selling with negative equity

Cannon_Fodder

You would still owe the shortfall and loan in your redundancy scenario.

Borrowing from friends and family might be necessary to avoid serious damage to your credit history.

You haven't responded in respect of renting it out. I personally would baulk at being a long-distance landlord. You would have to rely on managing agents who cost approx 15%, then the rent might not cover the mortgage, or the tenants do a runner...

But if desperate, or if you could get friends (who you really, really trust) into the place privately, it might be an option.

stevieg_83

_Andy_ wrote: »

You can't sell the house whilst within negative equity. the comments do make sense you just don't like what they're telling you.

Everyone's a smart !!! eh?

Nothing do with me not liking it, it just didn't make sense to me that's all.

MobileSaver

stevieg_83 wrote: »

What would happen if I were made redundant and needed to sell the house then? I wouldn't really have a choice other than to sell.

The reason you want/need to sell makes no difference in law.

You have previously agreed that the bank and PSYBT have a legal charge over your property which means that you cannot sell without their permission.

If for any reason you stop payments towards your mortgage (e.g. redundancy) then eventually the bank will repossess the property and continue to chase you for any shortfall, as will PSYBT.

googler

stevieg_83 wrote: »

There's a house in much better condition than ours just up the road on at offers over £90k.

We paid £125k for ours in Jan 08 - our mortgage was £115k.

The offers over price means diddly-squat at the moment - what's the Home Report valuation for the one up the road?

Have you had yours valued, either by a few EAs, or by a surveyor who routinely does Home Reports in your area?.

Have there been any sales of houses similar to yours since you bought? Check Zoopla for sold prices (not estimates or values), and see if you can determine any trend since 2008.

googler

stevieg_83 wrote: »

We a letter of inhibition on selling the house due to business loan I have with PSYBT. Assuming that they want notified of the house being sold so that they could get a cut of any profit made to clear the loan.

You have to do more than 'notify' them of a sale. You have to discharge the inhibition before you place the home up for sale, according to;

http://scotland.shelter.org.uk/getadvice/advice_topics/paying_for_a_home/mortgage_arrears/inhibitions

OR as they say, "the creditor discharges the inhibition on the condition that you repay your debt using the proceeds of the sale of your home"


Take advice from EAs and/or surveyors as to a realistic value for your home, and do your sums from there.