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  • FIRST POST
    • Robby1988
    • By Robby1988 6th Jul 18, 2:06 PM
    • 76Posts
    • 35Thanks
    Robby1988
    Cutting our losses & moving - costs?
    • #1
    • 6th Jul 18, 2:06 PM
    Cutting our losses & moving - costs? 6th Jul 18 at 2:06 PM
    My partner & I were first time buyers a few years ago, we bought an old terrace house and to cut a long story short... the place had been a money pit and still needs some expensive jobs doing.

    Not being too enthusiastic about shelling out thousands on renovative work on a property that isnít a Ďforever homeí & being weary of things breaking, we are trying to decide whether it might be worth cutting our losses and moving.

    Iím not sure we will sell it for what we paid if buyers are diligent, but should get about 5k more than whatís oweing on the mortgage (sought after area with top schools). What costs should we expect to move to a house costing about £180k?
Page 1
    • mrginge
    • By mrginge 6th Jul 18, 2:16 PM
    • 4,684 Posts
    • 8,916 Thanks
    mrginge
    • #2
    • 6th Jul 18, 2:16 PM
    • #2
    • 6th Jul 18, 2:16 PM
    Where is your deposit coming from?
    • sal_III
    • By sal_III 6th Jul 18, 2:17 PM
    • 651 Posts
    • 664 Thanks
    sal_III
    • #3
    • 6th Jul 18, 2:17 PM
    • #3
    • 6th Jul 18, 2:17 PM
    At the very least you will have to consider any ERC on the current mortgage + solicitors costs for selling/buying + moving costs.

    These vary, but at a guesstimate - the £5k "leftover" from your current property should cover them.

    And then you will need sufficient deposit for the new property. At current market 5% minimum so £9k if you can find a generous Lender, in most cases you will need 10-20% £18-36k
    • Robby1988
    • By Robby1988 8th Jul 18, 12:34 AM
    • 76 Posts
    • 35 Thanks
    Robby1988
    • #4
    • 8th Jul 18, 12:34 AM
    • #4
    • 8th Jul 18, 12:34 AM
    Thanks for the replies. Looks like we need more equity to play with then.

    Must admit I am a bit confused re: deposits when moving house. I have known a lot of friends & family who have moved house and never heard anything about having to save up another 10% deposit, which is beyond most people.
    • zagubov
    • By zagubov 8th Jul 18, 1:29 AM
    • 15,606 Posts
    • 132,107 Thanks
    zagubov
    • #5
    • 8th Jul 18, 1:29 AM
    • #5
    • 8th Jul 18, 1:29 AM
    Usually most people will have paid enough equity into their house so that on selling it, together with house price inflation, they will have enough equity to put a deposit down on their next property.

    Buying the next house too soon may make this less likely to happen.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • SG27
    • By SG27 8th Jul 18, 6:57 AM
    • 2,521 Posts
    • 1,766 Thanks
    SG27
    • #6
    • 8th Jul 18, 6:57 AM
    • #6
    • 8th Jul 18, 6:57 AM
    My partner & I were first time buyers a few years ago, we bought an old terrace house and to cut a long story short... the place had been a money pit and still needs some expensive jobs doing.

    Not being too enthusiastic about shelling out thousands on renovative work on a property that isnít a Ďforever homeí & being weary of things breaking, we are trying to decide whether it might be worth cutting our losses and moving.

    Iím not sure we will sell it for what we paid if buyers are diligent, but should get about 5k more than whatís oweing on the mortgage (sought after area with top schools). What costs should we expect to move to a house costing about £180k?
    Originally posted by Robby1988
    How much is the house you are thinking of selling?
    • Crashy Time
    • By Crashy Time 8th Jul 18, 1:36 PM
    • 6,809 Posts
    • 2,511 Thanks
    Crashy Time
    • #7
    • 8th Jul 18, 1:36 PM
    • #7
    • 8th Jul 18, 1:36 PM
    Usually most people will have paid enough equity into their house so that on selling it, together with house price inflation, they will have enough equity to put a deposit down on their next property.

    Buying the next house too soon may make this less likely to happen.
    Originally posted by zagubov

    As will no one wanting to pay the inflated price on the first one
    Big debt and illiquid over-priced assets are a dangerous combination.
    • Robby1988
    • By Robby1988 8th Jul 18, 2:15 PM
    • 76 Posts
    • 35 Thanks
    Robby1988
    • #8
    • 8th Jul 18, 2:15 PM
    • #8
    • 8th Jul 18, 2:15 PM
    How much is the house you are thinking of selling?
    Originally posted by SG27
    Realistically £125-£130k.
    • SG27
    • By SG27 8th Jul 18, 5:06 PM
    • 2,521 Posts
    • 1,766 Thanks
    SG27
    • #9
    • 8th Jul 18, 5:06 PM
    • #9
    • 8th Jul 18, 5:06 PM
    Assuming you sell for £125k and buy for £180k

    You will have to pay as a rough guide:

    Estate agents fee (around 1% +vat) £1500
    Solictors fees (sale and purchase) £1500
    Stamp duty £1100
    Survey: £500
    Removals £300
    Mortgage fee ?

    So you are looking around £5k for moving costs.

    You will then need to fund the difference in sale price to new purchase price, which is £55k. This can be an increased mortgage if your income allows, but you will still need to fund a deposit 10%, being £18k. As you have £5k equity you will need at least £13k cash to put towards it plus the fees above.

    You may also have to factor early repayment charges on your current mortgage (or you could avoid these by porting if the mortgage allows it)

    Moving house is expensive!
    Last edited by SG27; 08-07-2018 at 5:11 PM.
    • Crashy Time
    • By Crashy Time 12th Jul 18, 1:38 PM
    • 6,809 Posts
    • 2,511 Thanks
    Crashy Time
    Sounds like you are better off staying put.
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