Buying a home and don't know how anything works

[Epona]

Only 6 years left on my mortgage, cannot wait until it is paid off.

That might be a bottle of champagne day.

And yeah 25 years is a fuck of a long time

 

[StoneRoad]

I know. Whilst it was higher then I wanted to go, I figured if push came to shove we could afford more if rates rise. One thing that worries me about going higher still is that we couldnt. 25 years is a long time.

A couple of the things OH & I did when the variable rates were more changeable was to continue to "overpay" when the rates dropped a bit and on another occasion we "extended" the period to reduce the "height" of the increase.
Alternative strategy at another point in time : We also made a number of "early" capital repayments to further reduce the monthly amount or reduce "time left". [I had come into some money]

 

[Epona]

A couple of the things OH & I did when the variable rates were more changeable was to continue to "overpay" when the rates dropped a bit and on another occasion we "extended" the period to reduce the "height" of the increase.
Alternative strategy at another point in time : We also made a number of "early" capital repayments to further reduce the monthly amount or reduce "time left". [I had come into some money]

If you CAN do that, then yes it is a good use of money. Check to make sure you can make additional payments without a fee, then pay off a wedge of it and either reduce the montly repayment or reduce the term of the thing. The earlier you can do that in the mortgage term the better, because reducing the amount of the thing early on will save you £££ in interest over the next 20+ years.

Good advice IMO to try to overpay if and when you can, make sure your mortgage allows for it.

 

[existentialist]

A couple of the things OH & I did when the variable rates were more changeable was to continue to "overpay" when the rates dropped a bit and on another occasion we "extended" the period to reduce the "height" of the increase.
Alternative strategy at another point in time : We also made a number of "early" capital repayments to further reduce the monthly amount or reduce "time left". [I had come into some money]

We did this with our first mortgage. It happened that the interest rate was 13% when we took it out, but fell to around 8% (AIR) during the early part of the mortgage term. We pegged our payments at the original (high) level, and "lobbed in" an annual lump from savings, with the result that we'd paid it off by the time we sold, 9 years later.

 

[moonsi til]

Just worked out we've spent £3k so far on not moving house.

It’s appalling that this can happen.

 

[xenon]

Started looking on Right Move again and just booked my first viewing. ON paper it seems a bit too good to be true. 2 bed flat, I can afford with what the bank will lend, location fine, I know the area, it's just down the road from where I live. Apparently looks good in the photos. Seller has no onward chain.

Going with a friend. Have listed some questions.
Cladding?
What's the freehold situ re roof repairs.
Check for damp / condensation.
Other stuff...

Downloaded a first time buyer's guide from Money Saving Expert, so that's my exciting Friday night arranged... All a bit scary...

Calling this number 1. Seen other potentials on RM before coming across this and will arrange another viewing or 2. Was gonna wait til after Christmas but the above one I should at least see.

 

[Puddy_Tat]

Other stuff...

things to find out -

how long left on the lease?

whats ground rent / service charges like?

has freeholder given notice of major works that leaseholders will have to pay for?

(apologies if stating the obvious)

 

[equationgirl]

xenon always worth asking about the neighbours, have there been any disruptions or is it a quiet place to live etc

 

[xenon]

things to find out -

how long left on the lease?

whats ground rent / service charges like?

has freeholder given notice of major works that leaseholders will have to pay for?

(apologies if stating the obvious)

Thanks. Obvious is good.

Some of that is in the ad details. Very long lease, I think 900 years, will have to check again. Other charges seem OK to me but I've not got much to compare against yet.
Service charge circa 500 quid per quarter, (there's residents parking.) Ground rent a couple of hundred PA.

Also the vender has not got back confirming I can view. It's a Purpil Bricks thing so they may be doing it themselve. Or have already had enough interest.

xenon always worth asking about the neighbours, have there been any disruptions or is it a quiet place to live etc

Good question. I will ask. It's a block that encourages a bit of socialising I think. Well it has communal amenities barbecue area or sommat.

Some of the pubs near by are a bit ropy, I know as I've been in them on the odd occasion.

One of the things, I'd rather not live on the ground floor again. Partly burglary risks (not happened here touch wood) but I'm a bit fed up with living close to traffic noise and fumes. I need to check which floor this is on actually, it's not ground.

Just trying to line up a couple of other viewings this weekend too.

 

[xenon]

oh actualy I have a big question.

how do you find out if the flat you're interested in, has dodgy cladding. There are several buildings in Bristol that do.

I very much suspect this is the case with 1. I mean other than asking the vendor, is this obvious by looking. If I straight up ask, is there some flannel they can say it has cladding but not the dangerous type.

Or does this only come to light when you get a survey for mortgage purposes?

I gather lenders won't lend on properties with the problematic type, so presumably there's a relatively easy way of finding out, for them at least.

 

[5t3IIa]

oh actualy I have a big question.

how do you find out if the flat you're interested in, has dodgy cladding. There are several buildings in Bristol that do.

I very much suspect this is the case with 1. I mean other than asking the vendor, is this obvious by looking. If I straight up ask, is there some flannel they can say it has cladding but not the dangerous type.

Or does this only come to light when you get a survey for mortgage purposes?

I gather lenders won't lend on properties with the problematic type, so presumably there's a relatively easy way of finding out, for them at least.

Might the local authority have the details? I use to work for my LA and the customer service/walk-in department (with the pcs for doing UC/blue badge apps etc - I’d imagine most LA have them now?) had two dedicated planning PCs with all the relevant applications/progs for really deep dives into information. Was fun to play with

Edit: also at mine you could request a planning officer to nip out the front or call for a chat too.

 

[Puddy_Tat]

how do you find out if the flat you're interested in, has dodgy cladding. There are several buildings in Bristol that do.

I have seen places advertised for sale with an EWS1 certificate, which appears to be a national 'the cladding on this place is probably not highly inflammable' scheme. more here

also if you're considering a place in a big block, bear in mind that maintenance costs (and therefore service charges) will probably be higher than a small block (i live in a block of 4 flats and pay 90 quid a year for having the grass in the communal garden cut badly a few times a year and the outside woodwork painted about every 20 years, which i thought was a bit of a liberty until i started seeing leasehold flats with service charges more than that per month.)

and there will be occasional bills for major repairs, and anything on a big block won't be cheap (lift maintenance / replacement doesn't come cheap, and many jobs will require huge amounts of scaffolding.)

some councils / HA's do take the piss with service / repair charges for leaseholders. Some areas have a leaseholder's association (there used to be one round here but not sure if it's still going)

you also generally have no choice but to get buildings insurance through your freeholder as part of the service charges - would imagine that insurance rates on big blocks have gone up a lot since grenfell - mine (the 90 quid a year doesn't include that) went up with a bit of a bump a year or two back.

some mortgage lenders / insurance companies don't like big blocks either.

you'll know how good the local council / housing association is at maintenance partly just by looking at the place, but may also be worth a bit of research on the web - if there's lots of local paper articles with residents looking sad and pointing at holes in the roof / mouldy walls / dead rats (or any combination thereof) then maybe not a great idea.

and there's then the chance that the local council will decide to 'regenerate' the area - if they decide to demolish the block, they seem to be able to get away with pretty crap valuations to leaseholders (see heygate estate at elephant and castle - what leaseholders got for their old flat was less than 1/3 the price of a place in the new developement that they were 'welcome' to buy.)

i'm not trying to put you off the idea, and you will get more space for your money in a big block, but...

 

[xenon]

Thanks guys.

Doing a fair bit of Googling. It's 6 stories. Service charges and ground rent are quite high. Place boasts of communal areas and stuff.

Got 2 viewings tomorrow and another on Friday. Second one sounds quite a bit smaller but costs a fair bit more. hmm.

 

[StoneRoad]

From experience - is there a kids play park within earshot ?

Out the back at my previous house there was such an area. It collected two aspects over the years. The first was some very ill-mannered toddlers who accompanying adults allowed them to run riot, distinctly not playing, more fighting and smashing plants during daylight. The second aspect was a group of teenaged yobs, who smoked & drank whilst making nearly as much noise as the toddlers, main fallout was masses of broken glass, dog crap and attempting to set the bark and wooden play equipment on fire. These oxygen wasters didn't live on the estate for which the facility was provided.

 

[UnderOpenSky]

Pushed the budget up again and saw something a bit bland, but something a reasonable size with garden. Booked a viewing yesterday, got a call today to say it's gone. This is crazy.

What's everyone's thoughts on price trends? Obviously it's very unlikely they'll drop, but do you think they'll slow down at least? Part of me thinks, fuck it, just wait, but the deposit I've got isn't going grow and prices seem to keep going up.

 

[kebabking]

Pushed the budget up again and saw something a bit bland, but something a reasonable size with garden. Booked a viewing yesterday, got a call today to say it's gone. This is crazy.

What's everyone's thoughts on price trends? Obviously it's very unlikely they'll drop, but do you think they'll slow down at least? Part of me thinks, fuck it, just wait, but the deposit I've got isn't going grow and prices seem to keep going up.

My assumption is that we're seeing a bit of madness that's the foam created by the release of pent up demand cased by the pandemic, and that it will - rather like a deflating balloon, begin to peter out in time.

But, I think we've also seen a much longer term shift to a view that your home is much more important that before, given how long we've spent in them. I also think there's been a bit of a reset in terms of what we spend our money on - in the Before Times we would go out as a couple every week, often having a night away, we'd eat out, maybe go to the theatre, hotel etc... and on top of that we'd eat out with the kids once a week.

Thats gone. We'll eat out with the kids maybe one a month, we'll do the date night/dirty weekend twice a year - they are just habits we've fallen out of, and the money that was once spent on that stuff is now just sat in our pockets..

Chatting to friends and colleagues, similar ages to us, it seems that that's a widespread experience. So people (some people) have monere money in their pockets and put greater weight on the home they live in, and I think that will perpetuate the price bubble for longer/higher than the mere pent up demand would suggest.

 

[hash tag]

Agree with kebabking in as much as it's a bit of post pandemic madness which will level out in time. I also think that people are now looking at outside space more and also living out of town seeing as they can now work from home two or three times a week.
Property will also be a good investment, but primarily it is a home.

 

[UnderOpenSky]

It's kind of my gut feel, but it's such terrifying amounts of money and I'm worried we are just getting caught up in it.

I guess like many we want to be further out as well. I still need to commute, but we are both thinking home working or at least hybrid in the next few years and I love the hills. It leaves quite a narrow window. Maybe I'm being unrealistic, but to see two places that fit the bill and miss out seems very fustrating.

Probably a lot of flats in Manchester empty though!

 

[Saunders]

I’m pretty risk-averse so I wouldn’t commit ‘terrifying amounts of money’ on my home. I’m quite old so remember when mortgage interest rates were over 10%. Shift your normal to a similar normal that you can afford, would be my advice.

 

[moonsi til]

It’s such a dilemma as one hand you have inflated house prices so do you wait till it returns to some sort of normal & the other if you are renting it’s money that could go towards the mortgage or if you are selling it might be the best time to get the best price.

I bought a leasehold flat in 2005 & someone I knew said they wouldn’t buy in this market & for our local market 6 -12 months later prices did go down. To add to the leasehold conversation I loathe having a leasehold flat as I see it as a licence to print money. My fees are about £60 per month which covers ground rent, building insurance, repairs , capital works but every so often like September gone I get a bill for £400 extra for planned works that I knew nothing about but flip side is when windows need replacing it’s capital works. I now rent my flat out due to no interest when I tried to sell in 2012 bit lo & behold I had to pay the lease folk for permission.

I sold my house I bought in 2012 in October 2020 but they put offer in March 2020 & thankfully stayed with me during covid & me trying to find somewhere. My house hunting was just pre this madness but have seen colleagues not even able to get viewings.

I hope everyone in this journey gets to pass go & collect £200.

 

[UnderOpenSky]

I’m pretty risk-averse so I wouldn’t commit ‘terrifying amounts of money’ on my home. I’m quite old so remember when mortgage interest rates were over 10%. Shift your normal to a similar normal that you can afford, would be my advice.

I hear you. The numbers are so large it's bonkers. I wish I'd bought a house in my 20s. It would be paid of by now. I've no idea how it translates with high interest rates but it seems prices have risen so much faster then incomes. I'm in the North of England, don't think I'd have ever stood a chance of buying anything down South. My worry is this trend is just going to continue.

 

[clicker]

It's kind of my gut feel, but it's such terrifying amounts of money and I'm worried we are just getting caught up in it.

I guess like many we want to be further out as well. I still need to commute, but we are both thinking home working or at least hybrid in the next few years and I love the hills. It leaves quite a narrow window. Maybe I'm being unrealistic, but to see two places that fit the bill and miss out seems very fustrating.

Probably a lot of flats in Manchester empty though!

If you know roughly the area that you want to move to, you could post on their local FB site, asking if anyone is selling/thinking of selling.
You could then possibly view properties before an agent even gets involved.

 

[Carvaged]

I'll never be able to afford a home of my own, always knew I wouldn't even as a kid. I'd just be happy with a small/tiny mobile home somewhere in a cheap location and a long way from busy places and lots of people. Something really, really affordable.

 

[equationgirl]

How did the viewing go xenon ?

 

[xenon]

How did the viewing go xenon ?

Well the first place I really liked. It's a lot bigger complex than I realised. There's a legit reason I was told after asking why it's cheaper than smaller places nearby. Which I'm fine about. Without going into too much detail for anonymity sake.However, I have remaining concerns re caldding. The bit the flat is in has a EWS1 according to agent. Works need doing on other main bit, which have govt grant money. But when does it start, is it definite, are all lease holders going to be paying for this, etc. Trying to find out...

Second place was OK but smaller rooms, cost more, same service charges but no outside communal space and someone has put in an offer just over the asking price. hmm. Also it's above retail which might effect lending apparently. have given it a miss anyway.

If the concerns about 1 are assuaged, I'd put an offer in as far as I can tell, everything else looks great. The outside space really appeals especially as WFH for the forseeable. Friend agreed it looked good too.

Seeing another place on Fri and 2 more next Tue. A further one I need to arrange a viewing for... Got an AIP and quote for conveyancing. Have gone a bit mad... :d

 

[equationgirl]

Well the first place I really liked. It's a lot bigger complex than I realised. There's a legit reason I was told after asking why it's cheaper than smaller places nearby. Which I'm fine about. Without going into too much detail for anonymity sake.However, I have remaining concerns re caldding. The bit the flat is in has a EWS1 according to agent. Works need doing on other main bit, which have govt grant money. But when does it start, is it definite, are all lease holders going to be paying for this, etc. Trying to find out...

Second place was OK but smaller rooms, cost more, same service charges but no outside communal space and someone has put in an offer just over the asking price. hmm. Also it's above retail which might effect lending apparently. have given it a miss anyway.

If the concerns about 1 are assuaged, I'd put an offer in as far as I can tell, everything else looks great. The outside space really appeals especially as WFH for the forseeable. Friend agreed it looked good too.

Seeing another place on Fri and 2 more next Tue. A further one I need to arrange a viewing for... Got an AIP and quote for conveyancing. Have gone a bit mad... :d

Just to let you know, one of the conveyancing firms used by Purple Bricks had a cyberattack almost a fortnight ago which has effectively shut down their operations. Nothing is completing at present. Any firm within the Simplify Group is affected, including Premier Property Lawyers and Cook Taylor Woodhouse. The Solicitors Regulatory Authority has told them to get a wriggle on and fix it but no progress (or client updates) so far.

This may not affect you but might be relevant to those looking at present.

 

[Epona]

Well the first place I really liked. It's a lot bigger complex than I realised. There's a legit reason I was told after asking why it's cheaper than smaller places nearby. Which I'm fine about. Without going into too much detail for anonymity sake.However, I have remaining concerns re caldding. The bit the flat is in has a EWS1 according to agent. Works need doing on other main bit, which have govt grant money. But when does it start, is it definite, are all lease holders going to be paying for this, etc. Trying to find out...

Second place was OK but smaller rooms, cost more, same service charges but no outside communal space and someone has put in an offer just over the asking price. hmm. Also it's above retail which might effect lending apparently. have given it a miss anyway.

If the concerns about 1 are assuaged, I'd put an offer in as far as I can tell, everything else looks great. The outside space really appeals especially as WFH for the forseeable. Friend agreed it looked good too.

Seeing another place on Fri and 2 more next Tue. A further one I need to arrange a viewing for... Got an AIP and quote for conveyancing. Have gone a bit mad... :d

It may not be the same for you, but when our council got an EU grant to improve social housing, they did major works to our block and the leaseholders DID have to pay a share, the grant was used only for tenants share. We got a bill for £18,000.

So definitely check.

 

[Epona]

BTW, I just looked up my old flat where I used to live, curious about an approximate valuation for it.

I bought it with my ex in 1995 for £46k
We sold it (due to breakup of relationship and fair splitting of assets) in 2002 for £160k

Currently it is valued at £600k. This is in an area where when I lived there, the Friday night entertainment was wondering which parked car would be torched first. It since became "trendy" and priced a lot of us out of the area.



(And yes it doesn't escape my notice that if I was still there the mortgage would be paid off already and I'd be sitting on a desirable zone 1 pile (relatively speaking))

(EDIT: Just to put it into perspective in terms of the property market and affordability of housing, our - me and my ex - joint annual income then was around £30k, so getting a mortgage on a £46k flat was a piece of piss, no worries about repayments, we went out to restaurants 2 or 3 times a week, the cinema, the theatre etc. it was all easily affordable along with the mortgage on a fairly modest salary. The modern equivalent, if we were still together and in the same jobs, our joint income today would be around £45-50k, you can easily see that the flat we used to live in and easily afford would be way way out of our reach now).

 

[20Bees]

I’m pretty risk-averse so I wouldn’t commit ‘terrifying amounts of money’ on my home. I’m quite old so remember when mortgage interest rates were over 10%. Shift your normal to a similar normal that you can afford, would be my advice.

We’d relocated in 1990 and were renting while we sold our old house. Just about to exchange contracts on this one as the interest rate went over 14% and our £90k mortgage seemed terrifying… happily it never went that high again, but it was a blessed relief when the last payment was finally made. My adult kids have eye-watering mortgages but at really low interest rates, and I hate to think of theirs creeping up to those rates of 30 years ago.

 

[StoneRoad]

The relief when we paid off the last of the mortgage on this place was a terrific feeling !
We had had some "squeaky bum" times with high interest rates, but we did manage enough capital repayments / overpayments to be able to clear it off somewhat earlier than we were expecting.

I definitely don't envy anyone trying to buy their home these days.
Or even trying to find somewhere affordable to rent.
Good Luck navigating those reefs and rocky shores ...