Moving to land

[CazzaWazza]

Hi. We, after years onboard, are thinking about selling our boat and buying a house (for a number of reasons, none of which are the topic). I’m wondering if anyone has done this before as usually it seems the other way around. We both have good jobs, a permanent mooring (so a council tax/electoral roll record, etc for a mortgage app) but the problem is we’ve never lived in a house. So we thought the only way to do it was to sell the boat, move into a rented house and then use the sales money for a deposit when we find the house we want. But recently I’ve looked up ‘sales chains’ and am wondering if we’d be able to be pre-approved for a mortgage and use the boat the same way as an unsold house. Has anyone any experience of this? To be clear, my research makes me think we could say that the boat is worth £x amount and were mortgage free, so we’d be pre-approved, could make an offer on a house, and then sell the boat and when it sells, finalise the purchase on the house with the balance from the boat sale plus the mortgage.... any other experiences or advice greatly received. Thanks. 

Also, the reason we don’t want to move into rented accommodation is we have multiple dogs and very little furniture so it would be difficult to find someone to rent us a furnished house or garden apartment with animals... though not impossible of course, and if worst comes to worst we’d do it as although it may seem ‘wasted money’ for rent, that’s essentially what our mooring fees are at the moment. Thanks in advance for any advice. 

[Phil.]

What you are asking is feasible in that you could obtain pre approval for a mortgage thereby establishing how much the mortgage company will loan you subject to your earnings. You will also be told what the maximum loan to value amount is that they will lend against. This figure will then allow you to establish the maximum value house you can purchase including the deposit you would need to pay, which will presumably be from the sale of your boat. The value of the baot won't be of any interest to the mortgage company, as it is not an asset the loan will be secured on. Just one point to consider re keeping the boat until you find somewhere, you are then relying on selling the boat quickly to realise your deposit funds, and if unable to sell reasonably quickly you could lose the purchase of the house, if they are not prepared to wait.

[CazzaWazza]

Ah thanks Phil. So I guess it could turn into a matter of how long it would take to sell the boat (how long is a piece of string)....!? We’ve only just started investigating this after a few set backs/illnesses/career changes/realizations/family problems etc etc so any advice is very welcome amidst the chaos. Think when we get closer to actually doing it (maybe 6-12months time when my wages go up) then we’ll consult a mortgage advisor/financial planner properly but in the meantime any and all advice or experience about what to expect, or tips and hints is helpful - especially as neither of have ever bought a house before and our families are either out of the country or bought their houses so long ago it’s just not relevant! So thanks again Phil and to any more advice thanks in advance. 

[Boater Sam]

Rent on a property will be much more than your mooring fees in a similar area, Your mortgage payments will be a similar amount as rent on a long mortgage but due to age, you may have to accept a shorter term, hence larger payments but less interest paid overall.

[CazzaWazza]

Thanks Sam but we currently pay almost £300/mo for our mooring fees not including electric or gas or anything other than water really (and obvs license for a 70 footer) so amounts to about £400/mo w/o bills or anything and they’ve raised it 3.8% evey yr for the last 3yrs. And I am only 36 so probably don’tmeed to worry too much, though my husband is 52.... 

Sorry, cut that of too soon. In our area a 2 bed house with a garden rents for about £500-600/mo but most are either unfurnished or don’t want pets. Plus it means 2 moves which is grim and expensive. 

[CazzaWazza]

Does being 36 make me qualify as old? Or do they take a ‘average age’ or what?

[Boater Sam]

Keep the boat, if you are anywhere south you are in for a big shock when you find out how much water, heating, council tax etc. cost on the land. And retire, at 52 its time to stop for hubby.

[CazzaWazza]

Oh no we aren’t either of us retired at all. He’s got til 68 and I’m not til at least 60. There are other familial/health complications which mean we just need some more space, long-term-security and something that isn’t essentially renting (which is what mooring fees are) for the rest of our lives as it’s gonna be decades until we can cc. 

[Boater Sam]

Retiring is not a number of years dictated by a state pension age, its when you are young enough to enjoy not working and having good health.

The government would love us all to graft till their appointed date and probably drop dead 2 days later or even sooner then they would not have to pay out.

[CazzaWazza]

Totally agree in spirit, but unfortunately and very sadly my and my oartners

 bank balance would probably have other things to say. 

[GUMPY]

When we bought a house at aged 60 we cashed in my life insurance for the deposit got a 15 year mortgage and kept the boat. Six months later we downsized the boat and paid 50k off the mortgage. Still have the boat and were mortgage free before we retired last year.

What I am saying is look for another funding source for the deposit. 

 

ETA

We are finally moving off the boat and into the house next month 7 years after buying the house.

Edited February 20, 2019 by Loddon

[LadyG]

4 hours ago, CazzaWazza said:

Totally agree in spirit, but unfortunately and very sadly my and my oartners

 bank balance would probably have other things to say. 

You cannot be sure how things will work out over the next twenty five years, things happen: to you, your circumstances, your aspirations, opportunities, The World.

When I started work I was 12 [saturday job of course], I have worked in numerous jobs, aside from those on my c.v. Best way of saving, is to have three jobs [happened by accident], started about 07.00 and finished 23.30, it was tricky fitting in time to bank the cash, no time to spend it, and as I worked in a very quiet hotel  bar, they usually fed me if they needed me to cover staff holiday etc.

You need to save hard short term if you are dependant on your own resources, best thing is to have more work time, less spend time. Cut out the pub meals/take outs/ad lib alcohol/general overspending.

With respect to retirement, it depends more on how you cope with work, it can be very stressful if you are working only for £s and have no job satisfaction. You may not last the term decreed by Government engineering.  You can never be sure of a guaranteed steady and predictable income stream from today till Retirement Day, it won't happen like that.

This country is expensive to live in, in the future you may find you have enough capital to retire to a Dacha, or some such, rather than struggle with working in the UK, stacking shelves for the final five years.

You may decide to rent out your house while you travel the continent in a campervan assuming you still have the spirit of adventure and good health. 

Edited February 20, 2019 by LadyG

[Tuscan]

I would speak to a  mortgage broker to get a feel for how much you could borrow and the repayment cost. The age of your husband may limit the repayment term available and therefore increase the cost. This will give you the figures to check out your options.  Good Luck.

[Fender151]

Regarding the situation with owning pets and finding rental properties, this is not a black and white situation, despite what the letting agents conditions say on the property details, I.E.  No pets, smokers, etc this is standard paragraph included in the conditions and not necessarily the owner's conditions.

Most landlords issues with pets are concerning the state of the property on-hand back and neighbour complaints about the pets during the tenancy.

Typically a house that has had pets requires more cleaning internally, potential damage to furnishings and potentially garden landscaping on hand back, which means more cost.

If you offer to provide a higher deposit or agree to cover all reasonable referb costs incurred, then some landlords would accept pets.

Provisor being the breed and nature of pets, you do need to get the agent on your side to make this work, typically the agents are looking for a quick easy hassle free contract, if the property is highly desirable, your chances are lower, there will be a waiting list of template potential applicants, but try and find a property that works for you and has been vacant for a while.

You may find the smaller independent letting agents are more likely to be open to accommodate you.  

I would agree with the advice previously given,  if at all possible, keep the boat for an interim period, if you can manage it financially, and make sure bricks and mortar work for you, it is a different lifestyle, 

Good luck.

 

 

 

 

[Captain Pegg]

Make an appointment with the bank. They will make you an offer in principle based upon an assessment of your ability to repay. It will probably also be limited in term to your husband's 75th birthday.

 

I can't see why you shouldn't move directly from boat to house but the general practice in house sales is to buy and sell in parallel rather than sequentially. These are time consuming processes and if you offer while not being seen to be in a position to move forward you will be on the back foot. To a house seller waiting for someone to sell a boat may seem like a risk as it will be an unknown to them.

 

If you end up with an offer on the boat before you have a house available maybe then you can weigh up renting. Probably best to let things happen naturally than try to pre-empt them.

 

JP

[Naughty Cal]

4 minutes ago, Captain Pegg said:

Make an appointment with the bank. They will make you an offer in principle based upon an assessment of your ability to repay. It will probably also be limited in term to your husband's 75th birthday.

 

I can't see why you shouldn't move directly from boat to house but the general practice in house sales is to buy and sell in parallel rather than sequentially. These are time consuming processes and if you offer while not being seen to be in a position to move forward you will be on the back foot. To a house seller waiting for someone to sell a boat may seem like a risk as it will be an unknown to them.

 

If you end up with an offer on the boat before you have a house available maybe then you can weigh up renting. Probably best to let things happen naturally than try to pre-empt them.

 

JP

It was in the news a few weeks ago that some lenders are now willing to lend beyond the 75th birthday. 

[GUMPY]

40 minutes ago, Captain Pegg said:

It will probably also be limited in term to your husband's 75th birthday

As my offer of a mortgage from Nationwide was, we had to complete the sale the day before my 60th birthday.

[Bod]

2 hours ago, Tuscan said:

I would speak to a  mortgage broker to get a feel for how much you could borrow and the repayment cost. The age of your husband may limit the repayment term available and therefore increase the cost. This will give you the figures to check out your options.  Good Luck.

+1 from me.

Find out from the horses mouth, just what the mortgage situation is for you, whilst you are at the planning stage.

 

Bod

[David Mack]

8 hours ago, CazzaWazza said:

...my and my oartners...

 

Is yours a rowing boat?

?

[CazzaWazza]

???

[Horace42]

2 hours ago, David Mack said:

 

Is yours a rowing boat?

?

Only when they argue.......!

[Horace42]

It is a bit of a long-shot, but what chance of finding someone who wants sell their house and buy a boat to live on.... a sort of part exchange.

 

Apart from that, you seem to be in the position of every first time buyer (you need enough ready money for a deposit on exchange of contracts - which means you lose it if the sale falls through because the chain collapses - yet still liable to pay the full price on completion.

 

So it is not a good idea to exchange contracts until you have money for your deposit - possibly by way of a 'guaranteed' loan with your boat as security - where the mortgage lender will almost certainly want you to find a buyer 'ready, willing and able' to enter into binding legal contract - then you become part of a chain - thus much the same if your boat was a house.

 

[Momac]

14 hours ago, Boater Sam said:

And retire, at 52 its time to stop for hubby.

Not many people can do that.

[CazzaWazza]

Thanks so much for all the info people. It’s very very helpful and gives me slightly better ideas of what to think about and what to ask the money gods... I mean bankers when it comes to it. Really appreciate it!!

[Bod]

Do I understand correctly, at present you are on a fully residential mooring?

If your mooring is transferable, then depending where in the country you are, then a p/x might be possible.

 

Bod