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[Deleted User]

Removed for confidentiality 

Herzlos

Presumably there's no reason you couldn't stay there or sell it to a regular buyer?
How much would it cost to fix the cladding?

[Deleted User]

Herzlos said:

Presumably there's no reason you couldn't stay there or sell it to a regular buyer?
How much would it cost to fix the cladding?

A regular buyer may well struggle to get a mortgage as many lenders are valuing these leasehold properties with unsafe cladding at zero.  That's the problem that those who bought these leasehold properties pre-Grenfell are now facing when it comes to remortgaging or selling.

Emmia

Would the flat being unsaleable (and with a substantial future bill in the offing), also make an offer from one of the "we buy any house" type companies unlikely?

They may buy (very) low, and sell higher - but they do need to be able to sell the flat fairly quickly to recoup their outlay.

MEM62

Nadia91 said:

At the moment the only hope I can see for the future is having that written off then selling it to a we buy any home type company for a 10grand loss and starting again. 

That might be stretching the 'any' in we buy any home.  They will only buy something if they can offload it for a return within a relatively short space of time.  Flats with cladding issues will not be an attractive proposition for them.    

Herzlos

Emmia said:

Would the flat being unsaleable (and with a substantial future bill in the offing), also make an offer from one of the "we buy any house" type companies unlikely?

That's what I was thinking; if it's hard to sell (due to the cladding or mortgages) then they may not want it either or will offer something low enough to justify the risk. Looks like they pay somewhere about 75% of the market value of a good house so I'd be expecting much less than that, like 25-50%.
There will always be a landlord willing to add it to their empire for cash, at the right price, but it's going to be an insulting offer.

[Deleted User]

Guys can you stick to the question. 

Yes ive got a fixed offer already so I know I can sell at a lot cheaper. 

No way anyone can get a mortgage or even remortgage now. 
No I don't no how much cladding will cost. We are years off getting that sorted but it'll be over 200k.

The flat is worthless until done and I couldn't afford to fix it anyway so ORIGINAL QUESTION. 
HAS ANYONE SUCCEEDED IN GETTING HTB WRITTEN OFF? 

[Deleted User]

Herzlos said:

Presumably there's no reason you couldn't stay there or sell it to a regular buyer?
How much would it cost to fix the cladding?

I think a big reason is I don't wsnt to burn to to death in an unsafe building! But I've also had to move for job and family. 

Emmia

Nadia91 said:

Guys can you stick to the question. 

Yes ive got a fixed offer already so I know I can sell at a lot cheaper. 

No way anyone can get a mortgage or even remortgage now. 
No I don't no how much cladding will cost. We are years off getting that sorted but it'll be over 200k.

The flat is worthless until done and I couldn't afford to fix it anyway so ORIGINAL QUESTION. 
HAS ANYONE SUCCEEDED IN GETTING HTB WRITTEN OFF? 

I think the answer is probably "No" - I can't see why it would be written off TBH. You took out a HTB agreement, which in any scenario involves financial risk. I appreciate the cladding issue is not of your doing - however that doesn't remove your financial liability.

Outside of HTB banks don't write off negative equity (which is what you're effectively in, as the value of your property is worth less than the loan(s) secured on it) on non HTB, normally mortgaged properties either, if I buy a flat for 500k and it gets repossessed after I fall on hard times, the bank may sell it for 250k - but I'll still owe the difference on the mortgage, even if I'm renting somewhere.

SuperHan

Emmia said:

Nadia91 said:

Guys can you stick to the question. 

Yes ive got a fixed offer already so I know I can sell at a lot cheaper. 

No way anyone can get a mortgage or even remortgage now. 
No I don't no how much cladding will cost. We are years off getting that sorted but it'll be over 200k.

The flat is worthless until done and I couldn't afford to fix it anyway so ORIGINAL QUESTION. 
HAS ANYONE SUCCEEDED IN GETTING HTB WRITTEN OFF? 

I think the answer is probably "No" - I can't see why it would be written off TBH. You took out a HTB agreement, which in any scenario involves financial risk. I appreciate the cladding issue is not of your doing - however that doesn't remove your financial liability.

Outside of HTB banks don't write off negative equity (which is what you're effectively in, as the value of your property is worth less than the loan(s) secured on it) on non HTB, normally mortgaged properties either, if I buy a flat for 500k and it gets repossessed after I fall on hard times, the bank may sell it for 250k - but I'll still owe the difference on the mortgage, even if I'm renting somewhere.

But isn't the amount of HTB repayment linked to market value of the property? So you pay more if the value goes up... and presumably less if it goes down.

It might be worth going down the route of getting a settlement value... but if you're likely to go bankrupt as a result of the cladding issues, then maybe not worth it.

Emmia

SuperHan said:

Emmia said:

Nadia91 said:

Guys can you stick to the question. 

Yes ive got a fixed offer already so I know I can sell at a lot cheaper. 

No way anyone can get a mortgage or even remortgage now. 
No I don't no how much cladding will cost. We are years off getting that sorted but it'll be over 200k.

The flat is worthless until done and I couldn't afford to fix it anyway so ORIGINAL QUESTION. 
HAS ANYONE SUCCEEDED IN GETTING HTB WRITTEN OFF? 

I think the answer is probably "No" - I can't see why it would be written off TBH. You took out a HTB agreement, which in any scenario involves financial risk. I appreciate the cladding issue is not of your doing - however that doesn't remove your financial liability.

Outside of HTB banks don't write off negative equity (which is what you're effectively in, as the value of your property is worth less than the loan(s) secured on it) on non HTB, normally mortgaged properties either, if I buy a flat for 500k and it gets repossessed after I fall on hard times, the bank may sell it for 250k - but I'll still owe the difference on the mortgage, even if I'm renting somewhere.

But isn't the amount of HTB repayment linked to market value of the property? So you pay more if the value goes up... and presumably less if it goes down.

It might be worth going down the route of getting a settlement value... but if you're likely to go bankrupt as a result of the cladding issues, then maybe not worth it.

There's probably a minimum "floor" to the payment.

But  if the cladding is removed/ replaced and the value of the flat rebounds - not having written off the HTB loan means that it would therefore go back up and then would be repaid in the usual way /at the usual level.