Buying a home and don't know how anything works

[miss direct]

As above, really. I should be in the position to buy a home in cash once the sale of my late father's home goes through. At the moment, I am a lodger on a rolling contract so can just give a month's notice on where I am. Actually my landlady has even said if I buy somewhere and need some time to sort it out/furnish it, I could stay between the two places (I work online.)

Anyway, the point is I don't know this works. I look on right move and have pinpointed a few places I like the look of. But it's such a big decision and I am already an indecisive person... House? Flat? Leasehold? Freehold? New? Old? How much does it cost to buy, in terms of solicitors, paperwork, etc? Without knowing that, I can't even come up with a logical budget.

I am getting quite desperate to have my own space again but just feel overwhelmed and don't know where to begin.

Is it too early to view properties? I can't make an offer until I have the money, right? Or can I?

 

[The39thStep]

As above, really. I should be in the position to buy a home in cash once the sale of my late father's home goes through. At the moment, I am a lodger on a rolling contract so can just give a month's notice on where I am. Actually my landlady has even said if I buy somewhere and need some time to sort it out/furnish it, I could stay between the two places (I work online.)

Anyway, the point is I don't know this works. I look on right move and have pinpointed a few places I like the look of. But it's such a big decision and I am already an indecisive person... House? Flat? Leasehold? Freehold? New? Old? How much does it cost to buy, in terms of solicitors, paperwork, etc? Without knowing that, I can't even come up with a logical budget.

I am getting quite desperate to have my own space again but just feel overwhelmed and don't know where to begin.

Is it too early to view properties? I can't make an offer until I have the money, right? Or can I?

You can make an offer but untill you have proof you have money or mortgage to buy you wouldn't be able to proceed with purchase. If others made an offer and had that then the seller would most likely proceed with them.

 

[danny la rouge]

Best wishes. I’m in Scotland so completely different system here. But all the best.

 

[two sheds]

Not sure what things are like now but I'd never buy leasehold if I could avoid it. You hear stories of companies coming in and buying the lease and pushing up ground rents.

Yes good luck.

 

[miss direct]

Another question: I noticed that only a certain amount of money is protected in my bank account (£85,000 ish?) So is it ok to just have that money in my current account until I buy, or is there a safer/better way?

 

[A380]

I’d probably decide where I wanted to live I.e what town, part of a city, or part of the country side I wanted to live in. Then decide how much I wanted to spend on the property.

Once I’d done that I’d start looking on web sites to get a feel for what kind of property and what size I could buy in my chosen area with my budget.

Then I’d go and view 4 or 5 without really intending to buy just to check I felt comfortable, if not I’d think about the location and budget again. If I did feel comfortable then I’d wait till I’d got the cash and then start viewing in anger.

Are you looking at a cash only deal? If so I’d probably mot set your budget at all you have but maybe keep 10% 15% back for improvement like double glazing and boiler type things.

 

[baldrick]

I would say why not buy a house if you have the money, potentially? More space, a garden. I would hold back some money from your father's house for solicitors costs, furniture, decorating etc. You could ring a few solicitor firms for quotes, most will offer an all-in price.

 

[dessiato]

You can always look.

If i were you I’d have a look around to see what you can get for the money you expect to have, then decide what and where you want to be.

I‘d look at new over old because there’s likely to be less work needed. Freehold over leasehold because leaseholders, in my experience, can be difficult.

The problem is that what you want is very personal to you.

 

[SpookyFrank]

Another question: I noticed that only a certain amount of money is protected in my bank account (£85,000 ish?) So is it ok to just have that money in my current account until I buy, or is there a safer/better way?

Always better to put it in a savings account. Then it can't be spent, not even if someone gets your card or your bank details or whatever. It will be a trivial task to open a basic savings account with your existing bank, most likely doable on the phone or over the internet.

 

[platinumsage]

Another question: I noticed that only a certain amount of money is protected in my bank account (£85,000 ish?) So is it ok to just have that money in my current account until I buy, or is there a safer/better way?

You get £1 million protection for twelve months. Just keep it in your bank account (or savings account if you want) because you obviously need to be able to access it quickly.

 

[baldrick]

Unless it's changed most estate agents won't be interested in letting you view unless you can show proof of funds, or aip if you need a mortgage.

 

[A380]

Another question: I noticed that only a certain amount of money is protected in my bank account (£85,000 ish?) So is it ok to just have that money in my current account until I buy, or is there a safer/better way?

Given current interest rates I’d put £50k into premium bonds and the rest into a cash Isa of similar product with National Savings. You are effectively lending to the government so if that went bust society would be in such a state that money wouldn’t exist anyway...

 

[platinumsage]

Given current interest rates I’d put £50k into premium bonds and the rest into a cash Isa of similar product with National Savings. You are effectively lending to the government so if that went bust society would be in such a state that money wouldn’t exist anyway...

Premium bonds aren't instant access. NS&I are falling apart at the moment so I'd avoid them if you might need money immediately.

 

[Spymaster]

Another question: I noticed that only a certain amount of money is protected in my bank account (£85,000 ish?) So is it ok to just have that money in my current account until I buy, or is there a safer/better way?

85k is protected under the Financial Services Compensation Scheme. That means that if the bank fails you will be compensated for at least the first 85k that they hold for you. The amount is per institution, not per account, so if it concerns you and you have more than 85k you could spread it around different banks/building societies. That said, none of the majors are in particular trouble at the moment and there are no dire issues forseeable so I wouldn't worry too much short term.

 

[miss direct]

I think my ISAs are full. I also have a help to buy ISA but you can only get the bonus if you get a mortgage.
Is it worth speaking to someone at the bank?

 

[SpookyFrank]

Given current interest rates I’d put £50k into premium bonds and the rest into a cash Isa of similar product with National Savings. You are effectively lending to the government so if that went bust society would be in such a state that money wouldn’t exist anyway...

You will make effectively less than nothing from an ISA at current rates. And yet somehow banks are continuing to lend money at a handsome profit. Curious.

 

[A380]

Unless it's changed most estate agents won't be interested in letting you view unless you can show proof of funds, or aip if you need a mortgage.

I think if you told them you had a cash inheritance coming they’d bite your hand off at the moment.

 

[two sheds]

I've only ever looked for old houses. Again I've not looked for ages but new houses seem to have small rooms, and watch out when you view because the companies selling new houses (I've heard) populate show houses with specially small furniture to make the rooms look bigger.

 

[SpookyFrank]

I think my ISAs are full. I also have a help to buy ISA but you can only get the bonus if you get a mortgage.
Is it worth speaking to someone at the bank?

Yes but bear in mind the bank will recommend their own products and not stuff like national savings.

 

[A380]

You can always look.

If i were you I’d have a look around to see what you can get for the money you expect to have, then decide what and where you want to be.

I‘d look at new over old because there’s likely to be less work needed. Freehold over leasehold because leaseholders, in my experience, can be difficult.

The problem is that what you want is very personal to you.

It does really depend on what you want. For minimum fuss I’d probably buy something about 2 to 5 years old. All the benefits of a new house- including some of the guarantee(s) in force but someone else will have done all the snagging.

 

[miss direct]

I really want my own home. It's been a goal for years and I've been saving for a deposit. The main issues are these:

My employment is precarious, to say the least. At the moment I'm in Sheffield, but I've just ended up here. I like it as much as anywhere else and properties are cheap compared to many other areas. At the moment all my work is online, so I can do it anywhere. I'm meant to start a job in January in a school (ha!) but that's only till July. After that, who knows?

Because I'm new in the city, I have little idea of which areas to avoid...people tell me X is bad, but what does bad actually mean? I could get a lot for my money in one of the "bad" areas.

 

[platinumsage]

Yes but bear in mind the bank will recommend their own products and not stuff like national savings.

Best to stick with your current bank. You don't want to pay the deposit on a house but be unable to hand over the balance on completion day because your online savings provider needs an additional form of ID or something.

 

[Glitter]

My house is for sale. Fancy moving to West Yorkshire?

 

[miss direct]

I've only ever looked for old houses. Again I've not looked for ages but new houses seem to have small rooms, and watch out when you view because the companies selling new houses (I've heard) populate show houses with specially small furniture to make the rooms look bigger.

How funny, do they buy it specially?

I really like the old terraced homes here, have my heart set on a traditional terrace with a small front room and an attic.

 

[two sheds]

mid terraces are easier to heat but check whether you can hear through the walls - so how well they're built. End terraces tend to have larger gardens.

 

[miss direct]

My house is for sale. Fancy moving to West Yorkshire?

I know even less about West Yorkshire than South!

 

[A380]

Yes but bear in mind the bank will recommend their own products and not stuff like national savings.

Given you are only trying to keep it safe till you buy a house and no one is offering any returns on cash at the moment just somewhere safe. That why I like NS&I.

 

[SpookyFrank]

I really want my own home. It's been a goal for years and I've been saving for a deposit. The main issues are these:

My employment is precarious, to say the least. At the moment I'm in Sheffield, but I've just ended up here. I like it as much as anywhere else and properties are cheap compared to many other areas. At the moment all my work is online, so I can do it anywhere. I'm meant to start a job in January in a school (ha!) but that's only till July. After that, who knows?

Because I'm new in the city, I have little idea of which areas to avoid...people tell me X is bad, but what does bad actually mean? I could get a lot for my money in one of the "bad" areas.

If had the choice of a pile of cash or a pile of bricks at this moment I'd take the bricks any time. The value of either could well fall in the near future but the house will still be a house.

 

[danny la rouge]

Yes but bear in mind the bank will recommend their own products and not stuff like national savings.

Yup. Martin Lewis would say go to an independent financial advisor.

The thing I’d say is that a home is a place you can see yourself living rather than an investment, so put that at the top of your priorities. “Will this suit the way I want to live?”

 

[miss direct]

If had the choice of a pile of cash or a pile of bricks at this moment I'd take the bricks any time. The value of either could well fall in the near future but the house will still be a house.

Thanks, that makes sense. I thought that even if I do end up getting a job abroad at some point (or short contracts) then I could rent it out, or have a lodger or something.