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Problems with sale of shared equity property
martinjefferies
Posts: 4 Newbie
Hello everyone,
My wife and I bought our apartment in April 2009 on a shared equity scheme. We own 75% and the developer owns the remaining 25%. The loan from the developer was for 10 years.
We're now looking to move on... and that's where the problems start.
We've had our property on the market for four months now but there hasn't been the level of interest we were hoping for. We've agreed with the developer to reduce the asking price by £4,000 - which is £4,000 less than the £124,000 we paid four years ago. We'd be willing to take a small hit financially (well, large actually, as we also have an early repayment charge) just to get rid of the property - but there just hasn't been enough interest. We can't go much lower than £120,000 as we will be in negative equity.
We've been told we can't rent the property out - even in the short-term - as it goes against the objectives of the first time buyer scheme we bought the property using.
Now we don't know what to do. We don't have the £30,000 or so it would cost to buy the developer's share but we don't want to stay where we are, partly because it's stopping us from starting a family (the apartment isn't big enough) but also because it's become impractical as our careers have developed.
There's about £81,000 of our £89,000 mortgage left and we have around £3,000 in savings. Our mortgage is fixed until next March.
I wondered if it was worth seeing whether we could loan the additional amount from Nationwide - but I'm not sure if that's possible mid-term or whether we have enough equity in the property.
If anyone has any suggestions, we'd be really grateful.
Thanks for your help!
My wife and I bought our apartment in April 2009 on a shared equity scheme. We own 75% and the developer owns the remaining 25%. The loan from the developer was for 10 years.
We're now looking to move on... and that's where the problems start.
We've had our property on the market for four months now but there hasn't been the level of interest we were hoping for. We've agreed with the developer to reduce the asking price by £4,000 - which is £4,000 less than the £124,000 we paid four years ago. We'd be willing to take a small hit financially (well, large actually, as we also have an early repayment charge) just to get rid of the property - but there just hasn't been enough interest. We can't go much lower than £120,000 as we will be in negative equity.
We've been told we can't rent the property out - even in the short-term - as it goes against the objectives of the first time buyer scheme we bought the property using.
Now we don't know what to do. We don't have the £30,000 or so it would cost to buy the developer's share but we don't want to stay where we are, partly because it's stopping us from starting a family (the apartment isn't big enough) but also because it's become impractical as our careers have developed.
There's about £81,000 of our £89,000 mortgage left and we have around £3,000 in savings. Our mortgage is fixed until next March.
I wondered if it was worth seeing whether we could loan the additional amount from Nationwide - but I'm not sure if that's possible mid-term or whether we have enough equity in the property.
If anyone has any suggestions, we'd be really grateful.
Thanks for your help!
0
Comments
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If you were in a new place say next April 2014 and a baby arrived say May/June 14, would that be ok and something you could plan for?Posts are not advice and must not be relied upon.0
-
Yep, that would be fine.
What forces the issue is that my wife works as a teacher, so can only switch jobs (and, in our case, switch areas) during the summer...
It's never easy! :huh:0
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