Reposessions in area causing house price drop

toony82

I live in an area where there have been a lot of reposessions and deaths(due to there being a large amount of older people living on the estate) and thus houses sold at auction. This has had a pretty big impact on the value of my house.

I've had a couple of valuers come to my house and they have both giving me valuations of about 10-12k less than what i owe on my mortgage (basically agreeing with the lowest range on zoopla).

Now this was for part ex so i wasnt expecting a high price but i was expecting to cover my mortgage or maybe a little under.

What if i sold my house through an estate agent got offered what i owe on my mortgage but then the valuation comes in at 10k below again.

It feels like we are being punished because of other people in the area just stopping paying their mortgage and having their house reposessed.

Its really stressing me out, all me and my wife want to do is move to a bigger house so we can have more space and maybe another kid.

sorry about the rant but its got me so depressed.

what are my options? put up and shut up? could i sell my house for less than my mortgage and just get the shortfall turned into a loan or would this affect my credit rating?

kingstreet

The Land Registry doesn't publish repossession sales data so surveyors can't use it for comparables and skew the figures.

http://productblog.landregistry.gov.uk/faqs/what-will-not-be-published-in-your-price-paid-data/

toony82

I'm sure they are just using zoopla. certainly what it feels like.

kingstreet

Which takes its data from the Land Registry statistics, as does ourproperty.co.uk and others.

Deceased estate sales do appear, but repossessions certainly shouldn't, not if the solicitor has filed them properly.

Trying_to_be_good

I do feel for you, so didn't want to read and run.

Are you able to overpay your mortgage, so the balance reduces and you're then out of negative equity? That's the only bit in your control. Then keep saving and overpaying towards the bigger deposit and costs of moving, if you still want to own.

If you want to go into rented, you'll still want to pay down as much of your mortgage as possible before selling (or have enough saved to pay off the balance) to protect your credit rating.

Good luck, whatever you decide.

Conrad

Valuers tend to call a number of local agents as part of the process in determining realistic selling prices.
Repo's are part and parcel of the price setting function in any given area so no valuer would ignore this as it could later come back to bite her in that she will have deemed to have not fully discharged her responsibility.

So OP, yes any byers valuer will likely assess these factors and thus it would potentially lead to a down valuation but on the other had it's worth a go, you never know.