2nd mortgage, feasible to have ready by december 1st?

vibe666

we bought a house in Navan in 2006 and lived in it until December last year, when we decided to move closer to work in Dublin so we could cut out on a lot of commuting and get to spend more time with our (then) 4 month old baby boy.

Selling our house wasn't an option, so we rented it out and rented another house in Clonsilla (7 minutes from work for me, 25 minutes on the train for my wife) and agreed with the landlord (verbally) that it would be a long let, for years to come and that we would look after the house as our own as we were also landlords and he was happy with that.

10 months later, and last night i got home to a letter from the letting agent to say that the landlord wanted us out by 1st december when the lease was up as he will be moving back into the house himself.

calling the agents to check it wasn't a mistake, they confirmed that his circumstances had changed and that he needed to move back in. I got the impression that he got shafted on his own mortgage with the interest rate hikes and needs to move back in as he can't afford not to live there any more.

SO, we're not left with two options as far as I can see.

1. rent somewhere else locally, as we don't want to move out of the area, but we have 2 cats and a dog and i don't know how hard that might be to find somewhere pet friendly.

2. buy somewhere locally.

my only questions are how easy would it be to get a 2nd mortgage in this financial climate and how quickly could it be done?

moving a 4 bed house isn't exactly easy, so we want to keep the hassle to a minimum, so multiple moves with a 1 year old would be our nightmare scenario.

We're actually considering getting a door to door movers to transplant everything, but i'm not sure what that would even cost? does anyone know offhand what it would cost to get them to pack, move & unpack a 4 bed house within the D15 area?

thanks for any advice, we're really panicking at the moment. i know it'll work itself out in the long run, but it's not an ideal situation going into xmas.

NIMAN

I'm guessing very unlikely to have a mortgage organised and cleared by Dec 1st, even if you got it ok'd.
I'd say you would need to allow about 3 to 4 months generally.

Looks like renting is your only viable option for now.

You should have insisted on signing a lease if you intended in staying in your current place for a long time, then you couldn't have been shifted out. In fact, did you sign a lease at all, as you may be entitled to a minimum notice before having to get out. Maybe someone more knowledgeable on rental rules could advise? Is the tenancy registered with the PRTB?

vibe666

we signed the last for 12 months with the verbal agreement with the landlord at the time being that it would be a long term lease that we would be renewing for several years to come.

as the 12 months is up on 1st december, i assume the landlord is under no obligation to renew it and is within his rights to turf us out?

NIMAN

vibe666 wrote: »

we signed the last for 12 months with the verbal agreement with the landlord at the time being that it would be a long term lease that we would be renewing for several years to come.

as the 12 months is up on 1st december, i assume the landlord is under no obligation to renew it and is within his rights to turf us out?

I'm afraid if the lease is up on Dec 1st, and he has given you proper notice as set out in the lease agreement, then you ain't much you can do.

vibe666

NIMAN wrote: »

I'm afraid if the lease is up on Dec 1st, and he has given you proper notice as set out in the lease agreement, then you ain't much you can do.

ah no, i wasn't intending to fight it, he's a nice guy and he's given us plenty of notice, we just wouldn't have moved in if we'd known it was only going to be for 12 months and he wasn't going to renew.

at the time of signing, he had indicated verbally that he was looking for a long term let that he would keep renewing, which suited our needs and as we were landlords ourselves, we thought we had an understanding, but i guess if he's now in a position where he has to move back to save money, there's not much to do other than move out. i just wish we had more notice so we could make arrangements without having to rush the whole thing.

when we moved into the house, we'd only been looking for a couple of weeks and from the first viewing to the day we moved into the house it was only 11 days, including getting our own house ready and our tenant moving in at our old house and it nearly killed us, particularly as my wife was still recovering from childbirth and we swore we wouldn't be moving again any time soon, given that we're really only properly settled in now.

hello1986

Yes, you can get a 2nd mortgage done by Dec 1st but you must have 20% of purchase price in savings

NIMAN

Dec 1st isn't possible, even with 20% of the purchase price as savings.

My 2nd mortgage took approx 5 months to organise from sale agreed/mortgage agreed in principle to actually getting keys.
Banks are going through the smallest details now on mortgages, and getting money handed over quickly is a thing of the past.

hello1986

Alot depends on solicitor, if he/she is on the ball, you can be approved within 3/4weeks

NIMAN

We don't even know if the OP has started to view houses to buy yet!

Even if you started looking at houses now, and organising viewings, do 2nd viewings of ones you like, putting in an offer, waiting for vendor to get back to you, maybe reject your offer, make more offers, go sale agreed etc, that alone coulc take you easily to the end of October or into Nov.

I'm sticking with 'not possible'.

vibe666

checking with our broker, he doesn't think it would be possible either.

he did say not impossible if every little thing was textbook perfect, but highly unlikely in under 2 months as the chances of everything going perfectly are practically zero, so i think we're going to have to find somewhere else to rent, which might mean that we have to get rid of the pets.

edanto

I don't think it would work out well to try and buy a house in a rush. You really need a lot of time to visit tens of houses, get to know what's out there and get to know what you're really looking for - which factors are most important on your list.
We bought last year, but spent 18 months looking which might be a little long, on reflection.

I'd say your best option might be to see if your current landlord would give a 3 months extension, given the circumstances. He might be tempted if you increase the rent slightly, bearing in mind you would be dodging the huge hassle and cash cost of moving to a temporary place.

If you don't have to move to a temporary place, you'll free up about 200 hours (sound about right?) - plenty of time to go visit lots of houses for sale 'til ye find somewhere that ticks a lot of boxes.

Might be worth chatting to the bank manager now about getting mortgage approval in the range you are interested in, and getting all the paperwork submitted and checked before you even put in an offer. Talk to see if that's possible. In our case, we had offered on one places and were outbid, but in the process got mortgage approval and that made it much quicker when we eventually found the place we bought.

As you say, your landlord is a nice guy - just in a tight spot financially, so if you can relieve that pressure for him, he may cut you a bit of slack.

The zany option is that he moves in with you to save money, but I can see that going very wrong. Just throwing it in to give an example of the range of options you have!

vibe666

okay, so i think buying is out of the question in the time we have, so we just have to come to terms with having to move to another rental home again.

looking on the bright side, although it's in the perfect location for us, the house itself is a bitch to try and keep warm in the winter, so hopefully the next place will be warmer.