Our position - which is more attractive?

[Whatshisface]

Fallen in love with a house that's on for £800k.

We have £330k cash in the bank, and I sold an inherited property in May for £300k. Due to complete this month.

So total of £630k genuine cash in bank.

Obviously we're short cash wise, and with stamp duty/solicitors etc I need £250k extra in total.

Option 1) get a mortgage (might be tricky as DH and I only work part time, my contract is 10 hours, ((but I work 15-20)) and DH's contract is 30 hours. £25k total income. And we own a rental house so total income is £35k.

Option 2) sell the house we are currently living in which is owned outright. It's worth £300k, we fully renovated it and it's in a very popular area. Houses here get snapped up within a few days.

Which would be more appealing to you as a seller? Would you prefer an offer from someone cash + mortgage, or cash + selling house (but no mortgage needed)?

I'm tying myself in knots! We have to put our position when submitting the offer and I don't want to shoot myself I the foot!

As a vendor I would want to see you get the mortgage to cover the shortfall confirmed or I would accept your offer on the proviso your current ( can sell within in days ) property is on the market - but I would not agree to my property being taken off the market until you have an offer / sale.

I think if you want an £800k house - you need to get these things sorted out and then you can be a genuine cash buyer or someone with a healthy deposit and mortgage arranged & no chain. I so think owning 2 houses with that income is a little ambitious for owning a 3rd of that price Something has got to give surely? Either sell a house or look for a cheaper house.

Interested to know how you get on
All best

CGT accounted for, as well as stamp duty, and solicitor fees, surveys, insurances etc, so the rough amounts I've given are with all fees in consideration.

Really appreciate the thoughts, thank you!

To answer PP - the rental is owned outright but I wouldn't sell it. Lovely family in there, long term, I rent at a discounted rate and wouldn't ever evict them.

I understand the confusion with our current income relating to our savings/assets - the results of which are due to a fifteen year plan and too dull to explain! Lots of sweat, sacrifice, and luck along the way. Very privileged and it's never taken for granted.

Thanks very much.

I think you're right - the plan was always to buy a house for the cash we have, keep renting out the rental, and then rent out the one we're in once moved out.

I almost wish I hadn't seen this dream house!

I'm normally very clear minded but this house has me in a spin; having a second viewing tomorrow.

Estate agents are happy with our position as the vendors haven't found their onward purchase as yet and aren't in a rush, it's not a house everyone would like and it's definitely ambitiously priced (but I'd be happy to pay asking, as it ticks all the boxes and more, and would be there 20+ years).

What is the value of the house you are currently living in and what is the value of your rental property? If you sold one or both of these properties plus your £630k would you have enough money to buy the £800k property outright without a mortgage?

Keep the rental. But if you keep on your main residence as of now to convert to a buy to let, I calculated you’d pay an additional £24k in stamp on the £800k purchase. It will be a long time before the rental income covers that loss.

In your shoes I would sell my main residence and use the rest of your funds to buy £800k house without a mortgage (assuming you have sufficient equity in your main residence).
Then if you want another buy to let a bit further down the line, take out a mortgage on your main residence to either buy cash outright or put down a substantial deposit on another (cheaper) property. The additional stamp on buying an extra £300k property would be £14k- £10k cheaper. Even less on a cheaper property. I wouldn’t want to be hit with additional stamp on £800k when you can avoid it.

Given you have substantial funds, you might want to seek advice from a tax advisor.