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Selling a Home with Negative Equity
Comments
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Hi Guys Thanks for all your comments, they have been really really helpful.
We really had no idea about the ins and outs of moving house with an existing mortgage etc, but now we do. We knew we had to save but didnt really know how much. Quite alot as it turns out, so its save, save, save from now on.
Just a quick one, do any of you think that the house prices will pick up and get back to what they were before the crash (hopefully reducing our negative equity)? What goes up must come down and vice versa....right?
Thanks again.0 -
DannyboyMidlands wrote: »@pararctDannyboyMidlands wrote: »
What? Surely if you own 50% of the equity, you're only liable for what happens to that 50% rather than for the entire loss to both parties?
As we own 50% of the house, we are liable for 50% of the loss. So if the house loses 10k value, we lose 5k. We have a mortgage for 62.5k as house was worth 125k.0 -
"Just a quick one, do any of you think that the house prices will pick up and get back to what they were before the crash (hopefully reducing our negative equity)? What goes up must come down and vice versa....right?"
You're opening a can of worms with this one. For what it's worth I think that they will eventually, general inflation will see to that, but how long are you prepared to wait?
Also say your share is valued back at £62,500 in 5 years time, that amount of money is not worth the same as it was in 2008. As a rule of thumb the value of money halves every 10 years so even though the "nominal" value would be the same as back in 2008, the "real" value is about half.0 -
Nationwide do this. They will transfer your existing mortgage over to the new property. Obviously it's all subject to status.Estate Agent, Web Designer & All Round Geek!0
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If money lost half it's value in 10 years that would mean inflation of over 7%; not been that high for a long time!0
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Well UK RPI is currently pushing 6% and thats only if you believe that the measured basket of goods is representative of your lifestyle. For older people who spend a higher proportion of their income on food, energy etc (rather than Chinese made consumer goods) it's likely to be much higher.
Anyway, like I said, a rule of thumb rather than a precise analysis. You get the idea.0
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