Advice for downsizing house for my father - Help please

21 replies
Found 5th May
Just looking to see if anyone has personal experience please for the following situation

My father is currently living in a home fully paid of with no mortgage, and he is looking to downsize

He has found a flat he likes and the normal situation would be sell this house buy that one with the cash from this, but this house needs a bit or work done to it and my brother will be living here for a few months while he gets his own mortgage sorted, so wouldn't be sold till after he buys the new one

What is the best thing to do, I see three options but let me know if you can think of something else

He has enough savings on top of the house to be able to pay for half of it in cash, however it is the other half where problems would arise.

1. Should he get a mortgage 50% LTV however being 58 it would be a max 12 year mortgage and once the old house sells pay additional payments than needed to pay it off sooner. Ideally he would pay it all within 2 years or taking out the mortgage, is a bank going to give someone a mortgage with this mindset and how common is it for mortgages to allow early repayments, I understand there will be a 2-3% fee

2. Get a bridging loan which charge a monthly fee around 0.5% and opening and closing fees of 4% combined to cover this gap

3. Find a new build with a deposit option

Please let me know as I am renting I simply aren't informed enough to give him advice, he will eventually see a solicitor and a financial advisor obviously but he wants to know roughly what his options are

Thanks

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21 Comments

4. Crack on and get the work done to the current place

5. Tell your Brother to live elsewhere if it means saving your Dad from taking out a mortgage. Let your Dad live with you whilst his new place has the work done.

1) You can get mortgages that have no early repayment fees. Nationwide etc offer them. So as soon as the house is sold you could pay it completely off

Original Poster

nbgrobbo

4. Crack on and get the work done to the current place



My brother is coming in July for two months while he finalises a mortgage

Original Poster

dtovey89

5. Tell your Brother to live elsewhere if it means saving your Dad from … 5. Tell your Brother to live elsewhere if it means saving your Dad from taking out a mortgage. Let your Dad live with you whilst his new place has the work done.



Would love it but feel him coming home for two months is inevitable

Original Poster

winifer

1) You can get mortgages that have no early repayment fees. Nationwide … 1) You can get mortgages that have no early repayment fees. Nationwide etc offer them. So as soon as the house is sold you could pay it completely off



OK, are they advertised? I phoned two banks yesterday and neither offered them

john767676

OK, are they advertised? I phoned two banks yesterday and neither offered … OK, are they advertised? I phoned two banks yesterday and neither offered them



I just went on moneysavingexpert.com/mor…ys/ and ticked the box for "Only show mortgages with no early repayment charges"... Obviously i just left the input fields as standard as i don't know the circumstances but there were a number of banks that offered them

john767676

My brother is coming in July for two months while he finalises a mortgage



I assumed you and your brother are old enough to make your own arrangements on places to live.

Look at a let to buy mortgage with no redemption penalties? Speak with a good independent mortgage advisor about this.

Get a mortgage, just be careful to get one that suits. A bridging loan is fine if its for a few months max, but what if the work takes 6 then another 6 to sell.

As long as you take a mortgage with no discounted rate then you should be able to pay it off fairly quickly without any major penalty.

john767676

OK, are they advertised? I phoned two banks yesterday and neither offered … OK, are they advertised? I phoned two banks yesterday and neither offered them



My nationwide mortgage has no repayment penalties

john767676

OK, are they advertised? I phoned two banks yesterday and neither offered … OK, are they advertised? I phoned two banks yesterday and neither offered them



Take a look here

john767676

OK, are they advertised? I phoned two banks yesterday and neither offered … OK, are they advertised? I phoned two banks yesterday and neither offered them



knowyourmoney.co.uk/no-…es/

Original Poster

Very helpful everyone thank you so much

This does seem like a lot of mucking about when it makes much more sense to just do the work to the current house and then selling it and buying a smaller place.

john767676

Would love it but feel him coming home for two months is inevitable



Not fair on your Dad.
I assume both of you are old enough to sort out your own accommodation and realise the benefits of your Dad not being forced to take out a mortgage just so your brother can stay their for 2 months.

nbgrobbo

4. Crack on and get the work done to the current place



This + and could visiting Brother help out with the fixes?, surely better to wait a couple of months so he can maximise the sales price.

Or some new build places will accept part exchanges against a new build. So may be worth checking out, If you go that route I would check the numbers very carefully and get 2-3 independent valuations.

john767676

Very helpful everyone thank you so much



No worries coombs

What sort of work needing doing to his current place?
If your brother is there along with you and your dad you should be able to make a large dint into any basic work pretty rapidly.

Once done get it on the market asap as it won't sell instantly and even if it does your looking at weeks, possibly months with the paperwork for completion.
Without the flat is a one off super amazing deal just wait until he has a good offer on his house as something better might come along then he'll be kicking himself.

What about finding your brother somewhere cheap to rent for the couple of months? Would that not be cheaper/around the same financially and less hassle then having to go down the other routes. That way you can do you dad's place up while selling it and then he can just buy outright the new place like you wanted?

You might also have some difficulty selling the property with a sitting tenant, regardless of family status.

Most mortgages do not consider anyone over 54 so your dad will have difficulty getting a mortgage. He will need to buy the new one with the cash proceeds of his current home.
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