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Permission to sell- declined
Roline83
Posts: 57 Forumite
So, we’ve had our house on the market for a year and a half now and had some lower than average offers, we finally accepted an offer about six weeks ago which was in keeping with other sold prices in the area. We had to go through the process of asking our lender for permission to sell and they requested bank statements etc income and expenditure form and finally, a proposed figure we would pay towards the shortfall which they agreed. They then said the next step would be to send a valuer out to value the house. I rang this morning to see where things were up to and was told that unfortunately the permission to sell had been declined. I asked why, as it hadn’t been valued yet, they told me that as the house two doors up had been sold for £65,000 two months ago that they wouldn’t give permission as it shows that we could get a similar price for our property. I pointed out that the price of £65,000 reflected the renovations neighbours had done on the house before selling which included rewiring, fitting a garage, modernising the whole place but they weren’t interested. I asked what our next steps would be as we were unable to live here much longer due to overcrowding and the advisor advised me to speak to my husband about voluntary surrender of the property.
Has anyone else been in this boat? Or have any more information about this sort of thing?
Has anyone else been in this boat? Or have any more information about this sort of thing?
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Comments
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I think we are missing a key fact here.0
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What’s that?0
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Are you in negative equity? Is that why you need permission, and is that the shortfall you mentioned?
Is it a shared ownership property, or just a standard property you own with a mortgage?
Your post was just a bit confusing because people don't normally need permission from their lender when they sell.0 -
Sorry, my mistake, my brain is a bit scrambled after speaking to the lender earlier.
Yes, it’s negative equity that’s why we need the permission. We were gonna be left with a £25k shortfall roughly. It’s just a standard property with a mortgage0 -
I guess the bank believes that you are trying to sell below market value...
... or I suppose they may be using this as a tactic to get you to increase your offer to cover the shortfall.
Is the offer on the house from somebody you know (e.g. friend or family)?
If not, in your position, I might ask the EA to write a summary of the marketing history of your house, that you can give to the bank.
i.e. How long it's been on the market, the viewing history, the offer history - to demonstrate that this is the best offer you are reasonably likely to get.0 -
so presumably the bank need to lend you the 25k unsecured - and this is why they want to be sure that number is as low as possible. you could seek to borrow that 25k from elsewhere presumably if you dont have it.0
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Understandable given the situation you're in!
I'm surprised they're suggesting voluntary surrender - that should be an absolutely last resort (and I think it would trash your credit rating). It suggests they think they'll get more for the property selling it themselves as a repossession...
How much had you agreed to sell yours for?
Have circumstances changed so you can't afford to pay the mortgage anymore? Or is the problem that you can afford it, but the house is no longer suitable (too small) and you don't have the cash to pay off the negative equity?0 -
The lender have had the marketing history, viewers who’ve been to see it and offers made. It’s a person we don’t know who made the offer.
We don’t have any means of borrowing the difference pay the shortfall.
They may actually think they can get more, I was shocked that they offered the voluntary surrender. The offer was for £40,0000 -
should you be thinking about personal bankruptcy - or can you service the debt?0
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Bankruptcy is not really a route we want to go down.
I’ve spoken to a debt helpline who had suggested paying the lender back an agreed sum every month or an IVA. This was before permission was declined0
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