Would you sell if mortgage owe is higher than house value?

Mum_of_3_3

Sorry to say I have to agree with JQ. I can't see why someone would offer you £80k if the guide is £75k-£85k

Are there any other EAs in the area that you could get a valuation from?

M_o_3

silvercar

A guide price is a get around for telling you that you will be lucky to get 75k max for it. If they insisted that you list it at 75k, you would refuse and go elsewhere. This way the offer comes through them. Then they point out to you that its been on the market for ages and this is the only offer you have had so you should take it.

Barny1979

Mum_of_3 wrote: »

PS As far as the sister goes I would give her some if you manage to end up with money at the end, if you don't then tell her to get stuffed!

She is liable for the debt too, she'd have been happy to take any profit, so should be prepared to take any loss. As she is still on the mortgage, she is equally liable for the debt.

phil_b_2

Have you thought about renting it out at all? That is usually a natural choice for someone with an empty property they struggle to sell.

Person_one

What about renting the house out to cover some or all of the mortgage until the value increases a bit? I realise that being a landlord is not without its costs but if you got good tenants then at least it wouldn't just be sat there empty.

Cissi

phil_b wrote: »

Have you thought about renting it out at all? That is usually a natural choice for someone with an empty property they struggle to sell.

I don't think they'd get permission from the lender if they're in negative equity.

jr_morris

We have been letting it out the past 6 months but the tenancy agreement is coming to an end and we just thought rather than trying to let it again, we just try and get rid of it as quick as possible because if we get another tenant in for say 6 months, we wont be able to sell for 6 months.

Sorry, i am really new to this but would we be classed as in negative equity? the mortgage outstanding is around £81,000 the valuation from the estate agent is at a 'guide price' of £75,000 - £85,000.

Thanks.

GDB2222

Your sister in law may have a point, if you and your husband lived there for a year rent-free. Did you pay the whole mortgage interest for that year or just half?

Apart from that, you said there is a better flat with an asking price of £80k. Usually, offers come in at 5-10% below asking, so assume that one will sell for say £75k. Yours is not as good, so how much will yours sell for? You were really leading round to that point yourself. There's no point putting it on the market with a fancy guide price (up to £85k) as that will put buyers off. You need to make a decision whether you should continue letting it or bite the bullet and sell it now for what you can genuinely achieve. Good luck, whatever you decide.

As other have said you need to check actual sold prices - look on https://www.nethouseprices.co.uk

Ulfar

Messy, the sister is still on the mortgage and deeds.

She is going to have to sign the sale contracts as well and I imagine won't be happy when you present her with a demand for cash rather than giving her a cheque.

jr_morris

Thank you.

The other property which is in better quality and on the market for £80k is with the same agency who's give me this guide price of £75,000 - £85,000 and the £80,000 for their property is also a guide price too (or so it says online).

I think we're going to give it a refresh and a new coat of paint whilst we wait for the notice to end with the current EA. I really have to get the calculator out to see how much of a loss we can afford and decide then what to do...

With regards to the sister in law, once she moved out, we paid everything that was to do with the flat and new lived rent free cos as soon as she moved, she immediately took herself off all the DDs. I guess she'll just have to accept whatever happens, it was her who chose the flat in the first place and it's in the condition it is in because she never looked after it. My husband never saw the flat until the contracts were exchanged as he is away with work alot and i think she just wanted someone to help her pay the mortgage, thinking about it, it is her who has only been paying half the monthly mortgage but getting to live in the whole property...