Want to sell...

delboi

our flat & upgrade to a house, but we bought it during 'the boom' 3 years ago & there is no chance we'll get the money back we paid for it.

Is it a case of sitting around until we have paid off enough of the mortgage so we can make some money on it?
We've heard of property developers buying your property from you (& selling it on) in order for you to buy their property. Would that be possbile?

Thanks for any advice.

_Andy_

You'll need at least 10% deposit for the new property.

bobbybobby

sorry but i would just sit tight unless you want to have 2 properties with negative equity. can you manage to wait?

delboi

bobbybobby wrote: »

sorry but i would just sit tight unless you want to have 2 properties with negative equity. can you manage to wait?

Yes we can wait. It's not as if we have family & need to move. That is a couple of years away.
We could start making additional payments on our mortgage to decrease the debt. We just wondered if we could do anything now as it would have been nice.

Ditch_Crawler

delboi wrote: »

our flat & upgrade to a house, but we bought it during 'the boom' 3 years ago & there is no chance we'll get the money back we paid for it.

Is it a case of sitting around until we have paid off enough of the mortgage so we can make some money on it?
We've heard of property developers buying your property from you (& selling it on) in order for you to buy their property. Would that be possbile?

Thanks for any advice.

If you cannot repay your mortgage from the proceeds of the sale, then you will need to provide for the shortfall from some other source.

Only then, will you be able to seriously contemplate another mortgage

bobbybobby

2 options you could consider?
1.. rent it out and let someone else pay the mortgage, rent somewhere else yourself bigger if thats what you want, preferably with a smaller rent than the income you will receive for your own flat.

2.. ask if you can reduce the term of the mortgage, we werent able to overpay more than 10% without penalty but they let us reduce the term which effectively meant the same thing as larger overpayments, this would give you a larger equity in the property for the future, hopefully 1 or 2 years time?

bobbybobby

also you could just put your mortgage on interest only until the market rises and if rented out the excess should give you some to save whilst you are renting somewhere else

brit1234

bobbybobby wrote: »

sorry but i would just sit tight unless you want to have 2 properties with negative equity. can you manage to wait?

You may have to wait a long time with prices set to fall when interest rates go up. Far more likely to be in negative equity the longer you wait.