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Original poster

Pulling out a house near to exchange

157 replies

HappyKite2067 · 08/07/2024 16:42

We are near to exchange of our new build house and I’m now having huge doubts about going ahead with it. I’ve had a bad gut feeling throughout but as it gets closer it’s getting stronger!

Reasons:

  1. Estate management fees and people telling me to ‘run away’ as they are life ruining
  2. The cost of the mortgage is so much higher than our rent, and I’m genuinely worried we can’t afford it- I’ll only have £200 disposable income after all bills, petrol and food, and other half £500. At the moment, we have around £1500 left over between us.

Reasons why I’ve talked myself into going:

  1. I need to move for my new job
  2. We’ve been renting for 2 years and have secured an okay fixed deal
  3. There’s very little choice in the area we are moving to and new build is probably (even with mgt fees the most cost effective)
  4. We are TTC (although how we can afford one I don’t know)
  5. We are both going to have pay increases next year and the year after.

Am I being unreasonable to pull out and stay renting, and maybe choose to rent closer to work to have more disposable income and wait for an older new build which needs less work?

OP posts:
Original poster
HappyKite2067 · 08/07/2024 17:06

Arewealljustloosingtheplot · 08/07/2024 17:02

You’d be nuts to walk away. That’s thousands of pounds worth and I agree with him!

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So you think just suck up the drop in disposable income? Our worst case scenario is £700 per month joint DI. Hoping to get this up to £2k joint in 2 years with the pay increases (although of course anything can happen!).

OP posts:
Original poster
HappyKite2067 · 08/07/2024 17:04

Mummy2024 · 08/07/2024 17:01

I think he's made his mind up then OP, if you pull out and everything is a disaster then he's going to blame you. Do you like the house are you happy with it?

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I love the house! I love the area and it’s near my job! It means parents can stay (who live abroad) and we wouldn’t need to move if we didn’t need to. I love everything except the worry around affording it, my partner is extremely laid back and says we will manage but it’s me who does our finances 😝 I’ve always been taught to live within my means and this goes against my grain, and come hand in hand with everything sky rocketing. If we go for something cheaper I probably won’t like the house and want to move down the line anyway.

OP posts:
Arewealljustloosingtheplot · 08/07/2024 17:02

HappyKite2067 · 08/07/2024 17:01

Yes! Stamp duty and solicitors fees paid, upgrade worktops to quartz, rainfall head showers, flooring, down lights, towel rail, integrated dishwasher and fridge freezer! This is my partners points, the management fees would have to seriously go up for it not to be cost effective than an old build.

Show quote history

You’d be nuts to walk away. That’s thousands of pounds worth and I agree with him!

Original poster
HappyKite2067 · 08/07/2024 17:01

Arewealljustloosingtheplot · 08/07/2024 16:59

@HappyKite2067 have they offered incentives?

we got over £40k worth of incentives on our house , so defo didn’t pay over the odds and worked out way cheaper than an older house of the same size.

don’t walk away from a good deal.

Show quote history

Yes! Stamp duty and solicitors fees paid, upgrade worktops to quartz, rainfall head showers, flooring, down lights, towel rail, integrated dishwasher and fridge freezer! This is my partners points, the management fees would have to seriously go up for it not to be cost effective than an old build.

OP posts:
Mummy2024 · 08/07/2024 17:01

HappyKite2067 · 08/07/2024 16:59

We know it’s a huge red flag which is exactly what my question is about 🤪 I feel like we should pull out but OH says it’s our only real option if we want to move there, have a family and have a house we can stay in for a while. He said he doesn’t have the time or money for us to do an old build up (like we did our first home).

Show quote history

I think he's made his mind up then OP, if you pull out and everything is a disaster then he's going to blame you. Do you like the house are you happy with it?

Original poster
HappyKite2067 · 08/07/2024 16:59

Mummy2024 · 08/07/2024 16:58

Letting you know they are uncapped is a warning in itself...

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We know it’s a huge red flag which is exactly what my question is about 🤪 I feel like we should pull out but OH says it’s our only real option if we want to move there, have a family and have a house we can stay in for a while. He said he doesn’t have the time or money for us to do an old build up (like we did our first home).

OP posts:
Arewealljustloosingtheplot · 08/07/2024 16:59

titchy · 08/07/2024 16:58

Ok well £150 a year is nothing. What does your solicitor say about future rises?

Childcare you could possibly claim on UC, plus the free hours you'll be getting so work that out.

House prices won't go down, though if it's brand new with no previous owner you will be paying a bit over the odds.

@HappyKite2067 have they offered incentives?

we got over £40k worth of incentives on our house , so defo didn’t pay over the odds and worked out way cheaper than an older house of the same size.

don’t walk away from a good deal.

Mummy2024 · 08/07/2024 16:58

HappyKite2067 · 08/07/2024 16:57

£150 and just that they are uncapped, not really any advice!

Show quote history

Letting you know they are uncapped is a warning in itself...

titchy · 08/07/2024 16:58

Ok well £150 a year is nothing. What does your solicitor say about future rises?

Childcare you could possibly claim on UC, plus the free hours you'll be getting so work that out.

House prices won't go down, though if it's brand new with no previous owner you will be paying a bit over the odds.

Original poster
HappyKite2067 · 08/07/2024 16:57

titchy · 08/07/2024 16:54

No it’s freehold with fees for maintaining the areas.

But how much are those fees? What has your solicitor advised regarding them?

£150 and just that they are uncapped, not really any advice!

OP posts:
Mummy2024 · 08/07/2024 16:57

HappyKite2067 · 08/07/2024 16:51

No it’s freehold with fees for maintaining the areas. We would probably lose a couple of £k at this this point.

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Silly me lol 😆 the fees are £150 is that a year? That's not to bad if it's monthly then no definitely not.

I'd see what your partner thinks it's all you can do, has to be a joint decision. But yeah your right they could increase them hugely once you've exchanged and your stuck then if uncapped

Kinshipug · 08/07/2024 16:55

HappyKite2067 · 08/07/2024 16:52

Rent is similar if not a bit cheaper in the new area! We could buy smaller but it’s stamp duty and solicitor fees when we know we will need that extra room! It’s also time now to try and find another property before my job starts.

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I suppose it depends what exactly you're buying. If rent is really that much cheaper I would be inclined to rent a while looking for something more affordable.

OooohAhhhh · 08/07/2024 16:55

5% is worse case scenario ie today.
We just renewed and agreed to 4.98 over 2 years, as rates are likely to not remain the same as they are now.
Plus £700 disposable income isn't bad at all, you would just cut back and adjust naturally to accommodate your budget. Bear in mind you get child benefit too which is around £100 a month for 1 child now.

Arewealljustloosingtheplot · 08/07/2024 16:55

HappyKite2067 · 08/07/2024 16:53

£150 but they are uncapped so could keep going up!

Show quote history

I don’t think that’s too bad tbh. I live in a previous house for 5 years from new and they never increased. id just go for it. You should always buy the biggest house you can when you move as moving costs are so silly. Might feel tight for a couple of years but will even out.

titchy · 08/07/2024 16:54

No it’s freehold with fees for maintaining the areas.

But how much are those fees? What has your solicitor advised regarding them?

Original poster
HappyKite2067 · 08/07/2024 16:54

ChefsKisser · 08/07/2024 16:45

You need to really drill into the numbers here- you’re unlikely to get a salary increase if on mat leave and even if you do your pay will be less. If you’re serious as a couple enough to have a baby id combine finances rather than £200 for you, £500 for him- ie £700 left in the family pot for spending. This doesn’t feel a lot for all costs and things would be tight! Is the house too big for your needs is there a smaller plot you could go for?

I can’t be penalized for being on mat leave so I would get the salary increase. I get 6 months full pay (occupation m pay). We are also hopeful for the childcare incentives which will come in in 2025.

OP posts:
Mummy2024 · 08/07/2024 16:54

HappyKite2067 · 08/07/2024 16:51

No it’s freehold with fees for maintaining the areas. We would probably lose a couple of £k at this this point.

Show quote history

Wow so that couple of k is yearly forever and likely to rise with inflation?

I'd definitely walk away they get you one way or another these house builders don't they....

What does your partner think?

Original poster
HappyKite2067 · 08/07/2024 16:53

Arewealljustloosingtheplot · 08/07/2024 16:50

I don’t know why you’d continue to pay someone else’s mortgage and secure their future rather than your own?

how much are your management fees ? I think ours are about £700 Pa.

£150 but they are uncapped so could keep going up!

OP posts:
Definitelynotem · 08/07/2024 16:53

I can only speak to the management fees one , we are freehold but still have a management fee. We were told the fee would be £150 a year but so far it hasn’t been more than £70 (been here 5 years and estate finished 3 years ago), I don’t think the management fee horror stories are as common as you’d think based on the media. However, I do think it’s a risk that you have to accept if you want a new build and personally when we sell our house I probably wouldn’t go for another new build with a management fee just in case.

Original poster
HappyKite2067 · 08/07/2024 16:52

Kinshipug · 08/07/2024 16:51

You say you need to move for work, so your current rent is irrelevant. How much is rent in new area? Are there really no other houses or flats for sale at all? Can't you look at something smaller for now, you can always move again if and when a baby is old enough to require more space.

Rent is similar if not a bit cheaper in the new area! We could buy smaller but it’s stamp duty and solicitor fees when we know we will need that extra room! It’s also time now to try and find another property before my job starts.

OP posts:
Coconutter24 · 08/07/2024 16:52

I would just go for it, chances are mortgage interest rates will go down so you might have a couple of years living tightly (depending on your fixed term) but when that’s up then you might come to find you get a better rate and have more income left each month

Original poster
HappyKite2067 · 08/07/2024 16:51

Mummy2024 · 08/07/2024 16:50

What are the penalties for pulling out and how much will you lose?? Is it leasehold??

Personally if you can afford to pull out and it's leasehold I would pull out because there's talk of leasehold new builds being disallowed in the near future.

Show quote history

No it’s freehold with fees for maintaining the areas. We would probably lose a couple of £k at this this point.

OP posts:
Kinshipug · 08/07/2024 16:51

You say you need to move for work, so your current rent is irrelevant. How much is rent in new area? Are there really no other houses or flats for sale at all? Can't you look at something smaller for now, you can always move again if and when a baby is old enough to require more space.

Original poster
HappyKite2067 · 08/07/2024 16:51

BrigadierEtienneGerard · 08/07/2024 16:47

I don't think the numbers add up. I'd stay put if I were you.

At what point would you think of making the jump to buy? How much disposable income? Also worried out apartment will be increased in rent!

OP posts:
Mummy2024 · 08/07/2024 16:50

HappyKite2067 · 08/07/2024 16:42

We are near to exchange of our new build house and I’m now having huge doubts about going ahead with it. I’ve had a bad gut feeling throughout but as it gets closer it’s getting stronger!

Reasons:

  1. Estate management fees and people telling me to ‘run away’ as they are life ruining
  2. The cost of the mortgage is so much higher than our rent, and I’m genuinely worried we can’t afford it- I’ll only have £200 disposable income after all bills, petrol and food, and other half £500. At the moment, we have around £1500 left over between us.

Reasons why I’ve talked myself into going:

  1. I need to move for my new job
  2. We’ve been renting for 2 years and have secured an okay fixed deal
  3. There’s very little choice in the area we are moving to and new build is probably (even with mgt fees the most cost effective)
  4. We are TTC (although how we can afford one I don’t know)
  5. We are both going to have pay increases next year and the year after.

Am I being unreasonable to pull out and stay renting, and maybe choose to rent closer to work to have more disposable income and wait for an older new build which needs less work?

What are the penalties for pulling out and how much will you lose?? Is it leasehold??

Personally if you can afford to pull out and it's leasehold I would pull out because there's talk of leasehold new builds being disallowed in the near future.