Can’t sell flooded house

Sssss

This is a very difficult situation and need advice. Our house flooded back in 2015 (the only time it has flooded in its history since 1760). We are desperate to move (for work/commute reasons) but struggling to sell. We’ve had 5 offers since January 2018, 2 mortgages declined (NatWest & HSBC) and nothing has proceeded. The property gets fantastic feedback after viewings and the price is right, taking the flood into consideration. My worry is the fact that 2 high street banks have declined to offer a mortgage (last year) - do banks have some kind of “not within the last 3 years” policy when it comes to lending on a flooded property? When I spoke to both banks they said they didn’t and that the applicant needed to raise a PVQ to appeal the decision but by then, they’d moved on. As the property owner, I’m stuck. We are fully covered and insurable through the government’s Flood RE scheme and fully kitted our with defence and resilience measures. There’s literally nothing else we can do. We’ve put it up for auction which has probably done nothing but damage it’s market value. Now wondering what step to take next. Any advice greatly appreciated!

Marvel1

I'm not really sure but before someome mentions renting it out - making it sound simple. Being a landlord is a business, read every link if property is in England/Wales excellent guides by G_M https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants

Sssss

Thanks for your reply. We looked into renting it out but really need to sell to have a deposit to buy next house. Otherwise we’re renting ours out to rent ourselves and still not be able to buy.

CarrieVS

I've just had a mortgage offer from Nationwide - as far as I know the property I'm buying has never been flooded, but the question asked was "...flooded in the last five years" so you may just need to wait another year (not what you want to hear when desperate to move ASAP, but a year is better than never,) and then you might find some lenders willing to give a mortgage on it although not all.

Or advertise cash buyers only.

Obviously, some buyers will be put off by having ever flooded or if their preferred lender will decline a mortgage if it's ever been flooded, and cash buyers only will greatly reduce your market, but if it's otherwise a good property and the price reflects the flood risk, you might get a nibble.

Cakeguts

Or you can put it into a property auction.

lisyloo

We’ve put it up for auction which has probably done nothing but damage it’s market value.

What happened at the auction?

Sssss

We’re already in an online auction. A bit of interest but still, a mortgage declined. I think the only thing that’s done is affect the value of the property as we’ve put it on for a very low price with a higher reserve price. Doesn’t look good online.

pimento

Where is it?

lisyloo

I think the only thing that’s done is affect the value of the property as we’ve put it on for a very low price with a higher reserve price. Doesn’t look good online.

Maybe looks that way to you, but I think that's often how auctions work.
No-one reveals their hand until the last minute.

ReadingTim

Sssss wrote: »

We’ve put it up for auction which has probably done nothing but damage it’s market value. Now wondering what step to take next. Any advice greatly appreciated!

It hasn't got a "market value", as no-one will lend on it, so no-one can buy it. Its "market value" is what someone is willing and able to pay for it.

Your choices are either advertise it for 'cash buyers only' with an EA; or auction it, where due to the short timescales you'll only really attract cash buyers anyway.

Alternatively, sit it out for another couple of years so there's at least 5 years since the last flood - either by living there, or rent it out.

Sorry this isn't what you want to hear, but you don't get to set the price. Anything, including this will sell, if priced right. The question is whether that's a price you're willing to accept?

lookstraightahead

I would say look for cash buyers at a low price and take the hit on what you think it's worth, or wait until your house is statistically out of danger for another flood.