Moving to land

[LadyG]

7 hours ago, Horace42 said:

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.

 

me me me, but I fancy that they don't want to live in Toytown, Scotland.

 

Edited February 20, 2019 by LadyG

[jonathanA]

7 hours ago, Horace42 said:

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

That’s a new one on me. I don’t think there is any money changed on exchange of contracts, only on completion at least in England. If the chain collapses and can’t be sorted then worst case you would be liable for any legal costs incurred by you.

 

The deposit I think your talking about is the buyers contribution ie the difference between the buy

price and the mortgage offer.

 

Strikes me the OP is potentially in a good position as a first time buyer and could be able to use one of the first time buyer schemes. 

 

 

 

[Richard10002]

26 minutes ago, jonathanA said:

That’s a new one on me. I don’t think there is any money changed on exchange of contracts, only on completion at least in England. If the chain collapses and can’t be sorted then worst case you would be liable for any legal costs incurred by you.

 

The deposit I think your talking about is the buyers contribution ie the difference between the buy

price and the mortgage offer.

 

Strikes me the OP is potentially in a good position as a first time buyer and could be able to use one of the first time buyer schemes. 

 

 

 

Upon exchange of contracts in England, the standard contract allows for a 10% refundable deposit which is forfeit if you fail to complete. I also believe that, if the sellers losses are greater than the 10% held, you are also liable for these, but the seller will have to pursue you for them.

 

Clearly, during negotiations, the standard terms can be negotiated and, in cases where a first time buyer only had a 5% deposit, this was usually accepted at exchange and, occasionally, where a 100% Mortgage was being obtained, some sellers agreed to exchange contracts with no deposit.

 

These days, there are not many mortgages granted with less than a 10% deposit, (some, but not many), so there is usually 10% available for a deposit.

 

It is very rare for a sale to fail to complete once contracts have been exchanged, so there isn’t a great deal of risk in exchanging with little or no deposit. In 30 years, and probably thousands of deals passing across my various desks, I have only ever experienced one deal which failed to complete after an exchange of contracts.

[Richard10002]

In the current market, if a buyer with a property to sell in order to fund part, or all, of their purchase, has not at least got a sale agreed, with a complete chain of sales agreed, their offer would not be considered by my agency, and most agencies, (in my experience). “come back when you’ve sold your property” is generallybthe advice given.... in the nicest way  

 

So, if you make an offer for a property, which is subject to the sale of your boat, and your boat is not sold/under offer, your offer will probably not be considered. If it is, you are probably the only show in town for that particular property, which might have you wondering why.

 

 My experience of boat sales is that they happen quite quickly... a few weeks or so. Whereas, from offer to completion, house sales seem to average about 3 months.

 

The upshot being that you will almost certainly need to sell your boat, get the money in the bank, get your mortgage offer in principle, and rent somewhere for the short term.

 

Lots of people try the way that suits them best, and some get lucky. Others try a few times, find it doesn’t work, and change their approach.

[jonathanA]

Every day is a school day...

 

the point is, as you say the chances of losing your deposit is very small.

[Horace42]

13 hours ago, jonathanA said:

That’s a new one on me. I don’t think there is any money changed on exchange of contracts, only on completion at least in England. If the chain collapses and can’t be sorted then worst case you would be liable for any legal costs incurred by you.

 

The deposit I think your talking about is the buyers contribution ie the difference between the buy

price and the mortgage offer.

 

Strikes me the OP is potentially in a good position as a first time buyer and could be able to use one of the first time buyer schemes.

You could be right, perhaps no money changes hands until completion, in the sense that the seller does not get it, but I think you will find the deposit (something like 10% as a token of good will) or as you say, could be the deposit, at least for the first time buyer, that qualifies for a mortgage, that has to be paid to your solicitor ready for exchange of contract, or your solicitor will have to give assurances that you have the money to complete (like the guaranteed proceeds of a sale in a chain) that for the first time buyer, there is no house to sell, so they won't give assurances unless the money is handed over. That you will get back (less expenses) if the chain breaks for any reason up to the time of exchange.

 

So the OP could be a first or second time buyer depending how the boat could be used as security.