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mayonessie

Want To Move, But Were Not Selling

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Hi there, God this is so long. If you can bear with it I would be most greatful

Just some background. Me and Wife and two kids.

We have our 3 bed house up for sale here in Scotland, been on the market for a year, valued at 90K Originally on at offers around 87K now dropped to offers around 83K. Still no offers/viewers, thinking now of renting it out till market starts to pick up again (if it ever does)!!!!.

We have no mortgage. Also have about 80K in savings (from prev property sale).

The house we have at the moment isn't the one we wanted to live in, we bought it in 2004 as investment and rented it out till the tenant moved out in 2009 then we moved in done up to sell and move on.

We are looking for 4-5 bed house, one thats got a room that we can call a "playroom" (for the boys!!!!) that you dont have to tidy up every night (currently living room is playroom(nightmare)), so we can close the door and not worry what a mess it is. Also has bedroom each for the boys one for us and extra room/s for visitors. A house for the rest of our lives.

Our dilemma is what houses we have shortlisted would be best for us, we have three possibles, any advice ideas would be appreciated:

These are the options:

1:

5 Bed new build detached house at £190K, small development built 2005, Garage has been converted to 5th bedroom (would use this as playroom), house also has enough space at side for double garage (something I want/wish for), been on market about 12+ months.

Would look to offer abt 180K

2:

4 Bed Red Sandstone det house, built abt 1900, been used as office space, offers over £159K, been on and off market for last two years, looks like deals have broken down. Have the property report (still have them in Scotland) Needs a lot of work (builders) and need to change consent back to residential, would make a real statement house. Loads of gardens at the back for Garage etc

Would look to offer 135-140K then 30-40K rebuild

Total £180K

3:

Plot with planning permission for substantial family detached home at offers over £97K, again been on market for about 2 years at same price so maybe could knock them down for cash.

Look to offer 80-85K

Not sure how much it will cost to build a house on it??? Advice PLEASE

What do we do, my initial plan to finance is:

Remortgage current house to Buy to let at 66% property value (think thats all the banks are doing at the mo for the good rates) which would give us about £60K capital. Would do as Interest Only as will sell as soon as market improves thus clearing debt and extra 20-30K injection

Wife is working while I am a stay at home dad so she could get a £40K mortgage easy.

BTL on the 60K is about £300 a month, should get about £500 rental

Wife Mortgage on the £40K is about £200

As Im not currently working (till boys go to school) can also get tax relief on the Interest only mortgage as long as it stays in place.

Any idea's/thoughts about the houses, WWYD???

Any other ideas about the finance?? My other idea was to get joint mortgage for the extra 100K and use the rental money to pay the 100K mort, as Im not working any rent on my property is under my tax threshold therefore reclaimable.

Again sorry for the long thread. Any advice welcome.

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Hi there, God this is so long. If you can bear with it I would be most greatful

Just some background. Me and Wife and two kids.

We have our 3 bed house up for sale here in Scotland, been on the market for a year, valued at 90K Originally on at offers around 87K now dropped to offers around 83K. Still no offers/viewers, thinking now of renting it out till market starts to pick up again (if it ever does)!!!!.

Personally speaking I would drop to the price of the house you have for sale say fixed price £80K but maybe take £75K.

That would give you £75K plus your £80K you say you have in cash.

That would put you in a perfect position to put in a cheeky offer on the £180K house. With a bit of luck you could get it live (almost) mortgage free and forget about the disaster that the UK housing market is pluse without the hassle of renting a place out.

I think you are in a fantastic position so long as you are willing to take 'a hit' on your current property - after all how much did you buy it for? Presumably you are not actually losing any money. I would love to be in a position to own what sounds like an ideal long term home practically mortgage free. That would give you the freedom to do something else with your money in the mean time and if things go as many on here are speculating you can save your cash whilst the market crashes and maybe get hold of a property to rent out for cheap at the bottom of the market.

Where in Scotland are you? £90K for a three bed sounds relatively cheap? Even for the less desirable areas?

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Where in Scotland are you? £90K for a three bed sounds relatively cheap? Even for the less desirable areas?

E.G.

http://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E95754&insId=3&maxPrice=100000&minBedrooms=3&displayPropertyType=houses&oldDisplayPropertyType=houses

The houses aren't very pretty, but some are definately not in slum areas.

tim

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Thanks Lulu, Think you could be right.

We are in Lanarkshire so houses, as Tim's correct in saying not the prettiest, ours is ex council but in nice area with lots of bought properties and good size garden.

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Does the house report say 90K and you are on at offers around 83K? Just curious how it works now in scotland, for instance the home report valueation should have knocked the stuffing out of all that silly "offers over" stuff that used to infuriate me. I find the english system a lot simpler with the asking price being a ceiling (atleast in the current market) and the objective being to see how much you can knock off the ceiling.

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Hi Hirop,

Yes the Homereport has the price at 90K, and we are trying to sell at offers around 83K. So willing to negotiate.

Some people/agents still do offers but silly really as you say the home report is the figure people will go for, it only really works in a very boyant market when you have the numbers of buyers all chasing the same property, which if just not happening. There is also fixed price which means this is the price someone will accept, can take the uncertainty out of the offer for the buyer.

Wish the Scottish Govt would get a finger out and get rid of Home reports (as the HIP's have gone) as they seem to be a load of tosh. Altough the scoring system for works needed is good to see of the house is a dog or not. 1=No problem, 2=Some attention will be required in longer term 3=Needs immediate attention.

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Firstly I would love to have a playroom we could shut the door on at night, it sounds idilic :rolleyes: . I'm not going to pretend to understand the Scottish system, but I would recommend that you try to decide for yourself which of the three options you would be most comfortable with.

It strikes me with the sandstone house that there may be survey issues, if you want to go that route you would be well advised to think about a full structural survey for the house - or see if one has already been carried out that you might be able to see.

The 12 month old "new" build seems to be the safest strategy, but if you are seriously thinking about the self build it is worth calling a few builders for some rough prices. Builders generally work in £/sqft or £/m2 when estimating prices. I may stand corrected but £100-£150 per sqft is not unusual for build costs. These of course will vary depending on construction materials/methods and the footprint of the property.

I agree with Lulu though that the most sensible way is to drop the price on the house you are living in and shift it. To do otherwise and remortgage with interest only is just tieing up your spare cash in the rental, it will be dead money and not be working effectively for you. I don't expect any house price inflation in the short-medium term and then of course in real terms you will be losing cash hand over fist as the rest of the economy sees inflation spiraling. You'd be much better off with all the equity in your new home and to have a tiny mortgage.

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Keeping your original house to rent out seems to give a reasonable return. £500 per month rent on a £80K house is 7.5% gross yield.

As for houses, option 1 is a "safe" option but I'm not keen on new houses (in England they have tiny gardens).

I would be interested in option 2 as long as I had the time/money to renovate it.

Option 3 is something I have always wanted to do personally, but I could never get the numbers to stack. I used to buy self-building magazines and looked for plots near me. All the plots were too expensive once you took building costs into consideration. I think it would cost you around £80 per sqft to build a house up in Lanarkshire. I'm assuming labour rates are still much less than down in England. So a 1000sqft detached house could be £80K. This isn't a huge house.

BTW, do you know what is the floor area of the new build? I bet the red sandstone house is a large house on a decent plot.

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Hi all,

Thanks for all your replies and the ball parl figures and Great to get another point of view.

Not sure what the Planning Permisson is for re size of house, have a meeting tomoz with the agent.

The Red sandstone is 2100 sq ft in size and the garden is about 30 metres long and about 15 metres wide

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Further update,

Seen the old property and love it. The owner is in the process of changing the consent back to residential (I think this may have put off prev buyers, maybe!!), would have cost planning application and also architech fee's and bathroom install just to get it thru.

Got a second visit on Monday with a builder who will give us a ball park figure as to renovation costs, this will give us at least an indication as to the whether it's still a goer with our finances. If we then go for it we will put out to tender this builder and a couple of others.

Lulu, I dropped the price Monday to 80K and same day we have a viewer book for this coming Friday. We also got our Right move stats today and the figures for our property seem to have gone thru the roof for viewers!! Here's hoping for a couple more viewers ( I f$%king hate cleaning before they come!!!)

Seen option 1 yesterday and nice size house for new build, 4 of the 5 bedrooms will fit a double and have space for wardrobes etc, 2 rooms have inbuilt wardrobes already, garden not a let down, although the bathroom was about 6'x7' which I think is tiny for a 5 bed house, I know the master has an ensuite but bloody hell!!!

Also have an appt for mortgage advisor, gonna go in worse case senario that the dont get a buyer and offer 86K savings and get remort on the BTL and wife to get a mort in her name, we will see what happens!!!!

Nothing happening with Option 3

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Further update, viewer from Friday has offered and we have accepted. 5k below price but in view of the current climate I think thats the best we could have got. First time buyers, finance in place and no chain (we are gonna rent till we find something we want). Need to pay £120 for the Home Report to be updated even though its under a year old as needs to be less than 3 months (f%^king HR's). Deal will be done beginning of April.

Seen the old property with Architect and Builder this morning they are preparing plans and quotes which should be with us later this week. This will at least give us a ball park figure to work with re offer to vendor. The more we see it the more we love it, a real family home at last to see us till the end of our days!!!

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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