Help Advice needed. Luxery apartment dropped 25K in price, in just over a year!

zappahey

Whatever happened to the caring, helpful ethos of this forum?

The nastiness and spite in some replies to this thread is a disgrace, especially when the OP has simply been sucked in like a large part of the population.

I would have thought it better to educate rather than take pleasure in someone's misfortune.

This appears to be someone who bought a home, not some get rich quick shark!

zappahey

Dang! Double post

TighterThanTwoCoatsOfPain

zappahey - its aint the same without the people who think they will pick up a house free with a packet of cornflakes in 3 months. Shame this forum is full of them rather than looking to help folk out!

Indidentally, playing devils advocte - Halifax have just annouced that whilst mortgage approval rates are significantly down, the average house price has "crashed" - wait for it - c2.5% and that drops are stabalising, and there was not drop in prices in Jan. (only one set of figures obvisouly!)

Their prediction is that "the average" house will be worth the same at the end of 2008 as at the start.

I wont get drawn into a will there / wont there. I have no vested interest either way... I currently have a 50% mortgage on my house. I have always bought Homes not investments so if it drops it drops, it makes no odds personally

I do feel for those FTBs in the last 6 months though.. time will tell, half you lot dont "know" anything else you wouldnt be sitting on the internet telling us, you'd be using your crystal ball to make buckets on cash!

Bf109

TighterThanTwoCoatsOfPain wrote: »

.....and there was not drop in prices in Jan. (only one set of figures obvisouly!)

Until you look at the actual figures and see that the 0.0% flatline is actually a "seasonaly adjusted" figure and that the raw data indicates a 2% drop.

Thats right. 2% down in January. Not 0%. 2% DOWN!

Phil1k

lynnexxxo wrote: »

Phil,

Has there been a lot of new apartments built in the area? It maybe that the sheer volume of apartments means that there is just not enough buyers for them all - meaning those on the market have to drop there prices.

Having said that, I would look out the orginal survey on the flat, how much does it say its worth? I don't think that many surveyors (who want to keep there job) would lie, but they may have put the price you paid as right at the top of the bracket.

You mention the flat is owned 40% by a not for profit organisation, whats the deal with them, do you have to pay back 40% of your orginal purchase price when you sell?

Many thanks for your reply Lynnexxxxo,

There have been a few developments but I would not describe the area as saturated!

The original survey done by the Halifax on the 5th June 06 values the property at £147,500. I can take on board that you will lose money when the apartment is used but I believe 25k to be a bit steep. Especially seeing I checked upmystreet and the apartment next door was sold for £172,950 in Aug 06.

Basically the non-profit org will keep the 40% of the apartment so it has to be a like for like sale, the person buying the apartment will only be able to buy 60%. We have tried talking to them but because they will not lose from the sale they could not care less.

I have missed a bit of info out. A offer was made for the apartment for the 60% of £88,950. But the buyers mortgage company were the ones that valued it at £125,000. We spoke to the estate agent and it transpires that the buyers mortgage company surveyor came to his valuation by checking prices of comparative apartments currently on the market in the same location regardless of specification and layout.

We are both aware of the current situation in the uk house market and prepared to take a hit on the apartment, but, believe 60% of 25k to be a bit much seeing the time scale. We are just trying to make the best of a bad situation so any constructive comments would be very welcome.

Thanks
Phil

silvercar

It only affects you because you are selling now. If you weren't selling but happily living in a flat that had become your home it would make no difference what its value was. In fact, if the price has dropped and you were thinking of buying the remaining 40% now would be a good time to do so.

Phil1k

TTMCMschine wrote: »

But they haven't even had an offer yet, it's just been valued at £22,500 less than when she bought it. Wait until it goes onto the market, they'll be lucky if they can get £100K for it.

Sorry missed out that we already has an offer on the apartment over the price she paid. People are prepared to pay the amount its just the lenders wont lend the money.

Phil1k

silvercar wrote: »

It only affects you because you are selling now. If you weren't selling but happily living in a flat that had become your home it would make no difference what its value was. In fact, if the price has dropped and you were thinking of buying the remaining 40% now would be a good time to do so.

Buying the extra 40% is not an option. the idea was that the flat would never be available to be owed 100% by anyone. so that it would always be available as a foot on the ladder to those who could not afford to buy property. it was a government led scheme that was supposed to make homes affordable to those on low income. i was not able to buy extra percentages. i had to prove that i was not buying to let.

ManAtHome

Phil1k wrote: »

People are prepared to pay the amount its just the lenders wont lend the money.

No - people are prepared to borrow the money - would be VERY different if they had to bring a suitcase of cash round... Lenders are realising (after the horse has bolted) that throwing money at anyone isn't a one-way bet any more.

lynnexxxo

Phil1k,
Maybe my maths is a bit rubbish but 60% of 125k is 75K - therefore only 11k less than you paid?
11k loss sounds a lot better than 25K loss .

I think the fact that it is a housing assosciation who own the other 40% i a good point- a lot of new builds are rented out (and some landlords may not be too picky about who the rent to) so at least with the HA your are likely t have reasonable neighbours. Also, there factoring fees are likely to be ok(ish).

And please ignore all nasty posts on your thread. I think if everyone only made comments that you would be willing to say face to face this forum would be a better place. Its fine to disagree wth someone or even tell them they have made a mistake, but the laughing gleeful posts leave a nasty taste. I'm sure Martin Lewis didn't start this website in order for a few to get their jollies laughing at the less fortunate.
Rant over