Should I buy a property abroad?

[bambam]

I can relate to this. In the wife’s vision it means constantly shaking the magic money tree!

In our case its more that we have different views on location and activities.

I would like to live by the coast, maybe have some land, definitely a decent sized garage/workshop and she'd like to live in the city - somewhere around Knightsbridge ideally! So we're miles apart which means we stay where we are!

[village]

OP...

In your recent thread asking advice about your job situation you said that you needed the additional income that would come with either a promotion or change of job.
Although I agree that it’s far too generalising to say that one should £x amount of equity by a certain age,what with disparities in regional house prices and whatnot,I think it’s also fair to say that £100k won’t actually get you far if you look at buying abroad and all the costs involved.
When you take both the above into consideration (especially with the weighting given the first comment)I don’t really see why it would be sensible for you to buy abroad and rent domestically.
In my humble opinion you would be far better staying a house owner in the UK and using spare money to travel as and when it becomes available. If you have a larger amount free one year,for example,take a long let somewhere.

I'll go out on a limb and state I'd do what the OP wants. Buy abroad and rent here. Property prices in most of the UK will tank. So don't worry - those people thinking they are sitting on a lot of equity will soon be sitting on a lot less ;)

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I wouldn’t agree with this. I don’t think for one minute property prices will tank. They may fluctuate slightly but definitely not tank.

[ryanb741]

I understand where you’re coming from and appreciate that it’s a bitter pill to swallow, but you are where you are and paying the £50k will realise you an extra £230k from where you are now.

Not paying the £50k will leave you £180k worse off.

I’d hate to pay it too, I really would, but paying it is the sensible decision.

What would your advice be if it were someone else (a friend or family member for example) in your position?

Again I agree. What sticks in my craw is the fact this was an engineered situation between developer, freeholder and conveyancer. At no point did the conveyancer who did the lease point out this was an issue or could be an issue and one pays these people to do such things. They were appointed by the developer so there you go. Turkeys don't vote for Xmas.

Anyway I agree worst case I'll pay the £50k at some moment before I need to sell. Best case government will write it off and it will be free-freeholds for all. Realistic case is the legislation that should arrive soon will lower the cost, time and complication of doing so. No rush on my side as no intention to sell yet (and my current mortgage company doesn't seem to flag any issues as I just renew online with them every 2 years and they just seek to use an arbitrary house price index to set the price and thankfully don't look closer) but at some stage I appreciate the trigger will need to be pressed.

Anyway apologies for somewhat hijacking the OP's thread.

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[murkeywaters]

You and me both. Often run the numbers with this kind of thing in mind - cash it all in and clear the debts and then see what we want to do. Thing is, I think we (me and wife) have different views on how we see the future.

I does play on the mind, I know what certain things are worth but have not yet added it all up as that might give me more ideas!!

Currently at just over mid forties I’m trying to make my cash into more cash in the most enjoyable way I can.
One thing I have moved to in last 11-12 years is only do what I enjoy, if the enjoyment goes I look for something else that keeps me happy, I learnt long ago that having a job I hated just for monetary purposes is a rabbit hole that can be hard to get out of.

[murkeywaters]

So if i renew my lease ... It would currently cost me £30k , would these new rules bring this price down at all ?

Have a read of this, hopefully it helps you out

https://www.gov.uk/government/news/g...uy-their-homes

[demonloop]

Ryan: how did your conveyancer / mortgage co not see the detail and obvious problem with this? Have you no redress against your conveyancer?

[arthurDALEY]

Have a read of this, hopefully it helps you out

https://www.gov.uk/government/news/g...uy-their-homes

Thanks MW , I will take a look anyone know when the Law/online Calculator comes into force ?

Cheers

[blackal]

Nothing wrong with leaseholds as long as you do your homework, always was an issue about lenders not lending on 69 years or less and lease owners holding the homeowner to ransom, but new rules brought in January allow home owners to increase their lease to 990 years for effectively zero.

I do get the yearly charges and ground rent can be prohibitive but again due diligence by yourself and conveyancer should iron a lot of this out, the cladding issue is just unavoidable and I really feel for those stuck in homes that are un-mortgageable..

That is it - in a nutshell...........

I sense that people in their rush to buy - went along with the "everyone is doing it, so it must be fine" attitude.

Same thing happened with Low Cost Endowment mortgages - no-one really read the terms and conditions.

It will be interesting to see how the cladding issue pans out - while HMG appears to be magnanimous to avoid blame landing on their doorstep - I see it falls short (unless it is glossed over) in that they are not funding re-cladding, only the removal.

In Edinburgh around 15yrs ago - it was found that lots of tenements were suffering from crumbling sandstone (one block falling through a bar glass roof, killing one of the staff). The cause was thought to emanate from soft sandstone used at the height of a particular boom in building. The salient point to this - is that there were rows of tenements where the owners were compelled to fork out app £35k each to have the situation made good. No-one stepped in to bale them out.

Their only saving was that they got the local authorities to issue a Compulsory Requirement, which apparently saved them the VAT.

[draftsmann]

Again I agree. What sticks in my craw is the fact this was an engineered situation between developer, freeholder and conveyancer. At no point did the conveyancer who did the lease point out this was an issue or could be an issue and one pays these people to do such things. They were appointed by the developer so there you go. Turkeys don't vote for Xmas.

Anyway I agree worst case I'll pay the £50k at some moment before I need to sell. Best case government will write it off and it will be free-freeholds for all. Realistic case is the legislation that should arrive soon will lower the cost, time and complication of doing so. No rush on my side as no intention to sell yet (and my current mortgage company doesn't seem to flag any issues as I just renew online with them every 2 years and they just seek to use an arbitrary house price index to set the price and thankfully don't look closer) but at some stage I appreciate the trigger will need to be pressed.

Anyway apologies for somewhat hijacking the OP's thread.

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I don’t think the freeholder should be blamed or put at a disadvantage for this. Be careful what you wish for where it comes to government interference in what should be a free market.

On the other hand where I do think this business stinks is in regard to the conveyancer. They weren’t actually appointed by the developer inasmuch as you will have engaged them, but clearly the developers will have “steered” buyers to their preferred firm. But at the end of the day the conveyancer has a duty to act for his client, ie the buyer. I’d like to see the cost of buying out of these escalating ground rents borne by the conveyancing firms, or their PI insurers, or if all else fails by the SRA funds that are held for compensating victims of solicitors’ failings if they can’t be compensated from anywhere else.

[Rodder]

I don’t think the freeholder should be blamed or put at a disadvantage for this. Be careful what you wish for where it comes to government interference in what should be a free market.

On the other hand where I do think this business stinks is in regard to the conveyancer. They weren’t actually appointed by the developer inasmuch as you will have engaged them, but clearly the developers will have “steered” buyers to their preferred firm. But at the end of the day the conveyancer has a duty to act for his client, ie the buyer. I’d like to see the cost of buying out of these escalating ground rents borne by the conveyancing firms, or their PI insurers, or if all else fails by the SRA funds that are held for compensating victims of solicitors’ failings if they can’t be compensated from anywhere else.

Good luck with that, remember this is a populist government. A couple of days of news coverage and they’ll pretty much do/reverse anything if they think it’s good for the polls.