How do you buy a house?

[oldfatandtired1]

I know, I know . . .

I am a recent divorcee and my consent order states that the matrimonial home be sold and that I receive 90% of the proceeds and my ex receives 10%. I'm very happy with this! - but how does it work? I have been in this house for 20 years, we were in rented and there was no chain on this house. Easy peasy.

My house has just gone on the market, it's a lovely family home and the EA says it should sell easily. I saw a lovely house on Saturday I should easily be able to afford, can I make an offer even though my house hasn't sold?

I know this probably sounds daft but it's the first time I've had to do this on my own!

Are you in England/Wales or Scotland? Big difference. In England an offer isn't binding. In Scotland an offer is binding. Making the assumption you are in England then yes you can make an offer but any sensible seller will keep their property on the market until you are in a good position. If you are a cash buyer this will make you more attractive but if not then you need any mortgage or finance in place.

Also bear in mind that you usually need to be able to name the solicitor who will be dealing with your purchase when you make your offer for it to be taken seriously. Sometimes this is not required until the chain is complete but giving it shows you are serious but careful if your solicitor starts dealing on a purchase you can't complete as you will usually still get charged a portion of the fee.

You also need to take into account the entire chain. If someone buying from you has a house to sell then that means another chance for things to go wrong.

A good Estate Agent will help you through.

This may be obvious but just in case it isn't don't forget to factor in the cost of stamp duty for your purchase. Also think about the deposit, do you have some cash to put down when you exchange )even if not the full ten percent).

Good luck.

Thank you. I'm in England. If my house goes for the asking price (or even near it) I will have enough money to buy a suitable house outright. I'm 54, don't want a mortgage (I could easily afford a small one though).

I would put in an offer. Your house may not be under offer yet but once it is sold you'll be a cash buyer which puts you in a strong position vs needing a mortgage.... Worth a try! If they won't accept your offer then stay positive because once your house is under offer you'll be in a very strong position indeed!

Acer thank you. I suppose I would be a cash buyer, wouldn't I? I kind of thought being a cash buyer was having 300k in the bank (which I don't have!). This is all new to me . . .

Can't you buy your ex out? If you can raise 10% of the value of your house you won't have to move. You'll save removal fees and stamp duty towards the 10%.

In theory you would be a Cash Buyer - but not until the sale of your current house has Exchanged Contracts, at which point you will be 99.9% guaranteed to be a Cash Buyer.

Prior to that, you need to tell the EA that you have a Related Sale, before you can become a cash buyer.

Thank you both, makes sense. mysteryfairy no, the house is going on the market for 560k and there's 100k mortgage on it. I earn 28k per annum. I am happy with 90% equity and a substantial pension share in return for a clean break. The house is far too big anyway now that both my kids are working and have moved away. It doesn't really feel like 'home' anymore anyway. It's fulfilled its role and time for a fresh start!

Oh sorry - I translated your reference to having 300K in the bank to mean the house was worth approx 330K - with those figures my suggestion did make more sense

If you are sure the house is the one you could express interest and name a figure but in most cases I don't think the vendor would accept until you sold. They should tell you whether your offer would be acceptable if you were in a position to proceed though.