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Sell the house and keep the barn?

 
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boisdevie1



Joined: 11 Aug 2006
Posts: 3896
Location: Lancaster
PostPosted: Sun Sep 28, 14 3:22 pm    Post subject: Sell the house and keep the barn?  Reply with quote    

I want to give my daughter some money as the deposit on a flat. So my idea is divide the land in two, sell the house with some of the garden and keep the barn with the remainder of the garden (about 1000m sq of land). This gives me money that I can give to my daughter with enough left over to convert/extend the barn in an eco-stylee. I can do virtually all the work myself and the idea of a house with ultra low running costs has lots of appeal.
Assuming I can get planning permission are there any downsides to this cunning/bonkers plan?
As an aside I think the UK property market will divebomb in the next few years. Am I being pessimistic. I worry that my daughter may mortgage herself up to the hilt and then have a shedload of negative equity.

Nick



Joined: 02 Nov 2004
Posts: 33539
Location: Hereford
PostPosted: Sun Sep 28, 14 4:50 pm    Post subject: Reply with quote    

It's not going to dive bomb. There aren't enough houses, and the population wishing to live in a house is growing. Interest rates will go up, mortgage payments will rise, but houses will not come down, long term in value, generally. Some areas might be too high, but they're the exception, I suspect.

VM



Joined: 23 Nov 2007
Posts: 1745
Location: Lincolnshire
PostPosted: Sun Sep 28, 14 5:41 pm    Post subject: Reply with quote    

Don't know about France. If you were here the planning permission would probably be the main issue/question on which whole thing would stand or fall.

stumbling goat



Joined: 20 Jan 2009
Posts: 1962

PostPosted: Sun Sep 28, 14 5:58 pm    Post subject: Reply with quote    

What makes you believe that the UK housing market is going to dive-bomb in the next few years?

sg

boisdevie1



Joined: 11 Aug 2006
Posts: 3896
Location: Lancaster
PostPosted: Sun Sep 28, 14 6:45 pm    Post subject: Reply with quote    

stumbling goat wrote:
What makes you believe that the UK housing market is going to dive-bomb in the next few years?

sg


Interest rates rise=those mortgaged to the max are screwed=bubble bursts

Woo



Joined: 19 Sep 2011
Posts: 766
Location: Mayenne, Pays de Loire
PostPosted: Sun Sep 28, 14 7:06 pm    Post subject: Reply with quote    

As you know planning permission shouldn't be a problem, however beware there is a sneaky tax now if you request to convert a agricultural building into a house.
It cost us a few more euros than we expected.

john of wessex



Joined: 18 Jun 2007
Posts: 2089

PostPosted: Sun Sep 28, 14 7:15 pm    Post subject: Reply with quote    

UK property prices are currently about twice the historic price/earnings ratio.

Having said that however two nations that have attempted to raise interest rates have not had much luck in attempting to do so..........

onemanband



Joined: 26 Dec 2010
Posts: 1446
Location: NCA90
PostPosted: Sun Sep 28, 14 9:26 pm    Post subject: Reply with quote    

boisdevie1 wrote:
stumbling goat wrote:
What makes you believe that the UK housing market is going to dive-bomb in the next few years?

sg


Interest rates rise=those mortgaged to the max are screwed=bubble bursts


Interest rates rise=those mortgaged to the max are screwed=bubble a bit squished until the next lot of people get mortgaged to the hilt.

Too much demand....too little supply. We been building 100 000 houses too few for several(10?) years. A new garden city won't solve it, nor will election promises of 100 000 starter homes, and 'help to buy' just enabled people to borrow more. We need to build hundreds of thousands of houses just to clear the backlog, aswell as building 200 000 houses a year to meet current/future demand. We are building about 100 000 houses a year.

You should help your daughter, but not for fear of a property crash.

Nick



Joined: 02 Nov 2004
Posts: 33539
Location: Hereford
PostPosted: Sun Sep 28, 14 10:08 pm    Post subject: Reply with quote    

boisdevie1 wrote:
stumbling goat wrote:
What makes you believe that the UK housing market is going to dive-bomb in the next few years?

sg


Interest rates rise=those mortgaged to the max are screwed=bubble bursts


Yep, and the banks repossess, but sell the houses the next day to people who have them as second homes, rental properties or plain old investments.

So, again, why do you think prices will come down? There's more residents than houses. Prices go up, not down in those circumstances.

Green Rosie



Joined: 13 May 2007
Posts: 10490
Location: Calvados, France
PostPosted: Mon Sep 29, 14 6:40 am    Post subject: Reply with quote    

Woo wrote:
As you know planning permission shouldn't be a problem, however beware there is a sneaky tax now if you request to convert a agricultural building into a house.
It cost us a few more euros than we expected.


And us

Lorrainelovesplants



Joined: 13 Oct 2006
Posts: 6453
Location: Cornwall
PostPosted: Mon Sep 29, 14 8:25 am    Post subject: Reply with quote    

You'll also have to budget for water/electric connection/laying on as it will technically be a new/seperate property, and you wont be able to share I imagine. Also new septic tank.

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