In a total mess Help!

strav100

I am trying to sell my house at the moment in Essex. I am in a bit of a dilemma and I would like some help.

I bought the house for £260,000 (it was on the market for £269,995) 2 years ago and I got a 100% mortgage plus borrowed the stamp duty as a mortgage extension. The amount borrowed was £268,000 overall.

I spent £5,000 doing the place up, repainting the interior, new carpets etc. (the house is 8 years old)

However, I left the house due to personal reasons and I am now working 500 miles away renting a flat. I have been renting my house out for £950 (that's the most I could get) and the mortgage is nearly £1,600.

I have the house on the market now, and they valued it at £275,000 (only gone up £5000 in 2 years!)

I have a Early Redemption Payment of £7,500 and the bank won't let me let it out for more than a year otherwise I have to convert to a buy-to-let mortage and they want 20% deposit.

If I sell, the bank will only give me 90 days to find another property and they will charge 3% of the difference between the 2 house prices otherwaise I hve to pay the whole ELP.

The house hasn't sold for 2 months.

If I sell for 275,000 I can walk away, pay the mortgage, estate agent (1.5%) and solicitor off and start again.

But I feel I might sell for less and have saved £15,000 in case I do -- I feel I might only sell for £260,000.

There is the big prob of stamp duty and I have thought of marketing the house with stamp duty paid so it will be easier to sell. It is a nightmare selling a house 500 miles away - I cannot get another job down there and the job at the moment pays well so I can afford the mortgage on the empty house and rent my flat here.

I am in a bloody mess - what should I do?

Gorgeous_George

You bought for £260K and hope to get £275K. That's a £15K increase in two years (not £5K as you suggest).

On the market for two months means December/January. Hardly prime months for people looking to move.

By all means, offer to pay 2% of the Stamp Duty for a quick sale but I'd sit tight for a few months. The Spring weather will bring buyers back to the market place.

I don't see a drop in prices just yet. Maybe next Winter if IRs rise again.

But, just like the HPC team, I could be wrong. Let's face it, they have been wrong for years, they must get it right some time, won't they?



GG

strav100

Thanks for your help. I don't think I'll get the 275K as house prices for that type of house just haven't gone up in that area in the last 2 years (North Essex)

Inverness where I live now is actually more expensive now which seems bizarre

I think I'll wait till Mid-March then offer the 2% of stamp duty