Sell your house fast....

payingfornowt

Hi there,

My partner has a buy to let investment that has gone awry.

She wants to get rid of the house but it needs to be un-occupied to do so, which means mortgage payments without a tennancy income that she cant afford and I cant either.

She needs £125k to break even, the house is worth £130k. What sort of percentage of the value do you tend to get from these sell your house fast type places? I guess she would be losing out but does anybody have any ideas?

Thanks for any help you can offer, hope she can get rid or she's off up s**t creek and I'm the paddle.

dolcevita

In today's climate you would be lucky to get 70% from any of those "sell your house fast" type companies ( or "lying thieves" as I like to call them).

So if, as you say, your house is "worth" 130k then you're looking at about 90k.

Even on the open market I imagine you would struggle to get 90%, so either way you are going to be losing money.

Sorry to be blunt.

You need to cut your losses as soon as possible. This means accepting the situation and pricing to sell before you start chasing the market down.

I suggest a price of 130k and if someone offers over 120k bite their hand off.

best wishes

Doozergirl

The best that someone else here has been offered was 83% of an independent valuation. Most were seeming to offer 80% of their own valuation.

So not really an option for you I don't think.

BTW, if the house goes on the market at £130,000, you should really expect offers at £125,000 because of the Stamp Duty threshold

Doozergirl

dolcevita wrote: »

Even on the open market I imagine you would struggle to get 90%, so either way you are going to be losing money.

Sorry to be blunt.

Why make sweeping generalisations? You don't know anything about the house except that a suggestion it's worth £130,000 and have even less idea of what it would sell for.

It's not blunt. It's pure speculation.

This is somebody elses life that you're being so blasé about.

payingfornowt

Thanks Doozergirl & Dolcevita,

I agree Dolcevita, blunt but fair. £130k Is probably generous (her valuation) and as you say Doozergirl stamp duty hits at £125k.

I totally agree with Dolcevita that my GF should take a loss, learn from it and move on without regrets but I worry that she will not look at it that way and throw good/my money after bad.

£90k would leave her in a terrible position, about 30k in debt. The only way I can see out of this is if we move into the house (we rent elsewhere) whilst it is on the market and hold out for £125k.

What do you think would happen if we went with an estate agent at £120k would it go quick?

Sorry if the questions are rudimentary. I know nowt about the housing market, thats why I told my GF I wanted nothing to do with it.

neas

She made a financial decision to invest in Buy to Let... Now she is getting burnt...

Alot of FTB have been pushed out of the market by inflated house prices... cause by Buy to Letters... Im sorry but as a FTB who can't even get on the market... Im finding it hard to have too much sympathy.

I do feel for people in sorry situations.. like if someone robbed me but then got robbed themselves... I wouldn't feel as bad for them. You know?

I suggest she sell asap as if a HPC happens.. and all economic indicators point towards this.. then you will loose 20-30% on the property price for sure.

Catblue

Is your partner in arrears with the mortgage? Is the mortgage company trying to force a sale or something?

Do they know that there is a tenant in the house?

It may well be worth just putting the house on the market at a very competitive price with a normal Estate Agent. Get at least three valuations from Estate Agents and choose a figure that you feel will facilitate a quick sale.

Your partner will have to tell the tenant that she needs to sell, but if the tenant will allow viewings, then maybe your partner can offer them a reduced rent for a few months?

Not an ideal solution, but at least she'd have some money coming in to cover the shortfall each month.

bina72

There's nothing to stop you selling the place with tenants. So long as you let them know what's going on & they're aware of having to move out at fairly short notice.
You could even offer reduced rates during the selling period to keep them on (enough to cover the mortgage & insurance).
If not perhaps you should move in for a time. That's a lot of debt to take on if you don't have to.
I hope it works out for the best for you.

stokesy01

why not keep the tenant on as long as poss? I am just putting my BTL on market with tenant still there. He is looking for another place but while he still paying the rent. of course would be better if place empty but can't have it all.

zzzLazyDaisy

If you can live in the property, at least your rent will go towards the mortgage and you will be around to show viewers round. If there is a shortfall, maybe you could let a room short-term to a lodger, as they have no tenancy rights, and you won't have the same problems when you do get a buyer.

I know several people whose houses have taken a year to sell, despite price reductions, so you could be in for the long haul here.

Somerset

The tenant is a problem. Even knowing a tenant will supposedly be out on such and such a date, what if they're not ?, what if it's trashed? - these are questions your BUYERS will be asking themselves. Tenanted properties just aren't as clean cut in terms of sales.

Stick it in an auction ? Your g/f will take a hit, but it's gone, tenant and all.