The nervous wait to exchange....

[GhostlyPea]

An open ended question for people.

I am putting my place up for sale next week, which is fine, However I am growing concerned over the sort of place I will be able to afford. My budget is reasonable, but I'm being realistic in that something may have to give, generally this will be either the location is further afield from where I would ideally be, a far less desirable area or that it will be another leasehold flat. There are some places that I wont live, so it more or less rules it out, but the query I suppose is:

#1 - 2-3 bed Semi/detached with garden in a reasonable area but transport options are not ideal (i.e. getting to tram/train requires a drive etc, and may make the commute from 40 mins to 70) and busses are infrequent. Also slightly further away from friends/family

#2 - Closer to all transport links and social elements but a flat rather than house and leasehold rather than freehold.

#3 - Property ticks all the boxes and transport is fine, but the area is not good

In my mind #1 should be the obvious winner as the overall property would be better, especially as I will be wanting to start a family at some point, and I'm getting older so travel etc. is less of a problem, but the transport is bugging me. I drive but my GF doesn't yet and bus timetables aren't the best. Its a tricky transition for me as my current flat is a great commuter flat for a single guy, but I'm sick of leasehold and the shared building type of property. For reference I live in Beckenham and refuse to go Lewisham, Downham, Croydon way, which is the sticking point.

So - Those with more experience than me: would you sacrifice some convenience of location for the property/quality of area and if so, how much?

- GP

 

[daz]

I would probably wait until you can do option 2 but either a project or a smaller house.

 

[krooton]

An open ended question for people.

I am putting my place up for sale next week, which is fine, However I am growing concerned over the sort of place I will be able to afford. My budget is reasonable, but I'm being realistic in that something may have to give, generally this will be either the location is further afield from where I would ideally be, a far less desirable area or that it will be another leasehold flat. There are some places that I wont live, so it more or less rules it out, but the query I suppose is:

#1 - 2-3 bed Semi/detached with garden in a reasonable area but transport options are not ideal (i.e. getting to tram/train requires a drive etc, and may make the commute from 40 mins to 70) and busses are infrequent. Also slightly further away from friends/family

#2 - Closer to all transport links and social elements but a flat rather than house and leasehold rather than freehold.

#3 - Property ticks all the boxes and transport is fine, but the area is not good

In my mind #1 should be the obvious winner as the overall property would be better, especially as I will be wanting to start a family at some point, and I'm getting older so travel etc. is less of a problem, but the transport is bugging me. I drive but my GF doesn't yet and bus timetables aren't the best. Its a tricky transition for me as my current flat is a great commuter flat for a single guy, but I'm sick of leasehold and the shared building type of property. For reference I live in Beckenham and refuse to go Lewisham, Downham, Croydon way, which is the sticking point.

So - Those with more experience than me: would you sacrifice some convenience of location for the property/quality of area and if so, how much?

- GP

Since moving to London in 2002, I have always lived at least within Zone 4.

2014-2018 saw me living in Wimbledon, Earlsfield, and then Tottenham (moved in with my now wife who bought a flat there). So transport and amenities were in abundance.

This year we moved out 'Croydon way' as you put it, but far enough away from Croydon not to care (Coulsdon).

Now we have a 3-bed detached with a garage, loads of nature nearby (saw a deer in the woods over the road from my bedroom window one morning), and a much calmer day-to-day life (especially given how noisy it was in Tottenham).

It's a lovely 15 minute walk to the train station for me (5 minute drive if the weather is bad) with direct trains to Clapham J/Victoria every half hour, and more frequently if I am willing to change at East Croydon. My daily commute increased 10 minutes each way, but small price to pay for having a proper house and no need to upgrade again in the future.

 

[GhostlyPea]

Since moving to London in 2002, I have always lived at least within Zone 4.

2014-2018 saw me living in Wimbledon, Earlsfield, and then Tottenham (moved in with my now wife who bought a flat there). So transport and amenities were in abundance.

This year we moved out 'Croydon way' as you put it, but far enough away from Croydon not to care (Coulsdon).

Now we have a 3-bed detached with a garage, loads of nature nearby (saw a deer in the woods over the road from my bedroom window one morning), and a much calmer day-to-day life (especially given how noisy it was in Tottenham).

It's a lovely 15 minute walk to the train station for me (5 minute drive if the weather is bad) with direct trains to Clapham J/Victoria every half hour, and more frequently if I am willing to change at East Croydon. My daily commute increased 10 minutes each way, but small price to pay for having a proper house and no need to upgrade again in the future.

It's a tricky one - the Shirley side of Croydon I don't mind so much but the other side isn't practical for me, although I do work in Croydon at the moment that will likely change at some point and my friends/family are the Bromley side. Currently I'm looking around Bromley Common (There are places there that tick all the boxes but are also few and far between) or further out towards Biggin Hill (Which are generally better but are nearer the airport and lack some transport). It does sound though like the commute increase has given you something you're more happy with, which lines up with my feelings. I think I could sacrifice another 30 minutes in bed for a larger family property

- GP

 

[Rroff]

An open ended question for people.

I am putting my place up for sale next week, which is fine, However I am growing concerned over the sort of place I will be able to afford. My budget is reasonable, but I'm being realistic in that something may have to give, generally this will be either the location is further afield from where I would ideally be, a far less desirable area or that it will be another leasehold flat. There are some places that I wont live, so it more or less rules it out, but the query I suppose is:

#1 - 2-3 bed Semi/detached with garden in a reasonable area but transport options are not ideal (i.e. getting to tram/train requires a drive etc, and may make the commute from 40 mins to 70) and busses are infrequent. Also slightly further away from friends/family

#2 - Closer to all transport links and social elements but a flat rather than house and leasehold rather than freehold.

#3 - Property ticks all the boxes and transport is fine, but the area is not good

In my mind #1 should be the obvious winner as the overall property would be better, especially as I will be wanting to start a family at some point, and I'm getting older so travel etc. is less of a problem, but the transport is bugging me. I drive but my GF doesn't yet and bus timetables aren't the best. Its a tricky transition for me as my current flat is a great commuter flat for a single guy, but I'm sick of leasehold and the shared building type of property. For reference I live in Beckenham and refuse to go Lewisham, Downham, Croydon way, which is the sticking point.

So - Those with more experience than me: would you sacrifice some convenience of location for the property/quality of area and if so, how much?

- GP

Having lived around those parts for 4 years I'd say getting #3 right is quite important - it is a strange area (compared to anywhere else I've lived) in that area barely 5 minutes walk apart can be hugely different in nature in terms of how good the area is or isn't.

Transport wise is just LOL anyhow - on a bad day it would have been quicker for me to commute into Croydon from my parent's house in Somerset than from where I was living in Bromley for awhile - especially West Wickham, if you had to get through there, could grind to a stand still - no idea if it is still like that.

I'm not overly familiar with the areas, though been up and down 1-2x a month most of my life, but I had/have friends living in Purley and Sanderstead in what seem like nice enough areas.

I used to drive through the bit between Westmoreland road and Bromley Common a bit and seemed like nice properties and area - did consider moving there but as you said can be a bit few and far between in terms of availability and quite pricey.

 

[GhostlyPea]

Having lived around those parts for 4 years I'd say getting #3 right is quite important - it is a strange area (compared to anywhere else I've lived) in that area barely 5 minutes walk apart can be hugely different in nature in terms of how good the area is or isn't.

Transport wise is just LOL anyhow - on a bad day it would have been quicker for me to commute into Croydon from my parent's house in Somerset than from where I was living in Bromley for awhile - especially West Wickham, if you had to get through there, could grind to a stand still - no idea if it is still like that.

I'm not overly familiar with the areas, though been up and down 1-2x a month most of my life, but I had/have friends living in Purley and Sanderstead in what seem like nice enough areas.

I used to drive through the bit between Westmoreland road and Bromley Common a bit and seemed like nice properties and area - did consider moving there but as you said can be a bit few and far between in terms of availability and quite pricey.

I'm lucky at the moment that I'm about 4 minutes walk from one of the tram stops, so its so easy to get to East Croydon - as it happens I'm also 4 minutes walk from the Hayes to London Bridge line and Orpington to Victoria line, quite spoiled really. The area in Beckenham is alright, but as you say, 5-10 minutes in the wrong direction and it can be a big change in what it is like. Transport wise you're on the money still - traffic can be an is a nightmare at the wrong time of day and the only decent way in and out is bus (Bromley & West Wickham) - not terrible but not ideal. Driving is a no-no


The more I think abut it, the area is really more important for me than the transport or features - if I bought somewhere that I wasn't happy or comfortable living then it would be a weight on my mind the whole time, which means location and a compromise on transport may be the best option followed by losing a garden and re-buying as a leasehold. Still interested in hearing peoples thoughts though so thanks all for your input so far

- GP

 

[Rroff]

Have to say as much as I'm glad I had the opportunity to live and work in London and I'd still go spend a day in London in a heart beat - I'm a lot happier living further out.

 

[GhostlyPea]

Agree to some degree. I do like places like Westerham and Tunbridge Wells, but they are either £££ or far enough away from 'stuff' and 'places' and in my case some people to be practical just yet. Winning the lottery would solve a few problems!

- GP

 

[Russinating]

Just had a request from our buyers through...

 

[Xink37]

Hi guys
Just a quick query on a mortgage/LISA issue.

We are in the process of buying our council house on the right to buy scheme.
With the big discount and £20k deposit I’m putting down this will leave a shortfall of £10k or so.

A mortgage advisor has told me that the mortgage process is quite drawn out and I’m far better just getting a 10k loan from my bank Instead as its instant and more flexible .... Sounds fair enough BUT in my eternal wisdom I’ve invested £8k into a LISA (The balance is £10k with the annual bonuses).
If I don’t get a mortgage I will lose my £2k bonus and be hit with a £500 penalty.
So the £10k LISA becomes £7.5k.

Should I go down the bank loan route and take the hit on the LISA
Or get a small 5 year Mortgage and maximise the LISA?
Thanks

 

[EGuitarStar]

Computer says maybe

 

[tamzzy]

I’m far better just getting a 10k loan from my bank Instead as its instant and more flexible

1st question is: can you get a £10k loan from the bank?
2nd: even if you can, how is your credit rating like? if it's not immaculate, expect to be paying a higher APR than advertised.

you'd have to do the maths on your own...but i suspect using the LISA (with the extra £2k) is likely to be the cheaper option, using some mid-air mathematics...
your LTV is <50%? means you get access to the best rates...which i think is 1.8% on a 5 year fix?
whereas £10k loan is at least 2.9% APR - but only 51% of applicants get this advertised rate...the other 49% will be paying a higher (sometimes massively) interest rate.

 

[Semple]

Or get a small 5 year Mortgage and maximise the LISA?

I'm going on the assumption that you know you then won't be able to touch that LISA until you retire?

Edit: the bigger question is why on earth are you not using the LISA as part of your purchase anyway?

Edit 2: After re-reading your post it's a bit clearer. Why are you not using the LISA to fill the last 10k gap. I'm 99.9% certain everything I've read has said you don't need to apply for a mortgage in order to be eligible for the bonus.

 

[a1ex2001]

Weird advise from the mortgage advisor unless you are in a hurry what does it matter if they take a little time?

A short term mortgage and the full value for your LISA seem a much better option than a loan with likely a higher rate.

 

[DarkHorizon472]

You just need to work out the total costs of each option that is realistically available to you including interest, fees, penalty costs etc. Then choose the one which on a cost basis and terms on offer best suits your needs.

 

[Xink37]

The mortgage advisor I suspect had no or little commission in the deal.

The LISA can only be used if I get a mortgage
Otherwise it’s locked away for another 20 plus years until I retire which isn’t an option for me .

What extra costs does the mortgage route have ?
Product fees ?

The bank can arrange a 10k loan over 5 years for me I think that should be straight forward

 

[tamzzy]

Product fees ?

can be added onto the mortgage.
some also have valuation fees which can cost £100-200, and exit fees that can cost around the same amount.

tbh the fact that you're asking all these questions means that you should get another mortgage adviser. your current one isn't doing their job.

The bank can arrange a 10k loan over 5 years for me I think that should be straight forward

2nd: even if you can, how is your credit rating like? if it's not immaculate, expect to be paying a higher APR than advertised.

 

[Fubsy]

Where am I reading this wrong? You're buying this council house for 30k?

 

[Xink37]

North East of England mate
Property value is only £100k for a 3 bedroom semi detached
Likely discount is 70 per cent
We have a provisional offer of £26,700 a few years ago but didn’t proceed at that time

 

[Fubsy]

Christ.

I'll be paying that in INTEREST over 5 years down here I'd just be taking the hit and snatching their hands off at that price.

Worse still we bought our house off a couple who bought it off the council in the 90's for like 25k and they barely modernised it (only reason it was 'affordable'), leaving us with years of renovations ahead while paying this 200k+ mortgage. Probably better to just sell up and move into something nicer when we can.