Please someone help!!

Kayno_2

I would be so grateful if someone could help or give me answers on this situation that I am in ......


3 years ago we bought the house we are in with a 5% deposit meaning our mortgage is £79,000
We are desperate to move, was looking at part exchanging for a new build until we found out how overpriced they were and needed a minimum 20% deposit
The referred us to their sister comany who consider part ex old for old PERFECT
We finally found our dream house for £128,500
We have saved up and could put down a 15% deposit of just under £20,000 so proceeded.
They have since had 2 independant valuers in who have valued the house at £65,000 .......... £14,000 negative equity!!!
They are very understanding and wanting to sell their house and offer to take the difference off their price so selling us the house for less, there terms state they cant give us more than what the house is valued at, only take if off the one we are buying
Call Natwest our current mortgage, we cannot move or cancel the mortgage without the £79,000 they are owed.
So on paper we have the money but need to physically find this £14,000 in order for us to be able to move?!?!
What are our options here I am soooo confused

holly_hobby

Well to be blunt you can't move unless you find the extra 14k reqd, or the housing provider effectively gives you a 14k cashback at completion - but this would have to be declared to the mge provider, whom may well class it as a gifted deposit and reduce their offer accordingly.

The crux is at the moment you are effectively in a negative equity situation. Indeed, the vendor reducing their sale price by 14k, in the circumstances, is of absolutely no benefit in helping you move or solving your neg equity issue - other than you requiring a smaller mge on the hse you intend to pch. Which is a separate issue entirely to your current o/s Nat West mge of 79k.

You could always have your own survey conducted, hope it comes back at 79k and refer the vendor to it, if not its a lost survey fee, and back to the drawing board I'm afraid.

Sure others will be along with comment or any other poss solution ...

Sorry ... but do hope this helps

Holly x