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  • FIRST POST
    • StanDK
    • By StanDK 5th Jun 17, 10:17 PM
    • 3Posts
    • 5Thanks
    StanDK
    Selling House now for Future Value?
    • #1
    • 5th Jun 17, 10:17 PM
    Selling House now for Future Value? 5th Jun 17 at 10:17 PM
    So I bought a 3 bed semi detached house in 2005 and I took the loan over 30 years. Fast forward 12 years and now with a wife a 3 kids, we have decided to buy a bigger house but because our current house is in my name, it is affecting my affordability.

    So we decided to sell the house. As you all know the market is very slow at the minute and I have not received an offer that I could accept since its been on for sale for one year.
    I was recently contacted by one of 'those' property management companies and they made me an interesting offer and I am confused on whether to accept it and move on or not - so here are the numbers:-

    House bought in 2005 for £80,000
    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)

    The company offered to pay me £8,000 upfront
    The 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 whilst they service the loans and plan to pay it all off within 10 years. The said that because I am on a cracking rate of 1.5%, they would not want to come out of that rate.
    A legal document will be drawn to cover all these.

    But I am uncomfortable having the loans still in my name for 10 years whilst this company renovates and rents it out to tenants. The only advantage to me is that i will get £8,000 to add to my new deposit for the new house and I can finally move on. 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.

    Your thoughts please?
Page 2
    • Tiners
    • By Tiners 6th Jun 17, 5:12 PM
    • 223 Posts
    • 221 Thanks
    Tiners
    As already mentioned, but I'll repeat it for good measure... the market is only ''slow'' for deluded vendors with unrealistic asking prices.
    • martindow
    • By martindow 7th Jun 17, 10:53 AM
    • 7,250 Posts
    • 4,037 Thanks
    martindow
    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!
    Originally posted by StanDK
    I wouldn't waste a stamp - just throw it in the bin.
    • Crashy Time
    • By Crashy Time 7th Jun 17, 3:28 PM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    As already mentioned, but I'll repeat it for good measure... the market is only ''slow'' for deluded vendors with unrealistic asking prices.
    Originally posted by Tiners

    That`s most of the "market" though...
    • AdrianC
    • By AdrianC 7th Jun 17, 3:34 PM
    • 15,433 Posts
    • 13,761 Thanks
    AdrianC
    That`s most of the "market" though...
    Originally posted by Crashy Time
    Even the ones whose houses are selling quickly for full asking price?
    • Crashy Time
    • By Crashy Time 8th Jun 17, 1:23 AM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    Even the ones whose houses are selling quickly for full asking price?
    Originally posted by AdrianC

    BTL running for the exit you mean?


    https://www.bloomberg.com/news/articles/2017-06-05/london-home-rents-drop-at-steepest-rate-in-eight-years-on-glut


    Doubt many are selling at full asking price though.
    • Crashy Time
    • By Crashy Time 8th Jun 17, 11:23 AM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    http://www.financialreporter.co.uk/finance-news/transactions-plummet-by-a-fifth-since-sdlt-reforms.html
    • BlaEm
    • By BlaEm 8th Jun 17, 1:38 PM
    • 213 Posts
    • 179 Thanks
    BlaEm
    ^ I wondered where you were, yesterday...
    • Crashy Time
    • By Crashy Time 8th Jun 17, 3:35 PM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    ^ I wondered where you were, yesterday...
    Originally posted by BlaEm

    Thanks for noticing
    • Crashy Time
    • By Crashy Time 8th Jun 17, 10:41 PM
    • 5,225 Posts
    • 2,204 Thanks
    Crashy Time
    Hung parliament and pressure on interest rates about to speed the market up (or down) a bit?
    • StanDK
    • By StanDK 12th Jun 17, 11:34 AM
    • 3 Posts
    • 5 Thanks
    StanDK
    Hello guys,

    Apologies for going on and on about this matter - I have decided not to accept the offer anyhow but I just thought I'd share the last offer email sent to me last week just in case anyone knows anyone else who has been approached on similar offer:-
    ----------------------------------------------------------------------------------------------------
    Hi Stanley,

    We hope you are well!

    May we firstly thank you for taking the time to speak to us and giving the information that will allow us to come to a solution that gives you what you want.

    Just to clarify, we are not an Estate Agent or an Investor who does things the traditional way; we like to create a win-win for everyone wherever possible!

    The advantage of working with us is that you don’t have to pay any agent fees, which saves you thousands straight away that you can put towards buying your new home.As we are sure you know, selling homes under the current housing market conditions is proving near impossible. With the uncertain economy, we know how you must feel trying to sell your house at a time when the majority of buyers are being refused mortgages by banks.

    We understand in all circumstances; you are trying to achieve the best price for your house. Although we cannot compete with the ‘retail’ buyer, we are forward thinking and can offer a large variety of solutions towards the sale of your house.

    We have therefore come up with an alternative, after taking into consideration your circumstances and expectations. We are pleased to make you the following offer: -

    ‪Delayed Purchase Agreement‬‬‬‬
    ‬We can buy your house for the total redemption amount of outstanding mortgage and secured loan (£70,920) Plus (£8000) upfront subject to lender(s) confirmation.

    The completion will be at the end of 5 years at which point we will clear out the remaining outstanding mortgage and loan. As there is already a mortgage on the property, instead of going to the bank to get another one, we can leave this in place, put some paperwork together with one of our specialist panel solicitors to cover you and me.

    Once the paperwork is done, we will step in your shoes and from there on you should consider the property sold. We look after the property as if it was our own and manage everything for you.

    You will have the peace of mind knowing that you no longer have to deal with anything relating to the property. We will take care of all the repairs, insurance, voids, certificates etc. and any other expenses for the entire outstanding mortgage term.

    With this offer, mortgage and deeds remain in your name until we have paid every penny owing on your mortgage & loan. At this point we will transfer the deeds to our name.

    I hope you agree with us that this is a complete One Stop Solution with a seamless process!

    We sincerely hope that the above solution will be of interest to you as you can see we are very flexible and will work with you to create a happy medium…. WIN-WIN!

    If you have any questions and/or need some clarity on anything then please ask.

    You can contact me directly on 07450 xxxxxx or reply by return.

    Luca

    -----------------------------------------------------------

    Thanks guys

    Stan
    • AdrianC
    • By AdrianC 12th Jun 17, 11:47 AM
    • 15,433 Posts
    • 13,761 Thanks
    AdrianC
    We understand in all circumstances; you are trying to achieve the best price for your house. Although we cannot compete with the ‘retail’ buyer...
    = They pay less than if you sold it.

    The completion will be at the end of 5 years
    = You still own it for the next five years.

    Once the paperwork is done, we will step in your shoes and from there on you should consider the property sold.
    = Even though it isn't really sold.

    With this offer, mortgage and deeds remain in your name
    = You still own it and are legally liable for the mortgage.
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