Houses

[Ian Nacho]

Just had an update from my solicitors on the flat I’m buying and there’s a couple of issues relating to the deed of variation. The flat doesn’t have one and the seller is buying an indemnity to cover this and speed up the purchasing process. I’m a little ensure whether the right thing is to accept this indemnity or chase the deed of variation (which is likely to lead to the collapse of the sale). I understand that without the deed of variation it may be harder for future buying to get a mortgage on the flat and the conveyancing landscape may change which could cause some challenges. The main questions I have at the moment are 1) can I extend the lease without a deed of variation?, and 2) can I get a deed of variation after completion?

[grobyfox1990]

7 minutes ago, Ian Nacho said:

Just had an update from my solicitors on the flat I’m buying and there’s a couple of issues relating to the deed of variation. The flat doesn’t have one and the seller is buying an indemnity to cover this and speed up the purchasing process. I’m a little ensure whether the right thing is to accept this indemnity or chase the deed of variation (which is likely to lead to the collapse of the sale). I understand that without the deed of variation it may be harder for future buying to get a mortgage on the flat and the conveyancing landscape may change which could cause some challenges. The main questions I have at the moment are 1) can I extend the lease without a deed of variation?, and 2) can I get a deed of variation after completion?

Im extending a lease right now. My only advice would be: do not buy a leasehold property, its been one issue after another, this lease extension has been going on for over 1.5 years now.

 

That advice probably isn't realistic for you now, but do some serious due diligence and take your time, there's no rush, if the seller is buying indemnity to cover this they clearly want to sell.

[FoyleFox]

Although others here may have had similar experiences, I think those might be questions best answered by your Solicitor. Did they not give you advice when they called with this update?

[Spudulike]

On 30/03/2022 at 10:03, Tommy G said:

I have to agree with you - tradesman have had a good time from 2020 until now, I think people will be looking at their finances and saying shall we get that new bathroom this year? Shall we do the patio? etc, I think a lot of people will hold tight, especially after the autumn. I had an extension built during the pandemic. The bricklayers I started with were £160 a day, by the time we finished it was £200 a day, in the space of 6 months..........I suspect now everything will start to slow down - I know you don't want to hear that being in a trade yourself but I think people will only start to spend the cash on home improvements above the necessities when the economic worry starts to ease. 

I'm currently having a single storey side extension built to create an open plan kitchen/diner/sitting room with bifolds etc. Took yonks to get to this point with planning, TPO etc and to find a suitable builder that could even start this year. I must be paying well over the odds but can't wait for ever. No sign that things will improve in the foreseeable so it's a case of now or never for us. The serious stuff of knocking down walls starts soon so will probably be regretting ever starting this project! 

[grobyfox1990]

8 minutes ago, Spudulike said:

I'm currently having a single storey side extension built to create an open plan kitchen/diner/sitting room with bifolds etc. Took yonks to get to this point with planning, TPO etc and to find a suitable builder that could even start this year. I must be paying well over the odds but can't wait for ever. No sign that things will improve in the foreseeable so it's a case of now or never for us. The serious stuff of knocking down walls starts soon so will probably be regretting ever starting this project! 

That sounds really nice. It may be over the odds now but it’s a long term game, the investment should pay off in regards to house price increase

[FoyleFox]

On 30/03/2022 at 10:03, Tommy G said:

I have to agree with you - tradesman have had a good time from 2020 until now, I think people will be looking at their finances and saying shall we get that new bathroom this year? Shall we do the patio? etc, I think a lot of people will hold tight, especially after the autumn. I had an extension built during the pandemic. The bricklayers I started with were £160 a day, by the time we finished it was £200 a day, in the space of 6 months..........I suspect now everything will start to slow down - I know you don't want to hear that being in a trade yourself but I think people will only start to spend the cash on home improvements above the necessities when the economic worry starts to ease. 

I thought the same with regard to everyone tightening their belts, but every other house you drive by still has a skip, scaffold or builder's gear outside. And availability of tradesmen is still difficult.

 

11 minutes ago, Spudulike said:

I'm currently having a single storey side extension built to create an open plan kitchen/diner/sitting room with bifolds etc. Took yonks to get to this point with planning, TPO etc and to find a suitable builder that could even start this year. I must be paying well over the odds but can't wait for ever. No sign that things will improve in the foreseeable so it's a case of now or never for us. The serious stuff of knocking down walls starts soon so will probably be regretting ever starting this project! 

It will be worth it. The next few months will be inconvenient, microwave meals, washing up in the bath and dusty (so very dusty) but it will be forgotten about once complete. At least it's the summer. We spent Nov - Feb with doors missing, large holes in the ceiling for the acro props etc, etc when we had 3 walls out for the kitchen/dining/utility remodel. Now it's all complete and makes life so much better, the build is a dim memory. Although some days I do still expect to see the builder in his temp workshop aka the conservatory! Hopefully, he'll actually be back soon to rip out the bathroom

[Spudulike]

59 minutes ago, grobyfox1990 said:

That sounds really nice. It may be over the odds now but it’s a long term game, the investment should pay off in regards to house price increase

Looks good on the plans but difficult to visualise. It's adding almost an extra 30sq2 metres so going to make a difference. Not really worried about the added value as that will be more of a concern for the kids when they inherit it (unless the care homes gets it first!). 

 

39 minutes ago, FoyleFox said:

I thought the same with regard to everyone tightening their belts, but every other house you drive by still has a skip, scaffold or builder's gear outside. And availability of tradesmen is still difficult.

 

It will be worth it. The next few months will be inconvenient, microwave meals, washing up in the bath and dusty (so very dusty) but it will be forgotten about once complete. At least it's the summer. We spent Nov - Feb with doors missing, large holes in the ceiling for the acro props etc, etc when we had 3 walls out for the kitchen/dining/utility remodel. Now it's all complete and makes life so much better, the build is a dim memory. Although some days I do still expect to see the builder in his temp workshop aka the conservatory! Hopefully, he'll actually be back soon to rip out the bathroom

We've been warned about the upheaval that is shortly coming our way. Can't wait 

 

Seems to be going OK so far. Foundations dug very deep due to a TPO'd tree, footings in and timber joists installed. Brick layers turn up on Monday and we have a nice Andy loo in the front garden along with a skip and assorted builders stuff. Managed to upset a very aggressive neighbour already as the concrete lorry splashed his sons car. He thought that he could intimidate me but decided not to approach the builders! 

[Spudulike]

On 29/03/2022 at 16:52, BKLFox said:

I bet there are a few on here that remember paying rates of 12-15% in the early 90s.
Whilst its harder to get on the ladder due to the larger deposit required now, the overall affordability of owning ya own home is better today than in the 1990s

I remember when our mortgage rate went up to 17%! Black Wednesday was frightening. I had colleagues at work basically thinking they had to throw in the towel and hand over their house keys to the bank. 

[Ian Nacho]

Think I’m going to go ahead with getting the deed of variation on the lease even though it may make the deal fall through. I’m going to want it at some point anyway so best do it when I don’t actually own the property and can back out if necessary. 

[Sly]

On 22/04/2022 at 15:52, Ian Nacho said:

Just had an update from my solicitors on the flat I’m buying and there’s a couple of issues relating to the deed of variation. The flat doesn’t have one and the seller is buying an indemnity to cover this and speed up the purchasing process. I’m a little ensure whether the right thing is to accept this indemnity or chase the deed of variation (which is likely to lead to the collapse of the sale). I understand that without the deed of variation it may be harder for future buying to get a mortgage on the flat and the conveyancing landscape may change which could cause some challenges. The main questions I have at the moment are 1) can I extend the lease without a deed of variation?, and 2) can I get a deed of variation after completion?

What is the deed of variation for? 

[Ian Nacho]

On 26/04/2022 at 07:47, Sly said:

What is the deed of variation for? 

It’s to cover for a defect in the lease agreement surrounding a clause where the freeholder can repossess the property. 

[Ian Nacho]

Now that my flat purchase is looking like it may be falling through, I’m starting to look into the shared ownership route. My circumstances are a bit weird, I have a sizeable deposit for a first time buyer (90k) but I’m on a fixed term contract on a fairly low salary (20k); I’m pretty confident that I will be made permanent which will result in a pay rise but of course I have no way of evidencing this. My thinking is that I could just purchase a share of a house without the need for a mortgage and then I can staircase and get a mortgage when my employment situation improves. Has anyone got any experience in shared ownership?

[FoyleFox]

Why will pursuing the deed of variation cause the sale to collapse? Is it just due to the sellers not wanting to wait? This would seem shortsighted, it'll take longer to get another buyer and then the same situation may arise with that buyer. 

 

A friend bought using shared ownership, possibly a similar financial situation. Large deposit due to divorce and equity from marital home but a reduced salary due to part time work. It worked well for actually getting a suitable home for the family. However, further down the line found there are a lot of restrictions in options. Couldn't rent out when wanting to move in with a new partner and now has complications with selling. Although I'm not sure what they are precisely.

 

If you can buy without it, I'd say that's a better option. How long will it be until you're made permanent? 

[Ian Nacho]

9 hours ago, FoyleFox said:

Why will pursuing the deed of variation cause the sale to collapse? Is it just due to the sellers not wanting to wait? This would seem shortsighted, it'll take longer to get another buyer and then the same situation may arise with that buyer. 

 

A friend bought using shared ownership, possibly a similar financial situation. Large deposit due to divorce and equity from marital home but a reduced salary due to part time work. It worked well for actually getting a suitable home for the family. However, further down the line found there are a lot of restrictions in options. Couldn't rent out when wanting to move in with a new partner and now has complications with selling. Although I'm not sure what they are precisely.

 

If you can buy without it, I'd say that's a better option. How long will it be until you're made permanent? 

Yeah the seller doesn’t want to wait the time it could take to get the deed of variation. 
 

 

It could be another 12 or so months before I get made permanent. 

[Heathrow fox]

12 hours ago, Ian Nacho said:

Now that my flat purchase is looking like it may be falling through, I’m starting to look into the shared ownership route. My circumstances are a bit weird, I have a sizeable deposit for a first time buyer (90k) but I’m on a fixed term contract on a fairly low salary (20k); I’m pretty confident that I will be made permanent which will result in a pay rise but of course I have no way of evidencing this. My thinking is that I could just purchase a share of a house without the need for a mortgage and then I can staircase and get a mortgage when my employment situation improves. Has anyone got any experience in shared ownership?

Radio 4s Money Box was talking about shared ownership today.

[VLC86]

I feel sorry for anyone buying a house or wanting to get on the housing ladder at the minute. Banks are factoring in huge increases in the cost of living as well as increased National Insurance contributions which is going to make it very difficult for anyone whose in come was marginal before.

[Greg2607]

17 hours ago, Ian Nacho said:

Yeah the seller doesn’t want to wait the time it could take to get the deed of variation. 
 

 

It could be another 12 or so months before I get made permanent. 

in all honesty mate, i'd wait 6 months.... 

 

I think we are at "peak housing market" right now...  all of the economic signs point to a recession, cost of living is biting and houses sales will slow, with prices reducing. 

 

back in 2008 i bought 3 weeks before Northern Rock went bankrupt and spent the next 5 years in negative equity and pretty much 8 years before i could re-mortgage as I didn't have enough equity to do so. 

 

Houses prices at the current income / price ratio's are unsustainable. 

 

[VLC86]

11 minutes ago, Greg2607 said:

in all honesty mate, i'd wait 6 months.... 

 

I think we are at "peak housing market" right now...  all of the economic signs point to a recession, cost of living is biting and houses sales will slow, with prices reducing. 

 

back in 2008 i bought 3 weeks before Northern Rock went bankrupt and spent the next 5 years in negative equity and pretty much 8 years before i could re-mortgage as I didn't have enough equity to do so. 

 

Houses prices at the current income / price ratio's are unsustainable. 

 

This ties into my post above. I think it looks inevitable that people will have to stop demands for high prices due to lenders being less forgiving.

Then again, being accepted for a mortgage as of today was harder than a month ago so don’t discount that as well. The cost of living is taking a huge chunk of what is deemed to be left at the end of the month.

Edited 28 April 2022 by Costock_Fox

[VLC86]

On 22/04/2022 at 15:52, Ian Nacho said:

Just had an update from my solicitors on the flat I’m buying and there’s a couple of issues relating to the deed of variation. The flat doesn’t have one and the seller is buying an indemnity to cover this and speed up the purchasing process. I’m a little ensure whether the right thing is to accept this indemnity or chase the deed of variation (which is likely to lead to the collapse of the sale). I understand that without the deed of variation it may be harder for future buying to get a mortgage on the flat and the conveyancing landscape may change which could cause some challenges. The main questions I have at the moment are 1) can I extend the lease without a deed of variation?, and 2) can I get a deed of variation after completion?

Working for a lender, if the solicitor have recommended that it will cover you and in theory shouldn’t cause you too many issues 

[Ian Nacho]

My flat purchase has fallen through due to the seller not wanting to wait for the deed of variation, which seems odd considering we we're over 4 months in. Not too sure I'm going to take the flat route again as I could just come across this issue again, but I've not really got enough funds (I have enough of a deposit but I can only get a small mortgage) to buy a house. Only other options are the shared ownership route which I hear may be problematic, or I rent until I can get a larger mortgage.

[rachhere]

13 minutes ago, Ian Nacho said:

My flat purchase has fallen through due to the seller not wanting to wait for the deed of variation, which seems odd considering we we're over 4 months in. Not too sure I'm going to take the flat route again as I could just come across this issue again, but I've not really got enough funds (I have enough of a deposit but I can only get a small mortgage) to buy a house. Only other options are the shared ownership route which I hear may be problematic, or I rent until I can get a larger mortgage.

Sorry to hear that. I bet you are in a new place before they have sold theirs as what you were after is completely reasonable and they are just going to encounter the same issues again.

 

What about more of a small do-it upper that you can get at a cheaper price and then gradually upgrade. I was in a pretty similar position to you when I first bought (I was on a fixed term contract and had inherited a reasonable sum which paid for about half the house), and went about it that way - absolutely no regrets. I bought at a really peak time when houses were snapped up within a day, but found a place that had been overpriced and sat on the market for a while, put in a cheeky offer and they went with it. 

[Ian Nacho]

7 minutes ago, rachhere said:

Sorry to hear that. I bet you are in a new place before they have sold theirs as what you were after is completely reasonable and they are just going to encounter the same issues again.

 

What about more of a small do-it upper that you can get at a cheaper price and then gradually upgrade. I was in a pretty similar position to you when I first bought (I was on a fixed term contract and had inherited a reasonable sum which paid for about half the house), and went about it that way - absolutely no regrets. I bought at a really peak time when houses were snapped up within a day, but found a place that had been overpriced and sat on the market for a while, put in a cheeky offer and they went with it. 

I'm on a fixed term contract in a profession that is new to me which is the thing that's holding me back mortgage-wise even. I'd be struggling to even afford a do-it upper at 140k for example even with a 35% LTV.   

[Tommy G]

Base rate creeping up to 1% today. This should show demand down in the housing market and add to the cost of living crisis for those on variable rate mortgages and in other forms of unsecured debt.

 

Locking in a 5 year deal as 2.06% seems like a bargain now, it didnt a few months ago

[Bellend Sebastian]

5 minutes ago, Tommy G said:

Base rate creeping up to 1% today. This should show demand down in the housing market and add to the cost of living crisis for those on variable rate mortgages and in other forms of unsecured debt.

 

Locking in a 5 year deal as 2.06% seems like a bargain now, it didnt a few months ago

You timed that well. I locked in on the 3 of my five (5!) mortgages yesterday that I can switch (the other 2 are little so not too bothered).  I think the rate was about 3% (someone else did it for me, wasn't really paying attention).

 

Got 9 years to go, just want to get the blooming thing paid off now

[rachhere]

I fixed at 1.34% for five years just under two years ago now. Kind of wishing I went for a slightly higher rate over ten! But sounds like overall we are on a decent rate. We are part way towards saving for a new kitchen, and then I really want to aim to make some overpayments on our mortgage to get it down as quickly as possible. I put in for promotion this year, and if I get that (sounds hopeful), I think I will put any extra earnings straight into the mortgage before I get used to having it.