Buying a home and don't know how anything works

[UnderOpenSky]

Placed an offer this morning and it was accepted. It's really nice, but not in the Peak as I'd hoped. Still the lovely Dovestones Reservoir is only 15 mins away, so good hill walking/running not to far away. Seeing it on Saturday was a bit of a sanity check. I really really don't want to spend more then this and the budget kept creeping up. We viewed somewhere today in a nice village, but it's 30k more and not as big anyway.

The only bit that makes me nervous is the vendor still hadn't found the place they want to buy, so it could be a while. I'm cool not moving for a bit, what worries me is its more time for things to fall through. In the circumstances would you hold off paying for a survey for a bit?

 

[marty21]

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).

We bought in 1997 and it was affordable - we couldn't now afford to buy the place we live in if we were buying it today.

 

[marty21]

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 ...

We did pay off our mortgage in the summer , after 24 and a half years - yes it is a great feeling - also reminds you that you are now ancient though...

 

[Boudicca]

Placed an offer this morning and it was accepted. It's really nice, but not in the Peak as I'd hoped. Still the lovely Dovestones Reservoir is only 15 mins away, so good hill walking/running not to far away. Seeing it on Saturday was a bit of a sanity check. I really really don't want to spend more then this and the budget kept creeping up. We viewed somewhere today in a nice village, but it's 30k more and not as big anyway.

The only bit that makes me nervous is the vendor still hadn't found the place they want to buy, so it could be a while. I'm cool not moving for a bit, what worries me is its more time for things to fall through. In the circumstances would you hold off paying for a survey for a bit?

You don't really know that a buyer is serious until they spend some money, so I think you need to start organising this. It might also have some unexpected problems and the sooner you find this out, the sooner you can start searching again.

 

[kebabking]

Placed an offer this morning and it was accepted. It's really nice, but not in the Peak as I'd hoped. Still the lovely Dovestones Reservoir is only 15 mins away, so good hill walking/running not to far away. Seeing it on Saturday was a bit of a sanity check. I really really don't want to spend more then this and the budget kept creeping up. We viewed somewhere today in a nice village, but it's 30k more and not as big anyway.

The only bit that makes me nervous is the vendor still hadn't found the place they want to buy, so it could be a while. I'm cool not moving for a bit, what worries me is its more time for things to fall through. In the circumstances would you hold off paying for a survey for a bit?

I would, better to know asap if there are any problems, and as Boudicca says, not doing so tells the seller you aren't serious, so they're more likely to chin you off.

My advice would be to gird your loins to the fact that you are going to end up spaffing money away on surveys for houses you don't eventually buy.

 

[Thora]

I’d wait til the vendor has found somewhere to purchase. After the first sale fell through I waited until the second one found something (a month or so) before paying for the solicitor or survey. There’s so little available at the moment and most estate agents don’t seem to be letting people view anywhere until they’ve sold, so there’s a good risk they won’t actually find anywhere to buy.

 

[existentialist]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

 

[hash tag]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

Obviously it depends on circumstances but it is doable.

 

[bellaozzydog]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

Euro millions ?

I think that’s the only option for the majority of the population

 

[StoneRoad]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

Or inheriting from a distant relative ?

 

[AnnO'Neemus]

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.

Re your bill for £400 for planned works that you knew nothing about. They can't do that. If they are proposing to do planned works that will cost leaseholders more than £250 each, they have to serve a Section 20 Notice and consult leaseholders. If they don't follow the proper legal procedures then your contribution should be capped at £250.

What is the Section 20 consultation process for major works? - The Leasehold Advisory Service

As a leaseholder, you have the right to be consulted if your landlord wants to carry out major works funded […]

www.lease-advice.org

 

[existentialist]

Or inheriting from a distant relative ?

<logs onto ancestry.com>

 

[hash tag]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

A good loan to value will help as will a lower multiple of income. Obviously retirement age, pension forecast and expected lump sum are all taken into account. At age 58 I would imagine 15 year term would be possible.

 

[equationgirl]

A good loan to value will help as will a lower multiple of income. Obviously retirement age, pension forecast and expected lump sum are all taken into account. At age 58 I would imagine 15 year term would be possible.

The last time I did this, I couldn't get a 25 year mortgage as that would have taken me over the national retirement age. My broker told me many lenders will only lend to a term that is to the current national retirement age. It wasn't a massive deal for me at the time as it only knocked a year or two off the term.

 

[bellaozzydog]

Re your bill for £400 for planned works that you knew nothing about. They can't do that. If they are proposing to do planned works that will cost leaseholders more than £250 each, they have to serve a Section 20 Notice and consult leaseholders. If they don't follow the proper legal procedures then your contribution should be capped at £250.

What is the Section 20 consultation process for major works? - The Leasehold Advisory Service

As a leaseholder, you have the right to be consulted if your landlord wants to carry out major works funded […]

www.lease-advice.org

So my building needs 1.8 million quids worth of work due to freeholder mismanagement underspend and planning law avoidance

If we take the freeholder to a section 20 tribunal if we (leaseholders win) freeholder has to pay legal fees, which he will recover from us as service charge legal fees, if he wins we end up paying his legal fees split between each leaseholder and have to swallow the service charge increases

Currently service charges are running at 8k per annum per flat and looking to be that way for 3 years

Their is no justice if you can’t afford it

I would strongly advise anyone looking to buy leasehold in a large block to think very carefully about it, big blocks are just a revenue flow for freeholders and block management companies and when the wheels come off the little people pay

 

[Riklet]

Placed an offer this morning and it was accepted. It's really nice, but not in the Peak as I'd hoped. Still the lovely Dovestones Reservoir is only 15 mins away, so good hill walking/running not to far away. Seeing it on Saturday was a bit of a sanity check. I really really don't want to spend more then this and the budget kept creeping up. We viewed somewhere today in a nice village, but it's 30k more and not as big anyway.

The only bit that makes me nervous is the vendor still hadn't found the place they want to buy, so it could be a while. I'm cool not moving for a bit, what worries me is its more time for things to fall through. In the circumstances would you hold off paying for a survey for a bit?

Get the survey booked and crack on with showing youre serious. Dont pay for the survey up front.. only when it's done. Especially if you really stop thinking it'll go through. Then again it'll "only" be like 500 quid which isnt the main cost in the grand scheme of things.

I think its important to seem serious and comitted but never to get so attached you cant walk away. It's just a house or flat and every one has its own problems and issues. Was your offer much under asking price? Sounds brutal but once your survey comes back you may be in a position to ask for more money off if stuff comes up. But only if you're prepared to actually walk away. If you pull out based on survey results the agents are obliged to disclose why to future buyers. You can also choose to share your survey with them for free (I always would, puts you in a strong position).

 

[clicker]

UnderAnOpenSky Once you choose a surveyor and get told the price, ask them what discount would apply if you need to book another survey on another property.

 

[kebabking]

I've just had the appalling realisation that, at the age of 58, I have virtually zero chance of ever getting a meaningful mortgage again.

That's a bit of a life shock...looks like I'm doomed to renting forever, unless I marry a rich widow. Which isn't going to happen.

It depends on how proactive you're willing to be in order to bring about this happy circumstance...

 

[existentialist]

It depends on how proactive you're willing to be in order to bring about this happy circumstance...

I'm pondering a few options...of varying degrees of proactivity. I think any form of major crime is probably out of the question

 

[hash tag]

Does it need a survey or a report and valuation? The person to do this is usually chosen by the lender. It's certainly advantageous, if possible to get any additional reports done by the person nominated by the lender

 

[moonsi til]

I would get the survey booked ASAP if this is the house you want. When I was buying September 2020 the earliest survey I could get was a month. When I sold my house I didn’t believe it was going to happen or for the price offered until they had the survey done which they held off due to covid.

 

[kebabking]

I'm pondering a few options...of varying degrees of proactivity. I think any form of major crime is probably out of the question

When you say crime...

 

[existentialist]

When you say crime...

Well, I suppose there's always the option of getting elected as a Tory MP...

That, or a Breaking Bad style meth lab.

 

[UnderOpenSky]

Thanks all. It does make sense then to crack on with getting a survey, I'm pretty sure they won't find anything, one reason we like the house is that it's immaculate, we got showed round by the owner and it was obvious that he was really proud of the work that they'd had done over the years. But it's a huge amount of money, so better safe then sorry. When we were buying our first place we got close to another property and they found rising damp, so we definitely had a close escape (we gave it the vendor, not sure they were thrilled).

 

[Riklet]

Thanks all. It does make sense then to crack on with getting a survey, I'm pretty sure they won't find anything, one reason we like the house is that it's immaculate, we got showed round by the owner and it was obvious that he was really proud of the work that they'd had done over the years. But it's a huge amount of money, so better safe then sorry. When we were buying our first place we got close to another property and they found rising damp, so we definitely had a close escape (we gave it the vendor, no9t sure they were thrilled).

Of course they'll find something! And you should be pleased about it. That's their job. And it's best to know what you're up against in advance. And tbf im sure they know a lot more about houses than you.. they are looking behind the new paint job and the open plan kitchen bla bla bla.

As I said before... all houses have issues, its just inevitable. Still, you can live with a lot of them. Especially if it's ex-LA like I think you said. It is difficult but try to look beyond how it looks and consider other stuff as well as neighbours noise building work parking extent of boundaries schools energy efficiency etc. I guess it's freehold.

Surveyors are quite booked up at the moment I've heard but there are always cancellations. No benefit in waiting though.

 

[hash tag]

If it's in the peaks you might want check there is no history of mining in the immediate area

 

[Puddy_Tat]

If it's in the peaks you might want check there is no history of mining in the immediate area

if it's an area where there has been mining, the searches should pick this up, but you're spending money by then

and this assumes that the mining was done in an era when proper records were kept.

worth searching local news archives for anything that might be relevant (sinkholes etc)

 

[xenon]

After doing some digging regarding the concerns I had, mind was put at rest. Put an offer on the first place I saw. I did look at others since but that was the most suitable.

A bit of counter offer tooing and froing but has been excepted today...

Shit has got real. Got a solicitor. Same firm who handled my late da'ds property sale. need to sign docs. Speaking to mortgage brokers again this week.

I've got a niggling concern about getting hold of some of my savings but it's about the bureaucracy letters n shit. I'm sure it will be fine.

 

[xenon]

Got a few K off the asking price, nothing extreme but good.

 

[AnnO'Neemus]

So my building needs 1.8 million quids worth of work due to freeholder mismanagement underspend and planning law avoidance

If we take the freeholder to a section 20 tribunal if we (leaseholders win) freeholder has to pay legal fees, which he will recover from us as service charge legal fees, if he wins we end up paying his legal fees split between each leaseholder and have to swallow the service charge increases

Currently service charges are running at 8k per annum per flat and looking to be that way for 3 years

Their is no justice if you can’t afford it

I would strongly advise anyone looking to buy leasehold in a large block to think very carefully about it, big blocks are just a revenue flow for freeholders and block management companies and when the wheels come off the little people pay

Eek! That's steep. Luckily, my flat's in a block of three, no lift, no cladding. There's no secure parking, no CCTV, no concierge, no gym, nothing fancy - it's ex-council stock transfer to ALMO housing association, and they're pretty much all incompetent, hence when the roof was replaced my contribution was capped at £250. I think I lucked out on that score. (Although nightmare neighbours made my life hell.)

Knowing what I know now, I'd be very reluctant to buy another leasehold property.

I really feel for folks who've been sucked in and fleeced by unscrupulous freeholders.