Can I give my flat back?

phillw

JoanneNY wrote: »

Almost 13 years ago I bought a flat and got a 30 year mortgage. I have had the flat for sale for over 2 years. It is valued at approx 170k and my mortgage balance is around 105k but the housing market in the area is non existent - hence being for sale for so long.

A friend was in roughly the same boat, they bought a new flat and after 2008 the prices just kept dropping. They didn't factor in that when the shinyness wore off and buyers saw the exorbitant service charge and upkeep on a listed building that they weren't going to be willing to pay a premium over the other new flats that have been built since.

They rented it out while they tried to market it, they kept dropping the price & had to suck up three lots of aborted costs as the sale just kept falling through. On the forth time it finally sold. They haven't sat down and down an exact account of all the money spent/received, but they reckon they came out roughly even.

Their neighbour sold a couple of years before my friend first put theirs on the market and immediately made an absolute killing. Flats are horrible, they are the first to be affected when prices fall and the last to recover.

Is there a reason you haven't rented it out already?

getmore4less

JoanneNY wrote: »

Thanks, it’s priced much less than 170k, just no interest or offers sadly.

How much is it on for?

What's the going rate for rent?

That will give an idea where investors may show interest.

dunstonh

. It is valued at approx 170k

Clearly it isn't if it hasnt got any interest after 2 years.

Price it for selling quicker.

foxy-stoat

I wont look good on your history if you do end up handing back the keys to the lender - best to sell it for as much as you can and settle the mortgage the right way, that way you are in control of the losses (if any).

JoanneNY

Just to update, I recently had an offer of 143k which I accepted, it has failed the survey despite just having 8k of work done to it.

It is in Guernsey, property price and rental prices are very high but at present the market for flats just isn’t there.

I have requested the survey to see what they say is wrong so I can work out if I can afford to rectify.

Thanks

getmore4less

why not ask what price they will pay with the work that needs doing

JoanneNY

Bank have flatly refused the buyers a mortgage due to works that need doing

pramsay13

JoanneNY wrote: »

Just to update, I recently had an offer of 143k which I accepted, it has failed the survey despite just having 8k of work done to it.

It is in Guernsey, property price and rental prices are very high but at present the market for flats just isn’t there.

I have requested the survey to see what they say is wrong so I can work out if I can afford to rectify.

Thanks

Offer it for £135k.
This will give you £30k after you have settled the mortgage.

qwert_yuiop

I know jersey got badly damaged by the banking crash back in 2008, and has been on a serious austerity programme since. Is guernsey the same?

qwert_yuiop

pramsay13 wrote: »

Offer it for £135k.
This will give you £30k after you have settled the mortgage.

Nothing wrong with that. Are you still living on the island?