Trapped In Negative Equity and Homebuy Direct Scheme

Jamieh151

Hi,
Myself and my Wife purchased a new build 2 bed apartment in March 2010 for £109,950 when we were 19 & 20 years of age.
We had our first child 2 years ago and have just found out we will be expecting our second in Feb of next year. We are now in a bit of a panic of how we are going to manage when the second child is here as it is on the 3rd floor. Our apartment has been affected by the 'leasehold scandal' and as such the recent sales values are anywhere between £75,000 - £88,000. We purchased the apartment using the Homebuy Direct scheme a precursor to the Help to buy scheme. Upon sale of the property we have to pay back the 30% equity loan meaning that we would have to sell for £90,000 to cover our £63,000 mortgage and walk away with nothing ( Which we would be very happy with!).

We feel as though there is no one to turn to at the moment, so far we have reached out to the government agency who look after the equity loan to ask if there is anything they can do to help. We have also reached out to the developer in the past (Taylor Wimpey) who are not interested.

We have got our eye on a house on a new development and have scraped together a deposit that we can put down but we just need to clear up if it is going to be possible to escape our current property in the foreseeable future.

I would appreciate if anyone can give me any advice.

Kindest Regards,

Jamie.

penners324

Do you have a doubling ground rent every 10 years?
Taylor Wimpey are helping to get that changed to an RPI increase every 10 years. There's information on their website about it.
However, it'll cost about £1600 in solicitors fees to get it done.
If it's not done you will likely find your flat unsellable.

What part of the country are you in that a 2 bed flat is only £80,000?