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Original poster

Sit tight? Or move in with parents?

20 replies

MovingtoLondonAgain · 07/12/2018 09:16

Hi ladies,

Always grateful for the advice and points of view on here and would really appreciate your thoughts on our current dilemma regarding our house sale and purchase.

We are moving because we want a bigger house, in a nicer area with better schools for DCs.

We accepted an offer on our property £10k under our asking price roughly 4 weeks ago.

Our buyers are FTB in rent, so v.keen to get going.

Found a property we and made two offers taking us to our absolute max inc savings etc which was refused.

Many of you know, there is not much coming on the market so nothing I want to view

I am being told wait til Jan when lots new will come on.

I have a £7k redemption penalty on my current mortgage.

Do I :

- Sit tight hoping something will come on soon/in new year?

- move us (family of 4) into my parents house so buyers can get going and swallow the £7k redemption fee?

As ever really grateful for your views.

Many thanks!

OP posts:
EllaSavag · 07/12/2018 09:18

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BotherationBuggeration · 07/12/2018 09:19

How long would you have to not sell before you wouldn’t have to pay the redemption?

Original poster
MovingtoLondonAgain · 07/12/2018 09:27

Hi BotherationBuggeration 90 days I believe...

PS. Your user name made me LOL!

OP posts:
fabulousathome · 07/12/2018 09:30

For 90 days I'd wait. Your buyers may be willing to wait too.

Original poster
MovingtoLondonAgain · 07/12/2018 09:59

Thanks. That’s the thing, I’m not sure they will wait and if I have to be honest I don’t want to lose them. I found the selling process, viewings etc really stressful!

OP posts:
CushieButterfield · 07/12/2018 10:04

Depends on the value of the house, but I wouldn’t lose buyers for the sake of £7k. Not sure I’d want to risk living with my parents either, mind!

peachypetite · 07/12/2018 10:06

I don't think there is any guarantee the market will pick up in January. I've been on the "please tell me more houses will come onto the market soon" thread and things were dire for months. We also had a redemption fee to pay as we broke our fixed term early but because we moved within a couple of months the bank are repaying it. If I were you I wouldn't mess your first time buyers around. They are in a very strong position and could easily find elsewhere. In this market you hang on to your buyer. Secondly, and I speak from experience, being chain free will put you in a much stronger position and you will likely be able to get the house you want for less due to being ready to go. We have just done this and managed to buy the house of our dreams, never imagined we could have got such a big house.

Original poster
MovingtoLondonAgain · 07/12/2018 10:21

Hi peachypetite

That’s really helpful and useful to know. I think my gut feeling is the same re: not losing the buyers.

Regarding your redemption fee, was it the same bank you borrowed from initially that payed the fee back? I think I need to speak to Mine tbc x

OP posts:
peachypetite · 07/12/2018 10:42

Yes because we stayed with them for the new mortgage we came to an agreement. But of course if you switch banks you'll lose it. I'd also add that your house could be worth less next year so I'd be keen to get the ball rolling with your buyers even more!

Original poster
MovingtoLondonAgain · 07/12/2018 10:54

peachypetite thank you, really helpful know x

OP posts:
MovingNextYearHopefully · 07/12/2018 14:11

If you can move in with parents then do it. Think of the money you can save & you'll be in a great position to buy! We completed yesterday & don't have family to stay with so are in short term accommodation for a few months until our new build is completed. It's costing us over 2k a month until we move.

As for the 90 day redemption thing. There are a few options. It depends a lot on the price of your house & how much it is costing your buyers to rent. You could instruct your solicitor to go slowly & not complete until once the 90 days have elapsed. If it is 90 days from now then the chances are your transaction won't be completed until later than that anyway.

You could be honest with your buyers & say you realised there will be a fee of 7k which you simply cannot afford & ask if they're prepared to be patient. You could offer to give them a sweetener in the way of a cheque for something like 2k which would be released by the solicitors upon completion or a contribution towards their rent. Anything that would keep them happy basically. Better than paying 7k. Although chances are it will easily take longer than 90 days to complete so no need to do anything.

Original poster
MovingtoLondonAgain · 08/12/2018 11:19

Having just spoken to my bank, they are incredibly inflexible about the remdemption fee.

They say:

Port new mortgage on the same day and pay no fee.

Port within 90 days, pay 7k upfront and they will refund.

No other options at all apparentlyAngry

OP posts:
Singlenotsingle · 08/12/2018 11:25

Unless your parents have got loads of room, I'd look at short term renting. 4 extra people in their house would be quite a strain! Don't lose your buyers though.

Original poster
MovingtoLondonAgain · 08/12/2018 11:28

Thanks singlenotsingle my parents have plenty of room but totally appreciative of the strain moving in with them could cause! I’m hoping it will be ok though, as they are lovely and we are all pretty close.

We’ve already accepted £10k less on our home, will have to pay the £7k penalty so not sure we could afford the short term rent.

OP posts:
Original poster
MovingtoLondonAgain · 08/12/2018 11:35

Sorry, I realise I wasn’t clear about the redemption fee.

We are locked into the product until 2021. The fee is £7k if we pay off before then, or fail to port within 90 days.

OP posts:
mumsy27 · 08/12/2018 23:07

if you decide to sell and move with the parents and then purchase again within 90 days,you will get refund.
if you sell and buy same time, then no redemption.
now,im thinking if you start buying process while slowing the selling process,even if you have to move out,you start counting 90 days from sell completed, hopefully 90 days+ the time you utilise now.
might salvage 7k Smile

HeddaGarbled · 08/12/2018 23:32

My advice is to try to string this out a bit without making any big decisions before Christmas. If your FTB are sensible, they must know that not much is going to happen before the New Year now. If they start issuing ultimatums, that’s the time to make a decision.

Original poster
MovingtoLondonAgain · 09/12/2018 12:41

Thanks all, here and to wishing some new properties come on the market soon eh?! Xx

OP posts:
llangennith · 09/12/2018 12:54

Buyers often make out that they're in a hurry and ready to go to make sure you don't find another buyer. They've got a bargain if you've accepted a whopping £10k drop in the cost of your house. They'll be anxious to keep you happy. I'd tell them you can't exchange till you've found another property. You'd be daft to step off the housing ladder, you may not get back on again.

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