Mortgage trapped due to repairs needed

xylophone

Do you have savings to cover your share of the repair bill?

If not, can you borrow on the mortgage or take out an unsecured loan at a rate you can afford?

Once the repairs were done you would move back into a structurally sound and presumably redecorated property and would just have to stick it out until you could afford to move.

Not ideal, but needs must when the devil drives?

lmurray33

Can come up with the money required for repairs, have been crazy saving and help from others. But will be stuck in 1 bedroom flat.... just trying to come up with alternative solution so we can move on in life.

marksoton

glasgowdan wrote: »

It's quite clear, do you need it explained? Property was bought for £78k. Market value in fair condition is now £50k. There are also £20k of necessary repairs to be done, which would have to be taken into consideration if anyone wanted to buy it, or taken out of the owners pocket leaving them with only £30k towards paying off the mortgage if they sell.

Well clearly it wasn't in fair condition,,,,,

TBagpuss

Once the repairs have been done, your best bet may be to try to get permission from your lender to rent the property out, and then move to a slightly larger rented property yourself, until you are able to get the mortgage down to the point where you can afford to sell.

It's not great, but it would let you live somewhere more appropriate for your current needs.

How much is currently outstanding on your mortgage?

eschaton

lmurray33 wrote: »

We have checked for grants but none on offer, even though it is a B listed, historic building.

Going by the figures you have given out, it sounds more like a D listed building.

Listed for Demolition.....

Where about in Scotland is this?

StumpyPumpy

jorpati wrote: »

I was thinking same.. how can there be such a huge price drop for a property over just 5 years...
Quick research tells worst house price drop has happened in East Lothian and it is about 7%...

I would have thought after full repair of the house you would make some profit on your initial investment..

It isn't in 5 years, they said they bought at the top of the market which was 2007/8. They discovered the faults 5 years after they bought and have been haggling with the other neighbours to get the work done since then.

According to Rightmove: "In the past year house prices in Aberdeen were 5% down on the year before and 32% down on 2006" That would make a £78k purchase in 2006 worth £53k now. Approximately the valuation once the building's integrity has been restored.

SP

dotchas

We own rental property in Scotland .We bought a flat in 2013 and doing our research we discovered that the neighbouring flat was bought in 2007 for almost twice what we paid for ours:eek:
So it is possible, although its still a horrid position for our neighbour at least there are no hefty repair bills (at the moment!)

lmurray33

Many thanks for the helpful comments and support. As for some others.... why are you wasting your time commenting on other people's misfortune?!
We now have a few more options to consider. Thanks again.

hazyjo

lmurray33 wrote: »

Many thanks for the helpful comments and support. As for some others.... why are you wasting your time commenting on other people's misfortune?!
We now have a few more options to consider. Thanks again.

Thought I'd asked valid questions... Maybe you don't agree?!

Jx

glasgowdan

Incidentally, my wife's flat was similar. There are many areas in Scotland that have lost value despite what national averages would have you believe. She ended up selling to a London based investment company, and what a relief when it went.