Bridging loans

[Notmegov]

Just fallen totally in love with a new house, it ticks all the boxes loads of land place for the wife to work from cottage to rent out etc etc but the problem is we are 2 - 3 weeks away from getting our place on the market.

Has any one had any experience with bridging loans? or any advice on how to proceed would be great.

 

[Libero]

Just fallen totally in love with a new house, it ticks all the boxes loads of land place for the wife to work from cottage to rent out etc etc but the problem is we are 2 - 3 weeks away from getting our place on the market.

Has any one had any experience with bridging loans? or any advice on how to proceed would be great.

Hmmm and no prospect of a quick sale either. Bridging loans can be expensive. I haven't used them before but they obviously incur a higher rate of interest and normally would be used to cover the purchase of a property for a month or so before you can pay it back. For chain breaking of longer lengths it could be risky and costly and the potential is that because you have a bridging loan, a mortgage provider won't give you a mortgage so it becomes a catch 22 situation. I would say you are going to need way more than a month to sell your place so imo it isn't a very smart option.

My advice would be purely to approach the estate agent dealing with the place you want and put in an offer if you really want it. Then just try to string out certain parts of the process for as long as possible. You never know, the sellers could be quite happy to wait 2-3 months for you to complete your sale so it might fit in with them, the only way to know is to ask.

 

[Notmegov]

Cheers for that, i was a little naive when dealing with the one set of estate agents. Basically i was very truthful about my situation about my house. So blagging the estate agent to drag it out might not be possible.

 

[Libero]

Cheers for that, i was a little naive when dealing with the one set of estate agents. Basically i was very truthful about my situation about my house. So blagging the estate agent to drag it out might not be possible.

All might not be lost though. The estate agent may well go back to the vendor and they could see that as a way of trying to get a bit more money out of you, in which case a little game could all help you ultimately.

In relation to the bridging loan I would get advice from an FSA registered financial advisor.

 

[DTA]

What has worked for me in that past is putting a good offer in, on the condition that they take the property off the market straight away, you will need to prove you can get the mortgage though.

 

[Libero]

What has worked for me in that past is putting a good offer in, on the condition that they take the property off the market straight away, you will need to prove you can get the mortgage though.

Not always. I put an offer in on my current home, it was accepted and I merely confirmed verbally that I had a Offer in principle. the same with another place I had proceeded to buy but then pulled out. I was never asked for an actual physical copy of that offer at all although I know someone could have asked.

 

[Notmegov]

So even though i don't have a offer on my place i can still put a offer in and ask for it to be taken of the market?

 

[chicken_badge]

So even though i don't have a offer on my place i can still put a offer in and ask for it to be taken of the market?

Yes. I think some estate agents will want proof/evidence your offer is serious and you can afford it, and making an offer subject to selling your own is common enough. But it's up to the seller to accept these terms, and if they don't then I'd politely and subtly let them know you'll keep looking. You can't do anything if they choose to keep the house on the market but if you get an offer on your place in four months time and the house is still there, you go back in a stronger position.

We sold our flat in November and bought our new house from friends. My wife said that "people buy from people" and so we did work quite hard to charm our buyer. Not that we pulled the wool over her eyes in anyway, just took the care to make sure she knew we were interested in her and wanted to sell to her.

Guess it can work the same way for you, if you havent got an offer accepted yet then tread carefully. Be careful about any brinksmanship and, when the offer is accepted I would get in touch with the sellers directly and say how much you are looking forward to dealing with them. Have solicitors info to swap too.... just use it as an excuse to make contact and show you want to work with them.

Get your place on the market ASAP; if it drags on then you have to be prepared to let the dream house go. But you never know, you could put it up for sale tomorrow morning and get a buyer by the evening. Keep your seller in the loop, don't lead them on, but let them know things are progressing. Our sellers were our mates and so we were confident they wouldn't drop us but to be fair, they had to be patient with us.

Personally, I don't like the sound of these bridging loans. Be patient, the right buyer is out there for you, as is the right purchase!

Good luck mate, hope it all goes well

 

[DTA]

Not always. I put an offer in on my current home, it was accepted and I merely confirmed verbally that I had a Offer in principle. the same with another place I had proceeded to buy but then pulled out. I was never asked for an actual physical copy of that offer at all although I know someone could have asked.

Even better.

 

[Libero]

Chicken_Badge is right, the best thing you can do in terms of dealing with the person you are buying from and the person you are selling to is deal with them directly. Once the initials are done then always make it clear to both parties at either side of the chain that you want to have as much personal contact as is neccessary. That way you cut out the crap that tends to flow from estate agents saying one thing when someone has told them something else.