How do you finance a house move before you have sold yours ?

[BADGER.BRAD]

Hello all,

I am considering moving house but wondered what my options are for doing this ? I have never moved from a house that I own to another so wondered how this is done.Is it just a case of saying I'm going to buy the new house and waiting to sell mine ?

Thanks all.

 

[Dirk]

Hello all,

I am considering moving house but wondered what my options are for doing this ? I have never moved from a house that I own to another so wondered how this is done.Is it just a case of saying I'm going to buy the new house and waiting to sell mine ?

Thanks all.

Drop in to an Estate Agent and ask them.

 

[annedonnelly]

You used to be able to get a bridging loan to cover the period in between sales. I don't know if that's still an option.

Is that why the chains are such a nightmare? Having to get everyone to complete their purchase on the same day.

 

[nickyboy]

You won't get a bridging loan unless your sale is 100% definitely going through and it's just a timing issue

Unless you're downsizing to the extent that you can obtain a short term loan secured on your existing property which is large enough to buy your next property, you're in a chain. Just like most people

 

[vickster]

You used to be able to get a bridging loan to cover the period in between sales. I don't know if that's still an option.

Is that why the chains are such a nightmare? Having to get everyone to complete their purchase on the same day.

I'm sure you can but they are usually extremely expensive interest rate wise. Risky unless you know you'llmhave the funds in a matter of weeks max

As above, sell yours buy the other, move out of old and into new on same day is the most usual way. Or you can sell one, rent while you find one to buy

Your existing mortgage should be portable to the new property if you buy and sell concurrently. Or you can find a new deal, although there are often fairly sizeable arrangement fees to get the best exchange rates. Talk to a mortgage advisor (although you say you won the house...outright?) if so you can get a mortgage on the new one and do what what you will with the current

 

[Julia9054]

Both times I have done it there has been some hold up transferring money down the chain that has meant that my removal van has been sitting outside the new house unable to unload and it has been touch and go whether I was going to get the keys before close of business. Both times I have ended up forking out overtime for the removers and once was nearly homeless for the night with a 5 and 7 year old in tow.
It's very stressful!

 

[alicat]

Depends whether it's a buyers' or a sellers' market to some extent. The most common thing to do is to find a buyer for yours then find something to buy and insist that the sale and purchase happen at the same time. That way you can move your mortgage across if you want to.

Drop in to an estate agent or three and ask them for a valuation. They will guide you from then on.

 

[subaqua]

You need to be “ proceedable” which means yours has a firm offer before even thinking about making an offer on the new property . After that it’s dependent on chains etc

 

[BADGER.BRAD]

Thanks all for the info, much appreciated. I should have mentioned that the new house would be 200 miles away just to add to the nightmare and I may end up keeping the Job where I am for a short while while I find a job at the new location or a possible transfer is sorted, this wouldn't be too much of a problem as I own another property local to me that my daughter lives in and as long as I have the new house for my wife and dogsI'd be o.k. I have seen a few with no onward chain which I presume would give me more flexibility. I will pop into a local estate agent as suggested and find out my options.

Thanks again

ps i own my house out right

 

[Drago]

I did it with money.

 

[srw]

ps i own my house out right

In that case you just get a mortgage.

 

[screenman]

I did it with money.

So did I, just so you do not feel lonely.

 

[sheddy]

see if your library has this, a few years old, but well worth a read
https://www.amazon.co.uk/Home-Buying-Selling-Manual-Successfully/dp/1844255352

 

[Drago]

So did I, just so you do not feel lonely.

There's no secret. I thought "Hhhmm, I want to move house but there will be some upfront expenses, and I can't access the equity in the property until the deal is complete. Going to have to get savi g and spank the overtime. Shame, but I'm going to have to wait a while.". Could have got a loan, but resent paying interest if I dont have to.

 

[HarryTheDog]

Not a lot of help with your specific question ie bridging type loan but I decided I was in a much better buying position if I had cash so sold first, rented, looked about then bought, the guy I bought from did the same. Both of us thought it was a better way as we were not rushed into decisions and a seller would prefer us as no chain. Before then I had 2 offers refused ( asking price offered) as I would be in a chain, once I was a cash buyer I found I could bargain and seller came down on price as instant cash on offer.