What would you do?

MFWannabe

johnsof75 said:

Thanks. I think the equity would depend on what we sold it for ? - we bought at  340k (50%) - cheapest similar one I have seen is for 430 but some are asking  as much as 490. I assume, if the HA allowed us to sell on the open market , we could try to sell for 430 or a bit less? Sorry if that is a stupid question but I've never solid a property before. 

As it is a shared ownership I understand we might have to go with whatever price their surveyor values it at? On the Shared Ownership site they are down at the higher end but on Rightmove between 430-450. 

I have noticed that all the flats for sale have new kitchens - it also needs painting. Would you do that before trying to sell or is it just wasted money? Thank you 

Did you pay 350k for the 50% share?! 

Or the property was 350k total price so you bought 50% and therefore paid 175k for your share? 

How much ldl you have left on your mortgage? 

AdrianC

theartfullodger said:

Go bankrupt. 

The OP still has £1k/month discretionary income after paying housing costs, and an unspecified amount of equity in the property. They haven't mentioned any debts.

Why on earth would they consider bankruptcy?

Crashy_Time

S/O was one of the biggest scams in the property bubble scam, it just rubs it in people`s faces that they won`t be allowed to purchase basic shelter at affordable levels (while getting them to contribute to keeping things unaffordable for others) hopefully more people are waking up to the realities of how property bubbles are created and maintained?

johnsof75

400k of which we own half 

johnsof75

Sorry I should have been clearer.
12 years ago we  bought a 50% share in a one bed room SO flat (paid 170k). The costs (rent and service charge in particular ) have risen a huge amount and it is now becoming very difficult (not impossible but very tight) to keep paying. I'm not sure what I should do. Try to sell or hold tight? 

Cheapest neighbours flats (exactly the same layout but painted and with a new kitchen ) are now up for sale at 430k (full price)- some are on for a lot more.  They aren't selling. I am not really sure on the options or what to do?

Should I try to put mine up for sale at a bit less than 430k? If so would you also pay to do up the kitchen/paint ? Or would you just try to budget for a while (trying to keep debts low) and hope things improve in a few years? Thank you 

Crashy_Time

Do you have a place to move to if you sell?

Grumpy_chap

johnsof75 said:

12 years ago we  bought a 50% share in a one bed room SO flat (paid 170k). 

Cheapest neighbours flats (exactly the same layout but painted and with a new kitchen ) are now up for sale at 430k (full price)

If so would you also pay to do up the kitchen/paint ? 

I am still unsure in these figures.  Are you saying:

• 2008, property value £170k
• 2008, you purchased 50% at £85k
• 2020, property value £430k (target)
• 2020, your share if you sell is 50%, so £215k
• 2020, your equity = £215k - £85k = £130k

FWIW - I would not do a new kitchen as that is a largish bill and there is no guarantee you put in something that the purchaser finds desirable.  The "added value" to the property is unlikely to be as much as the cost, plus half that "added value" won't come your way.

Painting is a bit more down to your choice.  Many people once they move in will want to decorate anyway, but if the current decor is off-putting (style or condition), a coat of emulsion through in modern, neutral colours can "lift" the whole place and just make it seem so much more.  If you can do it yourself, painting through is low cost.

SMR710

Flipping heck!! I have a 4 bedroom detached, with a footprint basement kitchen/lounge/dining, a home bar with pool table room, a separate lounge, a full width balcony terrace with countryside views, 4 bed, 3 bathrooms, garage, front & back garden, driveway... countryside on the doorstep... £346k!! Sometimes I love West Yorkshire!!
I hope you get sorted. The house prices are so ridiculous in some parts of the country. Hope you get sorted.

rachelheels

SMR710 said:

Flipping heck!! I have a 4 bedroom detached, with a footprint basement kitchen/lounge/dining, a home bar with pool table room, a separate lounge, a full width balcony terrace with countryside views, 4 bed, 3 bathrooms, garage, front & back garden, driveway... countryside on the doorstep... £346k!! Sometimes I love West Yorkshire!!
I hope you get sorted. The house prices are so ridiculous in some parts of the country. Hope you get sorted.

Yea the reason for that value is that your in West Yorkshire lol

Not the nicest part of the country let’s face it 

flashg67

Grumpy_chap said:

johnsof75 said:

12 years ago we  bought a 50% share in a one bed room SO flat (paid 170k). 

Cheapest neighbours flats (exactly the same layout but painted and with a new kitchen ) are now up for sale at 430k (full price)

If so would you also pay to do up the kitchen/paint ? 

I am still unsure in these figures.  Are you saying:

• 2008, property value £170k
• 2008, you purchased 50% at £85k
• 2020, property value £430k (target)
• 2020, your share if you sell is 50%, so £215k
• 2020, your equity = £215k - £85k = £130k

FWIW - I would not do a new kitchen as that is a largish bill and there is no guarantee you put in something that the purchaser finds desirable.  The "added value" to the property is unlikely to be as much as the cost, plus half that "added value" won't come your way.

Painting is a bit more down to your choice.  Many people once they move in will want to decorate anyway, but if the current decor is off-putting (style or condition), a coat of emulsion through in modern, neutral colours can "lift" the whole place and just make it seem so much more.  If you can do it yourself, painting through is low cost.

Total price 340k, OP bought a 50% share , ie £170k