If I am in negative equity...

carolinep1

and I sell my house, which has £119000 outstanding mortgage (inc erc's) and £52000 outstanding secured loan, and house is only worth approx £150K, how do I go about sorting out the deficit?

Or will i not be allowed to sell?

Thanks in advance to all you helpful people!

moneymaker2

you could speak with the secured loan company and they may be able to transfer the loan onto your new property if you are looking at buying another.
Hope this helps. Laura

carolinep1

Unfortunately I am not = will be going into rented - what then?

Thanks

silvercar

You will only be allowed to sell if you can make an arrangement with the lenders to pay off the loan. Your best bet is to try to persuade the secured loan lender to transfer some of the amount owing to an unsecured loan. They will be reluctant but, if you point out the negative equity, they may agree.

Otherwise you will need to borrow elsewhere to repay some of the loan.

You cannot sell a property without repaying all charges, because you need to be able to pass clear title to the new owner.

silvercar

cross posted.

You need to borrow from elsewhere the difference between the amount you will gain from the sale (allow for estate agents fees and solcitors costs) and the amount you need to repay the loan and mortgage.

Either that or persuade the secured loan to transfer the bit that is not cleared by the mortgage to an unsecured loan.