Shortfall Advice Required

philurry

My property has been on the market for about a year now without a sniff of interest. I owe approx £107k on it but it's current market value could be as low as £90k. I need to sell fast as I have moved in with my girlfriend so I'm paying nearly £800 a month on somewhere I don't even live.

Recently, I received a leaflet though the post from one of these companies that will buy my property at 75% of it's market value and guarantees to have the deal done in 4 weeks and take care of all fees. This will leave me with quite a large shortfall but I have to think of getting rid of the property asap as a large shortfall loan would be better to cope with than hanging on to the place or even having to drop the price to a really low amount and having to cover a shortfall AND all fees myself.

I'd appreciate if someone would come on here and offer me £110k for it - failing that, any advice on my situation would be great.

Thanks

happybroker

be careful with these firms, I have seen some pretty strange "open market" valuations when they have been involved.

If you did sell then the shortfall would have to be found some how and if you sold at 75% ltv this would be around £40k on the figures above which I really don't see how you could raise without any security to offer I'm afraid.

is there anything to stop you renting the property out for a while which would go some way to covering the mortgage payment (possibly all of it if you were to switch to interest only) and also allow you to sit tight until the market improves? If you did manage to borrow the £40k on an unsecured basis the payments would be high as you would probably have to do it over a short period of time.

philurry

I agree these firms do look a bit dodgy but they do appeal to me because of the guarantee they 'say' then can stick to.

I have looked at renting it out which would help in the short term but I fear if whoever rents it, makes a mess and any subsequent viewers interested in buying are put off - a little negative I know but getting rid of the place is my highest priority. Maybe I need to do this though regardless of how I feel about it.

As for changing to interest only, I did try but Barclays/Woolwich (who my mortgage is with) no longer do this due to the influx of lenders already having done that.

Thanks