Shared ownership property - selling

eamyers

Hi, we own 75% of a shared ownership property in Hertfordshire, but it’s now too small for our family. The current valuation is around £270,000, and we bought it for £297,500 seven years ago. Despite having it on the market since last spring, we’ve had minimal interest, and we have challenges like internal windows facing an atrium. Our mortgage is now on a high standard variable rate, costing us over £1300 a month, making us consider remortgaging, staircasing to 100%, or renting. 

Staircaising it seems like our best bet, but we don’t have the equity to do so. Options like fixed-rate have early exit fees, and we’re feeling disheartened about the property’s investment potential.

Considering our current situation with the property, I would appreciate any advice or insights you might have regarding the best course of action or alternative options. Thank you in advance for your help. 

pramsay13

Drop the price and sell it faster.

GDB2222

eamyers said:

Hi, we own 75% of a shared ownership property in Hertfordshire, but it’s now too small for our family. The current valuation is around £270,000, and we bought it for £297,500 seven years ago. Despite having it on the market since last spring, we’ve had minimal interest, and we have challenges like internal windows facing an atrium. Our mortgage is now on a high standard variable rate, costing us over £1300 a month, making us consider remortgaging, staircasing to 100%, or renting. 

Staircaising it seems like our best bet, but we don’t have the equity to do so. Options like fixed-rate have early exit fees, and we’re feeling disheartened about the property’s investment potential.

Considering our current situation with the property, I would appreciate any advice or insights you might have regarding the best course of action or alternative options. Thank you in advance for your help. 

Can you please explain a bit why the value has dropped 10% over the past 7 years?

Do you expect this to continue?

GDB2222

I have read one of your other threads, and I understand the problem a bit better. 

I think you will have to lower the price to sell it to a cash buyer. I have no idea whether you can afford to do so though?

eamyers

Dropping the price will leave us in negative equity 

GDB2222

eamyers said:

Dropping the price will leave us in negative equity 

It looks like you may be stuck, then. You have had several threads about your difficulties selling, going back several years. The reason is that these flats are very difficult to mortgage, and cash buyers expect a really sizeable discount. 

So, as you can’t sell, I suggest that you concentrate on getting your mortgage interest down. If that involves locking yourself into a mortgage with early payment fees, that may not matter, as realistically you can’t sell anyway.