go through with contracts?

Discussion in 'Mortgages and buying and selling homes' started by AppleSun, 14 Jun 2007.

  1. AppleSun

    AppleSun Frequent Poster

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    Last edited by a moderator: 14 Jun 2007
    Hi,
    we've bought a lovely new house. booking deposit paid. contracts have been sent to our solicitor. we had verbal agreement with the builder that he was willing to wait for remainder of 10% deposit until we had sold our current property.

    problem is market is dead and there has been no offers made on our property. it has been up for 6 weeks and has had several viewings.new property is due to be completed shortly.

    I don't want to annoy the builder as there is a demand for the house we bought. however i don't want to lose out on it either.

    we went for 92% mortgage and loan offer has been issued.

    Any advice?
     
    Last edited by a moderator: 14 Jun 2007
  2. Hel_n

    Hel_n Frequent Poster

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    Have you tried dropping the asking price of your existing property? If this hasn't worked or you are not in a position to do so, could you afford to top up your mortgage for the deposit you require on your new property and maybe switch the repayment to interest only until you find a buyer?
     
  3. CCOVICH

    CCOVICH Frequent Poster

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    Don't buy what you can't afford.

    Would there be rental demand for you existing property (bear in mind possible stamp duty clawback)?

    Why do you feel that there is demand for your new property but not your existing property?
     
  4. AppleSun

    AppleSun Frequent Poster

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    I have dropped the price already. EA says however it's not a price issue. so any further drops will not make any impacts. it is now at 15k below other similar properties in the area. it's also only a year old so is in excellent condition.

    One of the stipulations for the loan offer was that we must sell our previous property in order to get the mortgage for the 2nd property. So renting is not an option at this point.

    We can afford it, as long as we sell the current property.

    the house that we chose is in a small development, very highly finished and they sold out very quickly. we beat another couple by about 3 minutes when we paid our booking deposit.
     
  5. pinkie123

    pinkie123 Frequent Poster

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    builder may be sympathetic - you never know. Might give you more time.
     
  6. Hel_n

    Hel_n Frequent Poster

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    If this is the case then it doesn't look as if there's much that you can do. Would you not consider letting this new house go?
     
  7. CCOVICH

    CCOVICH Frequent Poster

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    Don't sign contracts-not what you want to hear, but the only sensible course of action.
     
  8. AppleSun

    AppleSun Frequent Poster

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    obviously would prefer not to...already chosen kitchen/fireplace/ builder painting in our chosen colours etc...
     
  9. Hel_n

    Hel_n Frequent Poster

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    Well then, have you looked at the possibility of renting your existing property? Do you feel you could afford two mortgages, factoring in rental voids and interest rate increases? If so, then you could approach your lender. By taking projected rental into account your lender may remove the condition of selling your house fom the loan offer, but this will all depend on you meeting their affordability criteria.
     
  10. CCOVICH

    CCOVICH Frequent Poster

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    Given

    I don't think that option is open?
     
  11. AppleSun

    AppleSun Frequent Poster

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    i would get about 90% of my mortgage payments on current property cvovered if i rented it out. I would need to make up the difference myself. we didn't really ask the lenders about keeping mine as we had gone for a 92% mortgage using the proceeds of the sale to fund the deposit.

    as i stated perviously, lender then wrote in a stipulation stating that i must close down my previous mortgage before they would give us the new mortgage.

    plus as it's only been my PPR for 1 year, I would have to pay SD clawback.
     
  12. Hel_n

    Hel_n Frequent Poster

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    But when the OP originally approached their lender they were intending to sell. By taking in projected rental income they may be able to keep their existing property. The OP may not qualify for two mortgages, and they may not even want to, I was just pointing out that this may be an option worth considering.
     
  13. CCOVICH

    CCOVICH Frequent Poster

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    As did I...
     
  14. bacchus

    bacchus Frequent Poster

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    Re: Advice sought for sale of Apt

    Yes, it is, as this is linked to affordability.
    If you put it on the market at €100k and it will sale tomorrow. Well, give me a call first and it will sale today ;)
     
  15. badabing

    badabing Frequent Poster

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    Go to a different lender, the one bank does'nt too much risk from you, a good broker will sort you out, PM me for suggestions
     
  16. AppleSun

    AppleSun Frequent Poster

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    thanks guys. i may look into renting, though i really didn't want to have to have tha hassle of becoming a landlord. we would still have the issue of getting the deposit as this was coming from the sale previously.

    I guess this doesn't sound good at all, its starting to look like i may as well relinquish my interest in the new house. :(
     
  17. AppleSun

    AppleSun Frequent Poster

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    have an excellent broker already. thanks anyway!
     
  18. AppleSun

    AppleSun Frequent Poster

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    Re: Advice sought for sale of Apt

    ha ha!!! i've already dropped mine 15k, can't afford to drop it anymore.

    sure if we couls all drop to 100k, it'd be great! not actually realistic though is it! some of us have mortgages to pay off!!! :D
     
  19. gravitygirl

    gravitygirl Frequent Poster

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    Re: Advice sought for sale of Apt

    i think the vast majority of people looking to buy these days use myhome and daft tbh - more than would pick up the property supplements.
     
  20. bacchus

    bacchus Frequent Poster

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    Re: Advice sought for sale of Apt

    May be it is time to accept that negative equity does exist even in Eire....

    Are you selling because you have bought an other property? if that the case, it would be fair to expect to get the same % discount on the new place as you are giving away on your current one. Net result is that you will have less debts...