DSS -Selling and renting

storeton

dopester wrote: »

I pulled a 30 hour day. So many points in your post are what I was trying to cover - but you did it in a very clear logical format.

Facts are, the parents are 57 years old, and in the hole for a mortgage debt of £180,000 which is currently interest only. That £180,000 becomes due for repayment in 12 months time.

The house is worth whatever you can get from the market at any point in time. OP believes it's worth £250,000.

Son and daughter may be carrying their own debts. In theory student loans might not count as debt in mortgage according to Firefox - but those debts are very real. They are also not best placed to find a mortgage for £180,000 in this market, for this approach of saving the family home. Pingu2209's points are also very valid.

The son and daughter have jobs and income and options. My fear is they'd be stretching themselves to raise £180,000 to save their parents current position, and subsequently might be vulnerable themselves to any changes in circumstances, possibly bringing down Mum and Dad, son and daughter.

Anyway it's from Jowo's 3 choices imo, but if the OP is talking stone cold certainties I feel minds are very much locked on what the home was worth towards peak, rather than taking sensible options.

Thanks for that informative piece,the valuation of £250000 was estate agents valuation in January in line with condition of house

Jowo_2

storeton wrote: »

Thanks for that informative piece,the valuation of £250000 was estate agents valuation in January in line with condition of house

The way I understand this process is that estate agents often offer vendors optimistic valuations based on the upper end of the market in order to secure the contract. Typically, after getting the contract, they will then suggest the price is dropped to encourage more interest.

In this relatively flat market, most buyers will expect a significant discount from it and often tend to make a silly offer (hoping the vendor is desperate), then one around 10% less and it goes from there.

I bet few buyers go the full asking price. Also, there are quite few threads appearing here where a buyer has negotiated a price under the asking price and the valuation from the surveyor comes in significantly less than that and jeapordises the sale. Then after the survey, typically a buyer will challenge the price again if there are any defects reported.

If the EA has stipulated 250k, what is the lowest offer you would accept from a buyer?

JA1000

Mine is worth £300k - £325k according to 3 estate agents. Along comes Mr Esurv who decides £240k

Just not enought comparables at the moment. So be warned it isn't going to be £250k, EA values are not worth the paper they are written on for banks. Start being realistic and work out your LTV it will narrow your choices or leave you no choice but one.

storeton

Estate agent caused a lot of problems with his valuation
He told my parents that type/area of house in v.g.condition £270k and valued ours at the £250k and advertised it at that price, I know nobody would pay full asking price ,he should have advertised £259995,you can always come down but not up,clown

LuFo

What's the point in advertising at higher than valuation, if you haven't even had any offers from the lower price? Just time-wasting even more considering you are saying that no serious buyers have been around anyway!

storeton

Do you ever pay full asking price for a car or house?If yes are you simple?or have too much money
Wouldn't you make a near offer, chip them? or is that not an english think to do
So if anyone or your agent said your property is worth £250k or £270K In tip top codition
Ah! thinks 250k would be nice but £260k would be better and should have said so at time and took a £10k chip but hey I not the proffesional getting 1.5% and I'm showing punters around for them free gratis
Dhurr!! I took pro advice to start it at £250k and take offers at 230k offered
So took off market fitting new bathroom lick of paint and wallpaper and going up again at £270 with better clued up agent
First rule in bargaining you can't go up but you can come down!!!!!!!1
read and inwardly digest
we have been round and round on this and the heart of the problem is that banks/buiding societies are not lending in suffecient quantities to any buyers especially first timers regardless of equity in house and untill they stop paying immoral bonuses to their excecutives for losing money(my bonuses are profit related-If i lose money for my firm I get bu**er all)
at this rate housing will never recover and prices can only go one way-south

storeton

Jowo_2

You have a property that has little interest from buyers and where there is time pressure for you to sell it

... and you've spent a few bob on it and have whacked up the price by 20k? !

Ulfar

How many offers have you had at either price, by the sounds of it none.

You may be unhappy with the banks, estate agents and whoever else but you have to deal with reality.

Your parents have one year to complete the sale of this property or lose it. Now it would be really nice for you to get £270k but anything in excess of the mortgage is what you NEED.

One year is not that long when you consider time from offer to completion is about 3 months normally.

Jowo_2

storeton wrote: »

we have been round and round on this and the heart of the problem is that banks/buiding societies are not lending in suffecient quantities to any buyers especially first timers regardless of equity in house and untill they stop paying immoral bonuses to their excecutives for losing money(my bonuses are profit related-If i lose money for my firm I get bu**er all)
at this rate housing will never recover and prices can only go one way-south

The actual heart of the problem is that your parents financially over-reached themselves, steeply remortgaging a property, and not having the means to pay it back. It's not clear from your post how long their interest only mortgage ran for without them paying a penny towards the capital, nor how long your parents were on a small income failing to properly address the fact that the lender expected the balance of the mortgage paid off by next year.

So the economic climate did not help, nor did a culture of home ownership which expected the value of properties to keep climbing, but it's not the fault of the lender, the politicians, the banks or the DSS that your parents chose a very risky strategy and made poor financial decisions.

storeton

Hello all again,
I might have closure on this problem,took advice and got in touch with broker via onlinemortgage network.They easy sorted problem BUT guess who is offering me a mortgage,a subsiduary of Natwest!!!!!!!they are taking my earnings related bonus in full,compared to Natwest's 25% nowonder the banking sector has got the country skint,heads up their collectives a**es
What ever happened to the bankmanager in your wardrobe advert,very personal relationship that?
thanks all who responded and gave their valuable time
storeton




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