Neg Equity/Northern Rock

lauraeast23

Thrugelmir wrote: »

Beecher2, you may missed this earlier piece of information.



Doesn't help the situation.......

Beecher2 had picked up on this and I totally agree with you it doesn't, however, regardless of that fact what's done is done, and I am just after some advice and opinions from those that are more knowledgeable on these subjects for now and the future.

It's now too late to change the past and look over what I should or shouldn't of done.

Thanks

PasturesNew

1] If you can, extend the lease. If you can't, then extend the lease as soon as you are able to afford it.
2] Keep paying as much off the mortgage as you can, don't take any more holidays.
3] Get a 2nd job, throw all that money at paying off your mortgage; make it a fun 2nd job, so it's like a social life more than a job .... the amount is less important than the fact you need to be able to enjoy it and not begrudge it.

It's a roof over your head. You chose it once so you must have found it lovely once, find it lovely again.

This is character building stuff.

You'll look back on this in 10 years and feel really proud of yourself that you held it all together and pulled through.

Good luck!

lauraeast23

Thanks PasturesNew

I have already started the ball rolling to get the landlords details so that I can ask about the lease extension, hopefully we can negotiate a bit on the amount it will cost. I wish I had been more knowledgable about this at the time but like I said before what's done is done and I want to get on with trying to pick all this up now.

I will speak to NR about overpayments on the mortgage, am currently paying off the last of my credit card so should be able to start doing this around October time.

I am lucky in that I do like where I am living, I would like to move up the ladder but am fortunately in no desperate need to. I didn't want to bury my head in the sand and wait until my mortgage deal had ended before I even thought about looking at all this stuff.

I'm certainly not naive enough to think my property will claw back that much value by this time next year.

Thanks for your help !

FCRangers

Kind of the same.

Bought house in 2006 for 85k, was an 105% mortgage. Think the house was worth 82k at the time.

Our mortgage is coming to an end early next year. How does NR or any other company go about valuing the property? Do they send someone round or just go off an average of some kind?

lauraeast23

Do you mean when you come to remortgaging ?

If so, doubtful you will get one, you will just go onto NR standard variable rate

FCRangers

lauraeast23 wrote: »

Do you mean when you come to remortgaging ?

If so, doubtful you will get one, you will just go onto NR standard variable rate

Yeah, but how do NR get the value of my house?
What if the property increased by 10% in the term or does it go off the original value we bought it for which would be 82k

beecher2

FCRangers wrote: »

Yeah, but how do NR get the value of my house?
What if the property increased by 10% in the term or does it go off the original value we bought it for which would be 82k

Have a look at
http://www.nationwide.co.uk/hpi/
to get an idea of how much your house might be valued at now - with any luck it might be enough to allow you an LTV of below 90% since you bought before the peak.

Have a look at nethouseprices too to see what properties in the area are going for, and maybe NR would tell you what they value it at, at the moment if you phone.

Lenders will either use something like Nationwide's tool, or send a valuer round if you're moving. They will look at local prices too.

TrickyDicky

FCRangers wrote: »

Yeah, but how do NR get the value of my house?
What if the property increased by 10% in the term or does it go off the original value we bought it for which would be 82k

There is no need to revalue it unless you move or re-mortgage. Any change in house price is just a paper gain/loss until the property is sold. You still have to pay back what you borrowed, which was 85k

lauraeast23

OK, so have a reply from the landlord regarding cost of lease extension.

They are offering £8,000 premium plus £528.75 inc VAT legal fees. Assignement fees set at £50 per document (what does this mean please?!) Plus a £20 fee to enter into a standard deed of covenant (not sure what this means either)

This is to extend the lease from 70.7 years to 99 years with a ground rent of 150 PA to double every 25 years throughout the term.

My question is that I would be hoping to sell in a few years time if I can get out of negative equity so would I be better off to take this offer or serve formal notice for a 90 year extension with peppercorn rent ? I've heard that once you do this the LL legal fees suddenly jump up...?? Has anyone experienced this ?

Current ground rent is £40 PA, not sure if this changes, current flat value is around £110 going by others up for sale in my road that also have the same lease length.

Thanks again

Thrugelmir

Seek profesional advice. There is legislative basis for calculating premiums on lease extensions.