Unsecured Debts. Can I negotiate with the lender to reduce debt amount?

LondonGent

theoretica wrote: »

What you say about the property makes me wonder if it might be better to get shot of it rapidly. The beneficiaries could pay the debts off themselves and inherit the property without the debt hanging over it - that you don't want to do that because of the maintenance costs and it would be a poor asset for you, says that it is equally a poor asset for the estate to have. I would be less happy pouring the estate's money into the property management firm and similar costs than to the debts.

If it costs 3.5k a year and you need to fund it sitting unsold for two years it will cost 1/7th of its putative value. So it will be as good to sell for £43k now as for 50k in two years, even without inflation. Plus not having the worries of it for another two years, and isn't council tax payable if it sits empty for more than 6 months? It will have a price at which it will sell rapidly - either through auction or otherwise - this almost certainly won't be the highest price it could fetch in the next two years, but might be the best financial option for the estate.

Yes you are right and I am currently focusing on getting the property sold, although I would try to steer clear of auctions. It would be my last resort.

For council tax, I went online and went through the "advice all" system (or something to that effect) and automatically received a letter from the council saying there was nothing to pay and they zeroed the bill. So yes, no council tax to pay which lessens the blow.

Yorkshireman99

craigedmonds wrote: »

Sorry, you have completely lost me now.

You have effectively stated that an auction will not give a true value. This is simply untrue. If people want a property they will attend an auction and bid what they are prepared to pay. If they they don't attend and bid then they are not potential purchasers. Ultimately the price a property will fetch is what a willing buyer is prepared to pay regardless of it being at auction or through an agent. Any estate agent will confirm that properties price too high just don't sell and that almost any realistically priced property will sell within a few weeks. A wise seller will choose their agent carefully and try to get personal recommendations. A properly qualified auctioneer, RICS or similar, will be able to give a realistic value to set a reserve at.

LondonGent

Yorkshireman99 wrote: »

You have effectively stated that an auction will not give a true value. This is simply untrue. If people want a property they will attend an auction and bid what they are prepared to pay. If they they don't attend and bid then they are not potential purchasers. Ultimately the price a property will fetch is what a willing buyer is prepared to pay regardless of it being at auction or through an agent. Any estate agent will confirm that properties price too high just don't sell and that almost any realistically priced property will sell within a few weeks. A wise seller will choose their agent carefully and try to get personal recommendations. A properly qualified auctioneer, RICS or similar, will be able to give a realistic value to set a reserve at.

Thank you for your persistence but I feel that you are mistaken. People attend auctions for a bargain, hence why people will attend an auction and bid if the property is a bargain and a bargain for the most part is an item that is priced below its true value. Auction proeprties are usually placed as the result of desperation of the seller, not because they really want to, usually its a matter of difficult circumstance so are forced to sell at auction. Buyers at auctions are looking for something they can flip, so, they will try and go for the lowest price possible, not what the property can be sold at through an Estate agent. Any auctioneer will only give you an "auction" reserve price of what they think buyers will pay based on the potential profitability of the property, not what the market values dictates it should be, hence why they are called "auctions" otherwise everyone would just use auctions and there would be no estate agents. The only real true value of a property is what the bank values it at as thats the amount they would be willing to lend for. The rest is just "opinion".

I think we just need to agree to disagree and leave it at that.

exiled_red

The property is only going to be worth what someone is willing to pay for it, the bank will value it on a similar basis. If you have it on the market and no-one is interested it is almost certainly overpriced. You previously mentioned that there are other reasons such as location, condition and cost of upkeep. These come into how it is priced, identical properties one in a desirable area and one in a less desirable area won't sell for the same price, similarly a property in good condition will sell for more than it would in bad condition.

Unless you are the main beneficiary and want to keep the property, you need to be realistic about the sale price of the property, the estate will be paying £3.5k a year in fees and could incur further costs as time goes on for repairs from which you are getting no benefits, while presumably incurring further interest on the loan, I would imagine that selling sooner rathert than later would be in your interests. If the property isn't getting serious interest after a few months it's unlikely that keeping it on the market for 2 years is going to change that without you reducing the price.

Yorkshireman99

exiled_red wrote: »

The property is only going to be worth what someone is willing to pay for it, the bank will value it on a similar basis. If you have it on the market and no-one is interested it is almost certainly overpriced. You previously mentioned that there are other reasons such as location, condition and cost of upkeep. These come into how it is priced, identical properties one in a desirable area and one in a less desirable area won't sell for the same price, similarly a property in good condition will sell for more than it would in bad condition.

Unless you are the main beneficiary and want to keep the property, you need to be realistic about the sale price of the property, the estate will be paying £3.5k a year in fees and could incur further costs as time goes on for repairs from which you are getting no benefits, while presumably incurring further interest on the loan, I would imagine that selling sooner rathert than later would be in your interests. If the property isn't getting serious interest after a few months it's unlikely that keeping it on the market for 2 years is going to change that without you reducing the price.

This is the point the OP just can't accept. He has a very jaundiced view of auctions. People buy at auctions for all sorts of reasons not just those he thinks do. Different people have very different views of what they want a property. Some want to move in gradually alter it to suit there needs. Others may want to extend it and do it up with a view to making a quick profit. Auctions can, and often do, fetch much higher prices than expected. There is, of course, an element of luck but to dismiss the idea outnof hand is unwise.

troubleinparadise

craigedmonds wrote: »

Thank you for your persistence but I feel that you are mistaken. People attend auctions for a bargain, hence why people will attend an auction and bid if the property is a bargain and a bargain for the most part is an item that is priced below its true value. Auction proeprties are usually placed as the result of desperation of the seller, not because they really want to, usually its a matter of difficult circumstance so are forced to sell at auction. Buyers at auctions are looking for something they can flip, so, they will try and go for the lowest price possible, not what the property can be sold at through an Estate agent. Any auctioneer will only give you an "auction" reserve price of what they think buyers will pay based on the potential profitability of the property, not what the market values dictates it should be, hence why they are called "auctions" otherwise everyone would just use auctions and there would be no estate agents. The only real true value of a property is what the bank values it at as thats the amount they would be willing to lend for. The rest is just "opinion".

I think we just need to agree to disagree and leave it at that.

I feel you are mistaken.

I have sold a property at auction, not because I was desperate, but because it was a particular type of property that would not sell easily through an estate agent, and I didn't want months of negotiations and uncertainty.

I got the price I was anticipating, well above the guide, and the purchaser did not "flip it".

You say the property you have to sell is the same as others that haven't sold, and is only likely to realise £50k should it sell. I suggest that will also cost you in terms of the ongoing admin and stresses for many months, let alone the financial aspect.

You have very entrenched views that I suspect are holding you back. You have come to this site to get opinions, and yet have argued with virtually everything that has been replied.

That is your prerogative, but I suspect will cost you more financially than you are hoping to save by the clever loopholes and tactics you think will get you a slightly greater inheritance.

I can't actually work out why you are persisting when you already think you have all the answers...