about them also not informing me about some other hidden fees within the morgage.

To sum it all up: everything was going hunky dory up here with regards to the housing market.
Two of my friends, in the same street(one lived next door to me), with the same flats sold theirs for £133k and £134k at the end of January.
The first week of my flat being on the market I had a viewer who went on to buy a flat that was up for sale for £3k less than mine. Since then everyone has had trouble selling.

I personally think I've just been very unlucky and it was only when we stopped getting viewers that I started to worry.

siowenson

Your neighbours who are also trying to sell must be cursing you (if they know who you are) for devaluing their properties in your quest to sell.

I bet they are monitoring your property on Rightmove (or wherever) with some fear.

I'm not devaluing their property the lack of buyers and morgages are.
As has been said many times: a property is only worth what someone will pay for it.

Debt_Free_Chick

siowenson wrote: »

To sum it all up: everything was going hunky dory up here with regards to the housing market.
Two of my friends, in the same street(one lived next door to me), with the same flats sold theirs for £133k and £134k at the end of January.
The first week of my flat being on the market I had a viewer who went on to buy a flat that was up for sale for £3k less than mine. Since then everyone has had trouble selling.

I personally think I've just been very unlucky and it was only when we stopped getting viewers that I started to worry.

You can only chalk it up to experience.

With the benefit of hindsight, you committed to buying the new house before you knew that you would have the funds from the sale of your current flat.

It was a risk - and unfortunately, it's not paid off.

Now you know what can happen, I guess you might consider that it would be crazy to do the same thing in the future ....

siowenson

Now you know what can happen, I guess you might consider that it would be crazy to do the same thing in the future ....

As the Churchill dog might say: Oh Yes!

Captain_Mainwaring_2

Jesus, look at your finances. Effectivley you don't have a pot to pee in yet you sign a contract that ties you into a purchase of a house that you cannot afford to finance. Just look at the margins that you are working on, you don't have a penny in hand for a disaster and it was no secret that the housing market was going to crash.

I looked at a smashing new build around a year ago - £500K, 50K down payment with the interest being heald by the builders and an extremely flexible completion. They were very reticent about letting me see the contract - "solicitors business mate", and when I finally did see it I stopped the deposit cheque like a gazelle. The contract was unassignable, in other words I couldn't sell it on with a view to just breaking even in the event that I had problems. This immediately meant that I would get caught for substantial stamp duty and marketting fees in the event of having problems. All the builder comment when I asked about interest on the deposit concerned me - the said that the interest was theirs because the gain on the property would be mine, kind of got me to thinking "what if?"
Now my situation was a bit different to yours, a year ago while a crash was just on the horizon, it wasn't in full view, I had £225K worth of savings and two flats with a combined equity of 300K so even if I only wanted to sell one then I could rent the other and the rent would pay any small mortgage on the main property - guess what? I still didn't go ahead and am I glad? Well those investors who did buy to try and turn certainly only just covered their stamp duty as the contract wasn't assignable.

Ask As for your false pride at not taking a loan from family - at this rate you will be posting in the bankruptcy boards if you don't shake a leg.

siowenson

I looked at a smashing new build around a year ago - £500K, 50K down payment with the interest being heald by the builders and an extremely flexible completion. They were very reticent about letting me see the contract - "solicitors business mate", and when I finally did see it I stopped the deposit cheque like a gazelle. The contract was unassignable, in other words I couldn't sell it on with a view to just breaking even in the event that I had problems. This immediately meant that I would get caught for substantial stamp duty and marketting fees in the event of having problems. All the builder comment when I asked about interest on the deposit concerned me - the said that the interest was theirs because the gain on the property would be mine, kind of got me to thinking "what if?"
Now my situation was a bit different to yours, a year ago while a crash was just on the horizon, it wasn't in full view, I had £225K worth of savings and two flats with a combined equity of 300K so even if I only wanted to sell one then I could rent the other and the rent would pay any small mortgage on the main property - guess what? I still didn't go ahead and am I glad? Well those investors who did buy to try and turn certainly only just covered their stamp duty as the contract wasn't assignable.

Well done! I congratulate you on your superior decision.
You buy and sell property and make a decent amount out of it if I'm not mistaken?
I, on the other hand, have owned my flat for only 3 years and want a house to raise my family.
I made my decisions based on what was happening around me with regards to ALL the flats in my area selling very quickly.
Maybe in the areas you live people have been struggling to sell but it wasn't untill all the morgage lenders withdrew their deals from the market that people here have had problems selling.
This is a recent peice of news. Dont tell me last year you foreseen the banks making it hard for people to make a purchase/remorgage by taking 80pc(est) of their products from table?

poppysarah

siowenson wrote: »

Dont tell me last year you foreseen the banks making it hard for people to make a purchase/remorgage by taking 80pc(est) of their products off the table?

Bringing back mortgage lending to sensible salary multiples and insisting on at least a ten % deposit was just waiting to happen. It had been obvious for some time that current house prices were silly, that lending was silly and something needed to happen to change it.

For years people have been told house prices will always go up. That's utter nonsense as some are finding.

http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml
(the first google result for mortgage calculator)
gives "[SIZE=-1]But be careful, at 12% it will be:" as a stark warning.

[/SIZE]

siowenson

Wouldn't it be great to own a bank: they can reduce the interest rate so low that everyone thinks they can buy a house and then gradually increase the rate to squeeze every last penny from their customers.

I dont know how they sleep at night!

beecher

I think it is a huge gamble to rely on the property selling so quickly. What will you do if it doesn't? I'd go with the part exchange and try to find the extra money needed as that is surely a better option than having to find the extra money if you break the contract you've signed.

The housing market has become a pyramid scheme and it was always going to collapse at some point. I genuinely feel sorry for those caught out, just as I do when any pyramid scheme collapses.