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Stay or Sell?
Comments
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AdrianC said:
One minor correction...GDB2222 said:Let me see if I have got this right. I'll invent some figures, for clarity.
Flat is worth £200k if there were no cladding issue.
Cladding will cost £30k.
So, net value of the flat is £170k say.
Some cash buyer might buy it for what? £120k, maybe?
Why on earth is it better for the OP to sell for that and see their equity decimated?
Cladding might cost £6k, might cost £30k.
True, but any cash buyer is going to assume worst case scenario, then add a bit.No reliance should be placed on the above! Absolutely none, do you hear?1 -
Oh, of course.GDB2222 said:AdrianC said:
One minor correction...GDB2222 said:Let me see if I have got this right. I'll invent some figures, for clarity.
Flat is worth £200k if there were no cladding issue.
Cladding will cost £30k.
So, net value of the flat is £170k say.
Some cash buyer might buy it for what? £120k, maybe?
Why on earth is it better for the OP to sell for that and see their equity decimated?
Cladding might cost £6k, might cost £30k.
True, but any cash buyer is going to assume worst case scenario, then add a bit.
The OP might be taking an £80k bath for the sake of £6k spend.4 -
You were planning to stay in the flat for four years. So don't need to move,
But because you don't want a £30k uncertain bill hanging over your heads (might be as low as £6k) you'd prefer to lose say £50k now for certain ?
nope, you'll have to explain your reasoning to me again.4 -
It would take us around 20 months to save up enough to pay off the 30k and that would be our entire disposable income going into it. The lender won’t allow us to release equity against the property because of the cladding issue - a lot of people are struggling with their lenders on this front. Banks don’t want to lend against properties they know will need remedial actions. That is why the majority of people in the situation would have to sell to a cash buyer.GDB2222 said:Hotbunnycharlie said:
Hi. You've confused me, so I have a couple of questions.
You say that you have lots of disposable income, so how long will it take you to save up £30k?
Do you have reasonable equity in the flat, and have you asked your existing lender whether they will lend you the £30k? Perhaps it would clarify things if you set out what your mortgage is, and what the flat would be worth once the cladding is sortedIt's nice to be important but it's important to always be nice.1 -
You are not going to be asking the lenders to lend against the property in its present condition. The loan will be specifically to meet your one-off service charge in respect of the cladding. So, the property will once again be good security for your increased mortgage.Hotbunnycharlie said:
It would take us around 20 months to save up enough to pay off the 30k and that would be our entire disposable income going into it. The lender won’t allow us to release equity against the property because of the cladding issue - a lot of people are struggling with their lenders on this front. Banks don’t want to lend against properties they know will need remedial actions. That is why the majority of people in the situation would have to sell to a cash buyer.GDB2222 said:Hotbunnycharlie said:
Hi. You've confused me, so I have a couple of questions.
You say that you have lots of disposable income, so how long will it take you to save up £30k?
Do you have reasonable equity in the flat, and have you asked your existing lender whether they will lend you the £30k? Perhaps it would clarify things if you set out what your mortgage is, and what the flat would be worth once the cladding is sorted
Besides that, if it were me, I'd limit my treats for two years, and just pay the cost of the repair out of disposable income. To be frank, with £1500 a month of disposable income, you seem to be in a far, far, far better position than most people.
I can absolutely see why you are upset about the injustice of all this, but your proposed solution of selling up is just going to make it far worse.No reliance should be placed on the above! Absolutely none, do you hear?0 -
If you are lucky enough to be able to sell at a profit, then sell and move on with your life.
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Hotbunnycharlie said:
It would take us around 20 months to save up enough to pay off the 30k and that would be our entire disposable income going into it. The lender won’t allow us to release equity against the property because of the cladding issue - a lot of people are struggling with their lenders on this front. Banks don’t want to lend against properties they know will need remedial actions. That is why the majority of people in the situation would have to sell to a cash buyer.GDB2222 said:Hotbunnycharlie said:
Hi. You've confused me, so I have a couple of questions.
You say that you have lots of disposable income, so how long will it take you to save up £30k?
Do you have reasonable equity in the flat, and have you asked your existing lender whether they will lend you the £30k? Perhaps it would clarify things if you set out what your mortgage is, and what the flat would be worth once the cladding is sortedSo do that then.Its seriously a question of spend a maximum of £30k from savings in two years time or lose maybe £50k, for sure, right now.1 -
From what you describe, it seems like your situation is a lot better than it could be (you still like each other, you presumably still like and feel safe in the flat, you have no pressing reason to move and you could pay the 30k if needed). This isn't a gloat, it's still a rubbish situation to be. It's more a reflection that there are likely to be people significantly more desperate than you to sell, so you may well end up taking much more of a bath than you expected. By all means put it on the market and see what you might be able to get for it now, but given you are in a position to weather this storm I would try and do so because I think this is probably as bad as it's going to get for selling this type of flat.0
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