Houses

[Greg2607]

1 minute ago, Tommy G said:

Thanks for the heads up on my accounting background - its more looking beyond thre black and white of figures and more practicality of getting something finished. Accountants aren't mortgage advisors hence my question. I think I need to speak to my mortgage advisor and see what is best. Cheers anyway 

We are currently in the process of moving house and we've effectively got Two mortages for the new house as it made more sense to port the existing mortgage and then get a second product for the remaining balance. We are talking bigger numbers here though as the have a £120k mortgage currently, but moving to a £500k house.  

 

Probably not a possibility to do if you are just re-mortgaging, but the decision was still made in black and white terms for us over what the cost would be for the fixed rate term. 

[Jon the Hat]

On 24/11/2020 at 21:57, Wolfox said:

Pretty much there with the conveyancing throughout the chain…

 

bottom of the chain are still waiting for Nat West to get an underwriter to approve there frigging mortgage I discovered today - they had their valuation survey 20th October (which was fine) but, apparently they’re so backed up it’s taking ages to get final approval…

 

took no more than 10 days with HSBC for me

 

Anyone dealing with delayed mortgage approvals?

I have no idea what is going on, buyers lender had a valuation last Wednesday, not heard anything.

[Wolfox]

26 minutes ago, Jon the Hat said:

I have no idea what is going on, buyers lender had a valuation last Wednesday, not heard anything.

Be prepared to hang on a long time…. Their valuation ln survey was done back in late October…. It took until Monday to be finally approved (which was a big relief after laying out £2k in conveyancing costs!)…. Some of these mortgage firms are moving at a snails pace - rumour has it that Nat West and Santander are the worst culprits 

 

Fingers crossed for you that it’s done quickly - but, be patient and don’t fret too much!  Expect 4 weeks and anything faster would be a bonus!

 

We are now organising exchange/ completion dates - aiming for very early January- will be a huge relief to get this in the bag!

 

 

 

[Stevosevic]

1 hour ago, Tommy G said:

A pre ques before I approach my mortgage advisor. 

 

We are in middle of renovating our house and its been done through savings mainly with a bit of borrowing. Conundrum I have is that we arent due to remortgage til June 22, I could do with some funds to finish rather than it drag on (10-15K) is it worth paying the ERC (1% of total o/s mortgage which works out to be about £1,500) and remortgage, our LTV will be better as house should now be worth £275K-£300K (not sure where on that spectrum)

 

I dont want to go down the route of credit cards, the only one I have is my amex which I pay off in full and use to collect airmiles. Has anyone remortgaged before their fix has finished? Joint earnings arent a problem in terms of affordability. Thanks 

Have you thought about a 0% interest credit card? I know you said you weren't keen on them but you can get some that give you 24 months interest free as long as you pay 1% back each month.

 

You could then pay it off slowly with monthly payments or all in one go at the end of the 24 months without paying any interest.

[Wolfox]

5 minutes ago, Stevosevic said:

Have you thought about a 0% interest credit card? I know you said you weren't keen on them but you can get some that give you 24 months interest free as long as you pay 1% back each month.

 

You could then pay it off slowly with monthly payments or all in one go at the end of the 24 months without paying any interest.

Beat me to it - no brainer

 

you can get 28 months on purchases on some deals - get 1 or 2 cards - fill ‘em up and clear them when you re-negotiate your mortgage deal…. Just service them with minimum payments in the meantime ( or pay it down if you wish)

[Greg2607]

We were due to exchange contracts this week.  on Friday, Our Buyers' Buyer pulled out. With the house we were moving too, we were going to utilise the HTB scheme, which closes to us on the 31st March and it means that we no longer have time to find a new buyer and complete on time. 

 

It's absolutely gutting when you are this close to moving.

[Jon the Hat]

2 hours ago, Greg2607 said:

We were due to exchange contracts this week.  on Friday, Our Buyers' Buyer pulled out. With the house we were moving too, we were going to utilise the HTB scheme, which closes to us on the 31st March and it means that we no longer have time to find a new buyer and complete on time. 

 

It's absolutely gutting when you are this close to moving.

Ah that is a bugger.  Part of me wishes we had bough the cheaper house and not used the HTB scheme though.  You still have to fund it in the long run,and I am not sure how I would have paid it down now after 5 years if we weren't selling.

[Greg2607]

14 minutes ago, Jon the Hat said:

Ah that is a bugger.  Part of me wishes we had bough the cheaper house and not used the HTB scheme though.  You still have to fund it in the long run,and I am not sure how I would have paid it down now after 5 years if we weren't selling.

Our current house is HTB as well. 

 

The plan now, is that we will re-mortgage to pay back the £41k we owe to the scheme. Then we will get 100% of any future upside. 

 

The new house was priced at £500,000 (roughly) so it was really the only possible way that we could afford to do it.  HTB were contributing £96k.... technically, we could afford the additional borrowing, but we don't have the extra deposit amount required to do it without HTB. 

 

Sucks. 

[TiffToff88]

On 07/12/2020 at 11:25, Greg2607 said:

We were due to exchange contracts this week.  on Friday, Our Buyers' Buyer pulled out. With the house we were moving too, we were going to utilise the HTB scheme, which closes to us on the 31st March and it means that we no longer have time to find a new buyer and complete on time. 

 

It's absolutely gutting when you are this close to moving.

 

I'm worried that i might be in a similar situation soon. Our seller is threatening to pull out because our move is taking longer than they anticipated. Our house we're selling is Shared Ownership so the sale process takes a bit longer because of the checks that the Housing Association have to do. We've signed our sale and purchase contracts and are ready to go, as are our sellers. Our buyers have been pulling their hair out trying to get the Housing Association to sort themselves out. I'll be absolutely furious if the seller pulls out now. We'd initially hoped to be moved by Christmas but wether they pull out or not, we're resigned to the fact that it will most likely not be until the new year now.

[Hollism94]

We offered asking price on Saturday for a shared ownership property but were told yesterday that someone else bid before us on the same day and the HA only want details of the first bidder for now.

 

It seems mad to be so gutted when it hasn't been a long drawn out process, but this really felt like the perfect buy for us given our situation. Hoping the other bidder pulls out but fair play to them if not. No idea when the next house becomes available that would work for us. A lot of shared ownership homes that come up seem to be for a relatively low share (We want to be buying about 50% for about £100k- not 25% for £75k).

Doesn't make a ton of difference in the short term, but we would never be able to staircase to 100% at that full market value and having to downsize at 30 would be mental.

[Jon the Hat]

1 hour ago, TiffToff88 said:

 

I'm worried that i might be in a similar situation soon. Our seller is threatening to pull out because our move is taking longer than they anticipated. Our house we're selling is Shared Ownership so the sale process takes a bit longer because of the checks that the Housing Association have to do. We've signed our sale and purchase contracts and are ready to go, as are our sellers. Our buyers have been pulling their hair out trying to get the Housing Association to sort themselves out. I'll be absolutely furious if the seller pulls out now. We'd initially hoped to be moved by Christmas but wether they pull out or not, we're resigned to the fact that it will most likely not be until the new year now.

You can only hold on to the fact that it will take them longer to start again.  

[TiffToff88]

12 minutes ago, Jon the Hat said:

You can only hold on to the fact that it will take them longer to start again.  

That's what we keep telling ourselves. at  this point they'd be absolute morons to pull out

[Greg2607]

2 hours ago, TiffToff88 said:

That's what we keep telling ourselves. at  this point they'd be absolute morons to pull out

based on our experience this week, you can't guarantee that moronic behaviour doesn't happen! lol. 

 

[The Blur]

I have been offered a mortgage in principle this week and now are starting to look at the mortgage calcuator to play around with the deposit/repayments/house valuation.   Do anyone know if the standard ones on well known banks websites are accurate as we have been told that their repayment calcuations tend to be higher than expected.  My brother in the law managed to buy a house for 60k more than expected with same repayment terms that he was initially looking at on the mortgage calcuators on well known banks websites?  

[Wolfox]

1 hour ago, The Blur said:

I have been offered a mortgage in principle this week and now are starting to look at the mortgage calcuator to play around with the deposit/repayments/house valuation.   Do anyone know if the standard ones on well known banks websites are accurate as we have been told that their repayment calcuations tend to be higher than expected.  My brother in the law managed to buy a house for 60k more than expected with same repayment terms that he was initially looking at on the mortgage calcuators on well known banks websites?  

They’ll be based on 25 year repayments…. You can extend the term (limits based on your projected retirement date)

 

its means your monthly payments can vary a fair bit….

[FoyleFox]

The repayment calculator on money saving expert was accurate for ours. The bank ones only cover repayment mortgages, which ours isn't so I couldn't compare to those unfortunately. 

[Jon the Hat]

On 02/12/2020 at 15:10, Wolfox said:

Be prepared to hang on a long time…. Their valuation ln survey was done back in late October…. It took until Monday to be finally approved (which was a big relief after laying out £2k in conveyancing costs!)…. Some of these mortgage firms are moving at a snails pace - rumour has it that Nat West and Santander are the worst culprits 

 

Fingers crossed for you that it’s done quickly - but, be patient and don’t fret too much!  Expect 4 weeks and anything faster would be a bonus!

 

We are now organising exchange/ completion dates - aiming for very early January- will be a huge relief to get this in the bag!

 

Our buyer mortgage has been approved thankfully - about 2 weeks.  I now have some more costs to lay out on the help to buy admin request.  Merry Christmas to me!

[Nod.E]

All moving pretty quickly all of a sudden.

 

Doer upper became available in our ideal location. Viewed it Saturday. Estate agents round our flat on Monday and Tuesday and it'll be on the market today.

 

Reckon because of the state of the house we're viewing, we could get it below asking and purely based on the size of the house, that would represent a bargain. The catch is it will need completely redoing from top to bottom, if we were to get it. Also has large cellar space which longer term could be converted. Comparing to similar sized houses in the area that are 'done out', it's about £100k cheaper. 

 

So the question is how much do we need to get it to that state from an investment perspective. (But also we do want to just live in a nice house for a good few years!)

 

I'm really struggling to get a benchmark for what a complete renovation would cost. Understandably so because there are so many factors in terms of size, materials, labour costs etc etc.

 

Kitchen, diner and lounge all adds up to about 600 sq feet and we'd do a small bathroom (10ft * 6ft) and a loft room (Already converted but in need of modernised carpet or flooring - (360 sq feet)

 

Again I know it's a how long is a piece of string question, but I am struggling even for a benchmark. Assuming we chip in and get family to help and go for 'average' priced materials, what would be realistic?

 

Just need to make sure we're not biting off more than we can chew!

[Jon the Hat]

1 minute ago, Nod.E said:

All moving pretty quickly all of a sudden.

 

Doer upper became available in our ideal location. Viewed it Saturday. Estate agents round our flat on Monday and Tuesday and it'll be on the market today.

 

Reckon because of the state of the house we're viewing, we could get it below asking and purely based on the size of the house, that would represent a bargain. The catch is it will need completely redoing from top to bottom, if we were to get it. Also has large cellar space which longer term could be converted. Comparing to similar sized houses in the area that are 'done out', it's about £100k cheaper. 

 

So the question is how much do we need to get it to that state from an investment perspective. (But also we do want to just live in a nice house for a good few years!)

 

I'm really struggling to get a benchmark for what a complete renovation would cost. Understandably so because there are so many factors in terms of size, materials, labour costs etc etc.

 

Kitchen, diner and lounge all adds up to about 600 sq feet and we'd do a small bathroom (10ft * 6ft) and a loft room (Already converted but in need of modernised carpet or flooring - (360 sq feet)

 

Again I know it's a how long is a piece of string question, but I am struggling even for a benchmark. Assuming we chip in and get family to help and go for 'average' priced materials, what would be realistic?

 

Just need to make sure we're not biting off more than we can chew!

Go for it. £100k buys you a lot of work if you aren't building an extension imo.  And obviously not buying a £30k kitchen.

[Wolfox]

5 hours ago, Nod.E said:

All moving pretty quickly all of a sudden.

 

Doer upper became available in our ideal location. Viewed it Saturday. Estate agents round our flat on Monday and Tuesday and it'll be on the market today.

 

Reckon because of the state of the house we're viewing, we could get it below asking and purely based on the size of the house, that would represent a bargain. The catch is it will need completely redoing from top to bottom, if we were to get it. Also has large cellar space which longer term could be converted. Comparing to similar sized houses in the area that are 'done out', it's about £100k cheaper. 

 

So the question is how much do we need to get it to that state from an investment perspective. (But also we do want to just live in a nice house for a good few years!)

 

I'm really struggling to get a benchmark for what a complete renovation would cost. Understandably so because there are so many factors in terms of size, materials, labour costs etc etc.

 

Kitchen, diner and lounge all adds up to about 600 sq feet and we'd do a small bathroom (10ft * 6ft) and a loft room (Already converted but in need of modernised carpet or flooring - (360 sq feet)

 

Again I know it's a how long is a piece of string question, but I am struggling even for a benchmark. Assuming we chip in and get family to help and go for 'average' priced materials, what would be realistic?

 

Just need to make sure we're not biting off more than we can chew!

If it’s renovating and 600 sq ft….  New kitchen and bathroom i’d budget around 30k to £40k

 

i need to build an extension and convert a loft and I’m hoping to do this <£80k 

 

Although I may struggle!

[Leicester_Loyal]

6 hours ago, Nod.E said:

All moving pretty quickly all of a sudden.

 

Doer upper became available in our ideal location. Viewed it Saturday. Estate agents round our flat on Monday and Tuesday and it'll be on the market today.

 

Reckon because of the state of the house we're viewing, we could get it below asking and purely based on the size of the house, that would represent a bargain. The catch is it will need completely redoing from top to bottom, if we were to get it. Also has large cellar space which longer term could be converted. Comparing to similar sized houses in the area that are 'done out', it's about £100k cheaper. 

 

So the question is how much do we need to get it to that state from an investment perspective. (But also we do want to just live in a nice house for a good few years!)

 

I'm really struggling to get a benchmark for what a complete renovation would cost. Understandably so because there are so many factors in terms of size, materials, labour costs etc etc.

 

Kitchen, diner and lounge all adds up to about 600 sq feet and we'd do a small bathroom (10ft * 6ft) and a loft room (Already converted but in need of modernised carpet or flooring - (360 sq feet)

 

Again I know it's a how long is a piece of string question, but I am struggling even for a benchmark. Assuming we chip in and get family to help and go for 'average' priced materials, what would be realistic?

 

Just need to make sure we're not biting off more than we can chew!

I know absolutely nothing so I can't help you.

 

Perhaps you could take a builder or a transman around when you go for a second viewing? They could give you a rough figure. I've seen people do builds that are meant to cost 30-40k, but in reality they come back at 50-60k because the job requires more work than they original thought.

 

Saying that, I can't imagine 100k wouldn't be enough to completely renovate a house from top to bottom, assuming you aren't going silly.

[Nod.E]

2 hours ago, Wolfox said:

If it’s renovating and 600 sq ft….  New kitchen and bathroom i’d budget around 30k to £40k

 

i need to build an extension and convert a loft and I’m hoping to do this <£80k 

 

Although I may struggle!

Hope you're right!

 

We'd be getting a mortgage some £50k below the maximum we could borrow. 

 

We have some savings but it doesn't come close to the £50k we'd be getting the value from a maxed out mortgage.

 

Problem is we can't get a £50k loan over 30 years!! What are borrowing options typically like for renovations?

 

Earning quite well at the moment so in theory could continue to save and renovate over the period of a couple of years, but some of those earnings are not guaranteed.

 

EDIT: Could probably borrow a decent chunk having looked. Obviously just makes life more expensive short term than if we bought a house not needing much renovating as a loan is over a shorter term than a mortgage. Short term pain for long term gain. (IF the property market doesn't crash long term.)

 

If in 10 years average house price is less than it is now we may have simply made life harder for ourselves by doing the renovations (time) and getting loans to do it (money). But if it remains steady it's a sound investment.

Edited 16 December 2020 by Nod.E
Lazy of me, did a check

[FoyleFox]

It would be highly unlikely and most unfortunate if property prices were lower in 10 years. Cost of renovation is definitely a piece of string, you can spend £5k or £50k on a kitchen alone. Bathrooms depend on the existing pipes and how much tiling you do. As an example, our bathroom is 10ft x 9ft, 4 piece suite and fully tiled, cost about £5k all in. Flooring is another potential high cost area depending on the materials used. 

 

It also depends on how much of the work you can do yourself. As recommended previously, if you know a good builder I'd take them to view it to give you an estimate for any of the major works required. I know a couple that I could pass the details on if you need. 

 

It's a great sense of achievement transforming a house and usually a good investment. Although my neighbours are practically rebuilding theirs and they thought their renovations were going to be about £30k but are probably at treble that, might disagree !

Edited 17 December 2020 by FoyleFox

[Wolfox]

10 hours ago, Nod.E said:

Hope you're right!

 

We'd be getting a mortgage some £50k below the maximum we could borrow. 

 

We have some savings but it doesn't come close to the £50k we'd be getting the value from a maxed out mortgage.

 

Problem is we can't get a £50k loan over 30 years!! What are borrowing options typically like for renovations?

 

Earning quite well at the moment so in theory could continue to save and renovate over the period of a couple of years, but some of those earnings are not guaranteed.

 

EDIT: Could probably borrow a decent chunk having looked. Obviously just makes life more expensive short term than if we bought a house not needing much renovating as a loan is over a shorter term than a mortgage. Short term pain for long term gain. (IF the property market doesn't crash long term.)

 

If in 10 years average house price is less than it is now we may have simply made life harder for ourselves by doing the renovations (time) and getting loans to do it (money). But if it remains steady it's a sound investment.

Get your mortgage deal over a shorter period (2-3 years)

 

leave your amount to renovate in a defined pot

 

buy materials on a couple zero interest credit cards (keep the debt serviced)

 

in a couple of years time take out bigger mortgage covering the cost of the credit card bill as the equity would be higher in your house

 

Ive done 4 big renovations in my time and if you procure sensibly and get trades in to different tasks you can save quite a bit

 

 

[Nod.E]

4 hours ago, Wolfox said:

Get your mortgage deal over a shorter period (2-3 years)

 

leave your amount to renovate in a defined pot

 

buy materials on a couple zero interest credit cards (keep the debt serviced)

 

in a couple of years time take out bigger mortgage covering the cost of the credit card bill as the equity would be higher in your house

 

Ive done 4 big renovations in my time and if you procure sensibly and get trades in to different tasks you can save quite a bit

 

 

Thanks for the advice. You've clearly been there and done it. You may even have the t-shirt!

 

Are you suggesting it would be possible to get a bigger mortgage beyond the cost of the property, to take into account renovation costs?