Get rid of Apartment at all costs?

CPS

Hi,
I have my first viewing of my apartment today (after 8 months on the market). My mate is the estate agent and the guy is a cash buyer and not looking anywhere else.... at the moment.

If he makes an offer around 10% below asking then I will owe the lender a nice big £25k for Neg Equity (which I have - just).

Should I try my best to take any offer and get out and rent and regroup my savings, hoping I have another deposit before we hit bottom. Or do I reject it and hope we are near the bottom and keep all my savings for a depsoit on a new place in a couple of years.

A lot of ifs and buts but viewing is soon and need to be ready with an answer.

gfplux

Have you got the agreement of the lender to sell the flat?

CPS

I assume so. If I sell, I fully intend on going ot rent and using my savings to pay off the Negative Equity and the charge for stopping the mortgage early. Just seems to me like a waste of savings but would be nice to be back as a FTB and start again (in a year or 2)

MX5huggy

Why do you want to sell?

maninthestreet

Given that you have £25,000 in the bank, why not keep paying the mortgage on it, and wait for the market to pick up (it will someday) ???

Acc72

I agree with the others - assuming that you will leave to pay rent on another place, then why not stay where you are ?

£25k is about 4 or 5 years worth of rent.

CPS

Thanks for your comments, all of which I have spent many weeks/months thinking about.
It is a smallish 2 bed apartment. Thinking of starting a family etc but yes we want a bigger house at this stage rather than need. My fear is if we miss this "Spring Bounce" our value will keep falling and we will be stuck in this place paying off the mortgage far longer than I want to.
If I got rid, I could rent for 12-18 months, get a deposit together (after spending our savings on Neg Equity), join the market again (hopefully at the bottom) and have smaller mortgage payments for a nicer house).
Perhaps this is all unlikely to happen but I need to have some sort of plan

pinkshoes

Unless you have a good reason for wanting to sell, why are you? And surely your mortgage rate will be higher than the interest you're getting on the £25k, so why not pay that off the mortgage?

QTPie

Have you looked into renting your flat out? Ise the rentl payments from it to pay your mortgage. Rent for a while yourself, then use your £25k as a deposit on the next house? Then, when the market picks up again, sell your old flat?

We want to upsize, like you, but have good equity in the house (75%) and have now found a buyer who is offering a reasonable amount... BUT we did look at renting it out (and may still consider it, if this sale doesn't work out).

QT

mlz1413

A 2 bed place is big enough to start a family.

Also whilst you have that amount of savings why not buy the next step up when you sell the flat? The difference between the two properties will be smaller than when prices are high.

I think you are very lucky to be able to save another deposit within 2 years, but if you can then I would stay where you are pay the mortgage down and sell when you are ready to buy again or definately when you are out of your fixed rate period.

maninthestreet

CPS wrote: »

Thanks for your comments, all of which I have spent many weeks/months thinking about.
It is a smallish 2 bed apartment. Thinking of starting a family etc but yes we want a bigger house at this stage rather than need. My fear is if we miss this "Spring Bounce" our value will keep falling and we will be stuck in this place paying off the mortgage far longer than I want to.
If I got rid, I could rent for 12-18 months, get a deposit together (after spending our savings on Neg Equity), join the market again (hopefully at the bottom) and have smaller mortgage payments for a nicer house).
Perhaps this is all unlikely to happen but I need to have some sort of plan

So this is a WANT not a NEED - why throw £25,000 away???