Author Topic: The 'Eeeek...buying/saving for a house' thread (Read 252046 times)

CraigDS · « **Reply #240 on:** July 16, 2015, 06:32:50 pm »

Quote from: In Fowler we trust on July 16, 2015, 06:29:22 pm

Been told there is one other interested party - from the Agent

God its so stressful - really want the property but don't want to come over as over keen -

Also the Agent is not going to tell me what the other person has offered.

Take what they say with a pinch of salt. The agent is working on behalf of the seller, and will no doubt be getting a % of the final sale price, so it's in their best interests to make out there are other interested buyers so you put in a bigger bid.

Millie · « **Reply #241 on:** July 16, 2015, 06:34:30 pm »

Quote from: CraigDS on July 16, 2015, 06:32:50 pm

Take what they say with a pinch of salt. The agent is working on behalf of the seller, and will no doubt be getting a % of the final sale price, so it's in their best interests to make out there are other interested buyers so you put in a bigger bid.

Yeah - that crossed my mind as well

killer-heels · « **Reply #242 on:** July 16, 2015, 09:42:09 pm »

Yeah if a house has been there a while, usually winter or early spring then estate agents might want it off the books hence more likely to want to shift it. With it only half way through July its still not been on that long so they will most likely be looking to maximise the price they get so take their advice with a pinch of salt certainly in regards to the price they should sell at.

Timing is everything though. As it gets deep into August the lucrative summer market dwindles away and your more likely to have offers accepted. If you really love the house then i would put in a 90% offer now to show your interest and then hold fire. If in 3 or so weeks there isnt a higher offer then they are going to be inclined to come closer to your valuation.

Just ensure you build up a good relationship with the agent and contact them regularly so you know of any other bids that go in. Slowly but surely then the mask will come off, they will let slip a good selling price and you can make a decision over affordability.

Narwin Dunez · « **Reply #243 on:** July 16, 2015, 09:59:19 pm »

Make sure you burn the estate agency down first to avoid paying their fees. Subhuman scum they are.

I'm currently living with the in laws (well, practically in-laws). Me and my gf will be able to save up a deposit for a cheap shithole in no time at all, which would then mean we would start building equity straight away. But really I want to keep saving and move into a great house as my first purchase.

Which means living here for years

What to do what to do.

Millie · « **Reply #244 on:** July 24, 2015, 12:03:41 pm »

Update - put in an offer and got accepted at just under 90% of the asking price - so fingers crossed it goes through

SamAteTheRedAcid · « **Reply #245 on:** July 24, 2015, 12:32:51 pm »

Quote from: Le Jake on July 16, 2015, 09:59:19 pm

Make sure you burn the estate agency down first to avoid paying their fees. Subhuman scum they are.

I'm currently living with the in laws (well, practically in-laws). Me and my gf will be able to save up a deposit for a cheap shithole in no time at all, which would then mean we would start building equity straight away. But really I want to keep saving and move into a great house as my first purchase.

Which means living here for years

What to do what to do.

I've just bought my second house (sold the first like, I'm not a tycoon!) and it's still not the mythical 'great house' that I want. I've found both times of buying that the 'great house' was about 40k out of reach, and it will possibly remain so. I'd say get on the ladder as soon as possible so you can start building equity, although if you can save the same amount (or more) by living at the (almost) inlaws then why not - balance living with inlaws against the state of the house you can afford at the moment I guess.

I told myself with this new house that taking it was better than having to move from our old house into rented accomodation, the moving fees we'd save by waiting for a (possibly fictional) 'dream house' and renting negate each other - and it would have meant moving twice in a year or so which with a 2 year old is not ideal.

Hopefully the new house can have some work done to get it closer to the house we actually want - I am dying to get rid of the laminate flooring and crap new fireplaces and put in parquet flooring and some proper period (Victorian) fireplaces, restore the house to it's former glory. Then there's the loft conversion and kitchen extension...and even at the end of that we'd still have a yard and not a garden. I think during the hunt we concluded that the 'perfect house' for us didn't quite exist - we love Victorian terraces but so few have gardens, and the alternative was a 'too small inside' 3 bed semi, probably further from the area we wanted, so in the end we just took the plunge. Probably won't be moving to late Autumn at best now.

Ciara (with a capital "C") · « **Reply #246 on:** July 24, 2015, 04:43:05 pm »

If you own a property, but don't live in it or rent it out, and you wanted to purchase a second property, do you still need to raise a deposit for the second property or can you leverage your original property?

I don't own a house, but interested to know the answer!

CraigDS · « **Reply #247 on:** July 24, 2015, 04:49:00 pm »

Quote from: Ciara (with a capital "C") on July 24, 2015, 04:43:05 pm

If you own a property, but don't live in it or rent it out, and you wanted to purchase a second property, do you still need to raise a deposit for the second property or can you leverage your original property?

I don't own a house, but interested to know the answer!

If there is equity in the first house you could remortgage to release some cash and then use this as the deposit on the second house.

I suppose there MAY be come mortgage companies who'd link the two and mortgage both, but it's basically doing what I said above anyway.

Narwin Dunez · « **Reply #248 on:** July 24, 2015, 05:00:07 pm »

Quote from: Ciara (with a capital "C") on July 24, 2015, 04:43:05 pm

If you own a property, but don't live in it or rent it out, and you wanted to purchase a second property, do you still need to raise a deposit for the second property or can you leverage your original property?

I don't own a house, but interested to know the answer!

If someone bids on that property you own, don't forget to get someone you know to put a higher bid in!

But yeah like Craig said you need a deposit for a house purchase, unless you can find a 100% mortgage company and a happy seller.

killer-heels · « **Reply #249 on:** July 24, 2015, 07:19:30 pm »

Quote from: Ciara (with a capital "C") on July 24, 2015, 04:43:05 pm

If you own a property, but don't live in it or rent it out, and you wanted to purchase a second property, do you still need to raise a deposit for the second property or can you leverage your original property?

I don't own a house, but interested to know the answer!

No, you need a cash deposit. Maybe there are some adverse/poor credit rating lenders out there than do lend against assets but im 99% sure no high street lenders provide such an option.

Ciara (with a capital "C") · « **Reply #250 on:** July 24, 2015, 07:27:11 pm »

Quote from: Le Jake on July 24, 2015, 05:00:07 pm

If someone bids on that property you own, don't forget to get someone you know to put a higher bid in!

HA!

That was the best one yet!

Ciara (with a capital "C") · « **Reply #251 on:** July 24, 2015, 07:27:36 pm »

Thanks guys - always wondered what would happen in that situation, if people save for a second deposit or use the first house.

Narwin Dunez · « **Reply #252 on:** July 24, 2015, 07:55:43 pm »

Out of interest why the two houses? Could always convert your first mortgage to an interest only mortgage to help you save a deposit?

Ciara (with a capital "C") · « **Reply #253 on:** July 24, 2015, 08:15:06 pm »

I don't have a mortgage or a house!

I was listening to two people have a similar conversation in work today, but neither knew the outcome. It just got me thinking, so thought I'd ask here.

Anfield Kopite · « **Reply #254 on:** July 26, 2015, 09:59:58 pm »

Hi everyone.
Can anyone with experience tell me how long it takes from signing contracts too completion date. After a stressful few months I think me and the wife might be entering the final furlong....

Hij · « **Reply #255 on:** July 26, 2015, 10:21:49 pm »

Quote from: Anfield Kopite on July 26, 2015, 09:59:58 pm

Hi everyone.
Can anyone with experience tell me how long it takes from signing contracts too completion date. After a stressful few months I think me and the wife might be entering the final furlong....

I think my parents house was 3-4 weeks after the contracts. I think it depends on the owner and the buyer etc.

Anfield Kopite · « **Reply #256 on:** July 26, 2015, 10:43:20 pm »

Quote from: Hij on July 26, 2015, 10:21:49 pm

I think my parents house was 3-4 weeks after the contracts. I think it depends on the owner and the buyer etc.

Thanks mate. I'm hoping we can get it done quicker than that.

adopted_scouser · « **Reply #257 on:** July 27, 2015, 01:39:25 am »

Quote from: Anfield Kopite on July 26, 2015, 09:59:58 pm

Hi everyone.
Can anyone with experience tell me how long it takes from signing contracts too completion date. After a stressful few months I think me and the wife might be entering the final furlong....

Took 4 months for me. Had to sign various things at various stages. Sending stuff back and forth to my legal people. Apparently its a longer process if its a new build property though, or maybe thats just their excuse for taking their time. Personally I was expecting about a month, like the poster above said.

Narwin Dunez · « **Reply #258 on:** July 27, 2015, 08:42:59 am »

You can sign YOUR contract at any stage in the process mate. Its just a piece of paper that means nothing until you exchange.

When you exchange you can set your own completion date, as long as you have funds in by then.

If you're using a bulk conveyancer, expect to wait many many more weeks.

sminp · « **Reply #259 on:** July 27, 2015, 01:53:22 pm »

Quote from: adopted_scouser on July 27, 2015, 01:39:25 am

Took 4 months for me. Had to sign various things at various stages. Sending stuff back and forth to my legal people. Apparently its a longer process if its a new build property though, or maybe thats just their excuse for taking their time. Personally I was expecting about a month, like the poster above said.

I completed within a week of exchanging contracts on a new build. Sounds like they were fobbing you off mate

adopted_scouser · « **Reply #260 on:** July 27, 2015, 02:06:37 pm »

Quote from: sminp on July 27, 2015, 01:53:22 pm

I completed within a week of exchanging contracts on a new build. Sounds like they were fobbing you off mate

I am on about 4 months from when the offer was accepted. Misread the OP.

sminp · « **Reply #261 on:** July 27, 2015, 02:13:14 pm »

Quote from: adopted_scouser on July 27, 2015, 02:06:37 pm

I am on about 4 months from when the offer was accepted. Misread the OP.

Ah right, in that case mine was about 2 months between putting down a reservation fee and completing. This was mainly down to waiting for the house to be built though.

Reservation fee to having a mortgage in place was about 2 weeks then we were just waiting on the build to be finished before doing the contract exchange so the solicitors had quite a relaxed timeframe for doing searches. I found everything surprisingly quick, was expecting 3 to 4 months for everything to be honest.

Anfield Kopite · « **Reply #262 on:** July 27, 2015, 05:34:15 pm »

Thanks for the replies.
We've had the double stress of trying to buy our new home whilst trying to sell our current one. Things seemed to go like clockwork at first because we had an offer accepted about 2 months ago on the house we wanted and 2 days later accepted an offer on our current house. However, 2 weeks down the line our buyer pulled out. He was a nob about it as well. Instead of just telling us straight, he decided to stop answering calls from ourselves, estate agents, solicitors etc. Complete cock !! Anyway, after worrying we would end up losing the house we are after for a couple of weeks we managed to agree to sell again (although this time we have taken a bit of a hit on the price). Anyway, three weeks later I think we are close to exchanging contracts on both transactions hence my earlier query.

adopted_scouser · « **Reply #263 on:** July 28, 2015, 11:07:51 am »

Quote from: Anfield Kopite on July 27, 2015, 05:34:15 pm

Thanks for the replies.
We've had the double stress of trying to buy our new home whilst trying to sell our current one. Things seemed to go like clockwork at first because we had an offer accepted about 2 months ago on the house we wanted and 2 days later accepted an offer on our current house. However, 2 weeks down the line our buyer pulled out. He was a nob about it as well. Instead of just telling us straight, he decided to stop answering calls from ourselves, estate agents, solicitors etc. Complete cock !! Anyway, after worrying we would end up losing the house we are after for a couple of weeks we managed to agree to sell again (although this time we have taken a bit of a hit on the price). Anyway, three weeks later I think we are close to exchanging contracts on both transactions hence my earlier query.

I think when I come to buy again. I will sell my place, then rent a place/stay at my parents, then buy the new place. Chains are too stressful.

killer-heels · « **Reply #264 on:** July 28, 2015, 12:44:30 pm »

Yep. Although having an interim move is a pain it makes it so much easier when purchasing.

LovelyCushionedHeader · « **Reply #265 on:** August 17, 2015, 03:36:19 pm »

Looking for some information from the mortgage gurus out there..

A little background:

My and my girlfriend decided to begin looking at our options around April time. She is self employed (and has only been so for a year) so we didn't think it would be possible to get a mortgage at first, only for it turn out that it was very possible. We met with a broker who requested all the usual documentation and she found multiple potential lenders for the amount we wanted to borrow (one of which was the Halifax).

We then found a house we wanted to purchase, put an offer in and had it accepted. This was the beginning of June. Our mortgage application then went through to the Halifax and was provisionally accepted.

Since then we have just had request after request from the mortgage underwriters. Firstly it was proof of deposit, which we sent through, only for it to be rejected as the proof didn't have our addresses on. After waiting a week for the required info to come through from our banks it was then sent through again and accepted.

The underwriters then asked my partner to provide proof of her deposits so that they knew where the money was coming from. Then they asked for information from her accountant. Then they asked for her tax return forms to be resent with her address on (which took 10 days to arrive).

After this all was looking okay and we were sent an email saying the application had been accepted subject to valuation. The valuation went ahead and no issues were found. Today we thought we would get our offer but they have now asked me to provide proof of funds in my ISA account (where it has come from). Again this is no issue and I have sent a signed gift deposit letter and bank statements showing the transfer of funds for each transaction.

So basically I just wanted to know whether this is normal and is it safe to presume that it will all go through in the end? My problem isn't that they have requested all this information, it is that they have done it in installments. They could have asked for proof of funds in my ISA five weeks ago when they asked for my partners proof. Each individual request is taking days/weeks to sort out, making the process drag on and on and making it more likely that the seller will pull out.

CraigDS · « **Reply #266 on:** August 17, 2015, 03:46:05 pm »

Is it normal for financial institutions to be slow and seemingly inept? Yup.

What it sounds like is they are going through a checklist of what they need and when they come to something they haven't got/not got correctly they ask you for it but don't bother looking further down the list as to what else they may need to get off you too.

I'd maybe see if you can get on the phone to someone higher up and explain you're at risk of losing the house if they continue to keep asking for information in pieces like they have, and is there anything else they could potentially need which you can supply all together.

LovelyCushionedHeader · « **Reply #267 on:** August 17, 2015, 03:52:04 pm »

Quote from: CraigDS on August 17, 2015, 03:46:05 pm

Is it normal for financial institutions to be slow and seemingly inept? Yup.

What it sounds like is they are going through a checklist of what they need and when they come to something they haven't got/not got correctly they ask you for it but don't bother looking further down the list as to what else they may need to get off you too.

I'd maybe see if you can get on the phone to someone higher up and explain you're at risk of losing the house if they continue to keep asking for information in pieces like they have, and is there anything else they could potentially need which you can supply all together.

Thanks for the quick reply.

We did that through our mortgage broker, that is when we got confirmation that the application had been accepted subject to the valuation - which obviously turned out to be a lie. I think it was then all re-submitted to an underwriter who came back with more requests.

I thought it was a myth about this whole house buying malarkey being stressful!

Narwin Dunez · « **Reply #268 on:** August 18, 2015, 09:54:32 am »

So currently lodging with the in laws, hoping to live there a year to save a deposit.

Only they got a bid on their house (the first one in over a year of it being on the market) and are downsizing so we're either gonna be fucked and have to rent, or move to a 95% mortgage, but I don't want a new build!

Sods fucking law.

Grobbelrevell · « **Reply #269 on:** August 19, 2015, 09:24:06 am »

Get the keys to our new place a month yesterday. Quite a bit of work to be done but I can't wait. First time in a place of my own, rather than living at home or sharing with mates.

Another Red · « **Reply #270 on:** August 21, 2015, 07:54:25 am »

It's probably more damaging listening to what real estate agents have to say than it is to not to listen to them. That's my conclusion having worked in the property business for 15 years. They will lie and misrepresent all they want to sell a property and it does them no harm. Trust your gut instincts.

Rusty · « **Reply #271 on:** August 21, 2015, 02:00:17 pm »

Quote from: Another Red on August 21, 2015, 07:54:25 am

It's probably more damaging listening to what real estate agents have to say than it is to not to listen to them. That's my conclusion having worked in the property business for 15 years. They will lie and misrepresent all they want to sell a property and it does them no harm. Trust your gut instincts.

Narwin Dunez · « **Reply #272 on:** August 22, 2015, 12:50:11 am »

Estate agents = scum

paul211b · « **Reply #273 on:** August 25, 2015, 09:53:34 am »

Looking for some help and advice if possible.

A long time friend of my mum, her husband passed away a while back. She wants to buy a bungalow near my mum's and one has just come up for sale. They want £235k for this. Her current home has been valued at £330k.

She has offered me the house as a quick sell for £275k. I am really tempted to buy this, not that i like the house I am looking for a quick profit. Anyone done anything like this before? Anything wrong with me living there for 6 months then selling?
The lady is question does not mind as she just would like to move asap, she does not want to wait until she receives the full asking price.

She called one of those dodgy "buy anyhomes.com" companies and they always offer the lowest that they can, they offered her £275k.

I am unsure if the hassle and cost of moving is worth a 30k to 50k profit. Would take me forever to save that.

Any laws stopping this? Capital gains tax and all that.

CraigDS · « **Reply #274 on:** August 25, 2015, 09:58:49 am »

Are you intending to live in it for any period of time or just instantly flip it? Do you own any other houses?

paul211b · « **Reply #275 on:** August 25, 2015, 10:09:34 am »

Quote from: CraigDS on August 25, 2015, 09:58:49 am

Are you intending to live in it for any period of time or just instantly flip it? Do you own any other houses?

My current house I bought when I was 21, I owe 50k and can sell it for £135k. I would sell this to give me a decent deposit on her house and a £200k mortgage. I would look to flip this asap. 6 months a year? Soon as really.

CraigDS · « **Reply #276 on:** August 25, 2015, 10:15:46 am »

Quote from: paul211b on August 25, 2015, 10:09:34 am

My current house I bought when I was 21, I owe 50k and can sell it for £135k. I would sell this to give me a decent deposit on her house and a £200k mortgage. I would look to flip this asap. 6 months a year? Soon as really.

Ah so you'll be selling yours and moving into that one?

In that case I doubt you'd have to pay any CGT. There is a rule that you should pay it if you're buying a house to make a profit from it, but if it's going to be your only house and you'll be living in it for 6-12 months then you'll probably be Ok.

I'd double check if there is a time limit on how soon you can sell before not being required to pay CGT, I thought there was a set time on it but couldn't see it when just looked.

Is the woman willing to wait whilst yours sells?

paul211b · « **Reply #277 on:** August 25, 2015, 10:22:00 am »

Quote from: CraigDS on August 25, 2015, 10:15:46 am

Ah so you'll be selling yours and moving into that one?

In that case I doubt you'd have to pay any CGT. There is a rule that you should pay it if you're buying a house to make a profit from it, but if it's going to be your only house and you'll be living in it for 6-12 months then you'll probably be Ok.

I'd double check if there is a time limit on how soon you can sell before not being required to pay CGT, I thought there was a set time on it but couldn't see it when just looked.

Is the woman willing to wait whilst yours sells?

Yeah as long as she can put an offer on the bungalow she wants.

I also can't find anything about the tax. People buy cheap homes and sell for a profit all the time. If the limit is a year then would be worth waiting I guess. Would never save 50k in a year. Seems like easy profit but is it ever that easy?

CraigDS · « **Reply #278 on:** August 25, 2015, 10:28:13 am »

Quote from: paul211b on August 25, 2015, 10:22:00 am

Yeah as long as she can put an offer on the bungalow she wants.

I also can't find anything about the tax. People buy cheap homes and sell for a profit all the time. If the limit is a year then would be worth waiting I guess. Would never save 50k in a year. Seems like easy profit but is it ever that easy?

The general rule is that you can't be just buying it for a profit, but if you're living in it and it's your only house then it would be very hard for them to prove that was your motive.

Your risk comes from the added expense of owning and running the house. If it takes 2 years to sell could you afford to live there?

If you can then go for it I say.

paul211b · « **Reply #279 on:** August 25, 2015, 10:36:12 am »

Quote from: CraigDS on August 25, 2015, 10:28:13 am

The general rule is that you can't be just buying it for a profit, but if you're living in it and it's your only house then it would be very hard for them to prove that was your motive.

Your risk comes from the added expense of owning and running the house. If it takes 2 years to sell could you afford to live there?

If you can then go for it I say.

I am very tempted to do this, is there a way to check the house price is as stated? Checked Zoopla but they have no figures for this property. It can be seen on an estate agents page for offers £330000 in 2013.