Unable to sell HomeBuy property - permission to let denied!

drcorbett

Hi there.
Me and my partner are trying to sell her flat which she bought a year ago on the HomeBuy scheme. We met each other shortly after she bought it and she moved in with me into a property which I rent off my father.
We would like to buy my father out of this property because it used to belong to my grandma so has some sentimental value. More importantly however, although the propety is worth somewhere in the region of £220 to £250k, he wants us to have it for a very generous £145k as a way of providing us with a gifted deposit so we are able to obtain the mortgage we require. This has all been agreed in principal with the mortgage lender subject to the usual credit checks.
Our problem is that we cannot progress any further until we sell the flat in the HomeBuy direct scheme. We have gone through the correct procedure of obtaining permission and under direction from HomeBuy marketed the propery initially for £95k based on an average of 3 valuations which we had done ourselves. This price would also ensure that our legal costs would have been covered with some room to lower the price. The permission we obtained stipulated that we must market the property for no less than 6 weeks at a minimum price of £85k.
After 1 month at £95k then lowering the price twice it is now down to £89k after 3-4 months on the market. There just hasnt been much interest.
We wrote to HomeBuy to ask for permission to rent out the property until we are able to sell the property as the situations is financially crippling us but this was refused, even though the mortgage lender on the property were ok with it.
We are not in a position to move into the flat instead because of computing distances involved. My comuting time would increase from the current 50 mins to between 2hr30min and 3hrs depending on traffic, each way.
Can anyone suggest a solution to the problem with the flat? Is is not possible to rent out a HomeBuy property due to a change of circumstances, even though not doing is putting the mortgage of that property at risk?
Thanks in advance
Damo

silvercar

Reduce the price of the flat.

drcorbett

We are doing to the minimum of £85K as stipluated by homebuy but I dont think it will shift it because of the market.

brit1234

drcorbett wrote: »

We are doing to the minimum of £85K as stipluated by homebuy but I dont think it will shift it because of the market.

The market is fine for people who price right. I think it is safe to say if you drop the price it will sell.

First time buyers are holding out with the price falls, so if you drop your price into their range you might get a bite.

Homebuy and the newer Firstbuy are scams like the other shared equity schemes.

MacMickster

drcorbett wrote: »

The permission we obtained stipulated that we must market the property for no less than 6 weeks at a minimum price of £85k.
After 1 month at £95k then lowering the price twice it is now down to £89k after 3-4 months on the market. There just hasnt been much interest.

So the conditions have been met. You have marketed the flat for at least £85K for at least 6 weeks. You can now drop the price to a realistic level.

pararct

Bottom line is you are going to have to take some sort of kit on the homebuy place if you want rid of it and to move on with your lives.

Everything has the potential to sell it is just the price what it sells at. My condolences in having learned that the shared equity schemes are scams the hard way!!

pleasedelete

Ok bit brutal. She has had house a year. You met after that.

You are buying a house together and your father is gifting a large deposit

Please consider protecting yourself. You talk about we and a shared mortgage. Could you buy it alone?

Maybe not being able to sell isn't a bad thing as you can have more time together first.

This is a bitter voice of experience talking