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How are people managing chains at the moment?

  • 13-08-2022 12:55pm
    Registered Users Posts: 61 ✭✭

    If thinking of moving and it's not FTB- so would need 20% deposit. Not going done the road of exceptions as it won't work with other criteria (multiples).

    We have 10% deposit ready, but all the rest of our 'savings' are tied up in the current house. Hence we'd have to sell to have the other value to secure the new mortgage.

    With children & nowhere to go- how are people managing chains at the moment? What do you do in the weeks in between where contracts and funds are moving?


  • Registered Users Posts: 2,595 ✭✭✭Buddy Bubs

    If you've nowhere to go in between I suppose you're looking at b&b somewhere or a hotel stay. It won't be cheap but I suppose if you had any equity you didn't need to use in house sale it could be put towards it.

    Prob not the answer you wanted but with lack of family/friends to put you up temporarily I can't think of anything else unfortunately

  • Registered Users Posts: 120 ✭✭LunaLoo

    We were in same situation as you but our solicitor was able to negotiate paying 10% deposit instead of 20% but on condition the sale was finalised within certain time frame otherwise we would forfeit deposit.

  • Registered Users Posts: 61 ✭✭Drog79

    Thanks people.

    LunaLoo I believe the 10% is exceptions- which we won't get.

    So the options are B&B, hotel, Airbnb, friends?

  • Moderators, Recreation & Hobbies Moderators, Social & Fun Moderators, Society & Culture Moderators Posts: 6,880 Mod ✭✭✭✭shesty

    Yes.Or a rental, if you are lucky enough.

  • Registered Users Posts: 35 southofthelee

    Trading up is awfully difficult at the moment.

    Most EAs will not entertain bids unless you have already *closed* the sale of your existing property - i.e. cash in the bank.

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  • Registered Users Posts: 3,715 ✭✭✭C3PO

    I think this will be your biggest problem! You may have to wait until you have actually have the funds before an EA will accept a bid from you! So you could be months between homes.

  • Registered Users Posts: 61 ✭✭Drog79

    Ok naively I thought by selling ours with the same agent as buying new with, it would allow the offer to go through based on them controlling the sale and help align things.

  • Registered Users Posts: 35 southofthelee

    Yep possible. I don't know what area you are in but in Cork Suburbs you would want to have your house on the market with them already - before bidding on a target property - at a minimum.

  • Registered Users Posts: 61 ✭✭Drog79

    Ok, we're north Dublin. We are aiming to get ours advertised with them after a valuation and they are aware that this will be a significant piece of our funding.

    So, regarding air BnB, do people typically give reductions for longer lets over the winter?

  • Registered Users Posts: 90 ✭✭frank730

    If you can find a b&b pretty far from anywhere you might get discount for longer stay

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  • Registered Users Posts: 23,983 ✭✭✭✭lawred2

    This is why we've backed away from getting involved. Not a game I'm going to play for the sake of the EA.

  • Registered Users Posts: 3,715 ✭✭✭C3PO

    Not really for the sake of the EA - they work for the seller and in the current market it makes sense for the seller to insist on a cash buyer! Why would anyone get involved in a chain if they didn’t need to?

  • Registered Users Posts: 2,319 ✭✭✭tscul32

    The negotiating 10% instead of 20% thing is between solicitors and the vendors rather than the bank (unless I'm wrong). The bank will only give you a mortgage of up to 80% of the value rather than 90% for a first buy. But your other 10% is in the equity of your home, you just need the vendor to be happy to accept the 10% you have and wait until your house is sold (hopefully close same time as you buy) for the other 10% (+ mortgage). I dont think the bank and exceptions are a factor in this.

    As I said, I could be wrong but that is my understanding after discussing the same issue last year with a solicitor friend.

    Having the EA also sell yours could help here as they could help convince the vendors that your house should sell pretty quickly (assuming that's true).

  • Registered Users Posts: 61 ✭✭Drog79

    That's it tscul, whilst the moving parts may work eventually re the 10-20%, the bigger issue is how long should I expect my family to be homeless.

    What's the shortest amount of time for sale agreed/equity/ move from moving in. We can use storage for stuff, it's just how to manage our family?

  • Registered Users Posts: 35 southofthelee

    You can look for what is called “caretakers agreement” as part of the condition of sale of your property. This would allow you to remain in the property for a specified period. However this is likely to put off most buyers who will require vacant possession.

  • Registered Users Posts: 61 ✭✭Drog79

    Is there anything like that we could do on the new house? If it's empty would vendors let us move in and rent?

  • Registered Users Posts: 652 ✭✭✭eusap

    you are confusing the central bank rules of 10-20%, If you are second time buyer you need 20% Equity can be cash or Equity in house

    When buying the new house you can borrow 80% Mortgage Max, as part of the buying process when contracts are signed it is normally a 10% Deposit. When buying our house the solicitor used the buyer of our house 10% deposit to pay our 10% deposit so we transferred very little in the difference.

    At a minimum an EA would want your house on the market, and better if it is sale agreed, that way they know if you are selling to a cash buyer, or mortgage buyer so they can judge how complicated the chain will be. It should be possible to line up your sell/buy and may only need an AirBNB for 1 night to a week or two, But remember these type of transactions happen daily so it is normal

  • Registered Users Posts: 61 ✭✭Drog79

    No I understand the rules,the real question is around how long we'd be between properties as we have to sell to have the 20%.

    "It should be possible to line up your sell/buy and may only need an AirBNB for 1 night to a week or two, But remember these type of transactions happen daily so it is normal"

    This is my worry, I was getting the distinct impression that times were taking considerably longer and not just a day or two.

  • Registered Users Posts: 3,715 ✭✭✭C3PO

    Almost definitely not. Their solicitor would always advise against that.