New Build House

Davesnave

If you won't forget I was here and leave things there, I have a simple question for you.

In 2007 I agreed a price for the sale of my house, but the person buying had a 'lie to buy' mortgage agreed with Northern Rock.....and we all know what happened to those!

The market plunged and I had two more buyers pull out.

I eventually sold in 2008 for £60k less than the price agreed in 2007.

Where's my loophole?

Kynthia

Both you and your mortgage lender agreed the purchase price at the time. There's no loop hole. New builds often drop in value, and if the market dropped and hasn't completely recovered then that's hardly the developers fault. It makes them particularly difficult to sell and depressed in value when more are still being built as buyers will often prefer a brand new property to one a few years old.

glasgowdan

What's the house value now? How much deposit and repayment has been paid? I find it hard to picture a 50k negative equity here.

KRB2725

I don't think there's negative equity as such, just the house is worth less than he paid 10 years ago.

When you buy a house, there is no guarantee that it will increase in value. New builds tend to have a premium attached to them as well, much like buying a brand new car v an ex demo.

You agreed a price in 2006 which you obviously felt was reasonable, so nobody is going to compensate you for a decision that you made. The only person you could even attempt to sue is yourself!

With regard to the drainage, you have left it way too long to complain.

Penelope_Penguin

glasgowdan wrote: »

What's the house value now? How much deposit and repayment has been paid? I find it hard to picture a 50k negative equity here.

Is it possible the OP has an interest only mortgage, which is how negative equity has arisen?

Davesnave

Penelope_Penguin wrote: »

Is it possible the OP has an interest only mortgage, which is how negative equity has arisen?

But surely, if that's relevant, they'd have mentioned it?

davidmcn

If the value of the house had gone up by more than expected, what would your reaction be if Bellway knocked on the door looking for their money back?

chelseablue

What is the outstanding mortgage amount?

andyhaughton

lets draw a line under this thread, lesson learnt here thanks for all your replies and sorry it got a bit unpleasant

AdrianC

andyhaughton wrote: »

yes all mortgage payments have been made, but even if they werent dont see how thats relevant, house value now is 50K less than what i originally paid

That's not negative equity. Negative equity is when you owe more than the house is worth. The original price you paid is irrelevant to your current equity.

Just because you paid £250k, and the house is now worth £200k, does not mean you are in £50k negative equity. Your equity in the property is the amount you would have in your pocket if you sold it and paid off the mortgage.
If you currently owe £190k, and the house is worth £200k, then you are not in negative equity. You have £10k equity.
If you currently owe £210k, and the house is worth £200k, then you are in £10k negative equity.

Right, moving on from there... You bought a new-build (which carries a premium) at the height of the pre-crash bubble. Prices have generally fallen, nationally, and - in many areas - have not risen by much since. You bought a new-build house, you now have a 10yr old house, which will be inherently less attractive to those who want a new-build, even before considering the lack of availability of various market incentives. You also have a house which no longer has a 10yr guarantee on it. As you acknowledge in your original post - the new houses are "much more modern". Were you expecting the developer to upgrade your house to current spec?

You seem to think that there's some kind of promise that house prices will continue to rise. There isn't. There never was. You thought £250k was a fair and appropriate price at the time you bought the plate. Your lender's valuation agreed with you. Market conditions changed... Should people - you, the lender, millions of others - have foreseen that? Perhaps. But that's beside the point.

Whether you bought the property with the intent to let or not makes no difference - you have been letting it, and that's why you didn't know about the garden flooding issue immediately. You have clearly not been in adequate contact with your tenants, which is why you've only found out about it too late to be able to claim under the guarantee. Hey-ho.

Sorry, I fail to see what you want compensation for. The failure of your crystal ball? Your failure to communicate with your tenants? The 2008-and-subsequent market problems?