Views Please?

Newyorkdreams

Hi Lovely People


I'm after some advice/views please .... I posted this on the DFW board and a lovely DFW suggested that I posted here too....

I bought a property in 2005 under the dream start scheme with Barratts and the 25% value of the property (at current prices) is due by December 2015. Back in 2010 when I put my property on the market, I negotiated with Barratts and the Sales Director sent me a letter stating that he would accept a reduced amount for the 25% which was £17, 000. The letter was not dated and did not specify how long the offer of £17, 000 was valid for. Unfortunately, our buyer pulled out of the deal and we took the house off the market. Fast forward 4 years and I am starting to think about our strategy for paying our 25%. I would say our house is worth little more than £120, 000, our neighbours house next door is up for £125, 000 and has been on the market for over a year and has a conservatory, nicely presented etc (as is ours but no conservatory).


I was wondering if I could have your views please on:


I) do you think the letter could be used in negotiating and have any legal standing?


On a different matter, I still have a significant amount of debt and I'm not sure whether or not my mortgage provider would give me additional borrowing next October (My debt would be around £12, 000 next October on a salary of £49, 000). I am planning to be debt free by March 2016. The mortgage is currently in my name only. My husband will have no debt next year. But if we combined and went with another provider, we would have a joint income of £75, 000 with debt of £12, 000. We would have to pay an exit fee as my mortgage deal does not expire until end of April 2016.


II) Do you think I should reduce my current debt repayments and save £17, 000 in the hope that Barratt's will accept the offer then pay off the debt in 2016? It means that I can pay Barratt's with cash and I don't need to go though the stress of not knowing whether my mortgage provider will give me extra borrowing and then being left with no options and nowhere to go.


Many thanks for your help in advance

NYD x

w00519772

i don't know this scheme, but i think i would put my house on the market asap. If you bought in 2005 then you may have to take a hit depending on what similar properties are selling for in your area.

i would then use the equity released to pay off the 25%. This of course assumes that you have built up enough equity. I am no expert.

i don't think a conservatory adds value to a house. Do you?

Newyorkdreams

I don't know if it adds value but it certainly helps it to sell I guess. We live in an area where no-one wants to live so it's unlikely to sell, at least quickly.


When we bought, the property was £137, 500 so the 25% was £32, 500. £17, 000 is a good deal so to speak even though they always inflate the prices massively.



I think we could probably get no more than £110, 000 for it meaning we could probably break even if it did sel .

w00519772

perhaps you could write to the sales director and explain your position? Maybe propose a repayment plan - a financial advisor may be able to help you if you are not skilled in finance. I am no expert.

i asked a question about conservatories some time ago. Some people said they would pay less for a house with a conservatory because they would have to arrange for it to be knocked down.