Buying and Selling - need to move out?

steamsey

Hi - looking for advice from anyone who has experience here. Situation is as follows:

- Selling family home with mortgage on it. Buyer of our home is getting mortgage but is not selling anything
- Buying a house - seller of this house is moving elsewhere which is already arranged, paid for etc - they do not require money from the sale of their house to buy new house, i.e. their new house is already paid for and they are mortgage free

Solicitor advises that there is no way of closing both on same day. So we would have to close on our family home, and move out somewhere for a week or so when funds settle - as in - money from the sale of our home pays off our mortgage and returns the equity which can be used as the 10% signing deposit on the home we are buying.

Is this normal? I'm getting conflicting views from people. Surely we don't have a system whereby you have nowhere to live / out your stuff for a week or so?

Browney7

steamsey wrote: »

Hi - looking for advice from anyone who has experience here. Situation is as follows:

- Selling family home with mortgage on it. Buyer of our home is getting mortgage but is not selling anything
- Buying a house - seller of this house is moving elsewhere which is already arranged, paid for etc - they do not require money from the sale of their house to buy new house, i.e. their new house is already paid for and they are mortgage free

Solicitor advises that there is no way of closing both on same day. So we would have to close on our family home, and move out somewhere for a week or so when funds settle - as in - money from the sale of our home pays off our mortgage and returns the equity which can be used as the 10% signing deposit on the home we are buying.

Is this normal? I'm getting conflicting views from people. Surely we don't have a system whereby you have nowhere to live / out your stuff for a week or so?

Your problem is that you need the cash from your own house to close on the new house. If you had the cash separately and were able to draw down the mortgage finance you wouldn't have this issue. The person buying your place isn't likely to pay for your existing place and let you keep living in it (they may rent it to you for the week)

Tow

Bridging loan

duffman13

Tow wrote: »

Bridging loan

Do they actually exist anymore?

The Mulk

Tow wrote: »

Bridging loan

I was told there is no such thing anymore.

I made sure both contracts were signed and allowed the buyer a closing date to ensure I had a cheque for the deposit on my new place. (It was 20% i needed)

I hired a container for all my stuff, clothes furniture etc.

My wife , 2 kids and I moved back home to my parents, ended up being for 6 weeks.

Turned out grand, gave me time to move furniture back in and do a declutter too.

Cat_M

Tow wrote: »

Bridging loan

Ive been advised they don't exist hence trying to sell before trying to buy.

Dolbhad

Bridging loans don’t exist anymore. Your solicitor is right. You can’t sell and buy on the same day.

What it comes down to is your loan offer in regards to the purchase. Most of time they have a condition that says mortgage of the existing house needs to be paid off before you can drawdown funds to buy. Which means you have to sell first, solicitor pay off mortgage and it clears, provide it to the bank who’s mortgaging new house and funds are draw down a few days later.

Sometimes it says unconditional contacts have to be place on the house your selling - which can’t be done unless your selling to cash buyer as everyone getting a mortgage will put a loan clause in there. So contacts are conditional.

You’ll have to stay with family and put stuff in storage. However if the people you are buying off are very accommodating, they might let you store items in their house until the sale closes. It’s all at your own risk and I say their solicitor will adverse against it.

annoyedgal

We bought and sold and closed both on the same day. It can definitely be done, posted about it here before and others have done same.
Same situation as you OP except house we were buying was vacant, owner had already moved.
We moved out that morning and moved in to new hosue that evening....with lots and lots of jigs and reels to get to this point!
Requires large amount of communication and co operation between solictors. We also took a personal loan to cover what would once have been a bridging loan.

beauf

You can't get a bridging loan. But you can get a personal loan.

I know someone who hired a removal van and left it parked somewhere for a while until they could move in to their new place.

Lux23

Maybe the buyers would let you pay rent for a week or two? If you gave them access to start measuring up and the like.

peteb2

beauf wrote: »

You can't get a bridging loan. But you can get a personal loan.

I know someone who hired a removal van and left it parked somewhere for a while until they could move in to their new place.

And they slept in it for a week? Cos that 50% of the OP's issue!

beauf

peteb2 wrote: »

And they slept in it for a week? Cos that 50% of the OP's issue!

I guess the idea its easier to find somewhere to stay without all your furniture and belongings. You could get a short letting or simply stay in a hotel etc. Stay with relatives, friends etc.