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KayJay
Posts: 95 Forumite
Hi all, I would love your advice on our current situation, we are really stuck what to do for the best.
We both retired from our jobs in the forces this year so we are both in receipt of pensions. With our lump sum we paid off our mortgage. We both now work in other jobs, my husband full time and I am part time.
We have inherited some money. So we looked for a new home. We found one we liked, a Kier home new build. We went to them under their part exchange offer, it they gave us a low quote so are now trying their ‘smooth move’ which is where they hold the plot we want and try to sell our house in 6 weeks.
Tonight, after going over and over this - we have wondered whether it would be better to take a small mortgage out in the new property which would make it certain we got the plot we want. Then, when we have moved in (plot not ready until May) we could sell our house, then pay the mortgage off.
Does this sound a realistic way round it? The part exchange offer was £45,000 less than an estate agent valued us at on the same day. We are in an ex show home so we absolutely know our house is likely to sell. One of the part exchange EAs said to me that our house was immaculate and would easily get the asking price. Of course I am not naive and know the house is only worth what someone will pay.
It seems crazy in one way to get a mortgage when our equity is in the house - but if we don’t sort it soon then we could lose our plot.
I know we would be stung for double stamp duty as we would already have a house, but I think we could claim that back if we sell within three years?
Any comments would really be appreciated.
We both retired from our jobs in the forces this year so we are both in receipt of pensions. With our lump sum we paid off our mortgage. We both now work in other jobs, my husband full time and I am part time.
We have inherited some money. So we looked for a new home. We found one we liked, a Kier home new build. We went to them under their part exchange offer, it they gave us a low quote so are now trying their ‘smooth move’ which is where they hold the plot we want and try to sell our house in 6 weeks.
Tonight, after going over and over this - we have wondered whether it would be better to take a small mortgage out in the new property which would make it certain we got the plot we want. Then, when we have moved in (plot not ready until May) we could sell our house, then pay the mortgage off.
Does this sound a realistic way round it? The part exchange offer was £45,000 less than an estate agent valued us at on the same day. We are in an ex show home so we absolutely know our house is likely to sell. One of the part exchange EAs said to me that our house was immaculate and would easily get the asking price. Of course I am not naive and know the house is only worth what someone will pay.
It seems crazy in one way to get a mortgage when our equity is in the house - but if we don’t sort it soon then we could lose our plot.
I know we would be stung for double stamp duty as we would already have a house, but I think we could claim that back if we sell within three years?
Any comments would really be appreciated.
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Comments
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Quote; We are in an ex show home so we absolutely know our house is likely to sell
well, good luck with that philosophy0 -
Sligo_Smokey wrote: »Quote; We are in an ex show home so we absolutely know our house is likely to sell
well, good luck with that philosophy
Totally agree with that - and if it was a new build then it's likely to have lost value. To my mind, the best way forward would be to put your current home on the market to see what interest you get. It might not be as easy to sell as you'd hope. Can you afford to carry a mortgage if it takes a year to sell?0 -
Thank you Lioness for your comments. What I meant was because it is the ex show it is in a good plot with a great view. The house has been valued at 110K more than we paid and we could afford to drop 20k. So we will look at a mortgage tomorrow and get ours on the market.0
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Of course they did...So we looked for a new home. We found one we liked, a Kier home new build. We went to them under their part exchange offer, it they gave us a low quote
They're buying your house off you, and looking to resell it. That costs them time and money. They're doing you that as a favour to help sell their new-build, no more than that.
If you trade your old car in against a new one, you wouldn't expect to get the same for the old one in PX as you could sell it for privately, would you? Why should a house be different?
Early redemption charges, +3% SDLT, what if your old one doesn't sell?Tonight, after going over and over this - we have wondered whether it would be better to take a small mortgage out in the new property which would make it certain we got the plot we want. Then, when we have moved in (plot not ready until May) we could sell our house, then pay the mortgage off.
Again, in used car analogies, that means it was the pre-reg ex-demo...We are in an ex show home so we absolutely know our house is likely to sell.
"Show home" simply means that the developer made it look pretty for buyers to look at. No more than that. How many years ago was that...?
Not "double", although it might be, depending on the purchase price. +3%. And, yes, you can reclaim it if you sell in three years.I know we would be stung for double stamp duty as we would already have a house, but I think we could claim that back if we sell within three years?
Ah, now that's a separate thing entirely... The show home's location could well have been chosen because it's the most visible property on the development, with a "great view" of the main road...What I meant was because it is the ex show it is in a good plot with a great view.0
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