PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Negative Equity Nightmare

Options
2

Comments

  • glasgowdan
    glasgowdan Posts: 2,967 Forumite
    First Post First Anniversary Combo Breaker
    Options
    As above, how much have you paid off in the 9 years? You need to provide some more specific figures for anyone to get a handle on it and suggest the best options.
  • silvercar
    silvercar Posts: 47,002 Ambassador
    Academoney Grad Name Dropper Photogenic First Anniversary
    Options
    Gwendo40 wrote: »
    This is what happens when we have almost a decade of government/BoE policies that are aimed at protecting existing homeowners at ALL costs... the concept of negative equity or reduced values become almost incomprehensible to people.

    Clearly the OP thinks there is negative equity here, contrary to your statement.

    I am curious as to what part of the country is in negative equity after almost a decade other than Northern Ireland.
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    I think that’s what I’ll have to do but was trying to find another way rather than get a loan. Also, we got married this year so I was waiting till that was out of the way before taking on the debt.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    Thanks for all your replies, sorry I am unsure how to reply individually.


    Yes you're right, I was looking at the amount of the mortgage when I first took it out. The neg equity now would be approx. £5,500 depending on what it sold for. Unfortunately when I first bought the property I was making very small monthly payments off the mortgage, as that's all I could afford. It's only when I moved in with my partner and had his income to help that I increased the payments to try and reduce the balance. I was also fairly young and didn't understand how mortgages worked, therefore I was on a high rate for a long time.


    I have had it up for sale in the past but as it's shared ownership it proved difficult to sell, I ended up renting it out again to help with the monthly costs. I had A LOT of interest from investors but the housing company won't allow me to sell to those. The buyer has to meet the requirements for the shared ownership scheme, which proved difficult. It is still up for sale on the housing companies website and I have had no interest for approx. 6 months now.


    I wanted to try and avoid a loan as I try my best to avoid debt. Also, my partner had a large loan when I met him which we are paying off monthly so I didn't want to add more to this. However, it looks like this is the best way for me to go. Thanks for everyone's help, it's difficult to find people who understand the ins and outs of my situation. I think I will put it back up for sale with an estate agent and cross my fingers! It's a bargain for someone to buy now!



    Gwendo40 wrote: »
    This is what happens when we have almost a decade of government/BoE policies that are aimed at protecting existing homeowners at ALL costs... the concept of negative equity or reduced values become almost incomprehensible to people.


    The concept of negative equity is stressful for me as I have lived on my own for 12 years since the age of 17 working full time as well as working part time weekends in an attempt to stay out of debt. I thought I was making a good decision "getting onto the property ladder" which is what I was told back then. Now that decision has resulted in this situation which is quite disheartening.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    silvercar wrote: »
    Clearly the OP thinks there is negative equity here, contrary to your statement.

    I am curious as to what part of the country is in negative equity after almost a decade other than Northern Ireland.


    Thanks. I live in the North West, Liverpool area.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    glasgowdan wrote: »
    As above, how much have you paid off in the 9 years? You need to provide some more specific figures for anyone to get a handle on it and suggest the best options.


    I have paid off roughly £3000.00.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    TBagpuss wrote: »
    Do you have children? If not, why is the property too small for you and your husband?
    Would moving back in be a short term solution to let you overpay and get out of negative equity?

    If that isn't possible, then it's worth looking into whether you could sell and pay off the shortfall.

    Do you or your husband have any savings? If not, have you looked into whether you could get a loan, and how the cost would compare with switching to a consent -to-let mortgage.?

    It might be less stressful for you to sell and pay off the shortfall through a loan.

    Is the £8,500 negative equity the figure now, or 3 years ago when you moved out?

    How much rent could you get compared with the cost of a mortgage on a consent to let basis?


    Because it's shared ownership I pay rent to the housing company and mortgage as well. I can't be seen to be making a profit on the rent so what I am allowed to charge a tenant doesn't cover the rent & mortgage that I pay. I'm currently at a loss of £105 every month at the rate I'm on now. They want to put the interest rate up by 3%.
  • Scotbot
    Scotbot Posts: 1,451 Forumite
    First Anniversary First Post Name Dropper
    edited 30 November 2017 at 5:29PM
    Options
    Liverpool house prices have risen 8% over the last 10yrs so a decrease in 30k seems an unrealistic valuation. If it were 300k originally a 30k drop would be a 10% decrease and I doubt it cost that much for housing association in Liverpool so a 30 k drop is probably considerably more than 10%. When did you last have it valued? Your figures seem outdated.
  • emmasam0
    emmasam0 Posts: 8 Forumite
    Options
    Scotbot wrote: »
    Liverpool house prices have risen 8% over the last 10yrs so a decrease in 30k seems an unrealistic valuation. If it were 300k originally a 30k drop would be a 10% decrease and I doubt it cost that much for housing association in Liverpool. So a 30 k drop is probably considerably more than 10%. .When did you last have it valued? Your figures seem outdated.


    Hi, I had it valued in March this year by 3 different estate agents. Also had it valued in March 2016 by 3 different estate agents. They said it was because of the area and because there had been "trouble" locally which brought the prices down.
  • Marvel1
    Marvel1 Posts: 7,174 Forumite
    Name Dropper First Post First Anniversary
    Options
    silvercar wrote: »
    Clearly the OP thinks there is negative equity here, contrary to your statement.

    I am curious as to what part of the country is in negative equity after almost a decade other than Northern Ireland.

    I am, based in South Wales.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.4K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.8K Spending & Discounts
  • 235.5K Work, Benefits & Business
  • 608.4K Mortgages, Homes & Bills
  • 173.2K Life & Family
  • 248.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards