Topic: The 'Eeeek...buying/saving for a house' thread

[jason67]

Thanks Claire. The survey valued the property slightly more than our offer so it worked out well   Almost all sorted now, contacts signed, deposit paid, so finally able to relax a little...just waiting for the owner to move out now. Very excited!

Nice one mate and good luck!

[Roady]

Move date tomorrow! Finally moving out!!!! My only concern is I have a bed to shift . Do you tho I if I leave it on the drive for one day and get it collected Saturday would be an issue??? I’ve dismantled it all etc. Staying in a hotel for two nights to decide my next move 😂😂

[Zend...en the clowns]

Alright guys (and girls) looking for a bit of advice and reassurance if possible.

Anyone in here bought a new build through the Help to Buy Equity Loan?

Myself and the missus have a deposit of around 15k, we've seen some really nice four bed detached houses up here (North East) with everything you'd want garden, garage, room for development and extension etc.

House like this is obviously out of our price range with just a 15k deposit but we've been introduced to the help to buy equity loan scheme to bridge the gap.

I've done lots of research into it and essentially i've rationalised it as this; that without the scheme we're not going to get anywhere near a house that could be the only house we ever own (the size and space means we won't have to look to move in a few years time when kids come along, whereas we would if we were going for something within 'normal' budget without the equity loan).

Obviously there's one or two snags with the equity loan, as in its a bit of a pain in the arse how the repayment is structured, mainly only being able to pay it back in chunks of 10% of the house value at a time. However, with there being nothing pay back immediately for the five years, this is my current tactic and i was just wondering if anyone else has bought a house through the scheme and how they're approaching the repayment of the equity loan.

My tactic; remortgage after 5 years, using that + 5 years worth of savings in a tax free ISA between the two of us to pay off the equity loan which it would manage to do.

Anyone else done this? Any other ways of approaching the repayment?

Essentially this is the house of our dreams, the only house we would ever have to own, but one that is well out of range without the equity loan.

Cheers in advance
x

[Slick_Beef]

Nice one mate and good luck!

Thanks mate! Things are looking up

[Red Viper]

We bought our house back in October using the Help to Buy mate. Basically meant we could get a home we were chuffed with (we had only seen one non-new build house that we liked in 6 months of searching) whilst keep our mortgage relatively low so think it was worth doing.

Our plan is not too dissimilar to yourself. We're saving up for the five years to pay off the loan and if we don't quite manage to get all of it then we'll remortgage for the rest. We've got a big chunk already though as we actually managed to keep some of our deposit that we'd saved.

[Zend...en the clowns]

We bought our house back in October using the Help to Buy mate. Basically meant we could get a home we were chuffed with (we had only seen one non-new build house that we liked in 6 months of searching) whilst keep our mortgage relatively low so think it was worth doing.

Our plan is not too dissimilar to yourself. We're saving up for the five years to pay off the loan and if we don't quite manage to get all of it then we'll remortgage for the rest. We've got a big chunk already though as we actually managed to keep some of our deposit that we'd saved.

Appreciate the response mate, have sounded out a few relatives and friends but they've not used the system so whilst my logic was solid, I couldn't get an opinion from anyone who'd done it ha

We're exactly as you were above, loads of 'old build' houses we've seen that just had too many negatives. This house is just superb, everything we want and more but it's inaccessible with the equity loan! Cheers mate.

[killer-heels]

Appreciate the response mate, have sounded out a few relatives and friends but they've not used the system so whilst my logic was solid, I couldn't get an opinion from anyone who'd done it ha

We're exactly as you were above, loads of 'old build' houses we've seen that just had too many negatives. This house is just superb, everything we want and more but it's inaccessible with the equity loan! Cheers mate.

As Lfsea has stated above, you have to be careful.

I dont know which area you live but in most places new builds take years of house price growth to reach around the same level as they are initally priced up at. So worst case scenario you are in negative equity, a better but still not ideal case your loan just picks up that difference and you have to remortgage for a similar amount.

I would go ahead with idea particularly if this is the house of your dreams because ultimately a house is for living in so price growth shouldnt be a big factor.

I would do some price rise projections put out by Halifax and look at right move close to the area as it has previous sales pages. Just get an idea roughly of how much more you might need so you can budget effectively.

[gazzam1963]

You dont have to pay the help to buy equity back after the 5 years but there is obviously a rate of interest you have to face in 60 months on top of what your paying now . Nothing stops you overpaying now on your existing repayment which will bring the amount owed down but also possibly offer a better return than the ISA
Possibly does at the moment , depends really what your rate is at the moment ( I presume it's fixed ) .

[Zend...en the clowns]

Indeed, but at the very least, you have a loan to repay then on top of your mortgage commitments. And if you're stretching to get a place as it is, the monthly repayments on 10k worth of loans added to the mortgage might be crippling.

Cheers for all the advice lads, all brilliant.

As a contingency we've circled year 7 as the latest we'd look to clear the equity loan, the interest in year 6 works out at 696 which is an extra 58 quid a month, year 7 is 744, extra 62 quid per month = cumulative total of about 1500 quid.

[tubby]

Accepted an offer on the family home that my brother and I inherited, with both of us getting an even split.  Can anyone explain how any tax (capital gains/inheritance) would be sorted?  Do we get the money from the sale and then have to tell the tax man about it?  Or will they get involved before then?  It's all going straight to my brother's account and then assuming he doesn't go into hiding, he'll be transferring it over to me over the course of a couple of weeks.

[tubby]

You get six months from the date of inheritance to pay the outstanding tax amount to Her Majesty. After that, you pay interest on the 'debt'.

But how does the tax man know about any tax you might owe?  Do we have to tell them or something?

[Millie]

How much are you actually inheriting between you - ie is it actually more than the current allowance which is £325000. (it could be more than this if the deceased inherited some of his/her Spouse's allowance) . If it's less then there should be no Inheritance tax to pay.  This figure should include everything you have inherited, including the house.

Also who did the probate?  The Administrator/Executor should have already informed HMRC of the value of the estate.

[tubby]

Yeah the probate was a while back, 2012.  My uncle is the executor and the sale of the house will take us over the threshold.  I'll get hooked up with a financial advisor.

[Millie]

Yeah the probate was a while back, 2012.  My uncle is the executor and the sale of the house will take us over the threshold.  I'll get hooked up with a financial advisor.

Surely the tax was paid back then?  Inheritance that is.  I don't know about Capital Gains Tax though - you need to get advice on that.

[Millie]

Is there Capital Gains Tax to pay on the estate?
The good news is that the estate doesn’t have to pay any Capital Gains Tax on the property or assets that weren’t sold (also known as ‘unrealised gains’) before the person died.

But, if the property or asset is sold during probate and its value rose since the person died, there is usually Capital Gains Tax to pay.

This tax is calculated on how much the increase is since the person’s death.

Beneficiaries inherit the assets at their probate value.

This means that when they sell or give the asset away, they will pay Capital Gains Tax on the increase in value from when the person died to when it was sold or given away.

https://www.moneyadviceservice.org.uk/en/articles/calculating-and-paying-tax-after-someone-dies


Read all of the above article - it should answer your questions

[tubby]

Good link, ta.

[Zend...en the clowns]

Anyone with any advice on the 'extras' part of a new build?

Going to be a proper cheeky twat when I go down, how much flex in price is there? Anyone get any good deals?

Dishwasher, fridge freezer, ceramic tiles, washing machine etc.

Cheers again x

[Zend...en the clowns]

My Goddaughter bought recently in a Nantwich new build and absolutely rinsed them. The place was only about £150k (I say only...) and she still managed to get an upgraded kitchen (not my taste, but there you go), all white goods, a flat screen for each room, a few kitchen luxuries - blender, processor, knife block - and the shed loaded with mower, strimmer, and a few manual tools, and still got the house for £145k, I believe.

Ask for everything; they won't bar you from buying the place - they'll just tell you where to stick it


(Wouldn't be able to swear on the bible, but I'm sure they threw in a John Lewis voucher for £100-£200 too).

Kin hell, i'll be dishing out blowies if they chuck all that in!!!

[gazzam1963]

My Goddaughter bought recently in a Nantwich new build and absolutely rinsed them. The place was only about £150k (I say only...) and she still managed to get an upgraded kitchen (not my taste, but there you go), all white goods, a flat screen for each room, a few kitchen luxuries - blender, processor, knife block - and the shed loaded with mower, strimmer, and a few manual tools, and still got the house for £145k, I believe.

Ask for everything; they won't bar you from buying the place - they'll just tell you where to stick it


(Wouldn't be able to swear on the bible, but I'm sure they threw in a John Lewis voucher for £100-£200 too).

My missus is in sales of new homes and there can be incentives on new properties , you will always get a better deal on a standing plot ( one that is already finished but not sold ) or a plot that is in an awkward position . There is no harm in asking at all and most builders do have a gross and net figure to work between when selling .
A Sunday late on is always a good time to actually deal and reserve as the sales figures always go in on sunday evening so if they are struggling for a sale then you will definitely get extras or discount . Also it will
Depend on what position your in ( ie cash buyer or not depending on selling your own house or first time buyer with a mortgage in principle .

[Zend...en the clowns]

Ended up going to view the show home today.

Played hard to get and managed to get fridge freezer with installation, carpets and wet room flooring throughout upgraded, and 500 nicker towards legal fees.

Paid the reservation and it’s full steam ahead now.

Cheers for all the help and advice last week or so. Scally from a single parent family, council estate now on the verge of owning me own home with the missus. Feels fucking great. Can’t call meself a Marxist anymore now though haha

[L8Craig]

Played hard to get and managed to get fridge freezer with installation, carpets and wet room flooring throughout upgraded, and 500 nicker towards legal fees.

Have a look into the ground rent details. There has been massive issues in the past couple of years where people’s ground rents will double every ten years to a point where some mortgage companies won’t give a mortgage on a property.
Regards to the legal costs, if it’s the property companies legal reps that you’ve been advised to go with unsure if they will skirt around that little bit of information. May be worth looking into.

Google leasehold scandal.

[Zend...en the clowns]

Have a look into the ground rent details. There has been massive issues in the past couple of years where people’s ground rents will double every ten years to a point where some mortgage companies won’t give a mortgage on a property.
Regards to the legal costs, if it’s the property companies legal reps that you’ve been advised to go with unsure if they will skirt around that little bit of information. May be worth looking into.

Google leasehold scandal.

It’s a freehold property mate appreciate the heads up though fella.

[L8Craig]

It’s a freehold property mate appreciate the heads up though fella.

That’s good 
Bet ya can’t wait to get in now.

[Zend...en the clowns]

Just had the email through, mortgage offered - no changes to quote, no further info needed and no changes to recommend.

Only submitted the application last Thursday, i am absolutely over the moon. Move in in September and can't wait. 10 years ago was a failed actor hiding in a cupboard from me landlord, hard graft to get here but cannot wait to see the missus tonight.

Also - bank (Nationwide) weren't arsed about gambling transactions on me statements which had me flapping.

Cheers for the little bits of help and advice in here over the last few weeks.

Happy Friday, pass the beers.

[DanFromMars]

What's the deal with estate agents asking to see proof of funds for deposits and getting recent statements signed by a member of 'standing' such as my dr (for a fee!).  I told them to do one on the phone and speak to my solicitors whom I'm giving everything they are asking who can verify.

[Damo58]

What's the deal with estate agents asking to see proof of funds for deposits and getting recent statements signed by a member of 'standing' such as my dr (for a fee!).  I told them to do one on the phone and speak to my solicitors whom I'm giving everything they are asking who can verify.

If they can make money any which way they will. We're half way through buying a house (Just had valuation done by HSBC and mortgage agreed today). In order to get our 10% deposit we are planning on lending 2k off her mum and paying it back once we're in...well that was the plan.

We had to write a letter to the solicitor telling them it was a gift and we won't be paying it back and my mother-in-law had to turn up to the solicitors with ID and bank statements with proof of fund etc.

This process which I feel we could have just kept to ourselves and not told them about the lending is costing us a fee.

[Jake]

What's the deal with estate agents asking to see proof of funds for deposits and getting recent statements signed by a member of 'standing' such as my dr (for a fee!).  I told them to do one on the phone and speak to my solicitors whom I'm giving everything they are asking who can verify.

Because estate agents are scum. They're duty bound (and commission hungry) to get the best price. Imagine getting a low offer accepted then you show a healthy bank balance, all of a sudden a mystery bidder and "sealed bids".

I withdrew on a house I was gonna buy exactly cos the EA asked for 3 months banks. Do one William H Brown

If they can make money any which way they will. We're half way through buying a house (Just had valuation done by HSBC and mortgage agreed today). In order to get our 10% deposit we are planning on lending 2k off her mum and paying it back once we're in...well that was the plan.

We had to write a letter to the solicitor telling them it was a gift and we won't be paying it back and my mother-in-law had to turn up to the solicitors with ID and bank statements with proof of fund etc.

This process which I feel we could have just kept to ourselves and not told them about the lending is costing us a fee.

This one is a requirement of your lender, nowt your sol can do about it. Their loan is more risky if you're giving the MIL an unofficial charge of £2k over it.

[Damo58]

This one is a requirement of your lender, nowt your sol can do about it. Their loan is more risky if you're giving the MIL an unofficial charge of £2k over it.

I would get that if we were getting a mortgage at the very top end of our budget but we've bought a house for around 50k less that a mortgage we can afford. They have our bank statements to show what's going in every month and lending 2k isn't an issue and if we want to pay it back we should be able to declare that we are going to rather than get her mum to lie to them and say it's a gift.

Just think it should be a case by case basis rather than charging everyone for lending a few quid to top their deposit up.

[Jake]

I would get that if we were getting a mortgage at the very top end of our budget but we've bought a house for around 50k less that a mortgage we can afford. They have our bank statements to show what's going in every month and lending 2k isn't an issue and if we want to pay it back we should be able to declare that we are going to rather than get her mum to lie to them and say it's a gift.

Just think it should be a case by case basis rather than charging everyone for lending a few quid to top their deposit up.

But the £2k has gone into your bank account, your lender wants to know where it's come from.

Your sol either says "oh damo's borrowing 2k off his mam in law" in which case your lender wonders why you're borrowing and gets itchy, or you tell your sol it was a gift (by way of letter), they tell your lender and it's all OK.

You should only be charged a few units for the extra work mind, one to read the letter, one to send to bank, one to tell you it's gone, one to read the "that's ok then" letter back from the lender. Wonder who you're using...

[paddysour]

What's the deal with estate agents asking to see proof of funds for deposits and getting recent statements signed by a member of 'standing' such as my dr (for a fee!).  I told them to do one on the phone and speak to my solicitors whom I'm giving everything they are asking who can verify.

For proof of funds I gave them an agreement in principle. The bank has taken a look at me and "agreed in principle" to give me the money, that's proof enough imo.

[Claire.]

What's the deal with estate agents asking to see proof of funds for deposits and getting recent statements signed by a member of 'standing' such as my dr (for a fee!).  I told them to do one on the phone and speak to my solicitors whom I'm giving everything they are asking who can verify.

For proof of funds I gave them an agreement in principle. The bank has taken a look at me and "agreed in principle" to give me the money, that's proof enough imo.

Same. We went to see a mortgage advisor and once we'd applied and got the agreement in principle he gave us a certificate that we could show to any estate agents etc. Wouldn't be showing them anything else.

[Claire.]

Just had the email through, mortgage offered - no changes to quote, no further info needed and no changes to recommend.

Only submitted the application last Thursday, i am absolutely over the moon. Move in in September and can't wait. 10 years ago was a failed actor hiding in a cupboard from me landlord, hard graft to get here but cannot wait to see the missus tonight.

Also - bank (Nationwide) weren't arsed about gambling transactions on me statements which had me flapping.

Cheers for the little bits of help and advice in here over the last few weeks.

Happy Friday, pass the beers.

Nationwide are really good, been with them for just on 5 yrs now and actually re-mortgaged over the phone with them this morning - took about 20 mins

[UntouchableLuis]

After saving up for 4 years and living with my parents I move into an apartment I have bought in a really nice area next week. Buying it off a family member so got a good deal but still paying probably a little bit over what I intended but for the area I wasn't getting any cheaper. Looked around at similar valued properties and none are as spacious or nice as the one I'm getting.

It's taken 4 months or so to get the move in date - I knew it would be a long process but didn't think it would be that long with no chain!

I am looking forward to it all now but am a little worried about my finances. Been used to not worrying too much but have now used up all my savings and then when you add in solicitor fees, bed, furniture, television and broadband packages, water, gas, electric etc I am going to have to be careful with my budget. I also commute to work in Southport so my petrol and car costs are pretty high. On top of this I am a teacher so it's not the easiest to just get a promotion and going through a little bit of a sticky patch at my current work so hoping to move to a new school within 12 months.

any tips? I reckon I'll have around 80 quid a week to play around with once all the bills are paid which isn't too bad but then when I factor in stuff like going the match, dating, maybe going on holiday I'm going to struggle.

[CraigDS]

Congrats! Just make sure you keep on top of the bills - make sure you know exactly what you've got due out and then put all that to one side so you don't spend it. It's all pretty easy as long as you keep on top of it.

As for work, is there anyone who lives your way who you could car share with and split the costs? Could save you (both) a decent amount. You should be due a decent (ish) raise at the start of next year too I think (up a pay grade + around 3.5% isn't it?) which won't hurt 

[Lush is the best medicine...]

Have you thought of getting a flatmate?

[killer-heels]

After saving up for 4 years and living with my parents I move into an apartment I have bought in a really nice area next week. Buying it off a family member so got a good deal but still paying probably a little bit over what I intended but for the area I wasn't getting any cheaper. Looked around at similar valued properties and none are as spacious or nice as the one I'm getting.

It's taken 4 months or so to get the move in date - I knew it would be a long process but didn't think it would be that long with no chain!

I am looking forward to it all now but am a little worried about my finances. Been used to not worrying too much but have now used up all my savings and then when you add in solicitor fees, bed, furniture, television and broadband packages, water, gas, electric etc I am going to have to be careful with my budget. I also commute to work in Southport so my petrol and car costs are pretty high. On top of this I am a teacher so it's not the easiest to just get a promotion and going through a little bit of a sticky patch at my current work so hoping to move to a new school within 12 months.

any tips? I reckon I'll have around 80 quid a week to play around with once all the bills are paid which isn't too bad but then when I factor in stuff like going the match, dating, maybe going on holiday I'm going to struggle.

Like Lush said, think of getting a housemate and that could help. If understandably you want to live on your own then just make sure you budget everything. It could help moving all your direct debits to the start of the month/day after pay day to help with budgeting.

The other option which is only to be taken if you are someone who can keep on top of your debts is to get a 0% purchase credit card and use it for any very large, non essential purchases. That would give you up to 2 years interest free grace to pay it off.

However like I said thats only for people who trust themselves to be responsible with debt/loan management.

[reddebs]

Not house buying but I've had an offer accepted on a business today.

Exciting but scary too [emoji50]

[UntouchableLuis]

Have you thought of getting a flatmate?

It would be an option if I ever got desperate, but wouldn't really want to give up my space for now.

I think my plan is to just make a written plan per week/month of what I can spend and what is most essential. After 1 year I hope to be back working in Liverpool which would allow me an extra 100 odd a week saving on petrol.

[gazzalfc]

Hoping to exchange contract and complete next week. Exciting and nervous time.

[redbyrdz]

It would be an option if I ever got desperate, but wouldn't really want to give up my space for now.

I think my plan is to just make a written plan per week/month of what I can spend and what is most essential. After 1 year I hope to be back working in Liverpool which would allow me an extra 100 odd a week saving on petrol.

Can you not get the train to Southport? It'd be £100 per month instead of per week.