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Original poster

buying a 1st place - bit confused... need advice... please

28 replies

jobhunter7 · 30/11/2018 15:37

I am thinking of buying my first place and I was bit wood for the trees about the whole thing. I was thinking of making a hop, skip and jump and buying a place somewhere I would prefer to live and then maybe finding the job. I guess I could rent the place out in the meantime. I was thinking of maybe putting down a deposit of 40k. And maybe looking for a place that costs up to 80k. There are other things I know to consider. Most likely I imagine this would be a flat. So there’s maybe service charges and the length of the lease. I’m guessing there’ll be solicitor fees. Sorry again, bit wood for the trees about the whole thing and any advice would be appreciated so I can start looking at what the best place would be for me… Thank you

OP posts:
itbemay · 30/11/2018 15:43

not sure where you would get a decent place for 80k, do you have any areas in mind? I would prob get a job in the area first and maybe rent for a short period to get a feel for the place, especially if its a first buy. Good luck

brownjumper · 30/11/2018 15:44

Where can you buy a flat for 80k?

Original poster
jobhunter7 · 30/11/2018 15:44

Was thinking maybe the southwest or even IOW

OP posts:
Finfintytint · 30/11/2018 15:49

3 bed flat near me up for sale at £75k but it's a bit damp though so it can be done.

Original poster
jobhunter7 · 30/11/2018 15:53

Its more I don't know and need to get my head around the variables - like solicitor fees, and renting places out and the length of the lease...

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RaininSummer · 30/11/2018 15:53

www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E1073&insId=1&maxPrice=80000&primaryDisplayPropertyType=flats&radius=10.0&googleAnalyticsChannel=buying

There are some in that price bracket in my part of the South west. Jobs may be more difficult though depending on your field.

Original poster
jobhunter7 · 30/11/2018 16:06

I may be able to get a transfer with my job possibly...

OP posts:
Original poster
jobhunter7 · 30/11/2018 17:31

It probably like most things- its easy when you know what you're doing. Should I be looking for a place with a 1000 year lease or just 50 years? I believe you don't pay stamp duty on a property of that value, but then you do if you buy a place after that. I assume there'd be legal fees. Plus most flats have service charges.

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Lucisky · 30/11/2018 19:10

To get a mortgage you will need proof of income, so you wouldn't be able to get a mortgage and then find a job unless you had the full purchase price in hand.
There are properties available for your price range, but they tend to be in places where the work opportunities are poor, hence the low property prices. I think even renting without an income could be a problem. If you could transfer with your job though, that would be okay.

Spickle · 30/11/2018 19:18

If you are looking at/viewing flats:

Preferably one with more than 80 years left on the lease. When viewing a property, ask the vendor how long is left on the lease - they may not know but if they do, it will save you from having to start the conveyancing process and then finding out further down the line that there is only 50 years left. You may be able to download a copy of the lease from Land Registry or get your solicitor to forward it to you as soon as they have it to hand. Then you can check the lease length.

First time buyers don't pay stamp duty on properties up to £300k, but £80 is below the threshold for stamp duty (£125k) even if you're not a first time buyer. If it is an additional property, then stamp duty would be 3%.

Service charges - ask the vendor what they pay/how often - it will give you an idea of how much you need to allow for this. My DS pays approx £50 per month for service charges (£600 per annum), but it does vary from property to property.

Read the Lease to find out what the ground rent charges are and if they double periodically. If the ground rent does double, how many years are there between the periodic rises.

Solicitor fees for a purchase may be approximately £700, and additional expenses may be Land Registry fees, search fees, mortgage administration fee and survey fees, depending on the type of survey you require.

Original poster
jobhunter7 · 30/11/2018 19:34

To get a mortgage you will need proof of income, so you wouldn't be able to get a mortgage and then find a job unless you had the full purchase price in hand.
There are properties available for your price range, but they tend to be in places where the work opportunities are poor, hence the low property prices. I think even renting without an income could be a problem. If you could transfer with your job though, that would be okay.

Bit confused. But I have a job. I could afford to pay rent where I live now and could I not get a mortgage for such a place and then if I want let it out - until or if I wanted to move there...

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Original poster
jobhunter7 · 30/11/2018 19:36

Sorry am probably asking lots of dumb questions.

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SoyDora · 30/11/2018 19:38

You’re probably best speaking to a mortgage broker to see how much you could potentially borrow on your current salary and whilst paying rent (incomings and outgoings are taken into account to determine how much you could borrow).

LonelyandTiredandLow · 30/11/2018 19:39

Sounds like you need to check it is a buy to let - some leases allow for this.

titchy · 30/11/2018 19:45

Your mortgage lender would then be lending on the basis of you renting it out if you aren't moving for work. Your interest rate will be higher and you'll need landlord insurance and a host of other things too. Do you actually want to be a landlord? If you don't - do NOT buy to let. Move to wherever you want to buy first, and make sure you have a job.

Other questions - long lease much better. Do you understand what a lease is? A 20 year lease means in 20 years time owenership reverts to the free holder and you're left with nothing. No one care about owenership reverting back in 500 years! You can pay to extend a lease, but the shorter the lease the higher the cost. Service charge - check how much and what covered. And how much they go up each year. Beware - you don't want to be paying thousand S each year on such a low value property.

MrsMoastyToasty · 30/11/2018 19:48

It depends on where in the south west you are thinking of. £80k would probably only get you a plot of land or garages in and around Bristol or Bath or in prime seaside towns.

Original poster
jobhunter7 · 30/11/2018 19:52

thanks for all this. i was just looking at one place and i did my sums and the running costs were £100 less than I pay for a place i rent now...

although I'd obviously have to front the legal fees and surveyor fees - just thought it may be worth looking into doing...

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Racecardriver · 30/11/2018 19:53

You can’t rent out a house on a regular mortgage. You will need a buy to let mortgage.

Original poster
jobhunter7 · 30/11/2018 19:56

Your mortgage lender would then be lending on the basis of you renting it out if you aren't moving for work. Your interest rate will be higher

  • much higher? and can you switch between types?

and you'll need landlord insurance and a host of other things too. Do you actually want to be a landlord?

are these expensive? how much?

If you don't - do NOT buy to let. Move to wherever you want to buy first, and make sure you have a job.

Other questions - long lease much better. Do you understand what a lease is? A 20 year lease means in 20 years time owenership reverts to the free holder and you're left with nothing.

  • yes i understood that
OP posts:
LIZS · 30/11/2018 20:00

But if the new place was not let could you afford both places? Include full council tax, utility bills , service charges , insurance etc. Lenders generally expect 80+ years remaining on the lease to agree a mortgage. If you let it out you would need the permission of the freeholder and your mortgage company, possibly a buy to let mortgage. You would also be bound into a tenancy agreement for at least 6 months, with associated statutory landlord responsibilities.

Magstermay · 30/11/2018 20:01

As pp have said a buy to let mortgage is different to a mortgage on somewhere you are going to live.

If you couldn’t commute to your current job from the place you want to buy they will be unlikely to lend you the money. They will want to know you can afford to pay them back ie will have an income whilst living there.

Original poster
jobhunter7 · 30/11/2018 20:16

But if the new place was not let could you afford both places? Include full council tax, utility bills , service charges , insurance etc.

What would I have to pay if nobody was living there?

If you let it out you would need the permission of the freeholder

I actually think on one place I've looked (have only started looking) at that would not be a problem...

...and your mortgage company, possibly a buy to let mortgage.

You would also be bound into a tenancy agreement for at least 6 months, with associated statutory landlord responsibilities.

please explain this further...

OP posts:
SoyDora · 30/11/2018 20:24

You’d still have to pay the mortgage, council tax, service charge...

titchy · 30/11/2018 20:33

Google 'landlord responsibilities'. Deposit protection, what if they trash the place, won't move out, don't pay rent. Wha about safety certificates. Seriously do not underestimate the responsibilities of being a landlord.

LIZS · 30/11/2018 20:43

LL responsibilities - rent deposit scheme, insurance, gas safety certificates, maintenance issues , right to residence in uk check, financial checks, references , issue due notice, compliance with safety standards, register to pay tax on rental income ... An agent could manage much of this but would charge between 5 and 15%.

Full Council tax is often payable on empty properties/second homes. If you did not move in yourself and resold it several years down the line Capital Gains Tax may be payable.