Sell property asap but stay in it, advice please

Rellen

Hi
i hope someone can help with any advice or suggestions. Sorry this is long post.

My house/mortgage is out of term found out few days ago they have now applied to court for possession proceedings. 

I’ve tried all other attempts to keep, remortgage/sell to family member but none are possible. 

So have to sell, and soon to try and stop the court proceedings (I got the letter and the date is in almost 2 months time). 

I don’t have the option of putting house on market and taking months to complete. So I need something certain to stop the court proceedings. 

So my first question is, does anyone have advice/experience with modern auction, specifically iamsold? They state 56 days to complete, but there’d be confirmation of sale as soon as auction ends. 

The second problem is, I don’t have anywhere to go. I’ve had some serious financial (&personal) problems which will make getting a mortgage impossible even when I do have a salary and deposit. I’m worried I won’t even be approved to rent. I also have an elderly cat so that limits me with renting. 

I was looking to see if there’s a way for me to sell house through modern auction but stay in the house even if for a few months. 

I know people sell properties with tenants in situ, and there was a sell and rent back scheme at one time but seems they’ve been stopped now.
I was looking at cash buying companies that offer to rent after but the offers were insane and not enough even tho there is reasonable equity in the house. 

If I were to sell on modern auction, how could I do this and what kind of effect would that have on the price? 

Any advice, suggestions or experience on modern property auctions or any of the above. I’d really appreciate it. 

Thanks so much 

anselld

The quickest and most reliable way to sell is traditional auction.  

Modern auction is a con, please don't consider it.
You will not be able to remain in the property after completion.
Is there equity in the property?  You will not be able to complete the sale unless there are sufficient funds to pay the mortgage, arrears, all fees, and any charges against the property, etc. 

Rellen

Hi. 

Thanks so much for quick reply. 

I only found out about modern auction today when I had valuation, I’ve done a bit of research. 
 From what I see it’s like traditional but advertised as on the market rightmove etc so open to more people then put to auction. The only thing is the buyer pays a non refundable fee of £6000 so I think that’d be off putting. But it is 0% fee to the seller. 

I’d worry about using traditional auction as isnt it developers wanting a bargain so I wouldn’t get anyone willing to pay what it’s worth. I don’t have the luxury of time to try and it not work then try another way unfortunately. 

Can I ask why you say modern auction is a con? 

Also I know you say couldn’t stay in the property but if I listed it as having a sitting tenant or something like? 

Thank you again 

Rellen

Oh also just to add to original post. 

I was thinking of another option would be to list on open market but state only cash buyer/no chain to ensure a quick sale. 

That way I could maybe accept an offer with a seller willing to let me stay in property for a little while. 

The concern would be how soon would a cash buyer/no chain take to complete so I could confirm it to the mortgage co. 

Thank you 

marcia_

 Why would a buyer let you stay in the property they want to move in to? 

_Penny_Dreadful

Rellen said:

Hi. 

Thanks so much for quick reply. 

I only found out about modern auction today when I had valuation, I’ve done a bit of research. 
 From what I see it’s like traditional but advertised as on the market rightmove etc so open to more people then put to auction. The only thing is the buyer pays a non refundable fee of £6000 so I think that’d be off putting. But it is 0% fee to the seller. 

I’d worry about using traditional auction as isnt it developers wanting a bargain so I wouldn’t get anyone willing to pay what it’s worth. I don’t have the luxury of time to try and it not work then try another way unfortunately. 

Can I ask why you say modern auction is a con? 

Also I know you say couldn’t stay in the property but if I listed it as having a sitting tenant or something like? 

Thank you again 

How many buyers do you think will be willing to pay £6,000 for the privilege of buying your property? I certainly wouldn’t and nor would anyone else with two brain cells to rub together. 

With a traditional auction you can set a reserve price which would be the minimum you are willing to accept for the property. You can’t advertise the property as having a sitting tenant as you are not a tenant and sale and rent back is highly regulated. 

Another option would be to advertise with an estate agency and keenly price the property so as to attract a buyer quickly. You’d be waiting for them to secure a mortgage and you’d be amazed at the number of cash buyers who will only have the cash available once they’ve sold another property or decide that maybe they will use a mortgage after all. I don’t think this would be as quick as a traditional auction though where the buyer only has x days to complete. 

babyblade41

Don't use modern method of auction, the only benefit is to the agent & no one else.

Your best bet is either proper auction or price it cheap with cash buyers only. 

Once completed you must leave unless you can find a buyer who wants an instant BTL with an agreed tenant which will be even harder .

mi-key

Any estate agent can advertise it as auction or cash buyer only for you, there are loads of them on rightmove. Modern auction is a bit dodgy because of asking the winner for the extra money, which I think puts a lot of people off bidding, a normal auction would get more interest. 

If you have enough equity from the sale then you can always offer to pay a pirvate landlord 6 months or a years rent in advance to make it easier to get somewhere, not many would turn that down.

Hope you can get it sorted out though as its a horrible position to be in. 

meeemee

Sorry to hear about your situation but I don’t think with any type of sale once completed the new owners would let you stay for a few months. Have you contacted shelter for advice? 

housebuyer143

You need a quick sale and completion but yet you don't want to reduce the price by going to a normal auction. These two things go together. You can't get a guaranteed quick sale that is legally binding and guaranteed to go through without taking a hit on price. 

You list it on Rightmove and the sale could take months or fall through completely. 

I would say you take it to auction with the reserve at the price needed to cover your mortgage and fees depending how much is it worth and equity etc or you let it get repossessed. Either way you will need to move out.
You are not a tenant and therefore cannot remain in the property after completion. 

Rellen

Thank you all so much for replies and advice. 

I see no one in favour of the modern auction, Is this purely down to the £6000 buyers fees? I Assumed this was a fixed fee and that’d it would equate the same as traditional auction fees?

From what I can tell the modern auction is a balance between traditional and open market?

It’s seemed like a good option for me, as the guide prices are closer to market value but there’s a certainty that I can give to mortgage co to stop the court and that the deal won’t fall through because of that buyers fee. If they agree the 56 days it’s a little bit more time for me too. 

I thought also the auction itself would be better as it’s a longer time for bids rather than traditional you need to be in the room at specific time/day?

As for me hoping to stay here after selling, I have known of people staying in property after agreement with new buyer. I was just wondering if there was a way for me to put it in listing or a way to ensure I could have that option?

I do understand that I will have to compromise the price to get assurance that it’ll sell and complete. As i say I only found out last week about court so I’m just scrambling for the best solution.