House Prices #3 Property market, buying and selling

[Megansnarkle]

The market still seems quite crazy around me. Some of the properties that have been lingering on Rightmove for months are finally being reduced, but anything decent is selling within a few days, if they even make it online.

I thought my luck had changed as I finally had an offer accepted on a place I loved. Unfortunately I was then told by the EA that the property flooded in 2018 (conveniently they 'forgot' to disclose this before I offered...). There's been a lot of remedial/preventative work done since - the flooding was caused by a lack of drainage in the garden which has now been completely redone and a proper drainage system put in place. I have a feeling it might be ok in the future but I can't get over the worry of it flooding again and so I think I'm going to have to pull out. It's crap as I loved the flat and I'd stupidly let myself get emotionally invested.

Someone reassure me this is the right thing to do?

Honestly I wouldn't touch it unless you're content to accept the consequences if it did flood - potentially replacing or serious cleaning of flooring, walls etc, possibly ruined furniture, decor, other stuff and the disruption involved in getting it replaced and also the fact that you may be trying to sell to a smaller pool of buyers.

My mum's house developed a leak under the floor which affected the carpets and concrete under the house but not any of the furniture and it took weeks to remedy. All the furniture had to be moved out as all the carpet needed replacing, the concrete needed drying out, the skirting came up and door lintels came off, basically it took it back to a building site and she moved in with my grandad for a little while to avoid all the work going on. Could you deal with that and potentially having to replace stuff as well?

 

[Nnrr46]

Im a first time buyer and have been looking since January, had one house fall through in April but apart from that havent found anything else decent. I feel like im getting desperate but at the same time dont want to panic and rush into something ill regret. Its really getting me down does anyone have any advise?

Also has anyone here bought one of these newish freehold houses that have service fees attached to them? Most are on new build estates. Ive seen quite a few come up. Is it something to stay clear of?

 

[Notworthy]

Im a first time buyer and have been looking since January, had one house fall through in April but apart from that havent found anything else decent. I feel like im getting desperate but at the same time dont want to panic and rush into something ill regret. Its really getting me down does anyone have any advise?

Also has anyone here bought one of these newish freehold houses that have service fees attached to them? Most are on new build estates. Ive seen quite a few come up. Is it something to stay clear of?

Yes. There has been a change in legislation to prevent excessive hikes in the service charge but I'd still steer clear as if there is a loophole in legislation you can bet your arse the developer will use it.

 

[Nnrr46]

Yes. There has been a change in legislation to prevent excessive hikes in the service charge but I'd still steer clear as if there is a loophole in legislation you can bet your arse the developer will use it.

Ah ok great thanks. Some of the houses look really nice, its a shame x

 

[epl000]

Im a first time buyer and have been looking since January, had one house fall through in April but apart from that havent found anything else decent. I feel like im getting desperate but at the same time dont want to panic and rush into something ill regret. Its really getting me down does anyone have any advise?

Also has anyone here bought one of these newish freehold houses that have service fees attached to them? Most are on new build estates. Ive seen quite a few come up. Is it something to stay clear of?

If you are a first time buyer if might be worth looking to see if any developers are doing first homes on those sites. These are a new type of affordable housing that has to be provided on sites going forward and basically means that they have to sell a % at a discount only to first time buyers. There is a price cap of £250k (think it's higher in london) and other caveats and restrictions so might not help but maybe something to look into or ask the sales teams? I work in planning and it is early days but every scheme going forward will have to provide them.
https://www.gov.uk/first-homes-scheme is the gov Web page for reference.

 

[Nnrr46]

If you are a first time buyer if might be worth looking to see if any developers are doing first homes on those sites. These are a new type of affordable housing that has to be provided on sites going forward and basically means that they have to sell a % at a discount only to first time buyers. There is a price cap of £250k (think it's higher in london) and other caveats and restrictions so might not help but maybe something to look into or ask the sales teams? I work in planning and it is early days but every scheme going forward will have to provide them.
https://www.gov.uk/first-homes-scheme is the gov Web page for reference.

Thank you for this, really appreciate it

 

[epl000]

No worries. I don't envy you being a first time buyer in this market but hopefully it is useful. Good luck!

 

[Former_Antelopee]

I have a question regarding doctors/dentists.
I just recently moved from my parents house to my own house. I really hate going to the doctors and recently have got comfortable going to my doctors. However I’m probably too far in my new house to be able to stay under their care. It’s about 20mins away. Can I just not tell them and just keep using my parents address for the doctors?
Also I need to go to a clinic, can I also just use my parents address as I want to go to the clinic what serves them rather than the one closer to my home wherever that may be.
The dentist I have no concerns with I was just wondering if I have to change or does address not matter as much?

 

[HoGi]

I have a question regarding doctors/dentists.
I just recently moved from my parents house to my own house. I really hate going to the doctors and recently have got comfortable going to my doctors. However I’m probably too far in my new house to be able to stay under their care. It’s about 20mins away. Can I just not tell them and just keep using my parents address for the doctors?
Also I need to go to a clinic, can I also just use my parents address as I want to go to the clinic what serves them rather than the one closer to my home wherever that may be.
The dentist I have no concerns with I was just wondering if I have to change or does address not matter as much?

So long as your parents are still there and can take any letters from your GP you will be fine. Its strictly speaking "not allowed" but they will never know.

People generally only get caught out if they need a referral or something and then it comes out the address is wrong. Just remember any prescriptions will be in the old address too.

Dentist you can be registered anywhere just update your address with them.

 

[Former_Antelopee]

So long as your parents are still there and can take any letters from your GP you will be fine. Its strictly speaking "not allowed" but they will never know.

People generally only get caught out if they need a referral or something and then it comes out the address is wrong. Just remember any prescriptions will be in the old address too.

Dentist you can be registered anywhere just update your address with them.

Thank you I did think that must be the case I’ll keep it there as long as possible

 

[ejej123]

*urgent help please*

So our mortgage offer says this in:
Please note that the sections in this offer document (other than those relating to any existing borrowing) referring to interest rates, payments and borrowing assume that completion will take place on 01 June 2022 and therefore the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place.

Our mortgage offer was based on 3.09% and £950 a month (offer is valid until November)… rates are now 4.5% which would take the monthly payment up to £1280… we can’t really afford this.
What does this even all mean?! Is our mortgage offer still all valid or?!

 

[Snowjoke]

*urgent help please*

So our mortgage offer says this in:
Please note that the sections in this offer document (other than those relating to any existing borrowing) referring to interest rates, payments and borrowing assume that completion will take place on 01 June 2022 and therefore the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place.

Our mortgage offer was based on 3.09% and £950 a month (offer is valid until November)… rates are now 4.5% which would take the monthly payment up to £1280… we can’t really afford this.
What does this even all mean?! Is our mortgage offer still all valid or?!

I think that means that they are guaranteeing your offer at the 3.09% rate until that completion date. So if you complete before/by then, you’ll get the agreed rate in your mortgage offer. If it falls past that date, they would adjust the interest rate accordingly. Is that completion date right as it’s now sept? Lol

 

[ejej123]

I think that means that they are guaranteeing your offer at the 3.09% rate until that completion date. So if you complete before/by then, you’ll get the agreed rate in your mortgage offer. If it falls past that date, they would adjust the interest rate accordingly. Is that completion date right as it’s now sept? Lol

Hi! We actually only had the mortgage offer in May, so to only lock that interest rate in for a month seems very stingy to me?! We are most likely moving this month

 

[Snowjoke]

Hi! We actually only had the mortgage offer in May, so to only lock that interest rate in for a month seems very stingy to me?! We are most likely moving this month

Hmmm that does seem very short for completion. Did you go through the bank directly yourself or go through a mortgage advisor? I would get onto them now and ask for clarification, as a month seems very short. I hope all goes well for your move this month

 

[HoGi]

*urgent help please*

So our mortgage offer says this in:
Please note that the sections in this offer document (other than those relating to any existing borrowing) referring to interest rates, payments and borrowing assume that completion will take place on 01 June 2022 and therefore the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place.

Our mortgage offer was based on 3.09% and £950 a month (offer is valid until November)… rates are now 4.5% which would take the monthly payment up to £1280… we can’t really afford this.
What does this even all mean?! Is our mortgage offer still all valid or?!

The offer is valid until November, so providing they are still offering the product/rate you should be able to still get it.

However I think the 1st June date refers to the schedule of payments so if it is a 25 year term it would show it ending June 2047 but if you don't complete until October it would run until October 2047

 

[hydeist]

*urgent help please*

So our mortgage offer says this in:
Please note that the sections in this offer document (other than those relating to any existing borrowing) referring to interest rates, payments and borrowing assume that completion will take place on 01 June 2022 and therefore the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place.

Our mortgage offer was based on 3.09% and £950 a month (offer is valid until November)… rates are now 4.5% which would take the monthly payment up to £1280… we can’t really afford this.
What does this even all mean?! Is our mortgage offer still all valid or?!

"the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place"

This just means that if you don't complete on the agreed day, your first mortgage payment might be a bit more or a bit less than a normal month because it's been calculated for the date you gave them, eg. our first month's payment is going to be slightly less than a full month, because we completed on the 5th and not at the start of the month.

 

[Notworthy]

*urgent help please*

So our mortgage offer says this in:
Please note that the sections in this offer document (other than those relating to any existing borrowing) referring to interest rates, payments and borrowing assume that completion will take place on 01 June 2022 and therefore the calculation of payment periods will be based on this assumption. If completion is not on this date then actual calculation will be made from the date on which completion takes place.

Our mortgage offer was based on 3.09% and £950 a month (offer is valid until November)… rates are now 4.5% which would take the monthly payment up to £1280… we can’t really afford this.
What does this even all mean?! Is our mortgage offer still all valid or?!

To be honest the fact that interest rates only have to move 1.5% above to make this unaffordable is worrying. I hope you have a very long fixed term

 

[Anne1448]

To be honest the fact that interest rates only have to move 1.5% above to make this unaffordable is worrying. I hope you have a very long fixed term

Yup

The worst thing is that I still don't know if wages are too low OR the housing situation is disconnected from reality?

 

[Notworthy]

Yup

The worst thing is that I still don't know if wages are too low OR the housing situation is disconnected from reality?

The housing market is insane in large pockets of the Country but not all. Wages are too low but sadly we are a County that wants 1st world wages and 3rd world prices and that doesn't work. The Scandi Countries have a high wage/high prices economy and manage fine. I am a little out of step with most of the country as I am of the opinion that things like food have been too cheap for too long. Historically food took a far greater portion of our income than it does now.

 

[Nnrr46]

Great news about the stamp duty cuts