Can I buy another house while the FH is waiting to be sold?

[SundaySnoozing72]

Hi,

Long divorce, still not finalised but the financial consent order is in place. I have paid £15k to solicitors who did nothing for me in the end and I’ve had to call it a day with them - as a result I am now paying back £700 a month to the credit card (as I’d stupidly put the solicitor costs on there).

I am still in the family home and I can’t afford to buy him out. It is too big anyway so I am looking to downsize. I have lived in the house for the last 3.5 years and he moved into his parent’s house (that he now owns). I am desperate to leave here and it is struggling to sell - we have already reduced the asking price and I can’t afford to reduce it further. I can’t rent anywhere as I’d be taking on a contract that would cost me thousands and I could end up selling next week! Plus, I’m still paying the £700 a month credit card bill! I planned on paying it off from the sale of the house (it’s about £11k now).

I feel trapped and he is pushing for the house to be reduced (which he can afford). I no longer have a solicitor. Decree absolute not applied for as I was waiting to sort the house.

Is there any way to buy another house and get out of here. Get the family home spruced up and put on with another estate agent. I have a mortgage in principle from London and Country. Mortgage payments would be cheaper than rent and what I’d need to buy him out (which I don’t want to do).

Any ideas what I can do? I feel trapped between a rock and a hard place. I am almost 53 so time to pay back is reducing each month!!

There’s nothing to stop anyone buying a second home, but you’ll likely need a higher % deposit, the mortgage will have higher rates, and the lender will apply strict affordability checks.

Does your mortgage in principle take into account that it would be a second home? Does it let you overpay once you get your share from selling the family home?

Can you afford 2 mortgages and the moving costs, stamp duty etc? Why can't you just spruce up your FH and list it with another estate agent whilst you live in it?

If I was your ex, I would question whether you are hiding assets or circumstances if you did this. Because it sounds like there is something material that hasn’t been taken into account and would significantly change the settlement.

All property sells eventually if the price is lower. The best advice is to take it off the market, revamp and then put it on after Christmas at a price that will sell.

The investor market has more or less disappeared and landlords are dumping properties. If your property is competing in that market it won’t sell. Buyers don’t have the resources to replace kitchens and bathrooms. They will knock the cost off the asking price by tens of thousands. Because that is how much it costs these days for new kitchens and bathrooms. Post the link on property without the divorce saga and ask for advice on selling it. Take the advice on price. Apply to the property you offer on - if your price is falling so are others.

In the meantime whilst mortgage and rent free keep sticking as much as possible to the credit card debt. Dont apply for more credit and get some financial advice to reduce your outgoings so you can clear the debt as quickly as possible. If you can afford 700 cc repayments and a mortgage you can increase repayments.

Wow how on earth did the solicitor rack up £15 k? Def question that one and get back to them telling them you want them to finish the divorce. That’s horrendous.
with regards to selling the family home, you can arrange it with your/a solicitor and his solicitor to sell the marital home, and take out a portion of it to buy yourself a home. He can takeout an equal amount, until the financial order consent is complete. You both will prob have to sign an agreement saying you’ve agreed and accepted this amount.

If you buy another property it will classed as a second home and the stamp duty will be higher. Can you afford that - plus two lots of mortgage payments?

I think you can claim back the higher stamp duty if you sell the first home within a certain timeframe, is that right though?

Although you'll get it back (providing the FH is sold within I think 3 years) the additional stamp duty (on top of the normal scale) is now 5% of the full purchase price so that's a considerable chunk of money to come up with upfront along with all the other costs. Presumably if the only way to pay the solicitors bill was by credit card this isn't going to be a realistic option.

I forgot about a deposit! Looks like it’s a no-go 😔.

Believe me, he has been given a bigger share of the pot than I have. It’s a struggle for me to do this.

£300 an hour just emailing, looking at my file again and phone calls. It’s crazy!

I feel he’s taking the p*##..unless that’s what they charge in london,(?) even so, that is astronomical. I’d look to report to law society or at least check the rates with another solicitor..mine is £23 back n forth emailing on initial query.

@SundaySnoozing72

How did your ex manage to get more of the marital pot, if you don't mind me asking.

I didn't want to go to court (due to other issues going on in my life) so I accepted 50% of the family home and nothing else. He kept the other property and his pension. I came off a lot worse.

The solicitor wasn't in London. It's just what they charged. I had had another solicitor who also seemed to be a bit useless (kept making errors all the time) and they were £250 an hour. I thought getting a more competent solicitor would help. It just seems they are just after the money and have no interest in ensuring you are treated fairly.

One of my bosses is also going through a divorce and he is horrified at what it's cost me to walk away with so little. He hasn't involved a solicitor in his and they have done it amicably. His wife didn't work and raised 4 children. She is getting half of all assets, including the house and his pension.

I believe a bridging loan would help with this OP :)

Maybe I'm being thick here but why would moving out change anything? You would still need to communicate with Ex regarding the house sale, all it would do is create more financial stress for you. What am I missing?

And yes I can believe that about the solicitor. Mine has charged thousands and they haven't even got the D81 filled in. Amicable divorce too.

You’re probably right. It would create more stress. Stbx doesn’t speak to me. At all, hence why things haven’t been done amicably.