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    I don't know what to do...

    This morning I arrived home (late night, lol) to find a hand delivered letter from my landlord. Essentially they are looking to sell the property I have been renting since April 2007.

    They have arranged a first viewing this coming Thursday, but have also thrown in an option for me to buy the flat suggesting offers around £80k. This is quite a generous offer as the other flats in the building have been going for £105k-£125k.
    The problem is they have asked me to respond within four days and would like to complete a deal within 4 weeks.

    I have never really considered a mortgage and was content to continue renting as it's always good to have options.

    Stress is just starting to kick in and I really don't know what to do. For the record I'm 27 years old and currently single. Help me HUKD!

    44 Comments

    Buy buy buy.........what have you got to lose ? plus there are some great mortgage rates going at the moment

    Be very careful when someone is pressurising you to make a big financial decission so quickly. Why are they selling for cheaper than the norm? Something dodgy about the flat/area?

    choc1969;4244137

    Buy buy buy.........what have you got to lose ?



    Wise words in the middle of a recession! :whistling:

    I would buy.
    we have just sold our house and are moving to seaford (30 mins from Brighton) we have out grown the house and want to escape London

    Banned

    yeah agreed..check first but perhaps buying would be good. But with current recession would need a long think in case you lose money

    4 weeks will be impossible to complete in - you have to get a mortgage (hopefully you have a deposit already). He wont be able to kick you out until your tenancy expires anyway. You could go to bank on monday and see what they say - if you earning enough and have deposit and want to stay there why not?!

    I read last week that most lenders are looking for you to have a 40% deposit now!!! :x


    If not, then I would certainly go for it! It is a first time buyers market!



    I always figure... why pay someone elses mortgage when you could be paying your own and end up owning the property?

    Original Poster

    Trickyjabs;4244149

    Be very careful when someone is pressurising you to make a big financial … Be very careful when someone is pressurising you to make a big financial decission so quickly. Why are they selling for cheaper than the norm? Something dodgy about the flat/area?



    No, it's a really good area in the city centre. The owner is quite a nice old lady but I find her difficult to speak to on the phone. She happens to own several properties in the surrounding area.

    All of my friends have mortgages and i'm happy living here, I just hate the sudden pressure.

    Original Poster

    Jules1212;4244176

    I read last week that most lenders are looking for you to have a 40% … I read last week that most lenders are looking for you to have a 40% deposit now!!! :x




    That could be the problem, Natwest seem to have deals on a 10%-25% deposit which look appealing but I have absolutely zero savings.

    No idea whether relatives are in a position to help. Don't think my Dad can as he bought an expensive property last July.

    Trickyjabs;4244165

    Wise words in the middle of a recession! :whistling:




    it's a good deal, knows what he's getting unlike a lot of first time buyers and if he's done his homework a 20% disc is a bargain for a long term investment

    bargainhunter2009;4244169

    4 weeks will be impossible to complete in - you have to get a mortgage … 4 weeks will be impossible to complete in - you have to get a mortgage (hopefully you have a deposit already). He wont be able to kick you out until your tenancy expires anyway. You could go to bank on monday and see what they say - if you earning enough and have deposit and want to stay there why not?!



    I completed in under 4 weeks for my house, best decision I ever made but I did know people in the professions involved and had a deposit plus was a ft buyer

    Banned

    Yup, Morgage Prices Are Rock Bottom right Wow!

    choc1969;4244294

    it's a good deal, knows what he's getting unlike a lot of first time … it's a good deal, knows what he's getting unlike a lot of first time buyers and if he's done his homework a 20% disc is a bargain for a long term investmentI completed in under 4 weeks for my house, best decision I ever made but I did know people in the professions involved and had a deposit plus was a ft buyer



    oh thats good, you did well to complete that quick. The op hasnt even got a mortgage offer yet! He said he has 0 savings, so I guess its a non starter

    The double edged sword of the first time buyer, cheap houses BUT mortgage lenders wanting a substantial deposit. I know alot about this at the mo just sold my house in 5 days of being on the market and our offer accepted on the house we want. Natwest have the best deals at the mo, but also because of the deal on our house we are just under the desposit level of 75% which means the lenders actually increase the interests rates for not borrowing enough!!!

    Anywho I'd buy, but to complete in 4 weeks is crazy talk, 6-8 weeks is the average, you need solicitors and a mortgage each takes their cut and the fees are not cheap, best guess around £2000 - £4000 for a flat.

    bargainhunter2009;4244315

    oh thats good, you did well to complete that quick. The op hasnt even got … oh thats good, you did well to complete that quick. The op hasnt even got a mortgage offer yet! He said he has 0 savings, so I guess its a non starter



    I was shocked

    Mortgage was through my bank C&G, went in prior to looking, agreed straightaway and had letter within a few days
    Estate agent was a mate
    Cousin was solicitor's legal asst
    Uncle was surveyor

    Banned

    You only need £16k deposit, I'll get down my solicitors Monday and draw up some plans for me to own 20% of your property how does that sound? shall we take it to FS/FT forum :thumbsup:

    choc1969;4244356

    I was shocked Mortgage was through my bank C&G, went in prior to looking, … I was shocked Mortgage was through my bank C&G, went in prior to looking, agreed straightaway and had letter within a few daysEstate agent was a mateCousin was solicitor's legal asstUncle was surveyor



    With the family ties how did you achieve the required LEGAL impartiality......................................

    you need to quickly weigh out the pros and cons...... work out how much you would be paying to rent somewhere as suitable as what you're living in and if you will be paying more then you would be better to buy..... good luck whatever you do :thumbsup:

    Banned

    go for it ..dont be a baby :thumbsup:

    lumoruk;4244390

    You only need £16k deposit, I'll get down my solicitors Monday and draw … You only need £16k deposit, I'll get down my solicitors Monday and draw up some plans for me to own 20% of your property how does that sound? shall we take it to FS/FT forum :thumbsup:



    I honestly considered that lol

    why not get an agent round yourself on monday to give you an idea of price its worth? Don't forget you will need to pay service charges, community charge, repairs etc once you own it- that your landlord might be paying now............................

    choc1969;4244294

    it's a good deal, knows what he's getting unlike a lot of first time … it's a good deal, knows what he's getting unlike a lot of first time buyers and if he's done his homework a 20% disc is a bargain for a long term investment



    How do you know it's such a good deal?
    Have you seen the flat?
    Do you know where it is?
    Do you know what's going to happen to the economy in the future?

    Most financial experts are predicting properties will fall about another 10% before they level off. Personnally, I'm not convinced. Think it could go down another 20% or more and is therefore a bad time to buy.

    Original Poster

    lumoruk;4244390

    You only need £16k deposit, I'll get down my solicitors Monday and draw … You only need £16k deposit, I'll get down my solicitors Monday and draw up some plans for me to own 20% of your property how does that sound? shall we take it to FS/FT forum :thumbsup:



    Lol, wasn't expecting anything like this response

    I currently pay £425pm, I wonder if a mortgage might actually cost less. Deep down I know I want to keep the flat, I had an option to move in with a friend last week for £350 all in but decided I like the independence.

    Banned

    choc1969;4244505

    I honestly considered that lol



    I don't mind going down to 10% less risk an'all :?

    Banned

    MBeeching;4244637

    Lol, wasn't expecting anything like this response :)I currently pay … Lol, wasn't expecting anything like this response :)I currently pay £425pm, I wonder if a mortgage might actually cost less. Deep down I know I want to keep the flat, I had an option to move in with a friend last week for £350 all in but decided I like the independence.



    We're currently paying £728 pm for £171k, so £80k = £364 round about's if you can get a good deal.

    Trickyjabs;4244631

    How do you know it's such a good deal?Have you seen the flat?Do you know … How do you know it's such a good deal?Have you seen the flat?Do you know where it is?Do you know what's going to happen to the economy in the future?Most financial experts are predicting properties will fall about another 10% before they level off. Personnally, I'm not convinced. Think it could go down another 20% or more and is therefore a bad time to buy.



    guys own words....he lives there and said others flats were priced 20% higher or more

    no-one knows what is going to happen to the economy........

    life itself is one big gamble

    who are the best mortgage companies who offer the best rates?

    sarbjeet_;4244725

    who are the best mortgage companies who offer the best rates?



    Natwest currently have the best deal on the 2 and 3 year fixed rates under 4%

    Original Poster

    Thanks for all your comments so far. I'm guessing I'll just have to go down to Natwest on Monday and see what my position is in their eyes.

    Fiddlesticks, i'd been looking forward to a relaxing weekend.

    I'd buy too - make sure you get a good quality survey done - to see if there are any reasons why your landlord wants to sell! Speak to the local agents too.

    You've tested out the flat and like it. The stress of finding a suitable place for you is already done, so bite the bullet and buy... Yes it is daunting getting a mortgage - but at the moment you are paying rent for a place that isn't yours.... What have you got to lose?

    Banned

    Natwest seem to do a free call back service:-

    natwest.com/sec…htm

    Original Poster

    The letter says 'Should it be sold your contract will remain in place to a further purchaser'. I suppose that technically means I still only have 2 months tenancy unless the potential new owner is buying to let?

    I initially signed a 6 months agreement (Apr 07), followed by a second 6 month agreement (Aug 07). I've never failed to pay rent on time and haven't had to sign anything for nearly a year now.

    Perhaps I need to speak to Countrywide to see where I stand...

    MBeeching;4245245

    The letter says 'Should it be sold your contract will remain in place to … The letter says 'Should it be sold your contract will remain in place to a further purchaser'. I suppose that technically means I still only have 2 months tenancy unless the potential new owner is buying to let?I initially signed a 6 months agreement (Apr 07), followed by a second 6 month agreement (Aug 07). I've never failed to pay rent on time and haven't had to sign anything for nearly a year now.Perhaps I need to speak to Countrywide to see where I stand...




    Yes that's it - tbh I would hang fire for the time being, its not going to sell quick in the current climate. Go and see your bank/bs and see what you can borrow but hold your nerve as you will get it cheaper

    Banned

    MBeeching;4245245

    The letter says 'Should it be sold your contract will remain in place to … The letter says 'Should it be sold your contract will remain in place to a further purchaser'. I suppose that technically means I still only have 2 months tenancy unless the potential new owner is buying to let?I initially signed a 6 months agreement (Apr 07), followed by a second 6 month agreement (Aug 07). I've never failed to pay rent on time and haven't had to sign anything for nearly a year now.Perhaps I need to speak to Countrywide to see where I stand...



    I'm sure if the new owner wants you out they'll compensate you :thumbsup:

    Original Poster

    fireheaven;4245269

    Yes that's it - tbh I would hang fire for the time being, its not going … Yes that's it - tbh I would hang fire for the time being, its not going to sell quick in the current climate. Go and see your bank/bs and see what you can borrow but hold your nerve as you will get it cheaper



    I was thinking of offering £77k (scary!). I think she's genuinely being nice offering the reduced rate. An agent has told her £105k on the open market.

    Yes but are the other flats selling @ 20% higher???? You are going to lose 10-15% this year, so I would only buy if you consider 80k to be the bottom of the market in your area. If prices won't go lower than 80k and if you can get a morgage, then its a no brainer - BUY IT! You don't seem so sure though - I certainly wasn't asking strangers what to do when I first bought my house.......

    Banned

    Johnboy_1975;4245321

    Yes but are the other flats selling @ 20% higher???? You are going to … Yes but are the other flats selling @ 20% higher???? You are going to lose 10-15% this year, so I would only buy if you consider 80k to be the bottom of the market in your area. If prices won't go lower than 80k and if you can get a morgage, then its a no brainer - BUY IT! You don't seem so sure though - I certainly wasn't asking strangers what to do when I first bought my house.......



    I asked close family..I'm now in £20k negative equity but hey whatever :whistling:

    MBeeching;4245314

    I was thinking of offering £77k (scary!). I think she's genuinely being … I was thinking of offering £77k (scary!). I think she's genuinely being nice offering the reduced rate. An agent has told her £105k on the open market.



    You might think she is being nice but look at this way - you are already living there, you are happy there, you have no property to sell therefore no chain, young man with no commitments and money in his pocket, no estate agents fees if you accept

    Your position isn't bad if you play it right. Don't discount the idea of buying but do your research and look at whose market it is

    Banned

    £80K? What is it? A shed?

    Go for it. Would seem mad not to if the asking price is way below value.

    Guv - your so right £80k. Take it, its up north or at least not down south anywhere. £80k is amazingly cheap for a property. Op you said you have no deposit - therefore how will you be able to get a mortgage? No banks offer mortagages without deposits now

    Original Poster

    bargainhunter2009;4245646

    Guv - your so right £80k. Take it, its up north or at least not down … Guv - your so right £80k. Take it, its up north or at least not down south anywhere. £80k is amazingly cheap for a property. Op you said you have no deposit - therefore how will you be able to get a mortgage? No banks offer mortagages without deposits now



    It's in Lancaster, so yes the lovely North. It'd be a great flat for the price. I wonder if I can find an elderly relative that was planning to leave some inheritance.

    Alternatively 8000 HUKD members could send me a pound :thumbsup:
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