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Miller Homes MiWay Loan Nearly Due For Repayment - Problems
PokemonGone
Posts: 2 Newbie
We purchased a new-build with Miller Homes in early 2009, with 25% of the purchase price advanced via their 'MiWay' scheme. Shared equity, not Shared Ownership. The loan at purchase price was £45,875 and is interest-free for 10 years. Please don't judge on this. We were young, stupid and believe we were mis-sold by Miller Homes. That's a whole other story!
The loan has been transferred to Elmwood Park Finance who are now asking for £50K, payable in 2019.
We've had the house on the market for 18 months and it's not shifting. It's currently on at £170K. £13.5K less than the purchase price. We've reduced it and we've been told realistically that we should be pushing it down further. That we'll be lucky to realise £160K, maybe even £150K.
The issue is that in our eyes, we were told by Miller Homes that we would need to repay the MiWay loan at 25% of the sale price. Elmwood Park Finance is saying that it's 25% of 'Open Market Value'
The house has lost value for a number of reasons, in our opinion. There are loads of new builds for sale nearby, fracking is happening just down the road and the estate hasn't got a great reputation due to anti-social behaviour in parts of the estate.
We haven't got £50K to pay to Elmwood Finance and we don't believe the 'Open Market Value' of the property is £200K. We haven't got the cash to enter into a lengthy legal battle with them either. They are getting their valuation of the house from Zoopla we believe.
What would you advise?
Thank you.
The loan has been transferred to Elmwood Park Finance who are now asking for £50K, payable in 2019.
We've had the house on the market for 18 months and it's not shifting. It's currently on at £170K. £13.5K less than the purchase price. We've reduced it and we've been told realistically that we should be pushing it down further. That we'll be lucky to realise £160K, maybe even £150K.
The issue is that in our eyes, we were told by Miller Homes that we would need to repay the MiWay loan at 25% of the sale price. Elmwood Park Finance is saying that it's 25% of 'Open Market Value'
The house has lost value for a number of reasons, in our opinion. There are loads of new builds for sale nearby, fracking is happening just down the road and the estate hasn't got a great reputation due to anti-social behaviour in parts of the estate.
We haven't got £50K to pay to Elmwood Finance and we don't believe the 'Open Market Value' of the property is £200K. We haven't got the cash to enter into a lengthy legal battle with them either. They are getting their valuation of the house from Zoopla we believe.
What would you advise?
Thank you.
0
Comments
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Is there a specific wording in your documentation for the loan specifying what is acceptable as a measure for calculating the value of the 25% share of the equity?
For example the government backed HTB equity loan scheme specifically states - % of the sale price or RICS valuation, whichever is higher.
The "open market" value is the price it sells on the market, not what an automatic Zoopla or overoptimistic EA pulls out of their ear. I somewhat doubt such a term is enforceable, but AINAL.0 -
Thank you.0
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