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Please help - Part Exchange dilemma
zazou_uk
Posts: 6 Forumite
Hello,
I need some advice. I have a 1 bed flat in SE London that I am looking to part ex against a 2 bed new build in Bromley. The developer also wants a non-refundable 1,000 fee. I currently have an 85% mortgage but also have 40k secured loan on the property(lease extension and renovation). The value of my flat is now 170k and the most I will get in part ex is 163K, which does not leave much for a deposit or fees, stamp duty etc The flat was valued at 190 3 months ago!!! Knowing that prices are going to fall further, is it best to take a hit now and sell on, knowing that I am going to be in the new flat for a good few years? The agent has hinted to me that the if they take my falt in part ex there is not much room for negotiation, but if i offer near the asking price I could get a 5% deposit and stamp duty paid. The completion date is 1 week Nov and they would look to complete within 28 days. I have a 90% mortgage arranged already and the property I am looking to buy is priced at 299,950 which seems quite high if prices are going to fall. Please help..I can afforf my new mortgage but I dont want to loose any more than I have already done and plunge into negative equity. Thanks in advance
I need some advice. I have a 1 bed flat in SE London that I am looking to part ex against a 2 bed new build in Bromley. The developer also wants a non-refundable 1,000 fee. I currently have an 85% mortgage but also have 40k secured loan on the property(lease extension and renovation). The value of my flat is now 170k and the most I will get in part ex is 163K, which does not leave much for a deposit or fees, stamp duty etc The flat was valued at 190 3 months ago!!! Knowing that prices are going to fall further, is it best to take a hit now and sell on, knowing that I am going to be in the new flat for a good few years? The agent has hinted to me that the if they take my falt in part ex there is not much room for negotiation, but if i offer near the asking price I could get a 5% deposit and stamp duty paid. The completion date is 1 week Nov and they would look to complete within 28 days. I have a 90% mortgage arranged already and the property I am looking to buy is priced at 299,950 which seems quite high if prices are going to fall. Please help..I can afforf my new mortgage but I dont want to loose any more than I have already done and plunge into negative equity. Thanks in advance
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Comments
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Please help..I can afforf my new mortgage but I dont want to loose any more than I have already done and plunge into negative equity. Thanks in advance
You may already BE in negative equity.
If you buy a new-build you will definately be in negative equity.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0
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