The Accidental Smallholder Forum
Community => Coffee Lounge => Topic started by: spandit on May 23, 2013, 10:32:55 pm
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...our house buying chain has broken down, our buyer's buyer has pulled out >:(
However, after some in depth discussion with our mortgage broker, we might be able to let-to-buy our current house :fc: :fc:
Going to make things extremely tight financially but we're determined to buy our dream property!
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Ooohhhh, good luck, I hope you get things sorted
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Hope it works out, its not a great situation but at least you will get an income. I was chatting to some one yesterday about rent to buy and its a good money earner, there are lots of people who cannot get morgages, but with that scheme they can own thier house, if they default on payments the house is back with you and no money lost......so, I shall watch with great interest!
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I hope it works out! We had to let a house we found go as would couldnt get a large enough mortgage, it was heart breaking! It's good that your brokers are open to trying to work around things. Good luck!
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I thought from reading the post that the OPs scheme is for the old house and just means they will take on a buy to let type mortgage on that with the tenants rent servicing the mortgage, and an ordinary one for the new place, OP is it that or is it the special scheme where people get a place and buy a percentage and pay rent on the rest and work up to full ownership?
Sounds like a good idea OP, rental demand and returns are strong because of the state of the market so you might even decide to keep that idea going longer term! It's an ill wind. Good luck with the move, hope th plan comes off!
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Hi
it coud be a very good idea if house prices go up but not such a good idea if mortgage rates go up, try and fix the rate for as long as you can.
K
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Some years ago my parents did a buy to let type thing but it turned bad as the man gutted the house but then got taken into prison, the house was gutted, no plaster, no stairs, no doors etc and my parents had to sell it like that and lost money!!! So make sure the legal side is sorted.
It was suggested to me to sell our garage, as it has planning passed, as a doer upper on that basis, that way we would get an income and the garage/cottage would be done up, not sure my husband would even listen to that idea....we still would have parking but no garage, they would also have a little garden and 2 bedrooms......anyway, thats my idea :innocent:
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The plan is to keep our current house and rent it out, after releasing some equity for the deposit for the new house. I know there are risks but incidences of people gutting houses are few and far between
If the market picks up in a few years we might sell the house or just keep it on our portfolio :D
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spandit, I think you are doing the right thing. When I was trying to sell, my mortgage broker said that a lot of people were having to let their old property as they were finding it difficult to sell. I didn't have to in the end but the option was there if I needed it.
On the renting side, so long as you choose your tenants carefully you should be ok. Make sure you have good references and do's and don't are laid out.
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:thumbsup: , more and more people will be renting the way things go, so go for it!
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Going to make things extremely tight for a few months but going to see some estate agents this afternoon to get a clearer picture :fc:. Must take the :dog: :dog: out first - they've been very patient! :raining:
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Estate Agents? :rant:
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We bought our small holding at auction, couldn't sell our current house in time (I think you have 28 days after the auction to complete) and so had to let our old house out. It has it's ups and downs but doesn't everything when you are dealing with people!!
We went through an agent on a full management service (they run checks on prospective tenants, collect rents and do 3 monthly checks on the property, they are also the tenants first point of call) We have had to keep on top of the agents to make sure they are doing what they should, send us relevant paperwork etc (are they a different breed? :rant:) but it does lift some of the weight from our shoulders. They take 10% of the monthly rental for doing this. If we were to do it again I would probably employ an agent to advertise and do tenancy checks but would then take on the management myself. I guess it depends how close you are to the property and how much time you have.
Happy to help if you have any queries!
Good luck
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Good luck Spandit :thumbsup:
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We'll use an agent to find and check a tenant but manage it ourselves... It's going to be exceedingly tight financially... just hope we can actually do it!
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we are currently renting out 2 houses (the father-in-laws and ours) all moved in to this house and annexe.
As I did alot of business networking I knew a new agent who managed to let ours long term to a very nice couple who seem to be keeping the garden better than us for £35 pm (managed) and all works are to go through another gentleman I knew who can do alot himself but knows someone (via business network groups), who will do a good job and not rip us off if he can't.
The other house is in an area I don't know any businesses so through an agent again fully managed but costing over £100 pm, and using what seems to be the most expensive tradesmen.
Its all back to who you know not what you know and there is such a difference in agents and their charges, sometimes the smaller agents do a better job (they have to, to get established).
Good luck
K
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Had another phone call this morning... :(
Buyer has had a higher offer but gave us 24 hours to assure her we had a complete chain. Fortunately, our rather slack mortgage guy managed to secure agreements in principle and she's still selling to us... She wants to exchange ASAP, which suits us, but delay completion, which doesn't particularly.
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:thumbsup: horrid time......soon be ove though
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We'll use an agent to find and check a tenant but manage it ourselves... It's going to be exceedingly tight financially... just hope we can actually do it!
dont rely on them completely. our new tenants are behind with their rent already after a month and as we rely on the money to pay the bills, our bank charges are in 3 figures already. we have rented out for 8 yrs and its the first non-payer, and also the first time we leased for 1 year rather than 6 mths.
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We rent our old house as we couldn't sell it when we moved here in Wales. Our first tenant was lovely, the second one was a nightmare and the current tenant is a really lovely lady. We've now got the place up for sale. Things were tight financially but if you keep putting things off, then nothing gets done. Good luck Spandit and I hope it all goes well for you.
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I know there's a risk - I'm not new to renting! It's a way to have a completed chain and assuming we get a decent tenant in who doesn't default on the rent, then all will be well.
We could sell the house and risk losing our dream house if the chain falls through again...
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yes things can go wrong..but you only live once.... we are taking a massive chance... but hey!!!! as i said..you only live once..and at the end of the day..what ever happens..they can't hang you :excited:
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I could end up in an amazing house or have to sell it and move back into my perfectly nice house...