Moving house while still repaying new boiler and stuff

sulwen

We have been forced to replace the entire heating system due to a fault. And the only way we could do it was to take a deal with British Gas.

We are left with 7k loan still to be repaid and want to move house. But this seems like such a waste to us, to just leave this, now 1.5 year old equipment while we still have to pay for it.

What can we do?

Davesnave

sulwen wrote: »

What can we do?

I'm assuming you own the house, in which case you cannot expect to sell it for the typical market price without a functional water/heating system. Buyers wouldn't be able to get a mortgage if it lacked that.

It's part of home ownership that things wear out and need replacement. You either budget for that, or do it the expensive way with a loan.

It's also true that improvements to houses don't usually add value equivalent to their cost, unless they also add space, such as another bedroom.

So, the obvious thing to do right now is nothing. Sell the house and repay the loan.

DandelionPatrol

sulwen wrote: »

What can we do?

Repay the loan from the proceeds of the house sale and budget accordingly for the new property. Remember that the loan will reduce your affordability for the next mortgage, so you may find that doing this will leave you able to afford slightly more mortgage.

J_B

Davesnave wrote: »

So, the obvious thing to do right now is nothing. Sell the house and repay the loan.

DandelionPatrol wrote: »

Repay the loan from the proceeds of the house sale

And the additional 'look - we've got a new heating system with X years guarantee' will surely help to sell.

BUT - maybe check with BG and/or your solicitor as to who actually owns the system, you wouldn't want it to come up in the 'queries' just as the sale was going through!

matelodave

As said above, pay off the loan with the proceeds of the house you are selling. You will then start with a clean sheet in the new one. The last thing you need is an ongoing loan for something you don't have anymore.


Hopefully by paying it off early you should be able to reduce the interest that you'll have to pay so it will work out cheaper - check the T&C's re early redemption.

macman

A boiler change costs maybe £2-2,500. What else did you have changed that cost £7K? A set of rads, pipework and controls don't cost another £5K.
Short of removing the system and taking it to your new house, what are you proposing to do?

Ectophile

macman wrote: »

A boiler change costs maybe £2-2,500. What else did you have changed that cost £7K? A set of rads, pipework and controls don't cost another £5K.

They do if British Gas did it.