House not selling what are my options

kev101

Hi I am currently getting divorced and me and my ex have agreed to sell the house but it isn't getting much interest I've fitted a new kitchen, new bath, downlights, decorated through out,my ex got us into a lot of debt and I put the mortgage into an interest only Mortgage the house cost £135000 and its been valued at £120000. We owe £119000, I've had so called property investers saying they could rent it out then purchase after 5 years or they would buy it at a much reduced price of £96000 which is out of the question.
What are my options would I be able to rent it out are these investers a genuine option or bogus. 
Any advice would be much appreciated. 

wjr4

How long have you been trying to sell for? 

AdrianC

kev101 said:

I've had so called property investers saying they could rent it out then purchase after 5 years or they would buy it at a much reduced price of £96000 which is out of the question.
What are my options would I be able to rent it out are these investers a genuine option or bogus. 

They're only interested in making money out of it. Obviously. I bet the "purchase after 5yrs" option turns out to have a get-out clause if the property hasn't increased in value sufficiently... and no get-out from you if it has... One-way bet, you lose. Meanwhile, what does your lender say about you letting it to these companies?

Yes, you could rent it out to tenants yourselves. Do you WANT to run a residential lettings business? Do you even begin to understand the legal obligations that would place on you? Can you get consent to let on your mortgage?

Your sale choices are simple...
1. Sell now for whatever you can get in the current market, even if that involves crystallising what's currently a paper loss.
2. Wait until the market returns to normal.

davidmcn

kev101 said:

I've had so called property investers saying they could rent it out then purchase after 5 years or they would buy it at a much reduced price of £96000 which is out of the question.
are these investers a genuine option or bogus. 

Bogus. They'll lock you into an option agreement which means they can choose whether or not to buy it at the agreed price, and you won't be able to do anything else with the property for the option period.

And you letting the property (on a non-standard lease) to them, and them subletting to the actual tenants, is almost certainly contrary to your mortgage conditions, insurance, and everything else.

steampowered

Generally, a proper that is sensibly priced will sell. It could be your asking price is too high.

You aren't going to be getting much interest just now so you have to be patient.

I wouldn't touch the proper investor arrangement with a bargepole.

RelievedSheff

steampowered said:

Generally, a proper that is sensibly priced will sell. It could be your asking price is too high.

You aren't going to be getting much interest just now so you have to be patient.

I wouldn't touch the proper investor arrangement with a bargepole.

The price is almost certainly the problem. But given that the OP owes pretty much what the asking price is then I doubt they are going to reduce it further.

Options are really stay put or sell at a loss.

kev101

wjr4 said:

How long have you been trying to sell for? 

It went on the market back in October, I wanted it on earlier but the ex was digging her heals in being awkward. 

Scotbot

What region is it in? Most areas outside The SE were showing price increases over the last 2 years and the market had started to accelerate  post the election. So no offer since October sugests the price is too high. The problem is the market has stalled and won't increase once the Covid crisis is over. Many expect it to go backwards. So you either have to sell at a reduced price or hold on to it and rent it. Ask an agent for an estimate of the rental value to see if that would cover the costs.  Forget the property investors they take a huge chunk as profit. Selling at a reduced price or renting out yourself will make you more money, or to be more precise lose you less.

Thrugelmir

kev101 said:

Hi I am currently getting divorced and me and my ex have agreed to sell the house but it isn't getting much interest

At the current time you can only sit tight and see what the future brings. Then reappraise your marketing approach.

lincroft1710

If your ex had any sense she'd just offer to sign her share of the house over to you. Even if you got £120K, EA and solicitor's fees plus any mortgage settlement fee would mean you would net less than £119K from the sale.

kev101

 Ut surely that will leave me in a lot of debt and bad rating