Negative equity - how to get out and sell?

squatrack

I'm not up to date with the housing market so don't know what the climate is...

I have a 1 bedroom flat. I bought at the height of the market (just before recession) on a 100% mortgage for £150,000. This was approximately 4.5 years ago.

I have had the flat on the market for 2.5 years now price at £145,000. I've had one viewing despite it being on with 5 agents. The agents all say that it's due to the housing market and that I have no equity so can't lower the price.

Had it valued about a year ago at £125,000, and have zero equity in it. I have no savings and have unsecured debt which I am trying to clear so can't afford to lower asking price.

Do I have any options at all?

I do not want to hand the keys back/voluntary repossesion as once it is sold on cheap I don't want the surplus of several thousands pounds to pay for.

opinions4u

Save more.

Lower the price.

Hand the keys in.

Stick a tenant in it.

Overpay the mortgage.

~Beanie~

squatrack wrote: »

I have had the flat on the market for 2.5 years now price at £145,000. I've had one viewing despite it being on with 5 agents. The agents all say that it's due to the housing market and that I have no equity so can't lower the price.

Had it valued about a year ago at £125,000,

If its been valued at 125K (a year ago, could be less now) then you are never going to sell it for 145K.

Can't you keep it? Is there a reason you need to sell?

R_P_W

I think your only option is to keep it for now, keep paying down your debt. Once your unsecured debt is clear then look at either saving or overpaying the mortgage.

Unfortunately there is no easy way out of this situation and you are not the only one in it.

I am gob smacked that you have had it on with 5 agents for over 2 years and only had one viewing, not because of the 1 viewing (that is obvioulsy because it is way overpriced) but the fact that you have kept it on there knowing it just isnt going to happen.

Was it a newbuild when you bought it? This is a combination of problems, one of them being the current climate but coupled with the 100% mortgage, 1 bedroom and probably being a newbuild - all those things together aren't good.

short of moving out to live with family/friends and then renting it I think you are going to have to stay there for a good while yet.

geoffky

100k now !! ouch