House valuation to buy beneficial interest
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katyp
Posts: 124 Forumite
Hi, hoping someone on here can help?
We have a property with an outstanding mortgage of £148,000, and my lovely inlaws have stated that they will buy the beneficial interest in our house to allow us to stay here :A:heartpuls.
Our bankruptcy trustee sent her estate agent (from the nearest city) to carry out a valuation of the house, and we also - off our own bat - got two 'friendly' local estate agents from our town to value the property.
Because we have been been so skint for years, our house is in a bit of a mess, to put it bluntly. We had a major leak in a bathroom last year which has resulted in a hole in the bathroom floor/living room ceiling and a completely unusable bathroom, kitchen needs replacing, general maintenance has not been done for 10 years or so and all of the carpets are literally threadbare.
Our valuations came back at £175K and £190K. Verbally, our trustee told us that her valuation had come back at £190K. As an opening offer, we suggested £20K, not expecting this to be accepted.
However, by email, the trustee is now saying their valuation was £220,000 and they would accept £35K.
Is this a good deal, or is it worth querying their valuation - £220K is the very top end of sold prices on Rightmove for our estate, and all houses sold were a lot plusher than ours currently is!
Zoopla is also showing prices to have dropped since the last sold price (Dec 2017).
I don't want to be cheeky and rock the boat, as our trustee has been INCREDIBLY good to us, in all honestly, allowing all of our inflated SOA so we have a surplus of £1000 per month after our 'real' living expenses. My savings account with £3000 was frozen and she is allowing us £1000 back from that to pay for 'essentials' such as snow tyres, new carpet etc.
Comments?
We have a property with an outstanding mortgage of £148,000, and my lovely inlaws have stated that they will buy the beneficial interest in our house to allow us to stay here :A:heartpuls.
Our bankruptcy trustee sent her estate agent (from the nearest city) to carry out a valuation of the house, and we also - off our own bat - got two 'friendly' local estate agents from our town to value the property.
Because we have been been so skint for years, our house is in a bit of a mess, to put it bluntly. We had a major leak in a bathroom last year which has resulted in a hole in the bathroom floor/living room ceiling and a completely unusable bathroom, kitchen needs replacing, general maintenance has not been done for 10 years or so and all of the carpets are literally threadbare.
Our valuations came back at £175K and £190K. Verbally, our trustee told us that her valuation had come back at £190K. As an opening offer, we suggested £20K, not expecting this to be accepted.
However, by email, the trustee is now saying their valuation was £220,000 and they would accept £35K.
Is this a good deal, or is it worth querying their valuation - £220K is the very top end of sold prices on Rightmove for our estate, and all houses sold were a lot plusher than ours currently is!
Zoopla is also showing prices to have dropped since the last sold price (Dec 2017).
I don't want to be cheeky and rock the boat, as our trustee has been INCREDIBLY good to us, in all honestly, allowing all of our inflated SOA so we have a surplus of £1000 per month after our 'real' living expenses. My savings account with £3000 was frozen and she is allowing us £1000 back from that to pay for 'essentials' such as snow tyres, new carpet etc.
Comments?
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Comments
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Is anyone able to help with this?0
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Query the valuation, provide your own comparables of similar properties in a similar state. You've nothing to lose.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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Hi, thanks for the response. I think I have to query it really, as I don't want my inlaws to have to pay more than they have to. They are being so good to us, I feel duty bound to get the best deal we can for them.
I will write back to the trustee today0 -
Hi
Just wondering how you got on negotiating with your OR , we are in the same position. Her agent has valued our property £30,000 more than 2 local agents, if our OR insists on using their valuation we will have to give up our house , if she is willing to go with our valuations we can raise the amount needed to buy the beneficial interest . I’m just wondering arw trustees usually willing to negotiate0 -
Still waiting to hear. I emailed last week and nothing back yet. Our trustee has stated verbally that she is willing to negotiate but I do not know if the offer of £35k was the beginning and end of the negotiations, if you see what I mean?
Certainly, in our case, their valuation was ridiculous by any measure (Rightmove, and Zoopla) but they have already offered us a reduction.
I will update when I have any news and would you mind doing the same?
It is a shame that I never seem to get many responses to my questions, as I am sure I am not alone!0 -
Thank you for your reply, I just know that if we have to hand over the house to the trustee and walk away it will never achieve the valuation which their agent has given them so we will have lost our house for nothing, looking on Rightmove the majority of houses in this area say reduced on the advert , and have been for sale for a while . We will be sending our valuations in as soon as Christmas in over so I will update when I hear back. Good luck .0
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Coincidentally, I have heard back from the trustee this morning.
She has pointed out that £35k represents a good discount, bringibg the effective 'price' down to £183k. I suppose my argument would be if she is prepared to bring their valuation of £220k down to £183k, then the £35k offer does not represent such a generaous offer on a valuation of, and say, if £190k.
I am going to go back with £25k and see where that gets me. INothing ventured, nothing gained.0 -
Good luck!
Point out that a valuation of 183k would still mean estate agents fees
And legal costs, so that a buy back should allow for that.I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Thanks for the update, fingers crossed for you and for us , for us it means the difference between keeping our house and having to let it go so we are going to fight as hard as we can , silvercar are you saying there could be room for further negotiating because if we can buy back the trustee won’t have to pay out agents and legal fees?0
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QUICK UPDATE: We have had an offer back from the trustee of £30k. I have made a counter offer of £27k. Fingers crossed.
Any news, Georgia?0
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