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Original poster

sell and buy smaller + holiday home sums...

15 replies

CatfromJapan · 22/05/2015 11:26

Ok so we are very lucky: we bought a house 5 years ago in South East. It's doubled in value.

We did loads to it (60k), its a period house with loads of 'potential' - a large garden, room to expand the kitchen, lovely big front garden - in a very trendy area close to town. Thing is we haven't done the kitchen because really its crying out for a proper extension - and as we have found with this house (one thing leads to another - its old), a proper extension is crying out to be double height to add a bathroom, and if we did that we'd need to change the roof (which will need doing in 5 - 10 years) - so in essence we could do a new kitchen where it is but really we'd like to spend £££ on making it the best it could be. The garden could be made much better with 15k spent landscaping as there is tarmac where it shouldn't be. We don't have £££ - but the house is fine as is for the moment.

Don't get me wrong, people gasp when they see the house, it has a lovely roomy feel, its been decorated well, rewired, new heating etc etc, and the amount of garden is unknown in this area.

Also we could probably lose some garden and get planning to build another house with garden some time in the dim future as its a very high density area.

Sorry for the eye watering sums - this is London. We have to stay here professioanlly. The house is worth over 1m now Hmm - we'd never be able to buy it with the same mortgage now - we'd have to buy a 2 bed flat!. We have a 325k mortgage.

SO.

Here's a different option - we could sell this house and buy one in a non-maintenance state (well proportioned 70's no trouble) for around 700k, and have around 400k to spend on a holiday home.

I 'think' we might be able to keep a similar mortgage on a new house, and use the cash part to buy the sort of house that doesn't normally get a mortgage - so a wooden one we could do up, or something needing a lot of tlc.

Has anyone done this - what do you think?

Is it possible to buy a holiday home that you like enough to spend time and feel at home in and still rent it out some of the time... as a sort of 'buy-to-let with benefits?

we have 3 DCs and one has ADHD. looking for the chance for him to be as active as possible, and seaside wilderness appeals for that.

OP posts:
LaurieFairyCake · 22/05/2015 11:33

I'm confused

Why are you leaving at all? Your house sounds amazing

Can't you just remortgage and get 200k together for a seaside holiday home?

Your house has way too much potential
to get rid of it.

Sell the garden for housing and use that to buy a holiday home?

LaurieFairyCake · 22/05/2015 11:35

Also (I'm doing this) - you're house will be worth a fuck load more if you spunk £800 on planning permission for a separate house/new roof, bathroom, kitchen extension. Like maybe 500k more?

LaurieFairyCake · 22/05/2015 11:35

Your

wickedwaterwitch · 22/05/2015 11:41

If you build a house in the garden can you sell it? And if so would that pay for a holiday house?

wickedwaterwitch · 22/05/2015 11:41

Agree about getting planning permission even if you're not going to do it

Original poster
Catfromjapan · 22/05/2015 12:13

I don't want to lose he garden whilst we're here.
But
Do you mean if we had planning permission we could remortgage on the basis of the new 'with planning permission' value?

I don't want to take on more debt but we can't afford the £££ to make the house super fantastic. We definitely couldn't do that AND buy a holiday home.

At the moment the price differential between where we are and a house 1 mile away for 400k less is at its maximum. That area too will go up so to take advantage of the differential we'd need to look sharp I think.

Perhaps I need to remortgage and keep our house!

OP posts:
Apatite1 · 22/05/2015 12:21

We had several EAs look at our plans and revalued the house. The plans more than doubled its projected value and we were able to remortgage for a bit more (we didn't need anywhere near as much as they offered). Can't see how I could sell the house as it was (it's now a pile of rubble) for double the price, just with permission granted. Then again, the London market defies all sense.

I could definitely offer a view on whether to keep your house or not if I knew which bit of London it was in (family's in the property business)

Original poster
Catfromjapan · 22/05/2015 13:02

apatite it's in South East London - North of Dulwich

OP posts:
Apatite1 · 22/05/2015 13:19

I'm thinking herne hill, or maybe camberwell? Don't confirm if you're not comfortable being more precise. We are just south of herne hill, in dulwich.

if you are thinking of moving more south ie into the 60s/70s houses nearer to Sydenham, crystal palace, then that's a good move. These houses are becoming more and more popular and prices are going up. They are generally well built, warmer than period homes, well proportioned, but a bit souless on the outside. Inside they are very easy to change. im still not sure I'd give your magnificent house for a 70s box though, unless you really need the space now!

Walnutpie · 22/05/2015 13:19

If you get planning permission to extend, and sell your home without having extended, your home is worth more than if you were selling without the planning permission?

Why? When the purchasers could just as well apply for the planning permission?

Sorry, OP, for my tangential question!

Apatite1 · 22/05/2015 13:23

Yeah, I don't get that either. Surely, once you get permission, the house is only worth that much if you actually build the extension. I suppose just permission adds a little bit of "potential" but can't see why it would add hundreds of thousands of pounds.

Original poster
Catfromjapan · 22/05/2015 13:26

Apatite you're not too far off on the area,
Exactly the houses in Sydenham you mention are what I'm talking about! I think it's too far not to change schools actually, but the architecture will become more appreciated in the next few years. Some have access to private woods and they have loads of light. They are also more like the sort of streets you can 'play out' in. We're on a beautiful street but at the end of the day, there are boys on bikes selling drugs at the end of the road (even if the Times thinks this is one of the top 'fashionable' areas in the IK)

OP posts:
Original poster
Catfromjapan · 22/05/2015 13:29

I take your point walnut - we would be barmy to sell without having got PP.

If we sold and kept part of the land we'd be liable for capital gains though if we ever sold or built on it as I understand it (not liable if you still live in the house when you sell the land)

OP posts:
Apatite1 · 22/05/2015 13:34

Yes yes that's exactly it! I had the chance to buy a house there about 6 years ago for £425k, now it's untouched but £750k I'm kicking myself.

Things to note:

Some stations have trains to Victoria, others to London Bridge so check which you need

Some are private roads, making them v quiet for children playing etc, a big plus

Crystal palace park is wonderful

I know people who have lived there for 20 years plus, so probably a nice place to live!

A lot of unmodernised houses which are perfect for refurbishment

Apatite1 · 22/05/2015 13:36

Your talk of drug dealing has put me off your fashionable location now, as you have kids. Mind you nowhere is 100% drug free but that's a bit blatant for my liking.

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