Negative Equity and Selling

JimmyTheWig

OP, you've asked a question and you've got some answers. We're not here to judge you. We don't know you, so it doesn't matter what we think. We're not here to convince you to do the "right" thing. We can just make suggestions. It's up to you what you do.

You think that you can sell your house for more than one up the road is on the market for? Nice one. People on here (often very knowledgeable; often have been through similar situations themselves) don't agree. But there's nothing to stop you trying. Doesn't cost anything to put it on the market.

Just, for your sake, make sure you know what you're getting yourself in to before you do it. It sounds like, with hinsight at least, buying this place was a mistake. Don't make another mistake now.

You may feel that your interest payments dropping by a third is good enough reason to sell the property. Then go for it. We can't stop you. You will find it hard to find anyone on here will agree with you, but you don't need us to agree with you if you know you are making the right decision for you.


So, to summarise. The answer is yes you can sell the property. That seems like a fact.
The general opinion is that in doing so you will financially cripple yourself for many years ahead.

The streets of London are not paved with gold. It may not be the answer you are looking for.


One more question: Is the mortgage and/or loan interest only or repayment?

angeljay

Yes thank you for your advice will take all this into considering and discuss with my other half later.

And the mortage is on repayment I had it on interest only when my ex originally moved out but changed it back after about a year.

BitterAndTwisted

You need to do a few spread-sheets based on remaining in the property and paying down the mortgage versus letting it out or selling up.

If you're on a repayment mortgage and your lender will give you Consent-To-Let you can offset the mortgage-interest against the rental-income for tax-purposes. A lot of lenders will give CTL for a defined period, say a year or two rather than indefinitely but some will increase your interest-rate. Sound them out about that and then do some research on your legal responsibilities if becoming a landlord.

Where there's a will there is a way and it may not mean having an albatross of a £25k unsecured loan around your neck while you're paying upwards of £800 in rent a month between you.