Need Help!!! House Offer Dilemma
Discussion
I have a huge dilemma, id appreciate any help others may be able to offer.
Me and my girlfriend are going to move into our own place. We are looking to buy and share a mortgage, were happy we are strong enough to cope and the relationship secure.
We have looked at a local flat, it was listed as 60k so we investigated. Its true value is approximately 70-80k but the lease only has 61 years available on it, meaning its harder to get a mortgage on.
To buy the lease is 10k, im told plus solicitors fees will come to approximately 12k. Only extending the lease will obviously be less.
The owner, has reflected the low lease into the price by listing the price of the flat as 60k.
We mulled it over for a few weeks, until we decided not to risk it. We didnt have the money to pay for the lease immediately, and worried it would take too long to save up to buy it, taking into account its price will rise overtime. Case closed.
The estate agents called today, they claim the owner who i have met and believe is a genuine, nice guy has been offered 58k from an investor who intends to rent the flat out. The owner has asked if we would be interested for it for the same price 58k, and I immediately stated that we were not interested because of the worry over the lease.
The have spoke with the owner who has made a proposition, please read this carefully and let me know what you think.
He suggested, we offer 67k. The solicitors will withold 9k and give a cheque to the owner for 58k. This 9k will be returned to us as a payment to extend the lease immediately or should we wish, save up the additional funds needed to buy the lease outright.
My concerns are;
Can we extend the lease? Is it that easy?
Something dodgy going on?
Why doesnt he extend the lease and remarket it?
Is is a big risk? Is it worth going for it?
Me and my girlfriend are going to move into our own place. We are looking to buy and share a mortgage, were happy we are strong enough to cope and the relationship secure.
We have looked at a local flat, it was listed as 60k so we investigated. Its true value is approximately 70-80k but the lease only has 61 years available on it, meaning its harder to get a mortgage on.
To buy the lease is 10k, im told plus solicitors fees will come to approximately 12k. Only extending the lease will obviously be less.
The owner, has reflected the low lease into the price by listing the price of the flat as 60k.
We mulled it over for a few weeks, until we decided not to risk it. We didnt have the money to pay for the lease immediately, and worried it would take too long to save up to buy it, taking into account its price will rise overtime. Case closed.
The estate agents called today, they claim the owner who i have met and believe is a genuine, nice guy has been offered 58k from an investor who intends to rent the flat out. The owner has asked if we would be interested for it for the same price 58k, and I immediately stated that we were not interested because of the worry over the lease.
The have spoke with the owner who has made a proposition, please read this carefully and let me know what you think.
He suggested, we offer 67k. The solicitors will withold 9k and give a cheque to the owner for 58k. This 9k will be returned to us as a payment to extend the lease immediately or should we wish, save up the additional funds needed to buy the lease outright.
My concerns are;
Can we extend the lease? Is it that easy?
Something dodgy going on?
Why doesnt he extend the lease and remarket it?
Is is a big risk? Is it worth going for it?
Stu_VTS said:
He suggested, we offer 67k. The solicitors will withold 9k and give a cheque to the owner for 58k. This 9k will be returned to us as a payment to extend the lease immediately or should we wish, save up the additional funds needed to buy the lease outright.
That's mortgage fraud. You'll be buying a place at an inflated price to get the extra lending for another purpose.You might (read should) have problems getting a solicitor to do that for you. However the EA might have a solicitor who is "onside".
I'm sure there are plenty of people who have done exactly what it is being suggested to you, but should you decide to risk it, you stnad an good chance of problems.
If this investor is such a good buy at 58k, why doesn't the vendor simply go with him?
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