Owning your own home

@Sparky or cough get married cough

I think stamp duty (SDLT now) is payable on any transfer of ownership, whether whole or partial, but there may be exemptions for transfers between spouses/partners.

Speak to a lawyer ... (or at any rate to someone who knows - I certainly don't).

(Guidance - https://www.gov.uk/guidance/sdlt-transferring-ownership-of-land-or-property#if-you-marry-enter-into-a-civil-partnership-or-set-up-home-together

Payable on the amount of any cash she puts in plus the share of the mortgage she takes on.)

Right - but neither of those are margin calls and could be sensibly avoided by picking a mortgage that does not revert to a very high variable rate.

you are wrong - margin calls can and do happen both at the end of the deal and sometimes, mid-deal.

http://www.housepricecrash.co.uk/forum/index.php?/topic/76232-margin-calls-on-buy-to-let-properties/&page=8

and read this case too:

http://www.bailii.org/ew/cases/EWCA/Civ/2016/491.html

the whole affair can be sensibly afforded by not being a dick and overpaying for the property in the first place - but you employ whatever technique you feel suits you best by all means.

It's the stamp duty I'm most concerned about. Solicitor is a must, as we would need paperwork doing regardless. But if I have to pay thousands in stamp duty then the whole excercise becomes pointless.

And as for you, @inchpincher - you know my feelings on all that business. As lovely as your big day was...

I don't think the commenter was intending to fund his purchase with a BTL mortgage - consumer protection laws apply to PDH docs and LTV covenants are seriously off market. So I don't think either of your links are relevant to this situation.

Also your last point is confused. What do you define as 'being a dick and overpaying', when your argument is that the market is overvalued. If you took that approach you'd never buy anywhere and would be renting instead, which is highly likely to be more expensive over the average mortgage term of 25 years, with less security of tenure.

it is entirely relevant. it is highly unlikely that the bank would wish to revalue their security midway through say a 2 year fix (although I would imagine if I read your mortgage terms and conditions there is probably a clause in there which would allow them to do so). However he will get stiffed by a bloke with a clipboard at the end of his 2 year deal and a valuation in a bubble will not stack up against a valuation undertaken in a more stable and sensible market. I suspect the only reason he can even consider spending that sort of money on a house is because rates are low - but how long will that continue for? no one know? could he service a 500 grand mortgage at 4pc? 5pc? good luck with that.

my last point is not confused at all. you say - don't worry about loan to values or anything like that, just get a deal which means you can roll over onto a good rate if things do go pear shaped. I say, don't be a d1ck and overspend on the property in the first place. its pretty simple stuff. if he wants to waste nearly 800 large on a terraced house which was 300k less than he is proposing to spend only 3.5-4 years ago, then that's his funeral (and yours as well if that's what you've done as well).

you sound like someone who has overpaid for property in the recent past? do you really think that this situation is sustainable?

People have been saying this since about 1980.

The market is what it is, and yes; everyone has a view on it.

If you can predict where it's going to be at some point in the future, you probably don't need to be reading this.

that's a fair comment. the answer is that if you already own a house why expose yourself to possible pain in the short term when the financial climate is so uncertain, particularly for such marginal returns on your money if the house is only slightly longer/wider.

there are no white swans left, so proceed with caution (and I say this as someone with a mortgage)

I think you misunderstand the nature of mortgage deals. There is no compulsion to refinance at the end of a fixed rate period, nor can the bank pull the mortgage if they don't like the LTV. In a professional capacity I work for a firm that purchases high volumes of sub performing and non performing mortgages so I have some experience of this. One of the biggest problems we have is with borrowers that continue to pay but are seriously underwater on LtV - we can't do anything to get our hands on the property and have to wait!

I bought my own property in 2013, I paid almost 50% more than the previous owner paid for it in 2005. However, when my mortgage is paid off (in 2038!) I could sell the property for half what I paid (the true value?) away and still be up versus having rented the same property for 25 years.

House prices and the value of your equity in the property are highly volatile, we know this. But you can always just live in it, as long as you can afford the monthly repayments at any probable level of interest rates. Your point on margin calls is plain wrong for PDH docs.

there may not be a compulsion to refinance at the end of a fixed rate period, but you would have to be mentally retarded to go from a 1.59pc deal to a 3.99pc SVR and want to do nothing about it.

the problem Donald Loin is going to have, is he is spending 800k on a house which may well be worth 100k less than that in 3 years time. He will get stiffed on his valuation and he will get stiffed on the deal he can get which is critical when you are talking about a mortgage balance which I presume will be at or around the 500k mark.

we aren't talking about shitty 50k houses in leeds or wherever which is probably what you deal with - this is big boys stuff.

still whatever, its your life, and his.

I think you are a rather impressionable individual who has just watched the scary film margin call and decided to go on the internet to shout about it.

whatever m8

haven't u got to buy someones 15 grand mortgage off them on their 2 up 2 down in hull?

Yes that is exactly our line of business. Who knows, we might even buy yours in the next cycle of distress.

highly unlikely , because I'm not a mug. I do wish you the best with it though.

Since the 2008 financial crisis the affordability criteria on mortgage lending is much stricter and lenders won't lend if they think a property is overvalued. As @NickCJ says if @Tenderloin can keep up the payments he's basically OK.

He's thinking about buying this place as a home (not an investment) so if there is a bump in the road he can stay where he is and wait it out. He needs to be comfortable with that prospect, but I assume that's likely as he's interested in living in the area. He also needs to be OK with what his mortgage payments will be when this time of record low interest rates ends.

It all comes down to how much exposure you're comfortable with. Personally I like to keep my mortgage payments at the affordable end of affordable which is why I live in a one bed flat.

Yorkshirist.

Thanks. Sadly, people usually fall behind on their mortgages through no fault of their own - job loss, family breakdown, bereavement and so on. Not being a 'mug' can only get you so far.

^^ It's just like being on http://www.housepricecrash.co.uk/forum/index.php?/forum/22-house-prices-and-the-economy/, I suspect that you've both browsed it. I'm calling top of the market end of Nov 16

or that they were silly and spent nigh on 800k on a house that realistically was only ever worth 500 give or take when the props are taken away?

Not especially, many delinquencies are sub 100% LTV but the mortgage became unaffordable. It was probably originated at 4.5-5x salary so limited wiggle room in case of loss of income.

My mortgage (outstanding) is slightly less than my annual (gross) salary, this is quite a nice situation to be in vis spiralling interest rates. I do wish to move to a larger place a little further out at some point, however. Maybe with some goats.

I've kind of ignored everything that's being said because I don't really want to talk about my personal financial position. I was in the first instance asking how the idea would work thanks @Howard @Dramatic_Hammer etc and then @Fahrgestell asked to see the house, presumably so he might imagine how my awesome furniture would look.

Anyway - whether I'm a mug or flying a kite, that house is easily affordable for us and we'd planned to pay our existing mortgage off within two years and would do the same with the other house. So whether it lost value or whatever wouldn't really matter to me, other than making me look like a total mug.Obvs

Sorry, missed this dude. You are right on the above. I've come to like the area, done some work on our current place and had always planned to move inside 36 months. No change on the plan just saw this place and got my brain whirring a little

If tenders is financially sophisticated to the extent he can pay off what is presumably a good few grand in a few months then quite frankly he should be giving advice , not asking how to port his mortgage or work out his equity.