Cant sell my home and am forced to let

Mallotum_X

Why is it not selling?

There are still 50,000+ properties selling each month, so places are selling, however if you want to sell you need to find out what someone will pay. Have you checked sales prices as well as local asking prices?

Dont forget various other costs of renting the place out - safety certificates, insurance, repairs, letting agency fees etc. If it was me I would drop the price some more and get it sold and get on with your life.

jsambrook

@Dopester - thanks very much for the next to useless advice. I am not scapegoating. If you havent got anything constructive to say please dont bother. If banks had not been so greedy we would not be in this position. How about I give my house away? You wanna come snapping and my bargain? making profit out of other peoples misfortunes? lovely!

Thanks to everyone else. It seems the only thing to do is speak to the Bank and hope they dont screw me over!

jsambrook

Unfortunately If I drop the price any more then I wont be able to move at all!

ILW

jsambrook wrote: »

Unfortunately If I drop the price any more then I wont be able to move at all!

You bought 10 years ago, it must have a ton of equity in it.

mlz1413

in the 80's the banks lend recklessly and then most of the 90's interest rates were sky high - meaning everyone with a mortgage paid for the banks mistakes.

in the 00's again banks lend recklessly and now in the 10's people with mortgages are paying for the mistakes.

you are not in this alone and no single bank or banker is going to come along with a magic sum of money and make your life better so the best way not to be bitter is deal with it.

Your decision to rent the home you own (with a mortgage) and rent someone elses bigger property is frought with problems and before you enter into any legally binding contract you really need to look your BUSINESS decision and ensure the figures stack up.

1 - the rental income you receive above your mortgage interest payment is profit and you will be taxed on this.

2 - you cannot claim the rent you are paying out as an expense.

3 - what if your tenant leaves after 6 months and it takes 4 weeks to redecorate and then 4 weeks more to re-let, can you afford rent & mortgage for those 2 months?

4 - are you aware of any tenant & landlord law?

5 - what if your LL ceases the tenancy after 6 months? do you also kick our your tenant or will you move to another rental?

6 - are you prepared to rent for at least 5 years? this is easily how long it may take for house prices to rise again.

As others have said bite the bullet and sell, move on without the hassle of owning a home you don't live in. Your about to be a parent spend the time enjoying it not running around trying to evict tenants who are upsetting your old neighbours and not paying you.

ruggy83

I am in the same position, and i have asked my lender if they would allow me to rent it out for a few years. I have to apply, but they said i should be able to let my flat in the short term, without going to a buy to let mortgage, which i would probably need about 25% equity. I currently have 0% equity after the market crashed.

It is interesting that you bought 10 years ago and can't afford to drop the price any more though? Are you on interest only or something?

jsambrook

Good news. I have spoken to the bank and they are prepared to give me a consent to let for 12 months. I will more than likely be able to renue this but obviously they couldnt say for sure as their policies may change. But she did say that if things stay the way they are today, there would be no reason why I couldnt continue to stay on the current mortgage for the 5 years we will probably be living in the new home. Thats a relief off my mind. At least I dont need to worry about it for another year!

And for those of you stumped as to how i cant afford to move, i increased the mortgage to pay for a significant amount of work on the house, and house prices have suffered alot in the last couple of years in my area. In addition, my house is opposite a mosque which just looked like any other building when I moved in. However, they have since expanded it and made it look like a mosque. 9 out of 10 viewers have been put off by it. Hence my house value has significantly dropped as a result. I dont have any problems with the mosque so I cant see why it should make such a difference.

Brb

Now you have consent to let then please look into T and LL laws etc. Do NOT presume that a LA will know more than you and if you use agents then you are legally responsible for their actions/inactions. Also emotionally detach yourself from your home, as it won't actually be yours anymore and your T's home and they have a right to quiet enjoyment. LAs want to charge you lots of money and the T lots of money and some LAs will rodger both of you whilst getting you all to sign unfair contract terms.

Research your obligations before not after something goes wrong!

Have fun

neas

wouldnt want you as my landlord tho as your a newbie amateur landlord who didnt make the choice to become a landlord.

As a renter you will understand the frustrations of your tenants by anything you try to not do.

1. Deposit has to be protected in one of government schemes
2. They can change locks if they want
3. They can ask for quiet enjoyment meaning you cant take house back.
4. It may occur that significant damage is done to house and you cant claim money backf rom tenant so be careful who you take on.
5. Keep some money aside for repairs such as boiler repair, plumber problems and anyuthing building related.
6. Also make sure you have landlord insurance.

googler

Are you ready to treat your former home as a business asset?