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  • FIRST POST
    • kevin_wevin
    • By kevin_wevin 9th Jul 18, 9:33 PM
    • 14Posts
    • 2Thanks
    kevin_wevin
    Buying a new home before selling current home?
    • #1
    • 9th Jul 18, 9:33 PM
    Buying a new home before selling current home? 9th Jul 18 at 9:33 PM
    Hi there,

    Looking for a bit of advice. I currently own a flat - the mortgage outstanding is about £110k and the valuation of the flat is roughly £170k. I had a 2 year fixed term mortgage but the 2 years is now finished so its on the variable rate.

    I want to move into a new flat by the end of the year. I think it would be really stressful and a massive hassle to sell my current place and buy a new place at the same time. Is there any big disadvantage if i was to buy a new flat in the next few weeks and aim to sell the flat im currently in by the end of the year? Even though I plan to sell the current place very soon after buying the new place I'm guessing its a bigger risk for the bank and they would require a bigger deposit?

    I have about £40k saved up and the place that i want to bid for is going at offers over £195k. Its in Edinburgh and they usually go quite a bit higher than the asking price, so not sure if thats enough of a deposit.

    Anyone been in this situation before and can shed any light on how it went?

    Thanks

    Kevin
Page 1
    • davidmcn
    • By davidmcn 9th Jul 18, 9:39 PM
    • 9,076 Posts
    • 9,670 Thanks
    davidmcn
    • #2
    • 9th Jul 18, 9:39 PM
    • #2
    • 9th Jul 18, 9:39 PM
    Lenders won't be keen to take the risk of you selling your current place quickly, so the question is can you easily afford to have £270k+ of mortgages plus the running costs for two flats?
    • campbell19925
    • By campbell19925 9th Jul 18, 9:39 PM
    • 146 Posts
    • 181 Thanks
    campbell19925
    • #3
    • 9th Jul 18, 9:39 PM
    • #3
    • 9th Jul 18, 9:39 PM
    What if the first doesn't sell for a year or two?

    Do you have enough funds to cover the mortgage repayments? You need to consider that
    • zagubov
    • By zagubov 9th Jul 18, 9:42 PM
    • 15,616 Posts
    • 132,120 Thanks
    zagubov
    • #4
    • 9th Jul 18, 9:42 PM
    • #4
    • 9th Jul 18, 9:42 PM
    Hi there,

    Looking for a bit of advice. I currently own a flat - the mortgage outstanding is about £110k and the valuation of the flat is roughly £170k. I had a 2 year fixed term mortgage but the 2 years is now finished so its on the variable rate.

    I want to move into a new flat by the end of the year. I think it would be really stressful and a massive hassle to sell my current place and buy a new place at the same time. Is there any big disadvantage if i was to buy a new flat in the next few weeks and aim to sell the flat im currently in by the end of the year? Even though I plan to sell the current place very soon after buying the new place I'm guessing its a bigger risk for the bank and they would require a bigger deposit?

    I have about £40k saved up and the place that i want to bid for is going at offers over £195k. Its in Edinburgh and they usually go quite a bit higher than the asking price, so not sure if thats enough of a deposit.

    Anyone been in this situation before and can shed any light on how it went?

    Thanks

    Kevin
    Originally posted by kevin_wevin
    This will be very expensive and complicated. Easier to sell before or at the same time as you buy the new place. Owning two houses at the same time lays you open to additional taxes and a lot of trouble getting the second mortgage unless you have an exceptionally generous income.
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
    • kleapatra
    • By kleapatra 9th Jul 18, 9:58 PM
    • 200 Posts
    • 195 Thanks
    kleapatra
    • #5
    • 9th Jul 18, 9:58 PM
    • #5
    • 9th Jul 18, 9:58 PM
    Pretty sure you canít have 2 residential mortgages (at the same time). Thatís what I was told when I wanted to complete on my purchase a day before the sale completed anyway (I didnít need any funds from the sale in order to fund the purchase)
    • davidmcn
    • By davidmcn 9th Jul 18, 10:16 PM
    • 9,076 Posts
    • 9,670 Thanks
    davidmcn
    • #6
    • 9th Jul 18, 10:16 PM
    • #6
    • 9th Jul 18, 10:16 PM
    Pretty sure you canít have 2 residential mortgages (at the same time).
    Originally posted by kleapatra
    Pretty sure you can. I've had them overlap by a week or so, and it is possible to borrow for a second home. But for most people it isn't going to be affordable (in the eyes of the average lender) to be doing it for an indefinite period.
    • DavidT67
    • By DavidT67 9th Jul 18, 10:39 PM
    • 85 Posts
    • 41 Thanks
    DavidT67
    • #7
    • 9th Jul 18, 10:39 PM
    • #7
    • 9th Jul 18, 10:39 PM
    Also you'll need to budget for the 3% second home stamp duty surcharge on the new property purchase and then claim it back as and when the first house sells, which needs to be within 36 months of the purchase. And don't expect HMRC to be in a hurry with the refund...
    • davidmcn
    • By davidmcn 9th Jul 18, 11:01 PM
    • 9,076 Posts
    • 9,670 Thanks
    davidmcn
    • #8
    • 9th Jul 18, 11:01 PM
    • #8
    • 9th Jul 18, 11:01 PM
    Also you'll need to budget for the 3% second home stamp duty surcharge on the new property purchase and then claim it back as and when the first house sells, which needs to be within 36 months of the purchase. And don't expect HMRC to be in a hurry with the refund...
    Originally posted by DavidT67
    18 months and Revenue Scotland here, but otherwise the same applies...
    • AnotherJoe
    • By AnotherJoe 9th Jul 18, 11:56 PM
    • 11,517 Posts
    • 13,328 Thanks
    AnotherJoe
    • #9
    • 9th Jul 18, 11:56 PM
    • #9
    • 9th Jul 18, 11:56 PM
    I agree that it would be really stressful and a massive hassle to sell your current place and buy a new place at the same time.

    However, I think it would be even more hassle and stressful to buy a new flat in the next few weeks and aim to sell the flat you're currently in by the end of the year.
    You'll have all the normal stress and hassle plus double mortgage, buyers who know you are carrying two mortgages and use that as a lever to get you to drop your price, a big wodge of extra SDLT to find and needimgnto claim it back, and a deadline to sell after which time you cannot reclaim it.
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