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Bought off plan... but unable to sell house! Options?
Options
daverave7
Posts: 263 Forumite
Hi all,
My Partner and I have bought a 200k house off plan. A 10 % deposit (20k)was paid to them on the initial signing of contracts in March 2006. The House is now nearly built (taking ages) but my partner is struggling to sell her house at the valued price of 100k.
I was wondering what options are available to us IF she cannot sell her house. She has 40K left on her mortgage.
Are any of these viable options:-
1) I get a 'temporary' mortgage under my name for the total of 180 (although this is 5 times my salary!)?
2) Can we delay exchanging contracts for the off plan house? In theory, they have delayed it with us as the house was initially due to be build months ago! SO Can we do the same to them?
3)Get a bridging loan? What's the situation with these nowadays?
Are there any other options available to us?
Many thanks for taking time to read! Any advice will be much appreciated!
My Partner and I have bought a 200k house off plan. A 10 % deposit (20k)was paid to them on the initial signing of contracts in March 2006. The House is now nearly built (taking ages) but my partner is struggling to sell her house at the valued price of 100k.
I was wondering what options are available to us IF she cannot sell her house. She has 40K left on her mortgage.
Are any of these viable options:-
1) I get a 'temporary' mortgage under my name for the total of 180 (although this is 5 times my salary!)?
2) Can we delay exchanging contracts for the off plan house? In theory, they have delayed it with us as the house was initially due to be build months ago! SO Can we do the same to them?
3)Get a bridging loan? What's the situation with these nowadays?
Are there any other options available to us?
Many thanks for taking time to read! Any advice will be much appreciated!
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Comments
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The 200k house must be worth more now than when you purchased from plans. Put it up for sale with estate agents and make a profit.0
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Just because it was valued at £100k if you are struggling to sale then it isn't worth it - have a look at similar properties that have sold in the area and then price there to make a quicker sale?
What is the rental value of your partners house? Could you pool your income and get a buy to let mortgage on that house and your new one and still make a reasonable rental return on the smaller property?
Does the house builder operate a partexchange scheme - many do? So they will buy the house off you - at a slightly discounted price potentially, but enable you to move when your new place is finished.
Good luck
R.Smile
, it makes people wonder what you have been up to.0 -
kitchen_buff wrote: »The 200k house must be worth more now than when you purchased from plans. Put it up for sale with estate agents and make a profit.
Similar houses are on the market with estate agents for 230K now. BUT can we put it up for sale with an estate agent even though we have not completed exchange of final contracts... just paid the deposit and initial contract? Im not too familiar with this!0 -
Just because it was valued at £100k if you are struggling to sale then it isn't worth it - have a look at similar properties that have sold in the area and then price there to make a quicker sale?
What is the rental value of your partners house? Could you pool your income and get a buy to let mortgage on that house and your new one and still make a reasonable rental return on the smaller property?
Does the house builder operate a partexchange scheme - many do? So they will buy the house off you - at a slightly discounted price potentially, but enable you to move when your new place is finished.
Good luck
R.
Yes there is the option to reduce the asking price. I dont think the rental value is worth much for that house... but it's apossible option. And the house builder is a smallish company so I dont think they do part exchange schemes. Many thanks for your reply!0 -
You could get a buy2let mortgage on the current home, ones without any fees will be higher intreast but guess they'll work out better if you intend to sell soon.
this is probably better then a bridging loan as it's cheaper and if you was to get stuck or in trouble at least you can let the house out will attempting to sell it.0 -
Buy to let mortgage is probably your best bet. Check out sold prices in the same street to see what others have sold for. If similar property has recently sold in auction then that will give you an up to date value. If it is not a 3+ bed then stick it on with a new agent at the new price to freshen it up if it has been around for more than a few months. If has 3+ beds then stick it on at the new price with the same agent to avoiding having to mess around with a HIP.0
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Try dropping the price of the property you are selling.
While you may think it is worth £100k, but the market thinks it is worth less. The market is always right. Drop it by 5k a week/fortnight until you start getting offers.
A house, like anything else is only worth what someone is prepared to pay you for it. Until you have the buyer cash in your pocket, the house is worth precisely £zero. This applies if you try to sell the newbuild house too.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0 -
Post your house you have for sale on here and people can take a look to see if there is a reason it's not selling. Often it's badly advertised by EA so people don't even bother viewing. If you are getting lots of viewing ask EA for honest feedback as there must be a reason for no sale. It's not always about asking price. ~Laugh and the world laughs with you, weep and you weep alone.~:)
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If you drop the price enough it doesn't matter how badly it's advertised.Bankruptcy isn't the worst that can happen to you. The worst that can happen is your forced to live the rest of your life in abject poverty trying to repay the debts.0
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If you drop the price enough it doesn't matter how badly it's advertised.
But why would you want to sell your house for less than you could achieve with decent marketing and presentation? This is a moneysaving site not a moneythrowing away site:D ~Laugh and the world laughs with you, weep and you weep alone.~:)
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