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Selling - negative equity
Henneb_84
Posts: 18 Forumite
I have recently split with my partner and am now looking to sell the house that we own between us.
We have had the house valued at £119,995. However, the redemption fee of our mortgage is just under £122k. This is because we remortgaged in November and have now got the product fee from November plus a £4k early redemption fee included in the settlement figure. The house value has also dropped slightly which doesn't help!
Due to the current market I am concerned that we may not be able to sell the house for the asking price and may end up being forced to accept an offer a few thousand below the asking price.
This would obviously leave us with quite a difference between what we owe and what we can pay back and once agents and solicitor fees have been added the gap gets bigger and bigger.
I have spoken to Northern Rock (our lender) to try and get some advice from them. However, they seem reluctant to help.
As I am moving in with family when I sell I was hoping to negotiate paying the bank back over 6-12 months after I have sold the house. I would obviously be spending less and would be able to pay back the majority of my monthly wage into some sort of payment plan. However, I do not know whether I would be able to do this and where I legally stand with things and whether this would prevent the sale of the house going through etc.
I would appreciate some advice if possible.
We have had the house valued at £119,995. However, the redemption fee of our mortgage is just under £122k. This is because we remortgaged in November and have now got the product fee from November plus a £4k early redemption fee included in the settlement figure. The house value has also dropped slightly which doesn't help!
Due to the current market I am concerned that we may not be able to sell the house for the asking price and may end up being forced to accept an offer a few thousand below the asking price.
This would obviously leave us with quite a difference between what we owe and what we can pay back and once agents and solicitor fees have been added the gap gets bigger and bigger.
I have spoken to Northern Rock (our lender) to try and get some advice from them. However, they seem reluctant to help.
As I am moving in with family when I sell I was hoping to negotiate paying the bank back over 6-12 months after I have sold the house. I would obviously be spending less and would be able to pay back the majority of my monthly wage into some sort of payment plan. However, I do not know whether I would be able to do this and where I legally stand with things and whether this would prevent the sale of the house going through etc.
I would appreciate some advice if possible.
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Comments
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Try posting this on the Mortgages Board too, for extra input.0
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Tried going into NR and making an appointment with a mortgage advisor? Then explain the situation to them and see what they say. They probably can't agree a schedule of repayments like that (as in wouldn't have the authority) but you might get a bit more joy than from the call centre monkey you spoke to...0
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I have recently split with my partner and am now looking to sell the house that we own between us.
We have had the house valued at £119,995. However, the redemption fee of our mortgage is just under £122k. This is because we remortgaged in November and have now got the product fee from November plus a £4k early redemption fee included in the settlement figure. The house value has also dropped slightly which doesn't help!
Due to the current market I am concerned that we may not be able to sell the house for the asking price and may end up being forced to accept an offer a few thousand below the asking price.
This would obviously leave us with quite a difference between what we owe and what we can pay back and once agents and solicitor fees have been added the gap gets bigger and bigger.
I have spoken to Northern Rock (our lender) to try and get some advice from them. However, they seem reluctant to help.
As I am moving in with family when I sell I was hoping to negotiate paying the bank back over 6-12 months after I have sold the house. I would obviously be spending less and would be able to pay back the majority of my monthly wage into some sort of payment plan. However, I do not know whether I would be able to do this and where I legally stand with things and whether this would prevent the sale of the house going through etc.
I would appreciate some advice if possible.
Don't forget estate agent fees, and solicitor fees...
Could you take out a loan to cover your half of the money owed? Make sure if there's money owing, it's paid 50/50 by you and your ex.
How much would it let out for? If the rent would easily cover the mortgage, then one of you could buy the other out, then move to a buy-to-let mortgage and rent the house out. But this would only work if the rent would easily cover the mortgage.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
She didn't forget the fees - read the quote!
How will they get a BTL mortgage with negative equity?0 -
Negative equity?
I thought house prices only ever went up.0 -
If you have no savings to make up the difference you will only be able to sell if you can raise a personal loan to pay the mortgage off.0
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How will they get a BTL mortgage with negative equity?
Because the negative equity would be due to having to pay over £4k in early repayment fees, but perhaps they could avoid this by switching to a BLT mortgage?
But obviously this wouldnt' work if the rent wouldn't cover the mortgage.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
It might be cheaper to make it up and pay for a weekend break and some chocs.0
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BTL have to be 85% of house price of the house OP sounds like he/she has about 0.5% equity or 1% equity.
So thats a no no.0 -
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