Buying Final Share in Property

Newyorkdreams

Hi Everyone


I bought a new house 9 years ago on a 'fresh start' deal, basically I got a mortgage for 75% and the deal was that within 10 years or less, I had to pay back the other 25% of the value of the house at that time. I paid £137, 500 initially. Mortgage for approx. £103, 500 and 'loan' for £34, 000.


I have secured agreement from my mortgage company for additional borrowing of £20, 000 to pay the final share off, but not for the 25% that they say the house is worth (which they say is £138,000 and based on some sort of index) but for around 12.5%. I actually think the house is worth £40, 000 less than that what my mortgage company say around - £100, 000 maybe even less - because we have tried to sell for the higher price already and can't, and a lot of houses in the scheme are pitched around this lower value (but still not selling as it's just not a desirable place to live).


5 years ago, we tried to sell and received a letter from the sales director that they would accept £17, 000. The sale did not go through and we removed the house from the market. However, I have written to the house builder with a copy of this letter and an offer of £17, 000 for the final share to be paid before the end of the financial year as I have the finances in place.


What's your views, do you think they will go with this as:
- it's a year early
- it will boost their end of year figures (this is intentional on my part)
- they previously offered £17,000 and the situation has not improved 5 years on
- they might not get the same offer next year (anything can happen in a year)


If they say 'NO' - how would you go about negotiating this price down? We have had loads of problems with the property itself (leaking roof in 2 different places, complaints) and surrounding area (ASB, Police, vandalism).


Just looking for other people's views on this really.


Thanks

NYD