Probable Negative Equity - Can We Sell House?

thedrum

We currently have a house with a £170,000 mortgage on it and are looking at the possibilities of putting this on the market in order to move that mortgage on to another property that would be worth say £100,000 and hence making it a cheaper monthly payment. The only thing is that the 1st valuation has come back at £160,000. We have spoken to our lender and tried to explain that we are trying to reduce our lending with them but keep getting mixed messages about what can be done. My question is, if we can only sell this house for the £160,000 and wanted to buy something worth £100,000 does anybody think that the lender might go for this?

Thanks in advance

Caz3121

you will need to clear the mortgage on the property you are selling and also have a deposit for the new place so probably looking to have £20k (£10k to clear mortgage and £10k as a 10% deposit)

thedrum

Caz3121 wrote: »

you will need to clear the mortgage on the property you are selling and also have a deposit for the new place so probably looking to have £20k (£10k to clear mortgage and £10k as a 10% deposit)

Do you think there is any chance of the lender taking a view on this matter that i am trying to reduce the amount that i owe them and be a little more lenient? We are also in some financial difficulty so it may come to it that we end up handing the keys in anyway. Surely they would prefer for us to try and sell it before they have to!

PasturesNew

To sell you'll need to settle the outstanding mortgage. So there's a minimum of £10k you'll need. Then to buy another property you'll need 10% deposit minimum... so there's another £10k you need. Then there are fees etc, so say another £2k.

Unless you have £22k minimum in the bank you're unlikely to be able to do it.

You need to concentrate on selling this property ... forget buying another for now. Sell this one, work out how you will find the amount to settle the negative equity.

Then rent .... and save.