[Archived] Property Selling Advice

[Hughesy]

Hi guys/ ladies

Im abit stuck...

I have found a property I want to buy, however I need to get all the money now to secure the property. A chain wont do. I need £130k now.

I have £50,000 cash ready and a house worth around £90-110k (depending on how quick you want to sell) with no mortgage on. How is the best way to release funds from that house?

I have thought of these quick-buy companies but it looks like they only offer around 70-80% of the market value.

Iv then considered a loan against the existing property, but im not sure if I could get most of that in a loan in today economic climate??

Anyone had a similar instance that can share some knowledge?

[T4E]

Put it on the market and make it clear you're willing to listen to offers. Just make sure you strike a decent balance between selling quick and getting screwed.

[Hughesy]

I think it will take too long on the market. The property we want is a repossession house so it is a bargain, however we have competition for it.

I offered to pay them £50k today to secure it and then to sell the house asap, however you have to be in a position to complete within 28 days. Wouldnt mind but the whole deal will be cash - why cant they just wait!!

[dave birch]

Why sell your existing house, rent it out and use the funds to reduce your (new) mortgage. You have more than enough security, your LVR is about 56.5%

Go to your favourite lender and put the deal to them.

[Hughesy]

So what do you mean? Ask to borrow £80k based on a £100k house + the £130k house (£230k total)?

Rent the 1st house out to pay for the mortgage on the new house?

Currently dont have any mortgage so was planning on keeping it that way by selling the 1st and then paying £130k cash-only for the second.

Is that not a good idea? Would I be best keeping one - renting and getting a 2nd based on that??

[jim mk2]

  Hughesy said:

I

I offered to pay them £50k today to secure it and then to sell the house asap, however you have to be in a position to complete within 28 days. Wouldnt mind but the whole deal will be cash - why cant they just wait!!

Completion within 28 days and cash only I presume this is an auction property ?

Problem: you are desperate to buy this house but cannot raise the £80,000 shortfall by selling your present house within 28 days.

Solution: borrow £80,000 asap. Try the Nationwide, low SVR of 3.5 per cent with no strings attached.

Once you are in your dream home you can put your existing property on the market and repay your mortgage.

[LeftWinger]

25 years old, a house with no mortgage and 50k cash!!! Someone's doing alright for themselves!

[Hughesy]

  jim mk2 said:

Completion within 28 days and cash only I presume this is an auction property ?

Solution: borrow £80,000 asap. Try the Nationwide, low SVR of 3.5 per cent with no strings attached.

Once you are in your dream home you can put your existing property on the market and repay your mortgage.

The property is on the market with an agent, but due to it being a repossesion the repossesion company require you to be in a position to complete within 28 days (So not necessarily cash but either you have to have a mortgage offer or cash ready to go). Somebody else already is ready, they have had an OFFER accepted, but due to it being a repossesion - I can go in over their head and offer more (Which I plan on doing).

If I pay back the mortgage - will it have a massive cost attached to paying it back or will I just pay back £80k + whatever interest it has occured during that period? Or would there be some sort of early re-payment fee?

  LeftWinger said:

25 years old, a house with no mortgage and 50k cash!!! Someone's doing alright for themselves!

Drug dealer!

[stuwilky]

  Hughesy said:

If I pay back the mortgage - will it have a massive cost attached to paying it back or will I just pay back £80k + whatever interest it has occured during that period? Or would there be some sort of early re-payment fee?

Depends on the lender, look for an early redemption charge in the blurb.

[jim mk2]

  Hughesy said:

If I pay back the mortgage - will it have a massive cost attached to paying it back or will I just pay back £80k + whatever interest it has occured during that period? Or would there be some sort of early re-payment fee?

Most banks / building societies have some sort of fee but you need to shop around - and quickly !

[Kelbo]

If you can rent your house out on a short term lease, say maybe 12 to 18 months, you will be able to assess the market, House prices could stabelise and even increase a little, we are in a recession period and I think, that the rent would pay for yopur new mortgage, have a little left over to save and when the market turns you can sell, in fact at the moment, money is probably better in property than in a bank, investments are crap at the moment!!

Better still, use it for growing weed

[Hughesy]

Il need to see if I can do an online application or something tonight - anyone seen any good mortgage deals out there for the type of thing im on about?

It makes it more difficult for me because I go away on Thursday for 11 days, so its not like im here to do much sorting out!!

[1864roverite]

Short term Bridging loan should suffice would it not ?

With sums like yours you will easily get a short term loan.

[Hughesy]

Bridging loan is ok but its abit risky because if the other property is left standing for 12 months or something, while interest is being put onto the loan each month it could get quite expensive.

As for getting a mortgage, 3% seems to be the early pay back fee.