Mortgage trapped due to repairs needed

moneyistooshorttomention

£20k EACH for repairs:eek::eek: - and it only "saves" £20k of the value:eek:.

Sympathies indeed.

So one angle to start with is:
Can you manage to raise £20,000 anyway? I'm assuming you dont have much in the way of savings. So could you/would you take out a loan to raise that money? If so - could you afford loan payments on top of the mortgage payments you are having to make anyway?

What sort of repairs are we talking? Is it something like the roof for instance or are we talking more "cosmetic" type repairs? How come they are so incredibly expensive? £20k x 9 = HOW much?:eek:

I do wonder indeed whether any of the flat-owners are going to be able to find that high a sum of money.

bmthmark

Sorry to hear your troubles and some of the posts above are really harsh.

Not sure if my post will help in any way but have you considered renting the property out? I presume the flat is still in a livable condition even with the structure issues.

That way the rent will cover your mortgage (or part of it) and you can move to another property.

Unfortunately getting 9 flats to stump up £20k would be a big task, personally I would not be able to afford that sort of money. If it was £20k divided by 9 then this would be reasonable.

If you say to the mortgage company that you can't pay it, you will struggle to buy a property in the future and also if you ever need to borrow any money.

pinkshoes

lmurray33 wrote: »

Thanks to everyone's helpful comments. Sad some people get enjoyment out of others people misfortune. I hope you never have to suffer from something that is outwith your control.
We have checked for grants but none on offer, even though it is a B listed, historic building.
The repairs quotes are £20000 each. 9x £20000, not shared. Unfortunately!
We understand we need to pay off the mortgage asap but very difficult to know how much money to keep back to pay for the repairs, as no doubt the price will go up. And then we will have nothing to move on with. Not to mention it could take years to pay it off. Would anyone consider saying to the mortgage company we can't pay it??

£20k each for 9 flats?? That's £180,000!!!

Given they are only worth £50k each when the work is finished, so £450k in total (assuming all similar) then this would appear to be a ridiculous amount of work!!

Is the building falling down?? Is there not a yearly fee you pay that is supposed to build up a buffer to pay for repairs??

(I lived in a block of 16 flats, and was a 'director' of the management. We estimated what repair work would need doing and when, roughly how much it might cost, and tried to include this in the yearly fee.)

I would want to know why such major work hasn't been budgeted for, and insist on seeing all the quotes for the work to be done!

[Deleted User]

Please understand but it seems to me that a big part of the picture is missing. As others have pointed out, the flat was worth £78 (when you bought it) now its worth £30k, £50 if £20K worth of structural repairs are done.

It just doesn't make sense. How trustworthy are the people/organisations telling you all these points? I'd be double checking the valuations, the repair costs, how necessary they are etc. I'd also be talking to the other flat owners.

[Deleted User]

What a horrible situation!

I'd also try asking on the mortgage board, others there are talking about negative equity and moving:

https://forums.moneysavingexpert.com/discussion/5479045
https://forums.moneysavingexpert.com/discussion/5478598

davidmcn

pinkshoes wrote: »

Is there not a yearly fee you pay that is supposed to build up a buffer to pay for repairs?

It's not the norm in Scotland for there to be any sinking fund (beyond a very modest "float" for day to day maintenance), so there will occasionally be problems when more significant refurbishment costs are called for.

lmurray33

I am afraid I think it is all true. Had two estate agents and two house auction companies out and they are all giving the same values. And no guarantee the flat will even sell.
As for repairs, again numerous reports, quotes, companies involved and this is the final value they all give.
Only essential work being given done ie structural, roof and rot repairs. Just to make the building structurally sound and watertight.
Other owners have been very difficult for 2/3 years but now realise it has to happen. We have been very involved in pushing forward the reports/quotes etc. Only a small factor fund available for all flats, nothing like what required!
All owners now on board, wether loans or their own money. Most are landlords who rent out. But no guarantees and not will to push it along quicker.
We are now considering renting. Difficult as floorboards have been pulled up for rot reports and keep thinking repairs will start soon. Looks like they will be next year at the earliest.
We done want to spend this money either but can't see a way out.

marksoton

lmurray33 wrote: »

Hi, looking for some help or advice. Bought 1 bedroom flat at height of property boom for £78000. After about 5 years it was clear structural repairs were needed to building, made up of 9 flats. After years of struggling with fellow owners to agree on repairs it seems they are going to cost around £20000. We are desperate to sell the flat and move to a bigger house. However the flat is only valued at £30000 in current state and £50000 after repairs. This leaves us with a massive mortgage deficit, if the flat even sells at all. Do we have any option to get out of this, or is any help available? Views and ideas very welcome. Thank you.

I'm sorry but these numbers make no sense whatsoever.

hazyjo

Was the flat horrendously overpriced when you bought? What were similar nearby flats going for at that time? I looked at several addresses in Scotland on Zoopla in obscure areas (not like Edinburgh or Glasgow) and they all seem to have risen at least 25-75% since around 2008. Are prices in your area really around 35% less than in say 2008?! G_M may have a point lol!


Something somewhere has gone very wrong with the price of your flat, or the area, am struggling to see how it can be worth less than what it was nearly 10 years ago (even with the repairs).


What area is this? Has something happened there that's made the area less desirable?


Jx

davidmcn

hazyjo wrote: »

Something somewhere has gone very wrong with the price of your flat, or the area, am struggling to see how it can be worth less than what it was nearly 10 years ago (even with the repairs).

What area is this? Has something happened there that's made the area less desirable?

Particularly seems odd if it's a listed building, as generally those are the more desirable parts of town (if it's Glasgow or Edinburgh anyway) where prices held up quite well.