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LuckyOne

I Will Exchange Contracts To-Morrow .....

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Like others, I have been under a lot of pressure to deal with the other half's nesting instincts.

Like others, I am quite bearish on house prices.

After much wavering over the last 6 months, I have come up with a solution that works for both me and the other half : we are going to execute a three year rental deal to-morrow which includes the right of first refusal for any transaction that the supplier of capital wishes to execute.

I might have a more understanding other half than others but I think that this is the ideal compromise : we have secure tenancy for three years with the right to match any sales deal that our supplier of capital may wish to execute.

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two people exchanging contracts in quick succession.. The last time everyone announced they were buying in bulk was in the summer of 2007 (me, and a raft of other forum members). Good luck, you hopefully got a good discount, even though I essentially bought at the peak, the recent sales of identical properties around us are still more then we paid. The price you pay is important

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two people exchanging contracts in quick succession.. The last time everyone announced they were buying in bulk was in the summer of 2007 (me, and a raft of other forum members). Good luck, you hopefully got a good discount, even though I essentially bought at the peak, the recent sales of identical properties around us are still more then we paid. The price you pay is important

I think that you missed the key difference : the contract that I am going to execute is a rental contract. The other contract is a purchase contract.

RB and I will both be in our homes for the next three years. I am not certain who will be happier about the deal that they have done in August 2014 but I know that we have both at least partially dealt with our OH's nesting instincts.

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: we have secure tenancy for three years with the right to match any sales deal that our supplier of capital may wish to execute.

I dont understand a word of that.

Other than that why in God's name would anyone want to sign a three year tenancy? Unless you have a break clause every six months, which totally defeats the point as the LL gets one too, you have lumbered yourself with all the disadvantages of renting and owning in one go.

If the crash you're holding out for does happen you'll be stuck in a rental for three years. If you lose your job or have to move you are stuck.

Baffling.

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I dont understand a word of that.

Other than that why in God's name would anyone want to sign a three year tenancy? Unless you have a break clause every six months, which totally defeats the point as the LL gets one too, you have lumbered yourself with all the disadvantages of renting and owning in one go.

If the crash you're holding out for does happen you'll be stuck in a rental for three years. If you lose your job or have to move you are stuck.

Baffling.

I thought that and then I thought he must have a break clause in there at least yearly for it to make sense or he'd not do it.

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Good luck to you! I think you have probably made the right choice, it's just so difficult to see that after all these years of waiting.

I too , another old bear, am actively looking to buy. We are locked in to rental till october, but looking now with an idea of making offers after summer. Trouble is round here the market is dead. Very little on the market and almost nothing coming on. I've seen more life on mars than there is in the local housing market. Places are selling after about a 5% drop in asking price, but quite a few sstc are coming back on as sale falls through. Many vendors don't seem serious about selling either. So all in all I expect to be renting this time next year as well.

Anyway, security is the main thing lacking from rental and it now sounds like you've got that, and in a house you obviously like! Sometimes you can have your cake and eat it!

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Anyway, security is the main thing lacking from rental and it now sounds like you've got that, and in a house you obviously like! Sometimes you can have your cake and eat it!

+1.. interesting lateral thinking by the OP.

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I think that you missed the key difference : the contract that I am going to execute is a rental contract. The other contract is a purchase contract.

RB and I will both be in our homes for the next three years. I am not certain who will be happier about the deal that they have done in August 2014 but I know that we have both at least partially dealt with our OH's nesting instincts.

Have exactlly the same dialogue with her indoors at he moment. Part way into pregnancy the poor girl has got it big time. Thankfully after a brief hormonal freak out she does see the sense in not rushing in and waving good bye to a good chunk of our hard earned savings by buying.

Upping the ante a touch from £765 to circa £950 from terrace to cottage and 3 beds; in true HPC sign of the times we both have to work and the £860 a week nursery would take nearly 1/4 of our take home, so will be playing host to the inlaws a few nights a week when junior does turn up.

Still waiting to hear back on our opening offer and request for a 2 year deal, will hopefully be a nice place to hunker down whilst austerity UK gets going, certainly seeing a wee bit of flex in prices my way.

Your situation sounds perfect for the coming theatricals about to unfold in good old blighty.

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I think that you missed the key difference : the contract that I am going to execute is a rental contract. The other contract is a purchase contract.

RB and I will both be in our homes for the next three years. I am not certain who will be happier about the deal that they have done in August 2014 but I know that we have both at least partially dealt with our OH's nesting instincts.

Well done for finding a reasonable compromise. In my wildest optimism i don't think houses will bottom in three years certainly they won't have shot up again by then. If anything having your hands tied behind your back for three years might be good protection against you jumping the gun and diving in too early. You certainly won't have missed the boat anyway.

Personally our issue with renting is do we anticipate being here long enough to go ahead and put our sons name down for a school? And we don't know what furniture to invest in that will suit the house we will live our lives in. Your three year contract doesn't fix either of those but at least if you've managed to quell your irrational half for the time being without throwing 1/4 mil in neg equity and interest down the pan you are a tiger blooded winner B)

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Have exactlly the same dialogue with her indoors at he moment. Part way into pregnancy the poor girl has got it big time. Thankfully after a brief hormonal freak out she does see the sense in not rushing in and waving good bye to a good chunk of our hard earned savings by buying.

Upping the ante a touch from £765 to circa £950 from terrace to cottage and 3 beds; in true HPC sign of the times we both have to work and the £860 a week nursery would take nearly 1/4 of our take home, so will be playing host to the inlaws a few nights a week when junior does turn up.

More than 178K take home? And you're not lumbered with a 2007 mortgage. But you both "have to work". Your wife/GF is having hormonal freak outs about property while pregnant but she's ok with dumping your new born in a nursery so you can keep imagining your grand designs future. And you don't seem to even know that that's truly ******ed up. Please tell me i got it all wrong and it was a tongue in cheek post :huh:

Edit: 860 a MONTH isn't it. Damn had me having a hormonal freak out of my own :rolleyes:

Edited by athom

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I dont understand a word of that.

Other than that why in God's name would anyone want to sign a three year tenancy? Unless you have a break clause every six months, which totally defeats the point as the LL gets one too, you have lumbered yourself with all the disadvantages of renting and owning in one go.

If the crash you're holding out for does happen you'll be stuck in a rental for three years. If you lose your job or have to move you are stuck.

Baffling.

There is no break clause. We want to know that we don't have to move for three years and have a right of first refusal on any transaction (either selling or renting) that the landlord wants to undertake after that.

The cost of a three year rental is approximately 12% of the current market value of the house. I do agree that there is some risk that we might be stuck with a rental obligation that we no longer want. Our total rental cost over three years is about the same as stamp duty, legal fees, sales commissions if we had to sell and one year's opportunity cost on the capital that we haven't tied up.

I expect total returns on my capital to continue to exceed total returns on UK housing over the next three years.

If we get the crash that some of us expect, I don't expect it to be "V" shaped so there will be plenty of time to buy something. A long lease essentially forces discipline. My "time to buy" will be characterised by the number of sales per month staying above 80,000 for three months rather than a particular price level.

I know that this approach is not for everyone but it is possible to get someone to lend you their asset at a very cheap price for a long period of time with some options built into the contract which looks to be a better alternative than buying the asset in the current market.

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A 3 year tenancy agreement is of little use if your landlord defaults on the mortgage/ secured loan on the property you are renting. Why not ask for a mortgage statement to show regular payments and to ensure your rental payment easily covers any rise in interest rates. Other than that I can see why you have gone for this option. Good luck.

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A 3 year tenancy agreement is of little use if your landlord defaults on the mortgage/ secured loan on the property you are renting. Why not ask for a mortgage statement to show regular payments and to ensure your rental payment easily covers any rise in interest rates. Other than that I can see why you have gone for this option. Good luck.

There is a two way credit check in my deal. Logic overcame indignation eventually ......

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Like others, I have been under a lot of pressure to deal with the other half's nesting instincts.

Like others, I am quite bearish on house prices.

After much wavering over the last 6 months, I have come up with a solution that works for both me and the other half : we are going to execute a three year rental deal to-morrow which includes the right of first refusal for any transaction that the supplier of capital wishes to execute.

I might have a more understanding other half than others but I think that this is the ideal compromise : we have secure tenancy for three years with the right to match any sales deal that our supplier of capital may wish to execute.

Very well done Lucky. :)

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What is the deposit for a lease like that? Mine was 6 weeks on a 6 month lease.

Two months because I have a dog. It would have been 6 weeks otherwise.

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There is no break clause.

Best of luck with that, you'll need it.

To all other forum readers: never and I repeat NEVER take a rental unless there is a break clause and preferably one at no later than your giving Notice on month 5 to be out by month 7.

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12% seems hefty at the moment.obviously not in the east mids ;)

the bank would then become the LL and tenant would remain in situ.

it may well be that in order to get the three years this was necessary.security of tenure comes at a price as most mortgage holders know.

12% in total or 4% per year. Not as low a yield as some parts of London but still pretty low.

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Best of luck with that, you'll need it.

To all other forum readers: never and I repeat NEVER take a rental unless there is a break clause and preferably one at no later than your giving Notice on month 5 to be out by month 7.

I want assured tenancy for three years as an alternative to buying. I do not think that it is rational for a landlord to give me three years and for me to give the landlord 6 months. The risk / reward has to be symmetrical to get a deal done.

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There is no break clause. We want to know that we don't have to move for three years and have a right of first refusal on any transaction (either selling or renting) that the landlord wants to undertake after that.

The cost of a three year rental is approximately 12% of the current market value of the house. I do agree that there is some risk that we might be stuck with a rental obligation that we no longer want. Our total rental cost over three years is about the same as stamp duty, legal fees, sales commissions if we had to sell and one year's opportunity cost on the capital that we haven't tied up.

I expect total returns on my capital to continue to exceed total returns on UK housing over the next three years.

If we get the crash that some of us expect, I don't expect it to be "V" shaped so there will be plenty of time to buy something. A long lease essentially forces discipline. My "time to buy" will be characterised by the number of sales per month staying above 80,000 for three months rather than a particular price level.

I know that this approach is not for everyone but it is possible to get someone to lend you their asset at a very cheap price for a long period of time with some options built into the contract which looks to be a better alternative than buying the asset in the current market.

For the rent and market value I'll guess £750pm in a £225k house am I close?

Do you currently have enough capital to buy the house mortgage free?

80,000 "sales" from which source?

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it may well be that in order to get the three years this was necessary.security of tenure comes at a price as most mortgage holders know.

If that was the price, I'd say no thanks. However, I obviously wish Lucky One an easy time there and hope for his sake he lives up to his name.

(I hate relying on luck in binding contracts, generally it is not there when needed)

Edited by inflating

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Is it just me or is this totally daft....

You get right of first refusal on him offering it for sale after that period...if it were me as landlord would simply stick it up at a nice inflated price I would love to have and see if you bite. Whats the point of first refusal then? You have been offered it at that price and refused so it ends his obligation. You have no agreed terms of price offer in the contract when your rent agreement expires... can't imagine you would , no landlord would sign up to that.

If you really wanted the house you should have just brought it , obviously the wrong house for you as you would have....

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You get right of first refusal on him offering it for sale after that period...if it were me as landlord would simply stick it up at a nice inflated price I would love to have and see if you bite. Whats the point of first refusal then? You have been offered it at that price and refused so it ends his obligation.

LO must have agreed an option price or very independent market appraisal/valuation, otherwise why bother with the first refusal condition?

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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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