tricky situation- advice please

pickles110564

nutmegman wrote: »

Have you made any formal complaints about the neighbours?

Why not put yours on the market for £135K and see what happens, it costs nowt to stick it on with an EA.

What about a HIP?

RHemmings

neas wrote: »

bad time to change mind... property is falling so you prob loose even more . Sorry for ya.. but its your sanity so i understand.

If they are moving from one house to another, then surely what they lose due to house price deflation on one house will be matched by what they gain due to the house they buy being cheaper.

Do the bad neighbours rent? If so, could you offer them £10K if they move?

neas

dont you have to pay fees tho to sell a house and also survey another? Its not a cheap business methinks..

JimmyTheWig

The house price crash doesn't really come into it, only that it will be eating away at the equity which may make things difficult when porting the mortgage.

But solicitors fees, estate agent fees, surveys, stamp duty, etc all add up. Think you're looking at about £7k. If that, too, will have to come from your equity then you might have a problem with the mortgage company. Speaking to them may be a good first step.
But if you've got the money for fees in savings then I'd say go for it. Just make sure you don't make the same mistake this time!!

lizzymouse

We dont have the fees saved up, we have about 3k in savings. So it would wipe us out to move.
The only real solution for us is if we decide to move, would be to rent as the sale of the house should hopefully give us a bit of money back or at least we would then not be in debt. however we have then lost all our 10% deposit in the house in moving costs, depending on what it sells for , and how long it takes..........
feel really down. feel like we are in situation we cant get out of, in a house we dont like but not able to sell. really dont know what to do.

lizzymouse

do people think its a good idea now to just sell it and rent because if house prices go down and down its going to be worth much less isnt it in a few years time.

carolt

I think you're answering your own question. TBH, if you got a good mortgage deal a few months back and it is portable, but you stand to lose on redemption penalties if you sell-to-rent now, coupled with the fact you say you hate renting, you're better off moving now and buying somewhere else - yes, the value of yours will have fallen, but so will the value of what you want to buy. So sell-to-buy, rather than sell-to-rent might be a good alternative.

This time, check it out properly first! The neighbours is just bad luck, but surely you could have spotted the living room being too small before you signed on the dotted line?

Sell-to-rent probably does make sense financially - but not if you hate renting...

JimmyTheWig

A very, very difficult decision to make.

In one way, by selling up now you know you should be able to do it, while waiting a year may mean you are in negative equity and can't sell.
Negative equity isn't really a problem if you are happy to stay in the house until prices rise. But from what you've said you aren't.

But selling up now just seems like such a waste of money that you've spent and will have to spend to sell, especially the mortgage penalties.

From a financial point of view, the best thing would probably be to do what you need to do to be happy to stay there for a few years. But if that's not possible you need to decide whether the financial loss is worth living somewhere nicer.

As to selling now in the hope of buying at the bottom of the crash, if you time it right you should be better off by doing this. But will you be able to judge when the time is right? And will you have saved up a good enough deposit by when the time is right to be able to get a mortgage in what will probably be harder times to get a mortgage? And are you conifident the current drops in prices will continue?

JimmyTheWig

carolt wrote: »

I think you're answering your own question. TBH, if you got a good mortgage deal a few months back and it is portable, but you stand to lose on redemption penalties if you sell-to-rent now, coupled with the fact you say you hate renting, you're better off moving now and buying somewhere else - yes, the value of yours will have fallen, but so will the value of what you want to buy. So sell-to-buy, rather than sell-to-rent might be a good alternative.

Is this an option, though? With prices falling hitting their equity, plus most of the costs of moving will have to come out of the equity, they will be left with a poor LTV on the new place. Will the mortgage company allow them to do that?

lizzymouse

is there any professional people out there who can help us? i am at the point of being suicidal with this. I didnt buy a flat when i had the chance to do so in 1992 and now i have ended up buying one at the worse time.
i did have issues with the size of the room and the kitchen buy my husband and family made me feel stupid for having doubts. now i am stuck in a situation i have no idea how to get out of. every day i cry about it, and regret what we have done. if only we have stayed renting. i want children too, im 38. time is running out for me and there is no solution i can see. if i commited suicide would my husband still have to pay the mortgage?