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Is there a way of buying a new house, if you havent sold yours yet????

(11 Posts)
mosschops30 Sat 25-Jul-09 10:57:11

We have seen a house we love, didnt expect to, we were going to have a conservatory built instead.

We dont have to overprice ours, but not sure what market is like etc, estate agent thinks it would sell quick (we had to have it valued for mortgage purposes).

Is there a way to buy a house when you havent sold or even put yours on the market?
Could we ask our mortgage-free IL's to stump up til we sell?
What are our options?

LIZS Sat 25-Jul-09 11:00:03

Bridging loan - usually very expensive though and may depend on their assessment of "risk". If you have access to the capital(ie from pil's) you could be a cash buyer.

Woooozle100 Sat 25-Jul-09 11:02:49

this has happened to us. The seller of house we love is happy to wait whilst we sell ours (wasn't even on market when we first saw)

yes you could ask family - that would work

could also rent yrs out

tho reckon getting yrs on the market asap is best thing. Don't feel pressured into accepting unreasonably low offer tho

pofacedandproud Sat 25-Jul-09 11:03:27

estate agents always say that. It may be true, but you have to be prepared for what would happen if your house didn't sell easily. It may be on for a long time, or sales might fall through. If your ILs are prepared to take that risk, maybe you could do it, but it is very, very risky.

mosschops30 Sat 25-Jul-09 11:22:08

Thank you for all your posts.
The vendor had actually takem house off because they bought it 3 years ago at the price height and werent getting offers anywhere near what they want.
However we would be prepared to pay almost what they want (theyre asking 244,950, estate agent said they would take 240,000) so maybe if we offered them that and explained we needed to sell ours etc they may go for that as obviously theyre not in a massive hurry to move.
Its really perfect for us, kids can stay in same schools, it has an extra bedroom, 2 extra bathrooms and a conservatory and I WANT IT grin

Penthesileia Sat 25-Jul-09 11:35:39

How much equity do you have in your house? If it's a lot, then you could try to raise a buy-to-let mortgage on your current home, and a new mortgage (based on your incomes and the equity you hold in your current house) on the house you want to buy. This may give you the total you want.

Then, if/when you move, you can either rent out your current home and pay the mortgage that way, or sell and repay both mortgages as much as possible.

mosschops30 Sat 25-Jul-09 12:38:31

we have £120k equity in the house. Dont think renting is an option here and I dont want the hassle of it either.

Can anyone tell me what hidden costs there will be, so I can make a plan, I know:

- HIPS (although no idea of cost)
- Stamp duty (again no idea)
- Estate agent fees (again no idea)

Ooops pretty clueless me grin

audley Sat 25-Jul-09 20:18:19

Hi mosschops, we had a HIP done last week, it cost £325, stamp duty is 1% for houses under 250,000 and our estate agent fee will be 1.5% of selling price, that includes VAT. Some will charge a percentage of the asking price whether you sell for that or not so is owrth watching out for.

Heifer Sat 25-Jul-09 20:31:11

We have had a bridging loan in the past and it worked really well for us. It only took us 1 month to sell ours, so we actually only needed the bridging loan for 1 month! I can't remember the rate now but it wasn't that bad... If you don't sell straight away, after around 5 months you start getting hassle from the lender, and they really put pressure on you to accept lower offers.
It worked really well for us 4 years ago

BUT, the market has changed since then, we almost did it again 2 years ago just before it all crashed, and boy are well glad we decided not to do it again. We have no idea now how long it would have taken our house to sell even though we got offers on the house really quickly, our chain kept breaking lower down. and there is nothing you can do about that....

Thing to remember if you buy a house with a bridging loan. you will be paying

your old mortgage
your new mortgage
and the bridging loan EACH MONTH that the house hasn't sold...

I would talk to the sellers, see if they are happy to wait for you. You may sell really quickly and be living in your new house in 3 months time grin

HerHonesty Sun 26-Jul-09 08:33:51

bridging loan or a let to buy on your current home or a buy to let on the new home.

if one or both of the loans are interest only for a period you may be able to afford it. but you have to be pretty confident you can sell your orig house for the amount you believe you can or let it for enough to cover the interest only mortgage and costs.

mosschops30 Sun 26-Jul-09 12:57:41

audley, the estate agent who valued our house recommended an onoine HIPS, he said they could do it for £299 plus VAT but looking on the website he gave me it will cost us £204 all in smile

DH thinks we shouldnt put house up for sale until we have viewed house we like, then explain situation to seller.
Have just spoken to a friend and she said they did the same, saw a house then put theirs up, they sold it in a couple of weeks. Fingers crossed ours will be the same smile

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