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Sellin small part of Garden - Mortgage Company Problem
Gooneybird_2
Posts: 3 Newbie
A neighbour has approched us to purchase a small section of our garden, it is about 10ft x 10ft, and is a small strip that you would presume is not ours as we have left it derelict for 20 years, but it is on our deeds, and we are the legal owners.
Just over a year ago, i lost my job, and we got into debt, which included mortgage and a secured loan being behind on payments.
We have been offered £5000 for this small area by our neighbour and this would allow us to pay off any arrears, on loans, and utility bills etc.
So we have agreed a price, neighbours will meet solicitors costs etc. We have paid a surveyor to value the house and garden, to see if any value will be lost if the sale goes through, his report stated that NO value will be lost.
Mortgage company agreed to the sale, but the secured loan company have said no, and de-railed the sale. We are £600 in arrears with them, and have offered the £600 plus one months payment in advance from now on but they have still refused. They have stated that if sell, the want the arrears + every other penny left, i.e £5000 to be paid off the loan balalce (£40,000).
So my question is ......
Is there any other way round this ?
Somehow dont register the sale ?
or maybe rent the land to the neighbour for X amount of years?
any advice please
G
Just over a year ago, i lost my job, and we got into debt, which included mortgage and a secured loan being behind on payments.
We have been offered £5000 for this small area by our neighbour and this would allow us to pay off any arrears, on loans, and utility bills etc.
So we have agreed a price, neighbours will meet solicitors costs etc. We have paid a surveyor to value the house and garden, to see if any value will be lost if the sale goes through, his report stated that NO value will be lost.
Mortgage company agreed to the sale, but the secured loan company have said no, and de-railed the sale. We are £600 in arrears with them, and have offered the £600 plus one months payment in advance from now on but they have still refused. They have stated that if sell, the want the arrears + every other penny left, i.e £5000 to be paid off the loan balalce (£40,000).
So my question is ......
Is there any other way round this ?
Somehow dont register the sale ?
or maybe rent the land to the neighbour for X amount of years?
any advice please
G
0
Comments
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It is common for 2nd charges to stop this sort of thing because of the possible devalue of the house. You could sell it to them without registering it but the neighbour would be mad to agree. Nothing stopping you renting it to them.0
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Could you use the money you're getting for the bit of garden to pay off the loan completely? It would mean you wouldn't get a windfall to spend, but you could clear the loan by the sound of it.0
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lcf321, Looks like the loan is £40,000 but the parsel is only worth £5000
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Could you use the money you're getting for the bit of garden to pay off the loan completely? It would mean you wouldn't get a windfall to spend, but you could clear the loan by the sound of it.
Gooneybird wrote: »They have stated that if sell, the want the arrears + every other penny left, i.e £5000 to be paid off the loan balalce (£40,000).
As you can see by Gooneybirds post, the loan balance is £40k, so a lot more than the £5k they will receive for land. The loan company would want the whole of the £5k for the land if they were able to sell anyway, still leaving them with £35k to pay back.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
Reducing the loan by £5k will mean that the monthly repayments should reduce, leaving more money each month to tackle the other debts. Not ideal, but better than nothing.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Gooneybird wrote: ». They have stated that if sell, the want the arrears + every other penny left, i.e £5000 to be paid off the loan balalce (£40,000).
OK. Sorry - I didn't follow this properly.
Still, on reading it again it seems that Gooneybird is saying that the loan co. would agree to the sale if the £5000 goes to them(?) Might still be worth doing to get on top of arreas and get the outstanding balance down.0 -
can you not explain to the secured loan company that they are not they only one's you are in debt too and that the money will be split pro rata between the debts???Life is like a box of chocolates........
too much all at once and you start to feel just a little sick...._ _pale_
SW start weight 13st 3lb
SW currant weight 12st 8lb
SW weight lost 0st 9lbs0 -
Would it not be possible to have a private contract drawn up to say they own the land? so you don't have to register it but they have some security?0
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