We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Crazy neighbours and negative equity
alicemary
Posts: 63 Forumite
Hello,
I want to sell our flat that we bought 3 years ago for 150K.
In the last 3 years we have not been able to move into the flat due to a dispute with the neighbours. The place is uninhabitable. This dispute is now going through the courts, but very slowly. The neighbours are crazy and there is no end in sight at this stage.
The property is now worth considerably less than what we bought it for, partly due to the actions of the above mentioned insane neighbours.
The court case, the crazy neighbours (harrassment), the fact that we cannot live in our property, the weight of paying a mortgage and rent, is all taking its toll on my mental and physical health.
Should we put the place up for sale, the only person who would buy it would be an investor, and likely for no more than 90K, even that is optimistic.
90K would not cover what we owe on our mortgage.
I am not asking for advice on what to do about the neighbours or the court case, however I would like advice on what would happen if we did sell at a loss.
Does the bank have to agree? Under what conditions? If we owe money on the mortgage after selling, what happens to that amount - is it transferred to another type of loan altogether?
I have been balancing on a knife edge for nearly 3 years, waiting for it to get better "in just a few months" but it still hasn't and it's tainting all other areas of my life.
We have a steady income, and we can afford to pay the loan and the rent, but only just. The question is can I afford the toll on my health?
I want to sell our flat that we bought 3 years ago for 150K.
In the last 3 years we have not been able to move into the flat due to a dispute with the neighbours. The place is uninhabitable. This dispute is now going through the courts, but very slowly. The neighbours are crazy and there is no end in sight at this stage.
The property is now worth considerably less than what we bought it for, partly due to the actions of the above mentioned insane neighbours.
The court case, the crazy neighbours (harrassment), the fact that we cannot live in our property, the weight of paying a mortgage and rent, is all taking its toll on my mental and physical health.
Should we put the place up for sale, the only person who would buy it would be an investor, and likely for no more than 90K, even that is optimistic.
90K would not cover what we owe on our mortgage.
I am not asking for advice on what to do about the neighbours or the court case, however I would like advice on what would happen if we did sell at a loss.
Does the bank have to agree? Under what conditions? If we owe money on the mortgage after selling, what happens to that amount - is it transferred to another type of loan altogether?
I have been balancing on a knife edge for nearly 3 years, waiting for it to get better "in just a few months" but it still hasn't and it's tainting all other areas of my life.
We have a steady income, and we can afford to pay the loan and the rent, but only just. The question is can I afford the toll on my health?
0
Comments
-
?
what have these neighbours done exactly?
could you pursue them through the courts for damages based on drop in value in house and rent for 3 years?0 -
Sorry to hear about your problems.
To answer your question, the bank will only allow the sale to go through if you have a strategy to pay off the negative equity.0 -
Such a long story! In short, they made amendments to the layout of their flat which cut off services to ours. They did not get the necessary planning or consent for this.
We are in court seeking remedies and damages but things are not going as fast as they could as crazy neighbours are determined to act against their own best interests.
After 3 years I am desperate. I can't continue indefinitely with this.0 -
How much mortgage do you have remaining?0
-
Sorry to hear about your problems.
To answer your question, the bank will only allow the sale to go through if you have a strategy to pay off the negative equity.
We would probably end up owing around 55K.
We could handle paying it off at the same rate as our motgage repayment is currently, taking us around 5 years. But I assume the interest would be higher than the mortgage rate0 -
We would have about 110K outstanding on the mortgage, and a secured loan at around 23K. The loan was for renovations that we haven't yet been able to do, which instead has gone on court fees, lawyers, surveyors, and the rent we didn't expect to have to pay all this time.princeofpounds wrote: »How much mortgage do you have remaining?0 -
Surely if their actions have caused this you can seek damages to cover all your losses?
What does your Solicitor say? You have sought leagl advice?Turning our clutter to top up our house deposit: £3000/£303.05 we're on our way!0 -
Surely if their actions have caused this you can seek damages to cover all your losses?
What does your Solicitor say? You have sought leagl advice?
Yes we are seeking damages, yes, we have a solicitor.
We have been in court since June of 2010.
Our solicitor has no solution in the short term, neither does the court. In the meantime while we wait for the case to progress, we suffer, and I have had enough.
I cannot devote anymore of my brain or emotion to the whole saga.
If we sell, we will still be financially at a disadvantage, but at least we will be rid of the property problem, and just fighting the financial one.0 -
Alas, could you even get £90k for the property if it is uninhabitable, subject to a legal dispute, and with bumhole neighbours?
What a horrible situation for you0 -
Is your lender aware of what is happening? Seek advice before telling them - it looks to me like if you do give up the flat, you eill have to go bankrupt - in which case your legal proceedings might be taken over by the Official Receiver - and possibly cancelled. if you feel you may need to go bankrupt, ask about what the OR might do with your proceedings on the Bankrupt boardHi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards