Buying new house while current one not sold.

[kane3000]

Hi All,
I have a bit of a complex question.

Myself and my wife have found a house that we really want to buy. We hadn't really anticipated moving yet but this one came on the market and is really what we want....so we have put in a bid.

We currently have our PPR and a second property.
Our PPR is worth €520,000 and the second property is worth €330,000 we have a total mortgage of €140,000...This would give us a profit of €710,000 (less CGT on the 2nd property + selling expenses).
The new house will cost about 700,000 including Stamp duty.

My question is: how do we finance the new house, short term, while waiting for our present PPR and 2nd property to sell - they are both going on the market this week?

Will we be able to get a bridging loan on the strength of both current properties or can we get a short-term mortgage to tide us over.

Thanks in advance.

Regards
Kane

 

[oysterman]

The textbook answer to this question is to mortgage your existing properties for all they're worth and then attempt to fund any shortfall through bridging.

But you can of course delay the purchase by whatever legitimate means your solicitor advises. This saves you money and a lot of hassle. It may not be the most pleasant way to behave but it's what the other side would likely do to you in your position.

Those on the other side of a house sale contract are not your friends.

 

[huskerdu]

We did this successfully, however, it takes a bit of time to put in place.
We got an open ended bridging loan, but not all mortgage suppliers give them.
Also, the total we were mortgaged for, for the 2 interim months was very
high, so we had to get medicals and the paperwork to get the mortgage
was a bit lengthy.