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  • FIRST POST
    • emmasam0
    • By emmasam0 29th Nov 17, 2:01 PM
    • 8Posts
    • 1Thanks
    emmasam0
    Negative Equity Nightmare
    • #1
    • 29th Nov 17, 2:01 PM
    Negative Equity Nightmare 29th Nov 17 at 2:01 PM
    Hi, hopefully someone on here can help me with my problem.


    I bought a 25% share in a property in 2008, which I moved out of 3 years ago as I moved in with my now husband due to my property not being big enough for both of us. Since I bought the property it has decreased in value by roughly 30 - 35K, leaving me in a negative equity of £8,500.00. A member of my family lived in the property at first but then when they moved out my only option was to look at renting. I couldn't sell due to the negative equity. After going through a lengthy process the housing company finally agreed to let me sub-let the property temporarily as did the mortgage company. Now the mortgage company have said that I can no longer do this and my only option is to go onto a mortgage at a higher rate as it's a consent to let mortgage and not a residential.


    I am totally stuck with this property and not sure what way there is out for me. I am at a loss financially every month even with having someone living in the property and now my mortgage rate is increasing. I still can't sell due to the negative equity I owe and I really can't see a way out. I have looked into purchasing the other 75% but that won't work either. It's going to take me at least 9 years to pay off the mortgage that I owe at the current rate.


    Does anyone have any suggestions or advice? It's difficult to find someone who knows all about the shared ownership in's and out's.


    Thank you!
Page 2
    • cjdavies
    • By cjdavies 30th Nov 17, 4:32 PM
    • 2,842 Posts
    • 2,874 Thanks
    cjdavies
    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.
    Originally posted by silvercar
    I am, based in South Wales.
    • emmasam0
    • By emmasam0 30th Nov 17, 4:34 PM
    • 8 Posts
    • 1 Thanks
    emmasam0
    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.
    Originally posted by Scotbot

    It's about a 36% decrease in value. When I bought it in 2008 I think house prices were at a high, it was valued at £89,000. Now it has been valued at approximately £55,000. I've asked them to come and value it again before I out it back up for sale but I don't think there's much chance of it having gone up.
    • AdrianC
    • By AdrianC 30th Nov 17, 4:45 PM
    • 15,702 Posts
    • 14,018 Thanks
    AdrianC
    It's about a 36% decrease in value. When I bought it in 2008 I think house prices were at a high, it was valued at £89,000. Now it has been valued at approximately £55,000. I've asked them to come and value it again before I out it back up for sale but I don't think there's much chance of it having gone up.
    Originally posted by emmasam0
    25% share in a £55k property...? £13,750-worth?

    Wow.
    • lisyloo
    • By lisyloo 30th Nov 17, 4:53 PM
    • 21,304 Posts
    • 10,230 Thanks
    lisyloo
    Who owns your husbands property just him? or does he rent?

    Bankruptcy is a way of walking away from your debts but be aware there are consequences, like not getting credit, and having to declare it in certain situations (like starting a business).
    You'd also be reliant on your husband if he owns his own property
    i.e. if you did divorce he doesn't have to provide you with accomodation anymore.

    Does he rent or own?
    Why can't you live in yours?

    Believe me I live in London and some of the serviced appartments I've stayed in are a masterclass in minaturisation, so I don't think you really can't live there, I think you don't want to.

    Could you live there and him not pay rent on his place? or does he own?

    Sorry for questions but we need that infor in order to help/make suggestions.
    • Crashy Time
    • By Crashy Time 1st Dec 17, 10:37 AM
    • 5,276 Posts
    • 2,217 Thanks
    Crashy Time
    It's about a 36% decrease in value. When I bought it in 2008 I think house prices were at a high, it was valued at £89,000. Now it has been valued at approximately £55,000. I've asked them to come and value it again before I out it back up for sale but I don't think there's much chance of it having gone up.
    Originally posted by emmasam0

    Ouch......
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