Don't know what to do - thoughts please

[Andcake]

What would you do? i'm losing sleep over this..

Ok our home has been on the market for a while with no buyer - estate agent ours and others have given general election funny market as the reason but really I think we over priced. I am getting anxious about moving by primary school deadlines. We are being advised to drop our price again which I understand but annoyed this wasn’t what was suggested earlier and will heavily restrict where we can move to. But after discussions at home about what we can buy we feel we have a few options to move fast

1, drop price with the same agent and buy somewhere smaller or in a worse location (with not great schools) – depending on what is available - but I'm just a bit p1ssed off with them now

2, Rent out current home with a buy to let mortgage and realise this gives us less to spend on the new home but then by adding £25k to existing mortgage to get something actually similar to the homes we would get with just dropping the price as where we want to move has a few price brackets really

3, A new agent is willing to take it on and basically work with us on either a sale (at current price) or rent basis to see what happens first and what we find if we start looking properly again. We stopped looking after a month of no offer.

[lalalonglegs]

I'd go with #3. School application deadlines aren't until December/January iirc so no panic just yet and, if you move near enough to a good school after that deadline, you would be near the top of the waiting list.

I fear you are entering the fallow summer period though so you may not get any real interest until September.

[lalalonglegs]

Also, be aware that if you move locally and rent out your current home, the LA may view it as your main residence and measure distances to schools from there rather than your new place.

[jevoudrais]

Property prices near me have shot up since the election so I don't think that is likely to have had an effect like the EA says.

Summer stagnation has started, I've seen less on the market and we have just offered on one. The longer something has been on the more I think there is something wrong with it to be honest, so that can always put people off if property normally moves well in your area.

Can you get a BTL mortgage? Affordability changed quite a lot April 2014 and lots can borrow less now than they could then. Option three sounds the best to me.

[wafflyversatile]

It would be a let to buy mortgage, I think. No idea if that matters at all though.

[Andcake]

I've done a bit of research into BTL mortgages using current online calculators and was hoping when I get a moment to speak to a few and see if I at least can get an agreement in principle - i didn't know things had changed and am basically working off on what is on a few bank sites at the moment. We would be moving right over the other side of London so the LA school issue shouldn't exist hopefully.
yes I'm tempted by no.3 but its stressful and scared prices are going to rise more or even fall (london bubble burst paranoia)
I am really really panicking though about the deadlines as I am not sure how we would cope as parents getting dc to a school far away until a place was available. DS is summer born so would be the littlest and due to my crappy body (infertility) is most likely going to be an only child so I would feel awful

[Andcake]

yes Let to buy - my typing crap BTL is a acronym to do with my work which I seem to be typing out of habit and mild panic

[mandy214]

I think you should drop the price and get a sale sorted. Although the let to buy idea sounds appealing, you have to factor in that rates are much higher than standard mortgage rates, the maintenance of 2 properties, agents' fees (from rental income), potentially void periods, the hassle if you have a tenant who doesn't pay or who phones you / agent up every other week with a problem when you have a small family. Have a look at the criteria for the school / LA you're looking at. I know (even when moving 30+ miles into new LA when we applied for places) we had to show disposal of previous house.

[Misty9]

What about renting for now in the location for good school? It sounds like you mean he starts this year...?! Also puts you in a good position to bargain if you buy when you've already sold yours?

[Andcake]

No he would start next year - just need to resident at where we want him to go to school by 15 January
Can someone explain difference of let to buy and buy to let?

[mandy214]

Buy to let means you remain in your own house (which has a 'normal' mortgage) and you buy another property to let out. So the house you buy is to let (so you are buying to let). If you let out your main house and buy a house to live in, you are letting out (your own house) to buy something to live in. Hope that makes sense!

[scarlets]

Hi. Option 3 looks good on paper but the reality is that if it's overpriced, it'll be rented out, not sold. This is a fair commitment and you need to be happy with it, and comfortable with the way the finances will be. If you have doubts about renting it out, drop the price.

[Sunnyshores]

BTL s not an easy option - not by any means - and you will be very lucky to break even, so may need to sell anyway. Then your home will be in a worse condition than it is now with you living in it and it will be harder to sell. Take the plunge and reduce the price now.

[Andcake]

Ok I'm going off the let to buy option and gave had a few estate agents round to revalue to kind of gage.
Still panicking about time but considering swapping agent for a month first then dropping price?