Mother died, cannot sell house - costing over £700 a month

wibbler

My mother died in August last year, leaving a considerable problem with her house. We have been unable to sell it - reducing the house over time from £529k to £450k, a reduction of £80k. We have had 4 estate agents, adding a gap between each to ensure that Rightmove don't regard it as stale. We have styled the interior so it looks like a showhome - still no dice.

We are paying at least £772 a month to maintain this house, in addition to my own bills - and all estate agents just tell me it's "a rough market". I could rent it, but with the new Renters rights I can't look to sell it in that situation.

I'm sharing this firstly because it's good to vent (!) but also wondered if anyone else is in this situation and know of anything I can try? It is unsustainable.

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Here's a breakdown of the costs:

The mortgage is a Hodge Retirement Interest Only mortgage, £62k. The interest is ££248 a month. I should have paid it back within 1 year - currently being considered for an extension on this timeframe. However, each day continues to cost £8.

The Council tax was paused for 6 months (nice of them!) but has now resumed at £187 a month - in fact, it is doubled because it is an empty house (!) so £374 a month. They have offered to defer payment until I sell the house, but they are still charging me every month.

Energy bills are at least £90 a month even though everything is off, thanks to the standing charge.

Estate Management charge is £40 a month, but they've just done a large renovation so they are currently asking for £182.

Internet charges to enable the security cameras (we live 1 hour away) is £20 a month.

la531983

No standing charge should be £90 a month. Even accounting for 75p for each fuel, both expensive rates, that would only be £45-£46.50!

dreaming

Have you asked the various estate agents for their feedback as to why it might not be selling? Is it priced too high, for example?

Baldytyke88

People buy houses, if they are on offer at the right price. Have you had any offers?

Woodstok2000

If you are wanting to sell it more quickly, reduce the price or consider an auction.

The energy costs are really high - standing charge should be £40 absolute max.

Can you use any savings/loans to reduce the mortgage, knowing you'll get this back when the sale happens?

Have you spoken to the council about the situation? Many councils have exemptions for properties being marketed for sale and/or following the owner passing away. They may be willing to help here.

MyRealNameToo

If you are desperate to sell you reduce the price or stick it in auction. If you want it to realise its maximum value you sit on it until the person that thinks its worth the value you are advertising it for find it.

Our last rental was put on the market whilst we were living there, the landlord when for the only agent that valued it over £600k and put it on at the very top of what they agent was willing to list it at. The agent had warned it was a challenging market and hard to predict at the time. It did sell, for almost £150k less than the original asking price. It may have received £600k at the peak of the market but it had already fallen from peak by the time it was listed. They could have sold it to us for £30k more than what they ultiamtely sold it for but they simply ignored our comments as it was below what they thought it was worth.

ACG

Reduce it again.

Ultimately it is overpriced. If you are not getting any offers the price is the problem.

FlorayG

It's overpriced that's obvious. At the right price you would sell it in a week

Baldytyke88

https://forums.moneysavingexpert.com/discussion/comment/82124724#Comment_82124724

A relative had his house valued at £250k whilst he was living at home, he then lived in a care home for 12 months and the house was put on auction after 2 years, starting @ £185k, I advertised it locally and the house sold for £230k

It's not easy to know the value of a house

gwynlas

The market is very difficult at the moment and I know of a number of properties in our village have been for sale for quite some time going under offer and then contracts falling through.

If you can afford it given inheritance I would just try and weather the storm.

It is easy for people to say that it is down to price and reductions will attract viewers but when houses are offered at a price almost £100k less than purchased for not factoring in improvements then thiis truism becomes false.

Rather than let it sit on the list I would not be actively marketting it but perhaps try again in six months time.

wibbler

Thank you for the comments. As one of you said, "it is hard to know the value of a house", especially when multiple agents are saying "oh your current agent's rubbish, we'll sell it" and then they have the same result. There's been 1 sale in a whole year in the medium size estate the house sits in.

The house was built in 2007, and is next to a brand new huge housing development that are offering huge incentives. So its too new for the people wanting period properties, and too old for the people wanting newer builds with discounted deals. I know if we reduced it by 100k it would sell in an instant - but that seems like chucking money away. I know the counter argument is that we are currently chucking money away…

Those commenting on the energy - you are correct, I just looked at the bills and they are £46. Ovo will not take a regular payment of below £90 though, despite me calling them to explain. Of course I can get refunds periodically for that.

I've been approached my some auction teams - but most people (including agents) warn against those. Again, I don't know who to trust on that!