Hey all, we've had some major issues trying to buy a house this past month, basically as an investment to sell on, but I think if anything can go wrong, it has done, here's a rundown 
Someone we know runs a company, if people need to sell thier house in a rush, be it divorce, illness, wanting to sell quickly etc.. then he will negotiate a price and pass the deal on the house down to people looking to buy a house as an investment (In this case, my partner & I)
So we agreed on going to get this one, i'm not going to put figures down, but it was being sold to us for 22% below market value (Valued in January and November of this year) which, after buying, paying mortgage on for a few months, and selling on, would make us a nice profit...
Oh dear...
So we arrange everything, mortgage, solicitor (for us and the sellers) all the usual shizzle that goes on, the mortgage broker tells us he wants to set us up on a residential mortgage, which would be fine, as we don't either own another home (This was pretty much done to give us a hefty lump to put down into our own place) everything goes well, mortgage application approved, solicitors informed, contracts being drawn up, which is when the mortgage advisor decides to tell us "Oh, you won't have to pay tax on this, and although you won't be living there, you **need** to make sure you let them know you have the intention of living in the house, otherwise you'll maybe be declined the mortgage. Ok then, so basically, our own mortgage advisor, from a respected company has drawn up a mortgage than we can only be eligible for, by lying to them, and risking getting a big black mark on our records for doing so, not good, obviously temptation is there as we REALLY need the money, but not so much that we'd risk ****** up our own future.
So we called inland revenue (We're both self employed, too) and stated what was happening, what had been advised, and basically said that we do not want to skip tax, we just wanted to see how best to go about things, what to do, who to let know what, and they basically told us to buy it, sell it, then declare it with earnings, less costs split 50/50 between us, and added to our self assessments, ok easy enough, thankyou!
Last thursday, the contracts arrived, and we were already having major doubts about this, the mortgage, although costing us nothing, deposit wise, was basically wrong, and we'd have to lie about it, which we are not prepared to do, queue the next the seller texts us saying that they have now moved out of thier house, and are in rented accomodation that they had lined up for after the sale. Well thats just great isn't it, they move out, before the sale completes, before they had even signed the damn contract, leaving us feeling guilty as hell, and them not knowing he we feel at all. Come monday morning, i called the mortgage company, and explained what we were told to say, by our broker, and that we did have no intention of moving into the place, but didn't want to have a fraudulant record struck against us, as, as soon as we had found out what was proposed, we were immediately unhappy with it.
Long story short, the mortgage company said that if that is the case, then they will withdraw thier offer, fair enough, thats a good thing right now really, as much as we want it, we don't want it THAT much. So we called around a few companies, and the only way really now would be to find an investor to stump up 15%, who would then take a rather large cut at the end.
Right now, i've just spoken to the seller informing her of what's happened, and she's obviously a bit peeved, obviously i didn't say anything about how she should have moved out AFTER the sale, but she was saying "But the completion date was meant to be the 17th..."
As much as i feel for her, and her husband, if she hadn't even SEEN the contract by the 17th, let alone not heard anything, its not really the wisest idea in the world to move out before the sale completes, if you're not going to be able to afford it.
I guess i just wanted to post this to get it off my chest, my girlfriend and I both feel really bad for this couple about how things have turned out, but at the same time, sales DO fall through all the time, and i'm severely peed off that she's complaining that she has already moved out, as she thought the completion date was the 17th...
Are we in the wrong here? We've tried to be as accomodating as we can for her, and at the end of the day, we didn't tell her to move out beforehand, infact we said she could stay on after complation if need be, we just didn't want to get any black marks against us that would ruin us ever getting our own mortgage, no cashback from a sale is worth that, and we just feel really guilty, confused, and peed off
Someone we know runs a company, if people need to sell thier house in a rush, be it divorce, illness, wanting to sell quickly etc.. then he will negotiate a price and pass the deal on the house down to people looking to buy a house as an investment (In this case, my partner & I)
So we agreed on going to get this one, i'm not going to put figures down, but it was being sold to us for 22% below market value (Valued in January and November of this year) which, after buying, paying mortgage on for a few months, and selling on, would make us a nice profit...
Oh dear...
So we arrange everything, mortgage, solicitor (for us and the sellers) all the usual shizzle that goes on, the mortgage broker tells us he wants to set us up on a residential mortgage, which would be fine, as we don't either own another home (This was pretty much done to give us a hefty lump to put down into our own place) everything goes well, mortgage application approved, solicitors informed, contracts being drawn up, which is when the mortgage advisor decides to tell us "Oh, you won't have to pay tax on this, and although you won't be living there, you **need** to make sure you let them know you have the intention of living in the house, otherwise you'll maybe be declined the mortgage. Ok then, so basically, our own mortgage advisor, from a respected company has drawn up a mortgage than we can only be eligible for, by lying to them, and risking getting a big black mark on our records for doing so, not good, obviously temptation is there as we REALLY need the money, but not so much that we'd risk ****** up our own future.
So we called inland revenue (We're both self employed, too) and stated what was happening, what had been advised, and basically said that we do not want to skip tax, we just wanted to see how best to go about things, what to do, who to let know what, and they basically told us to buy it, sell it, then declare it with earnings, less costs split 50/50 between us, and added to our self assessments, ok easy enough, thankyou!
Last thursday, the contracts arrived, and we were already having major doubts about this, the mortgage, although costing us nothing, deposit wise, was basically wrong, and we'd have to lie about it, which we are not prepared to do, queue the next the seller texts us saying that they have now moved out of thier house, and are in rented accomodation that they had lined up for after the sale. Well thats just great isn't it, they move out, before the sale completes, before they had even signed the damn contract, leaving us feeling guilty as hell, and them not knowing he we feel at all. Come monday morning, i called the mortgage company, and explained what we were told to say, by our broker, and that we did have no intention of moving into the place, but didn't want to have a fraudulant record struck against us, as, as soon as we had found out what was proposed, we were immediately unhappy with it.
Long story short, the mortgage company said that if that is the case, then they will withdraw thier offer, fair enough, thats a good thing right now really, as much as we want it, we don't want it THAT much. So we called around a few companies, and the only way really now would be to find an investor to stump up 15%, who would then take a rather large cut at the end.
Right now, i've just spoken to the seller informing her of what's happened, and she's obviously a bit peeved, obviously i didn't say anything about how she should have moved out AFTER the sale, but she was saying "But the completion date was meant to be the 17th..."
As much as i feel for her, and her husband, if she hadn't even SEEN the contract by the 17th, let alone not heard anything, its not really the wisest idea in the world to move out before the sale completes, if you're not going to be able to afford it.
I guess i just wanted to post this to get it off my chest, my girlfriend and I both feel really bad for this couple about how things have turned out, but at the same time, sales DO fall through all the time, and i'm severely peed off that she's complaining that she has already moved out, as she thought the completion date was the 17th...
Are we in the wrong here? We've tried to be as accomodating as we can for her, and at the end of the day, we didn't tell her to move out beforehand, infact we said she could stay on after complation if need be, we just didn't want to get any black marks against us that would ruin us ever getting our own mortgage, no cashback from a sale is worth that, and we just feel really guilty, confused, and peed off
