ukay2:


No gree for any LEASEHOLD ooo....Go for FREEHOLD a beg

Lexusgs430:



I hope you know buying a leasehold property, is just an upgraded version of paying rent ...........

Await the legislation on leasehold + conditions attached, if you want to go down the leasehold route......

Have you read the conditions attached to the service charges + upward reviews of the service charges........

deept:


1. Any property is worth going for if it meets your goals and the conditions are right.

2. Only you can answer this question. I will ask myself some questions: What is my outgoing if I am going to pay a mortgage? will I be able to take care of my other needs and save after paying a mortgage? If God forbid household income reduces, do I have some sort of buffer to continue to pay the mortgage until income increases... amongst other questions

3. It is not uncommon, however, question to ask myself is can i afford the extra ~£80 per month cost? what control do I have over 'service charge', this can go up at the discretion of the management company and you have to pay.

4. third party is there to make money

Research fleacehold

Solumtoya:


People have done justice to your questions so I will just throw in my opinion. These are personal opinions so seek professional advice or look at your situation closely before making any move.

1. That's totally subjective. An apartment in Leeds can be good or bad for you so one can't tell. I generally avoid buying Apartments for residential purposes for several reasons but they are great for renting.

2. Hmmm... The numbers. A 379k house on a 22 year 90% Mortgage at 5.53% is £2,200 monthly. Almost half of your income seems quite high and will be a struggle for most people. I used 22 year mortgage because I was guessing your age. If the buyer is 30, for instance, and does a 40-year mortgage, repayments could be as low as £1,700 monthly.
The second point is "Leasehold", as you can tell, most of us are not fans of leaseholds. I would avoid them if I can.

3. Service Charge of almost £1k per annum is already high. Anticipate it going higher in future. My service charge is less than £10 monthly. My friend's service charge was raised from about 3k to about 5k per annum. You have no control over that. But if you see a good deal, you have to stomach the service charge las las.

4. Better service, but typically higher costs

bigtt76:
Thank you so much for this, I appreciate your contribution. How can I access Freehold new builds ...any idea? Any idea what the highlighted mean?

missjekyll:


Taylor Wimpey have got your freehold now. Once they sell the last house in the estate, they ll sell your freehold to a third party that won't be you.

I would steer clear of these leaseholds , to be honest

bigtt76:
Thank you so much for this, I appreciate your contribution. How can I access Freehold new builds ...any idea? Any idea what the highlighted mean?

Solumtoya:


Not hidden but little costs here and there that could add up. The only major one really is the Solicitor's fee which is like £1.5k to £3k. With a New build, you have to furnish, etc depending on what the Builders are willing to do or not do. With an Old build, you might have to fix a few things.

If you're like me, I would say "no think am, just put head". If I realised I would be spending so much, I would have waited for another 1 year to save up but it was better I didn't know cos I have spent so much but just one day at a time.

I have put down below some of the extra costs for me and I didn't include things like Sofa, Transport for the various times I had to go to the site; and numerous purchases to furnish the new house. Most of these may not apply if it's a house that's already furnished. The Upgrades are things like fridge, spotlights, extra taps and lights, turf in the garden, etc.

Solumtoya:


Yearly

Nemie:


Congratulations to you on your new home. Please I'd like to know if the brokers consider the number of years left on the visa. I have been advised to wait until my visa is renewed before obtaining an AIP by some friends, as I would have 1 year left upon attaining the 2 year mark in the UK, so thought to find out if this is really a thing.

profemebee:
hi hi,

what a great set of intelligent and resourceful minds..

I already feel like I own a home lol

For each of us that help out with answers and support, may thy wishes and prayers be answered too...

I will have questions from time to time..

1.This building and life insurance that is tied to mortgage... is it the same as the normal life insurance we all know?

- No. You need to have building insurance when you have a mortgage to protect your lenders investment and afterwards, to protect your asset.....

2. What if one already has life insurance before doing mortgage? will one need to do another for the mortgage?

- If you have LI during the term of your mortgage, when one kicks the bucket, hopefully the eventual payout, would clear the mortgage + small change.......

3. Do I need to go thru a real estate agent to kick-start or i can just start looking for a good home i'm interested in?

- Best to go through an agent, the buying process in the UK is fully structured and processed.....

4. What if i use a real estate agent but i like a house that isn't on sale by that real estate agent? Can i still use their mortgage advisor?

- You can use any estate agent or broker, the choice is yours......

profemebee:
hi hi,

what a great set of intelligent and resourceful minds..

I already feel like I own a home lol

For each of us that help out with answers and support, may thy wishes and prayers be answered too...

I will have questions from time to time..

1.This building and life insurance that is tied to mortgage... is it the same as the normal life insurance we all know?

Yes with life insurance, only difference is it now reflects your new reality as a home owner with the added "burden" of the mortgage debt that will without the policy, pass to your family in the unfortunate event of your death.


2. What if one already has life insurance before doing mortgage? will one need to do another for the mortgage?

You can either take out a new policy or update your existing policy to reflect your homeownership status. Some keep both but this might result in you being overinsured, essentially paying too much for what you can get for less.

3. Do I need to go thru a real estate agent to kick-start or i can just start looking for a good home i'm interested in?

Not necessarily, once you have a budget, location and type of house in mind, jump on Rightmove and the likes and start checking out properties. You can use your budget, the location and type of house to filter.

4. What if i use a real estate agent but i like a house that isn't on sale by that real estate agent? Can i still use their mortgage advisor?

You are not obliged to use any of the services of the professionals be it mortgage advisor, conveyancer, etc suggested to you by the estate agent. They represent the interest of the seller and not yours the buyer so you are merely a means to a pay check to them as they will be compensated by those professionals if they successfully referred you.

profemebee:
hi hi,

what a great set of intelligent and resourceful minds..

I already feel like I own a home lol

For each of us that help out with answers and support, may thy wishes and prayers be answered too...

I will have questions from time to time..

1.This building and life insurance that is tied to mortgage... is it the same as the normal life insurance we all know?

2. What if one already has life insurance before doing mortgage? will one need to do another for the mortgage?

3. Do I need to go thru a real estate agent to kick-start or i can just start looking for a good home i'm interested in?

4. What if i use a real estate agent but i like a house that isn't on sale by that real estate agent? Can i still use their mortgage advisor?

Solumtoya:


Life Insurance is a personal decision and wasn't compulsory. If you have one, fine, it's really for you and not the Mortgage.

Real Estate Agents, and even Mortgage Brokers/Advisor, are not compulsory. I never really used a Real Estate Agent and I could really done without a Mortgage Advisor too. The only compulsory party is really the Solicitor. For your comfort, I'd advise to use any good Mortgage Advisor though to cross the ts and dot the "i"s.

profemebee:
thanks boss

More questions:

1. Please how do you people that have completed mortgage transactions manage the timeline between when the tenancy of your rented place is done and when the mortgage deal is successfully exchanged so that you avoid paying rent and mortgage in both places?

2. If one exchanges contract and completes mortgage in Jan 2024, when does one start paying the 1st monthly mortgage payment?

deept:


you forgot council tax for both properties

profemebee:
thanks for making it worse lol

How do people manage the timeline considering they're not in control of when the mortgage is fully completed

profemebee:
thanks for making it worse lol

How do people manage the timeline considering they're not in control of when the mortgage is fully completed

Peerielass:


Unfortunately you may need to pay both for a month (or two) to give you time to actually move into the new property, get furniture and carpets, arrange mail redirection etc.

In my experience if you complete in Jan 2024. It’s likely your first mortgage repayment might be on 1st March. The mortgage provider will issue a letter after completion stating the monthly repayment amount and the date for the first collection.

Council tax starts counting the moment you take ownership. Remember to take opening and closing meter readings for electricity/ gas in both the new property and the rented property.

deept:


Usually your solicitor should have a target completion date if the sale is straightforward. You can work around that date with a one week, two week overlap to move etc.

If you have a contract with your landlord, you will have to pay rent on what's left on the contract, however, if you have an AST or rolling contract just give the landlord the required notice. You hardly move house without having some sort of liability for both properties at the same time.

On a lighter note, spend this money

profemebee:
thanks for this.. This is something we need to tell FTB ooooo... so they're prepared

From your example, for the initial 1st month (Feb 2024) there will be no mortgage payment except for Council tax.. so you just pay the normal rent and bills for where you live..

Then use the Feb 2024 to sort mail redirection, billers, etc

For the opening and closing meter readings for electricity/ gas in both the new property and the rented property, i guess this is how it works:

Rented property: Take closing meter readings on the last day of "living" in the rented place... meaning you leave before the next day

Mortgage property: Take opening readings on the day you go to the house even if you've not moved in?

Solumtoya:


A friend of mine just left the UK for Canada. He bought his house here some 3 years back. He rented it out and last I heard, he was trying to sell it. So, for anyone who is holding out because he intends to relocate, remember a house is an asset which you can sell. Just ensure you buy at a good price so you can easily sell without loss if need be.

profemebee:
thanks for this.. This is something we need to tell FTB ooooo... so they're prepared

From your example, for the initial 1st month (Feb 2024) there will be no mortgage payment except for Council tax.. so you just pay the normal rent and bills for where you live..

Then use the Feb 2024 to sort mail redirection, billers, etc

For the opening and closing meter readings for electricity/ gas in both the new property and the rented property, i guess this is how it works:

Rented property: Take closing meter readings on the last day of "living" in the rented place... meaning you leave before the next day

Mortgage property: Take opening readings on the day you go to the house even if you've not moved in?

profemebee:
thanks boss

More questions:

1. Please how do you people that have completed mortgage transactions manage the timeline between when the tenancy of your rented place is done and when the mortgage deal is successfully exchanged so that you avoid paying rent and mortgage in both places?

That overlap is rarely unavoidable. Be prepared to pay both your rent and your mortgage as well as other bills for both properties for a couple of weeks or months depending on whether the house you are moving into requires some work before you move in.

2. If one exchanges contract and completes mortgage in Jan 2024, when does one start paying the 1st monthly mortgage payment?

First payment will be collected in March, but it will be prorated, starting from the day you collect the keys and added to the first full month (February) so the first payment is usually higher than subsequent ones, you'll see this in your offer letter

Solumtoya:


Nah, they backdate the amount to the date you completed o. So it might not be the normal monthly payment. Might be higher or less. Rent and Mortgage payment will typically overlap unless you plan it very tightly. Council Tax and most utility bills won't overlap

profemebee:
thanks for making it worse lol

How do people manage the timeline considering they're not in control of when the mortgage is fully completed

Estroller:


He's responsible for both from the day he takes the keys and he'll still be living in his rented house until he moves so he's responsible for those at the rented address as well. The only exception will probably be broadband.

Solumtoya:


Not in my experience. I only start paying for Council Tax from the day I move in. I can't pay for Council tax for an empty house and also my residential home at same time. I collect keys and keep paying Council Tax for my current home, then start paying for the new home the date I move in. I may be wrong o, folks can correct me.

As for the Utility Bills, kinda same. Electric and Gas, Water won't really accumulate till you move in so yeah, they overlap but it doesn't really matter.

Broadband, TV License, etc definitely don't overlap.

Solumtoya:


Not in my experience. I only start paying for Council Tax from the day I move in. I can't pay for Council tax for an empty house and also my residential home at same time. I collect keys and keep paying Council Tax for my current home, then start paying for the new home the date I move in. I may be wrong o, folks can correct me.

As for the Utility Bills, kinda same. Electric and Gas, Water won't really accumulate till you move in so yeah, they overlap but it doesn't really matter.

Broadband, TV License, etc definitely don't overlap.