Trying to sell but not enough equity

zelig

I hope you can help me with a query about selling my home.

To date I have the following:

Mortgage with HSBC of £52777 remaining
First secured loan with Endeavour - £37600 outstanding
Second secured loan with Welcome Finance for £14000

My property has been valued at around £90 - £92,000


I want if possible to sell my house (before any more debt) and should have enough to pay off both HSBC Mortgage and *Endeavour
which would actually make me around £750 better off per month !!
(*Endeavour have already said that I could come to some agreement by paying at least £34-35,000 back on the secured loan - they would then add the extra as un secured)

However - I did at the time believe that Welcomes loan was purely Unsecured as I had no equity left in the house when I applied?
Until I found out that they dont deal with "loan to value" but rather alrger percent of the house value - I wasnt really explained fully about this hence my initial enquiry.

Is there any advice you could give me as to how I overcome this problem - or if in fact I could come to any agreement?

I have had a lot of conflicting advice about this from many avenues!


Much appreciated any !! advice :j

silvercar

Are you sure that the WF loan is secured on the property? To do this the other lenders would have had to agree.

One way to check would be to download the title from the land reg site (for £4). If the charge is secured it will say so on the title deeds.

If the charge is secured you would have to reach agreement with all 3 charge holders. HSBC won't budge so that's nearly 53k, if Endeavour took £34k that would leave £5k for WF, so you would have to find the remaining 9k by taking an unsecured loan from WF or elsewhere and find the money for selling costs - solicitors and estate agents fees.

zelig

Yes silvercar the WF loan was secured on the property - a surprise to me as when I took it out I had no equity in the house at all - they say that they dont do "loans to value" which I guess means they gave me a 125% loan?
How do I download the title from the land reg site? just to make sure

zelig:o

silvercar

Go to this site as a starting point:

http://www.landregisteronline.gov.uk/lro/index.html

Quaintly it is closed on sundays.

zelig

Many thanks ....here goes ..............

zelig

Well that is quite bizzarre as WF said it was secured against the property and comes up as a "mortgage" on my credit file - but after downloading the Title Register it only mentions HSBC and Endeavour? - Does that mean I can just pay back the WF loan as "un-secured"?

Zelig

silvercar

Thought that might be the case as I couldn't see HSBC agreeing to a third charge with no equity to support it.

It does look like WF don't even have to know about the sale. One point is that the land reg site may not be totally upto date. I would check this with the solicitor handling the sale.

If it is the case, I would be inclined to not mention the house sale to WF until after completion, just in case they try and slap a notice on the deeds that prevents a sale without their consent.

mightymouse

Hi

Just a thought but if you raise the query with the solicitor handling the sale he may feel obliged to double check with WF whether or not the loan is secured.

The can of worms here is that the documentation issued by WF will refer to a secured loan but they do not always register the charge but will not (in my experience) stand in the way of the sale going through.

If there is a chance they will loose money they might feel entitled to know before hand

zelig

Many thanks both for your help - I am wondering if I should talk to WF anyway to put my position to them as I am already 1 month in arreas with them!! - Maybe me selling and paying off an unsecured loan might be a better option for them ...than the inevitable !!!

Ta

Zelig