Offer made on house for less than mortgage

Valencia

What options do you have when an offer is made on your house but it is less than the value of the mortgage?

We really want to sell our house (currently rent it out) and we have finally received an offer but it would put us in deficit, plus fees on top.

Is it worth finding the difference elsewhere or hold out for the asking price.

House has been on the market for over a year (6 months with this agent).

Thanks

_Andy_

How would you intend to find the difference?

Valencia

Borrow from family and pay back within 6 months.

Dave_the_Ginger_Cat

You'll need consent from your lender, and the only way you'll know is to ask them. They all differ, and some will make circumstance specifc decisions, so they are best placed to advise

_Andy_

Dave_the_Ginger_Cat wrote: »

You'll need consent from your lender, and the only way you'll know is to ask them. They all differ, and some will make circumstance specifc decisions, so they are best placed to advise

Dave if they're selling, the lender isn't going to care where the funds come from

Idiophreak

_Andy_ wrote: »

Dave if they're selling, the lender isn't going to care where the funds come from

They wouldn't, if the OP were getting all "the funds", but seeing as the OP's trying to sell the property, which secures a loan, for less than the amount of the loan - I think the lender might take an interest...

China2303

I would just wait, only been on the market for 6 months. Lots of homes are on for a lot longer than that and they get asking price or near.

dimbo61

"House has been on the market for over a year (6 months with this agent)."

Now if it is only a couple of thousand pounds the lender maybe OK with this but you still need a repayment timeframe.
Speak to the lender

_Andy_

Idiophreak wrote: »

They wouldn't, if the OP were getting all "the funds", but seeing as the OP's trying to sell the property, which secures a loan, for less than the amount of the loan - I think the lender might take an interest...

they won't care at all - it's of no odds to them if they're selling up.
It if was the other way around and they were buying then, sure, the lender will care where the funds come from. If they're selling it's of no consequence at all.

Idiophreak

_Andy_ wrote: »

they won't care at all - it's of no odds to them if they're selling up.
It if was the other way around and they were buying then, sure, the lender will care where the funds come from. If they're selling it's of no consequence at all.

Right....So you lend someone £100 and say "your watch is worth £100...if you don't pay me back, I'll take the watch and sell it to get my £100 back".

Now, how would you feel if that person sold their watch for a tenner? Where's your security gone?

TBagpuss

Idiophreak wrote: »

Right....So you lend someone £100 and say "your watch is worth £100...if you don't pay me back, I'll take the watch and sell it to get my £100 back".

Now, how would you feel if that person sold their watch for a tenner? Where's your security gone?

If at the point you sell the watch you pay the person who lent you the money £10 from the watch sale an £90 you've borrowed off a mate, they won't care in the slightest.

The mortgage lender won't release their charge over the property unless you pay back the mortgage in full. The new buyers will require an undertaking for the mortgage company to release their charge. So you'd need to borrow the extra before the sale goes through, so you can give the money to your solicitor, to pay off the mortgage at the same time as they pay the balance from the sale proceeds.

I would suggest discussing with your agents (and possible getting a further appraisal from a different agent) whether the offer is a realistic one - if the house has been on the market for a year then it may be that it is over priced and that the offer you have is a realistic one for the property.