Strands #301 “Festival Of Lights...
Quizzes & Puzzles9 mins ago
My buyer has dropped out!
4 Answers
This is quite long ....I accepted an offer on my flat last October and in December we found our dream home, made an offer and that was accepted. My buyer has been messing about for the last few weeks and this weekend pulled out because of sleepless nights and she just couldnt get her head around the lease, neither could her solicitor for that matter. Myself and the owner of the house we were buying have signed our contracts (not exchanged obviously) and can't believe that she has now done this at such a late stage (she is in rented accommodation). We are all gutted, he has said he will wait for a few weeks as he was going into rented accommodation. My Flat is valued at �150,000, my mortgage is �33,000 and I have a home loan of �18,00. Does anyone know of a product that would consolidate these 2 and has no early repayment penalties. The property we were buying is �240,000 we had a �160,000 mortgage in place (equity and a bit left over to take it up) we are now trying to borrow an extra �60,000 on the mortgage and my parents said they would loan me the �20,000. so that we can still buy although I would be paying a nearly �500 a month on the flat we can scrape by until the flat is sold again. We desparately want this house, my partner even has a picture of the kitchen as his screensave. Any advice would be greatly appreciated, we may not even get the extra �60,000 and may need to go down other avenues. Many many thanks
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Firstly - get rid of the screen saver!
You can get bridging finance to cover both loans until you sell your current property. This is very expensive and a high-risk strategy.
You can let your flat out whilst looking for a buyer. If you need 2 mortgages (This sin't totally clear from your posting) then one will have to be a buy to let mortgage - as you can't really have 2 residential mortgages.
It may be aidea to speak to a mortgage adviser, who can interact with you, ask the right questions and provide a solution. This may make the difference between buying or losing your ideal home.
You can get bridging finance to cover both loans until you sell your current property. This is very expensive and a high-risk strategy.
You can let your flat out whilst looking for a buyer. If you need 2 mortgages (This sin't totally clear from your posting) then one will have to be a buy to let mortgage - as you can't really have 2 residential mortgages.
It may be aidea to speak to a mortgage adviser, who can interact with you, ask the right questions and provide a solution. This may make the difference between buying or losing your ideal home.
If I understand this correctly, your total outstanding on your flat is �51,000.
You can take out a bridging loan (we did this to purchase our current property) but it WILL cause you sleepless nights.
The brief way it will work is as follows:
The Bridging company will pay off the second loan (�18,000). They will also lend you a further �60,000. This means you will owe them �78,000. They will charge you a fee of about 1.5% (�1170) which can be added to the loan.
The monthly interest would be 1.5% per month and therefore repayments would be just under �1000.
With most bridging, they would roll this money up (ie keep adding it on to the money outstanding) but they will usually only do this up to 75% of the equity of your home less first mortgage outstanding (in your case this is �79,000).
Without any further security, you would have to service the loan.
Most bridging companies will have a minimum of 3 months interest and some have exit fees.
This means that to borrow they money required (if you sold within 3 months) would cost you over �4000.00. And of course, if a similar instance occurred with the buyer, it could take another 3 months and another �3000.
As I said, I can empathise as I have been there before - we were lucky since we completed within 6 weeks. HOWEVER, the people who moved in subsequently fell out and put the house back on the market - and it stood there for almost a year!
If you want to talk more or want further advice, please feel free to contact me (Vic) - contact details are on our website: http://www.allianceandgeneral.com
You can take out a bridging loan (we did this to purchase our current property) but it WILL cause you sleepless nights.
The brief way it will work is as follows:
The Bridging company will pay off the second loan (�18,000). They will also lend you a further �60,000. This means you will owe them �78,000. They will charge you a fee of about 1.5% (�1170) which can be added to the loan.
The monthly interest would be 1.5% per month and therefore repayments would be just under �1000.
With most bridging, they would roll this money up (ie keep adding it on to the money outstanding) but they will usually only do this up to 75% of the equity of your home less first mortgage outstanding (in your case this is �79,000).
Without any further security, you would have to service the loan.
Most bridging companies will have a minimum of 3 months interest and some have exit fees.
This means that to borrow they money required (if you sold within 3 months) would cost you over �4000.00. And of course, if a similar instance occurred with the buyer, it could take another 3 months and another �3000.
As I said, I can empathise as I have been there before - we were lucky since we completed within 6 weeks. HOWEVER, the people who moved in subsequently fell out and put the house back on the market - and it stood there for almost a year!
If you want to talk more or want further advice, please feel free to contact me (Vic) - contact details are on our website: http://www.allianceandgeneral.com
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