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Comments
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Your house has been up for sale for a year?
It is priced too high then if its not selling. Drop your price and make it sell.
Where I am the market is booming - now is best time for the last few years!
Do not enter into what you described.
You bought for £80k in 2005. How much are you trying to sell for? What did agents value it at? How much do you need to clear the mortgage?0 -
Mortgage Balance with first Mortgage is £55,000
2nd Mortgage/Secured Loan on property for £14,000
Equity around £11,000 ( as house prices has not improved in the area)
So you owe £69k on a property you think is worth £80k. If they pay you £8k and "take over the mortgages", that's £77k effective sale price. Can't you find a straight-up buyer for £77k?The company ... want to take over the liabilities of both the loan with the bank and also the secured Loan
But they want all debt to remain in my name
Then they won't be taking over the liability. You will still be liable.
Will your lenders even allow you to sign over the ownership but remain liable for the debt?whilst they service the loans
But, if they don't... Guess who still owes the balance?A legal document will be drawn to cover all these.
Well, something that looks like a legal document. At best, you'll have something to wave at the administrators when this company is closed down...But I am uncomfortable having the loans still in my name for 10 years whilst this company renovates and rents it out to tenants.
Quite right, too!The only advantage to me is that i will get £8,000 to add to my new deposit for the new house
Woah, hold on... What "new deposit"? Why not pay off some of your current mortgage with that money...?Semi detached houses in my area are capped at between £70 - £80 so i know that I will not sell this house for more than £80,000 in ten years time anyway.
Properties in your area are currently worth £70-80k max. Yet you're trying to sell this at the top end? Reduce the price.
BTW, I'm very impressed with your crystal ball. Is it any good at shorter-range forecasting? Lottery numbers for this weekend, perhaps? Even Thursday's election results? You should be able to make a few quid from the bookies on that or the nags...0 -
*sniffs* - Yes, I detect a strong whiff of rat here, with a soupcon (whatever that is) of creating all kind of legal and financial issues for yourself with this sort of arrangement.0
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This sounds like a scam and you should have nothing to do with it.
The fact of the matter is that you can't afford to move because you've been treating your house like a cash machine: you haven't made much progress on repaying the 1st mortgage and have added a 2nd mortgage/secured loan as well, to the extent that you've nearly half way through the term, and considerably more than half the amount is still outstanding.
The house isn't selling because it's overpriced and having languished on the market for over a year, people will think there's something wrong with it. Suggest you pull the listing and concentrate on saving up a decent deposit, or repaying the 2nd mortgage. Once you've saved a little equity yourself (ie independent of house price inflation) then put it back on the market at a more realistic price and go from there. 2 of the kids will have to share a bedroom for the time being.0 -
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when people are desperate they will go to desperate measures for a way out, hence why people get in a vicious circle with pay day loans e.t.c. Think very carefully about this scheme, run far far away. Look at why you haven't sold yet, post a RM link so we can critque would be starters"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
For all the reasons others have mentioned, this sounds like a terrible idea.
The mortgage lenders won't agree to the house being transferred to the 'buyer' unless the mortgages are cleared, so you would remain the owner and would pay higher rate stamp duty on your new property.
You would have to declare the old mortgages to your new lender which is likely to significantly reduce (if not completely extinguish) your mortgage capacity.
You would be left in the lurch if/when this company stops paying you the monthly amounts.
You would need the current lenders permission for the house to be let out, and they would be unlikely to give it unless you convert the mortgages to proper BTL ones, in which case you won't get to keep your low rate.
Your best bet is to take the property of the market for a bit. Focus on overpaying your secured loan (or saving the money, if it doesn't a;low over payments) and move once you can afford to do so - at which point, you may be able to port your mortgage to your new property so that you can benefit from your low rate yourself.
As the property has been on the market for a year then it is probably overpriced for the area, however, you might find it useful to ask your selling agents for some candid feedback about ways in which they think you could increase its sale-ability. They may well recommend lowering the price, but also consider whether there are any cosmetic or presentational changes you could make to make it more attractive to buyers, when you put it back on the market.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
I agree with all the above that probably sound like negative views to you.
However ,why does the mortgage being in your name affect your affordability, as your wife could be added to a future mortgage ? Even if she is not on the deeds you are a married couple so after a few (not sure of the number) years ,the house is considered to be partly hers anyway.0 -
Many thanks guys for all your advise!! I really appreciate it.
You guys have just echoed what my wife thinks as well so I have made up my mind - I will send back their contracts and delete their numbers.
Many thanks once more for all the wise words.
It is too good to be true!0 -
As already mentioned, but I'll repeat it for good measure... the market is only ''slow'' for deluded vendors with unrealistic asking prices.0
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