Owning your own home

^^^ I'm not at all keen. but rents are also going up fast.
is it really any better to sit tight and wait for the market to cool? a few years ago there was hope for that, but in the event the London market never really cooled. now it seems like everyone who has a little deposit squirreled away is saying "fuck it, we may as well jump in".

my sister (a different one) is paying back her mortgage double-quick, pays a little over my rent, on a lovely 1930s 3-bed semi. would involve moving to middlesbrough though...

hold your nerve as a first time buyer. the reason the market is hotting up is because of lax credit and people worrying that the longer they leave it the less they can afford. those are the 2 things that fucked everyone up when the market dived last time. I think the former will go sooner than people think and the latter will then deal with itself.

If you can get something at a fair price then go for it if it suits your needs, but to be paying some of the prices people are paying in what I would respectfully suggest are less than prime bits of the smoke is asking for trouble in a few years imo..

Its utterly insane that people are even considering paying 300k for a modest flat at the end of the victoria line

I say this as someone who has a vested interest in the london property market. I moved to old ford to live in a rickerty old warehouse very nearly 3 years ago, and paid 250k for our flat. Its now been valued the other week at 385k.

You've just answered yourself there

You've just answered yourself there

I'm not really sure what you mean - I took a risk when I purchased our flat and paid what I considered was a toppy but fair-ish value price. I could have quite easily lost 15k in the space of a few months. that the market dictates its now apparently worth nearly 150k more than I paid for it some 3 years ago doesnt make any sense to me I must confess, nor do I understand why anyone would consider paying nearly 400k for it either..

You're saying it's insane that people are spending £300k on a flat in a rapidly appreciating area, but they could be worth nearer £400k in 3 years. You took a chance and made your money.

thats true - I'd have been chuffed getting a 3pc return a year and it being worth 275-280 after a couple of years. I've no doubt the market is correct and I'd get nearly 400k. It doesnt make it logical and to be honest it doesnt make it right either. A lot of people now have a choice - get into the market at the very top and hope it climbs if they are buying in what you suggest is a rapidly appreciating area, or stay out and wait till it falls back slightly towards fair value..

i'm just by maryland if you need any assistance / info on the area ^^^

about to exchange, on Friday in fact. If you have any warnings against the idea, I'd rather not know, I really don't want to start over again! ;)

thats true - I'd have been chuffed getting a 3pc return a year and it being worth 275-280 after a couple of years. I've no doubt the market is correct and I'd get nearly 400k. It doesnt make it logical and to be honest it doesnt make it right either. A lot of people now have a choice - get into the market at the very top and hope it climbs if they are buying in what you suggest is a rapidly appreciating area, or stay out and wait till it falls back slightly towards fair value..

You are making the assumption that this is the very top- we could be halfway there, and in 2020 your flat would have a "fair value" of 800k

fair value..

But the only governor of fair value is supply and demand. Will anything change fundamentally in this equation in the next x years?

My view is:

• The market is flooded with first time buyers who are now participating due to upturn in economic confidence
  
• Help-to-buy has enabled more buyers to enter the market with lower LTV ratios
  
• Low interest rates enable lower LTVs, both for prospective buyers and home-owners
  
• There is ongoing lack of construction to meet increasing demand
  
• We have an economy that is truncated to the South East, and London in particular
  

what happens when you are paying 6pc in 5 years time rather than the 3 when you took the mortgage out on? the market is currently operating under very exceptional circumstances. cheap money will be around for a while but not forever - and you only pay off a little bit of capital in the first few years.

I dont think a lot of people are thinking about that. Stress test your finances before you take the plunge

(I very nearly wrote stress test your fiancee which is probably not a good sign as I'm getting married in like 3 weeks)

As above : Supply vs. demand vs. affordability is all that matters.

Supply : They're still not building enough houses. Everyone knows that.

Demand : Can change if jobs move away from an area, but that won't happen with Ldn.

Affordability : Mortgage interest rates won't change much for a long time, even when the base rate inevitably does.

The base rate is 0.5%, rates are more like 3%+. Historically mortgage lending has been nearer parity with the base rate.

When the base rate goes up lenders will reduce the margin between it and their lending rates. If they don't they risk a[nother] collapse.

I therefore conclude that prices will continue to rise at an average of 10% per year like they have done since Jesus was a lad.

http://www.bbc.co.uk/news/business-25137444

a possible start to the end of ultra cheap money

Tell landlord that me might be moving out on 6th bu that we'd need some room around that.
Landlord replies positively.

Then lines up tenants and builders to work as if we're definitely moving out on the 7th now. New tenants could wait until 21st.

Where do I stand legally? Am I fucked?
I asked if he could tell everyone to wait until January, they've said "we now have legal requirement to the tenants".

I'm annoyed.

Off topic but poss helpful.
The govt link is a calculator of how much housing benefit you can get in your postcode, it uses ACTUAL rental values not advertised rents that Zoopla/Rightmove use. It tells you the average rent for the size of property you want in your postcode. So at least you know how much properties are renting for. https://lha-direct.voa.gov.uk/search.aspx

^^When I moved in to my current place, the start-of-tenancy date got pushed back by a month because the previous tenant refused to leave. She cited some issues with getting a deposit together for a new place, due to breaking up with her partner. Why that should end up being my problem I don't know. But in summary, I think there are ways you can stay past your notice date. Not sure of the legal position though.

Here's some legislation about Notice to quit. You either have an Assured Shorthold tenancy ( 6 months ) an Assured Tenancy ( 1 year ) or a Regulated tenancy which is continuous from before 15 Jan 1989. https://www.gov.uk/private-renting-tenancy-agreements/your-landlord-wants-to-end-your-tenancy

Can I sit here until our solicitor tells us they're happy with the responses and contracts arr exchanged and I can move to my new house?

Or do I have to get out?

Tell landlord that me might be moving out on 6th bu that we'd need some room around that.
Landlord replies positively.

Then lines up tenants and builders to work as if we're definitely moving out on the 7th now. New tenants could wait until 21st.

Where do I stand legally? Am I fucked?
I asked if he could tell everyone to wait until January, they've said "we now have legal requirement to the tenants".

I'm annoyed.

Does your fixed term tenancy end on the 6th?

And if so has the landlord issued you with a Section 21 notice requesting possession of the property from the 7th?

Can I sit here until our solicitor tells us they're happy with the responses and contracts arr exchanged and I can move to my new house?

Or do I have to get out?

It depends how much of a git you are prepared to be to the landlord and the new tenant.

If you don't leave the quickest your landlord will be able to get you out by force (the bailiffs) is a month or so.

Assuming it's a proper agreement and has been properly terminated (has it?) even the Accelerated Possession system is slow.

How much of a git I'm willing to be? This isn't someone who is niaive to buying a house and the process. He could have waited until it was all finalised, rather than acting as he has.

Its all been done verbally. No issuing letters or anything.

Assured shorthold. Signed in09. Not signed anything since, I think.

Sounds like you didn't make your intentions clear enough to the landlord. You are presumably on a periodic tenancy now and can end your tenancy with 1 months notice from a rent day.
Put pen to paper asap and advise your landlord you have not yet given formal notice to terminate your tenancy. You landlord has to give you a minimum 2 months notice if he's going to ask you to leave if he then decides he wants you out anyway..

It depends how much of a git you are prepared to be to the landlord and the new tenant.

If you don't leave the quickest your landlord will be able to get you out by force (the bailiffs) is a month or so.

Assuming it's a proper agreement and has been properly terminated (has it?) even the Accelerated Possession system is slow.

Just remember that by being a git, you will likely be costing your landlord money (court fees, lost income, advertising costs, etc.) As you appear to be moving into home ownership, I guess you would be worth pursuing through the small claims court for compensation of their expenses.

I don't want to be a git. I explained clearly the situation. I've kept him updated. I've not "formally" as in said "we are leaving on this date" I've said "wed like to move on this date but may need some weeks, you know what it's like with buying a house". They gave positive noises, and then staryed showing prospective tenants. Before we said "yep we're ready to leave".

What does that sound like?
Too informal? Should have been more formal?

I don't want to be a git. I explained clearly the situation. I've kept him updated. I've not "formally" as in said "we are leaving on this date" I've said "wed like to move on this date but may need some weeks, you know what it's like with buying a house". They gave positive noises, and then staryed showing prospective tenants. Before we said "yep we're ready to leave".

What does that sound like?
Too informal? Should have been more formal?