Struggling to Sell, Desperate to Move, have equity.

Username1986

Hi all,

New to this forum and looking for some friendly advice. Me & my wife currently own a property to which we have circa £30k equity in the property. Our house is currently up for sale but we are struggling to sell at present. Due to work commitments we are desperate to move. Is there a may around buying a 2nd home using equity in our current property.

Advice welcome. Thanks in advance.

Pixie5740

Have you had any viewings of your property? If so what's the feedback been like, if not then the property is probably priced too high.

You could try to release some of the equity in your property using a let to buy mortgage but that would then make you someone's landlord.

Username1986

In 5 months we have had 5 viewings and it is currently priced less than valued (valued by 4 independent estate agents). The property is in an area where the majority of the market is "let". Feedback has been varied from "kitchen too small" to "why is there no downstairs toilet?". Answer is, kitchen is fine for a end terrace and why would we require a downstairs toilet when we are a young couple in our 20's. The property has been renovated from top to bottom.

Is there a way of releasing say £25k of equity to buy a second property? And would the 2nd need to be a 20% deposit?

desperate_times

What is the value of the property? You might be able to get a secured second charge loan to effectively release some of the £30k. But then you will still need another mortgage to buy the second home and can you support two mortgages? Perhaps if switch to buy to let on your current home but sounds like you want to sell. Other option is a bridging loan to buy the new house combined with using some of the equity from current house with bridge paid back when sell house then you refinance with existing mortgage. Expensive option though even if possible. Probably better to drop price on existing house and hope for quick sale if desperate to move or just rent somewhere small until you can sell.

Username1986

Renting our current property would be an option if there is a means to buying another property. Current property valued at £130k with circa £30k equity.

mrginge

Placing such importance on EA valuations and some spurious feedback is not sensible. Five viewings in five months says price is too high.
Plus you're at stamp duty threshold.

Post the link up.

suziqqq

Maybe as a couple in their 20's with no children a downstairs loo is not important but those who do have kids it is. However presumably people looking will already know there isn't one form the EA particulars so why ask ?. i would never even look at a house that does not have my essential requirements

pivotalgubbins

Username1986 wrote: »

Renting our current property would be an option if there is a means to buying another property. Current property valued at £130k with circa £30k equity.

Forget that. You are not going to be able to release enough equity to maintain a BTL mortgage and get a normal mortgage on a second property. This is before fees and so forth are considered.

You could potentially rent elsewhere or you do need it seriously think about lowering the price.

TBagpuss

I agree - post the link so people can comment specifically. However, check that the details on Rightmove etc show the dimensions of all the rooms, and a floor plan, to avoid timewasters.

Check on rightmove and Zoopla for sold prices in your area - at the end of the day, a property is only worth what someone will pay. if mos properties are let then it may be that the buyer you need is a n investor, in which case it may be worth reviewing your particulars - do your agents deal with lettings also? if not, it may be worth changing to one who does, as they will have contacts with buy-to-let landlords who might be interested.

Sadly, if you are not getting much interest than the bottom line is that it is probably over priced for what it is and for the current market in your area.

I don't think you have enough equity to make letting it out yourselves a viable option.

You might be able to let it and to rent elsewhere for a while - would that be an option for you? You would of course need your lender's consent and your mortgage payments would probably go up, so it may not work.

Mattygroves2

You won't get more than £125,000 for it as you are at the stamp duty threshold. What have other houses sold for on your street or similar houses in the surrounding area ?

If the majority of the properties in your area are rented then you're probably looking at a price that stacks up for an investor. If you work on a 6% yield and a purchase price of £125,000 that gives a rental required of £625 a month. I would expect this to be the minimum an investor would want. So would it rent for £625 a month ? If not then it's probably priced too high.

pinkshoes

Could you rent your house out and rent elsewhere?

You do not have enough equity to own a second property.

In terms of viewings, we just sold our 3 bed semi and had 15 viewings in 5 weeks.

You could always post the right move link to your property and let people on here have a look and offer some advice.

With so few viewings, it is likely to be price or a lack of buyers in your area.