Viewing / Buying a house

[Rds1983]

17 minutes ago, Xela said:

That's crazy! What part of the UK is it?

Mainly Cheshire (Knutsford, Nantwich, Holmes Chapel etc) but also seen some crazy stuff in Staffordshire Moorlands. 

We did a viewing in Nantwich yesterday, it was listed on Wednesday and has had 14 viewings confirmed already. 

Edited November 15, 2020 by Rds1983

[Demitri_C]

21 minutes ago, mikeyp102 said:

I don’t know about the house, but the insurance matter. You no longer  have an insurance interest in the property (as not owning it yet). Call the insurer, they should either terminate the contract or delay the start date.

Thanks mate. Yeah was reading terms and conditions get 14 day cancellation period so i think  i will see what happens monday. If still nothing will cancel it and just do a new quote 2 minutes after the exchange actually happens.

Its stupid that they make you do a  buildings insurance before exchange.  Shpuld be given 24 hours grace

[darrenm]

26 minutes ago, Xela said:

That's crazy! What part of the UK is it? 

 

It is madness. People see saving £10k upfront as being better than paying an extra £100-200 per month on a mortgage over the next 30 years. 

I'd like to move but in no rush. I'll just keep my powder dry until the madness abates. 

Only for first time buyers.

For anyone else selling a property they get the same increase when selling their property so the mortgage increase is the same.

[TrentVilla]

Just completed buying my former partner out of our home which means I’ve paid out an absolute fortune to stay exactly where I am.... painful. Thankfully the Stamp Duty holiday saved be a substantial sum of cash. Small mercy.

[villan-scott]

3 hours ago, Genie said:

I had a good chat with the surveyor who came to mine last week. He was saying it’s very hard to justify the prices at the moment because they have to put 3 comparable sales in the report but then also consider the impact of the stamp duty holiday and help to buy schemes are going to have. There’s also furlough due to end in March, what a cocktail!

This market has got red flags galore at the moment. The lenders who got burned with a lot of bad debt on 2008 might tighten right up over the next 3-6 months. It’s alright people saying “it’s over the odds, never mind” but it could be a disaster if big businesses offload more staff in the new year. 

This is the exact reason why lenders are all maxing out at 85% LTV tops. Some are dipping their toe at 90% LTV for a day or 2 as an exclusive or FTB special, but nobody is really sustaining it. 

Most lenders are only comfortable around 80% as we know it’s a false economy. I haven’t yet seen a big issue with down valuations, as surveyors are having some leniency with the 3 comparables due to the pause in transactions earlier in the year. 

People are calling for higher LTV’s to come back, but it would be a foolish move right now, as if there is a big drop in the market suddenly you’re at 100% LTV or even negative equity. Even at the lower LTV the market is booming and we’ve had record numbers of applications submitted. 

Edited November 15, 2020 by villan-scott

[Seat68]

5 minutes ago, villan-scott said:

This is the exact reason why lenders are all maxing out at 85% LTV tops. Some are dipping their toe at 90% LTV for a day or 2 as an exclusive or FTB special, but nobody is really sustaining it. 

Most lenders are only comfortable around 80% as we know it’s a false economy. I haven’t yet seen a big issue with down valuations, as surveyors are having some leniency with the 3 comparables due to the pause in transactions earlier in the year. 

People are calling for higher LTV’s to come back, but it would be a foolish move right now, as if their is a big drop in the market suddenly you’re at 100% LTV or even negative equity. Even at the lower LTV the market is booming and we’ve had record numbers of applications submitted. 

I work for a company that does Lifetime Mortgages and obviously the LTV on them is considerably lower. Its also booming in this market. 

[Genie]

2 hours ago, darrenm said:

Only for first time buyers.

For anyone else selling a property they get the same increase when selling their property so the mortgage increase is the same.

Maybe, maybe not.

If you sell a £200k house for 10% over market value it’s £220k.

If the house you want was £250k but because of the 10% premium at the moment it’s £275k.

You're spending £5,000 more than if the market hadn’t spiked because instead of it being a £50k upgrade it’s now £55k.

Obviously the bigger the gap between what you’re selling and what you’re buying then the more you’re over paying in £££‘s.

Edited November 15, 2020 by Genie

[darrenm]

1 hour ago, Genie said:

Maybe, maybe not.

If you sell a £200k house for 10% over market value it’s £220k.

If the house you want was £250k but because of the 10% premium at the moment it’s £275k.

You're spending £5,000 more than if the market hadn’t spiked because instead of it being a £50k upgrade it’s now £55k.

Obviously the bigger the gap between what you’re selling and what you’re buying then the more you’re over paying in £££‘s.

I know what you mean and I did think that but is it a percentage? I don't know if there's any evidence for that. Yes, it's obvious that the market is inflated and all house prices are increased but I think lower priced houses have possibly increased more than higher ones because they're more in demand. For example we got £13.5k more than asking price but bought a bigger more expensive property for £3k less than asking price. It's obviously based on the specific houses but certainly for us I think we've had a bigger balloon on the lower price house we've sold than on the higher price one we've bought.

[Genie]

1 minute ago, darrenm said:

I know what you mean and I did think that but is it a percentage? I don't know if there's any evidence for that. Yes, it's obvious that the market is inflated and all house prices are increased but I think lower priced houses have possibly increased more than higher ones because they're more in demand. For example we got £13.5k more than asking price but bought a bigger more expensive property for £3k less than asking price. It's obviously based on the specific houses but certainly for us I think we've had a bigger balloon on the lower price house we've sold than on the higher price one we've bought.

You’re right and it would need to be studied over a big sample size. Obviously I don’t know but the people you’re buying off might have added £15/£20k to the asking price because of the boom so even though you’ve paid £3k under asking it might be £15k more than 6 months ago. It’s just theoretical.
A house in my street went up for sale £40k more than the same house down the road was up for (and sold). Unsurprisingly it hasn’t sold but if someone offered £20k under their asking they’d still be paying well over the odds. They’re just trying their luck I think.

[Stevo985]

4 hours ago, Xela said:

Nice! 

Still over Lichfield way? 

Yeah, specifically Fradley so slightly north of Lichfield. But really like the area and you get a bit more for your money there than in the centre of Lichfield.

I don't think we're going to go for the one we saw today though. I do like it but it's a weird layout meaning apart from the master bedroom which is huge, the other bedrooms are tiny. So for the immediate term it would be perfect but for the future when we have kids (ugh) it wouldn't really work

[stuart_75]

23 hours ago, TrentVilla said:

Just completed buying my former partner out of our home which means I’ve paid out an absolute fortune to stay exactly where I am.... painful. Thankfully the Stamp Duty holiday saved be a substantial sum of cash. Small mercy.

I feel your pain. I had to do this 6 years ago. Cost me £100k.

[TrentVilla]

7 hours ago, stuart_75 said:

I feel your pain. I had to do this 6 years ago. Cost me £100k.

Thanks fella, sadly cost me even more.

[stuart_75]

10 hours ago, TrentVilla said:

Thanks fella, sadly cost me even more.

 

17 hours ago, stuart_75 said:

I feel your pain. I had to do this 6 years ago. Cost me £100k.

But what I will say is, now after 6 years I am in a better place mentally and financially. My house is my house and I won't ever be putting anyone else's names on the deeds.

[TrentVilla]

20 minutes ago, stuart_75 said:

 

But what I will say is, now after 6 years I am in a better place mentally and financially. My house is my house and I won't ever be putting anyone else's names on the deeds.

Good to hear.... look forward to being at that point and same re the deeds.

[KenjiOgiwara]

23 minutes ago, stuart_75 said:

 

But what I will say is, now after 6 years I am in a better place mentally and financially. My house is my house and I won't ever be putting anyone else's names on the deeds.

I am sort of in the reverse situation. Bought a brand new apartment 2016. The construction was completed 2018 and I moved in. I paid a lot for it and it's increased by a lot after that as well as Oslo prices are bonkers. 

Now my current S.O. is just paying a little rent to contribute, but ideally we have to find a solution where she co-owns it, cause it's good for her and for me. 

But I'm still not sure whether it's a good idea if we break up in the future. It's difficult this stuff. 

[Demitri_C]

36 minutes ago, stuart_75 said:

 

But what I will say is, now after 6 years I am in a better place mentally and financially. My house is my house and I won't ever be putting anyone else's names on the deeds.

Yeah but regardless of that if you meet someone else and your partner moves in with you for x amount of years im sure the courts would say that persons entitled to a percentage of the property if you ever split

[Davkaus]

A cohabitation agreement and ensuring they don't contribute towards mortgage payments or anything which increases the value of the property is the way to go. Not very romantic though. 

[Stevo985]

On the subject, I'm providing the deposit for our house (whenever we find one) which will be about 20% of the value.

I'm absolutely fine with that, my money is our money. However we've both discussed that it's only fair that if anything did happen and we ended up breaking up and had to sell the house, I would get that deposit back before any other share of the house was split. She'd be sharing the mortgage payments so there would be no issue with splitting the rest.

Anyone got any experience with putting that into the contract for the house or anything?

The OH is perfectly fine with it. I trust her that if the worst happened she would let me have that money but she's also fine with putting it in writing just in case. Not sure how we go about it though

[StefanAVFC]

Went to check the progress yesterday, we have (some) walls!

[Davkaus]

You need to read about tenancy in common agreements/deeds of trust, @Stevo985, it sounds like that's what you want.

It's well worth getting something agreed that you're both happy putting on to paper so that if things do break down, it can be as clean and as uncomplicated as possible. Hopefully you don't need to worry about it, but the last thing you want is arguments over money if you do break up. 

Edited November 17, 2020 by Davkaus