S
sundaegirl
Guest
Hi there
I would really appreciate some advice on this. Myself and DH are living in the North and at the moment are very seriously considering buying a site with FPP in the South across the border to do a self-build in the future.
We have not yet agreed with the vendor to buy the site. We are going to scrutinise the conditions attached to planning to see if there's anything untoward in them.
His asking price is 135000 Euro. To afford this we have two options:
Remortgage our current property which has 49000 Sterling outstanding mortgage on it (its current value is in the region of 190000 Sterling) to raise the approx. 96000 Sterling (135000 Euro + 8% stamp duty on 120000 - vendor has agreed to pay stamp duty incurred between 120000 and 135000 bracket) to buy the site
or
Put our house on the market and wait until we get the money from that sale before we pay the vendor for his site (obviously we would need to begin purchase proceedings with him to try and ensure both our house sale and site purchase completion dates are on the same date if possible).
If we remortgage we will have to pay out solicitor fees as well as search fees (against ourselves and the property) which we would have to pay AGAIN when we go to sell our house later in the year, to repay our remortgage. However, by remortgaging we could hopefully be in possession of funds to buy the site more quickly than if we were waiting on our house to sell. BUT our mortgage repayments will be up another 400 sterling per month, which we could afford, but are we throwing money away for nothing?
I am conscious of the fact that the vendor of the site may not wish to wait until we manage to sell our house before he gets his money, so remortgage may be our only option. I am going to ask him if he would be willing to wait if we paid him a cash deposit for the site purchase.
I am also afraid that our house may take longer to sell than we anticipate. As well as that, if anything were to go wrong with the site purchase e.g. something wrong with the title or folio of the property, we would have engaged the services of an estate agent and solicitor to sell our property and would still have to pay them some fees even if we did not then sell the house.
Remortgaging seems to be the safer but costlier option. But then again, most people buying another house don't remortgage, they just coordinate the completion dates for their own property and the one they want to buy. While I'm on the subject, is this hard to do or do you end up tearing your hair out?
I think my head will explode from all the figures bouncing around in it at the moment!
By the way I have been to see a mortgage broker who is confident that we should have no problems in getting a remortgage for the amount we need to buy the site (I have factored in stamp duty at 8% as well as the site purchase price).
Any advice much appreciated. Also, I rang a few solicitors in the South today and their general fee for conveyancing a site purchase is 1% of the purchase price, is this normal? It's just that most solicitors in the North only seek a fee of 0.5% for a house sale - perhaps there is more work involved in a purchase than a sale?
thanks!
I would really appreciate some advice on this. Myself and DH are living in the North and at the moment are very seriously considering buying a site with FPP in the South across the border to do a self-build in the future.
We have not yet agreed with the vendor to buy the site. We are going to scrutinise the conditions attached to planning to see if there's anything untoward in them.
His asking price is 135000 Euro. To afford this we have two options:
Remortgage our current property which has 49000 Sterling outstanding mortgage on it (its current value is in the region of 190000 Sterling) to raise the approx. 96000 Sterling (135000 Euro + 8% stamp duty on 120000 - vendor has agreed to pay stamp duty incurred between 120000 and 135000 bracket) to buy the site
or
Put our house on the market and wait until we get the money from that sale before we pay the vendor for his site (obviously we would need to begin purchase proceedings with him to try and ensure both our house sale and site purchase completion dates are on the same date if possible).
If we remortgage we will have to pay out solicitor fees as well as search fees (against ourselves and the property) which we would have to pay AGAIN when we go to sell our house later in the year, to repay our remortgage. However, by remortgaging we could hopefully be in possession of funds to buy the site more quickly than if we were waiting on our house to sell. BUT our mortgage repayments will be up another 400 sterling per month, which we could afford, but are we throwing money away for nothing?
I am conscious of the fact that the vendor of the site may not wish to wait until we manage to sell our house before he gets his money, so remortgage may be our only option. I am going to ask him if he would be willing to wait if we paid him a cash deposit for the site purchase.
I am also afraid that our house may take longer to sell than we anticipate. As well as that, if anything were to go wrong with the site purchase e.g. something wrong with the title or folio of the property, we would have engaged the services of an estate agent and solicitor to sell our property and would still have to pay them some fees even if we did not then sell the house.
Remortgaging seems to be the safer but costlier option. But then again, most people buying another house don't remortgage, they just coordinate the completion dates for their own property and the one they want to buy. While I'm on the subject, is this hard to do or do you end up tearing your hair out?
I think my head will explode from all the figures bouncing around in it at the moment!
By the way I have been to see a mortgage broker who is confident that we should have no problems in getting a remortgage for the amount we need to buy the site (I have factored in stamp duty at 8% as well as the site purchase price).
Any advice much appreciated. Also, I rang a few solicitors in the South today and their general fee for conveyancing a site purchase is 1% of the purchase price, is this normal? It's just that most solicitors in the North only seek a fee of 0.5% for a house sale - perhaps there is more work involved in a purchase than a sale?
thanks!