howellsy42

Any body know what happens when you want to move and the mortage it more than what the house is worth? Been in are house 4years got it valued and if we sell we would be 10 k short even tho I've paid 28k in to the mortage since we have had it .

pslewis

You make up the shortfall - that's all.

PLUS you make sure you have a 25% deposit for the next house.

howellsy42

Don't need deposit for next house as moving in to a family owned house so just a case of getting rid of this one. So would the mortage company want there 10k before I could sell it ? What if I didnt want to pay it could I just hand the keys to them and walk away?

subaruturbo_18

Don't move until the current house has gained in value. If you move now you're throwing 28k away and getting 10k in debt.....

SPEN555

U can walk away but the bank will chase u for the 10k n if they have to will make u bankrupt to get their money. Just pay it as do anything else u will be paying 4 a very long time.

pslewis

I would just sell and make up the difference to the mortgage company.

To be honest, £10,000 isn't a lot of money - not when selling a house, a good Estate Agent (rare, I know ... ) could secure that £10,000 from the buyer.

OR, sell private and the EA fees of around £3,000 will mean you only have to find £7,000 - in essence, £10,000 is such a small amount it's not worth worrying about, just clear it off.

Aaron1978

iTrader: (12)

Why not rent it out?

dpb

emmigrate to Greece ?

davyboy

Where did you buy that has lost 40k in northants?

I assume this was a new build or something?

howellsy42

Renting is more hassle than what its worth we looked in to and once you add up the 1% on mortgage the land lord insurance plus the letting agents cut il be a lot worse off if we move. In the new house £400 better of a month 3bed in a village planing permission for exstension plus big doubt garage and it has a massive garden plus good village schools and it would be the wife's in years to come any way

What's annoying me about the 10k short fall .we have spent so much money on it doing it up new 3k boiler plus new bathroom every room re plastered the list goes on and for all of that I'm still out of pocket I'd of been better renting for all this time

pslewis

4 years rent at £800 a month = £38,400.

You are NEVER, EVER, better off renting - don't even think it!

You are getting a family house cheap - just clear the £10,000 (IF it happens to be that much) and move on.

Lee247

Have you had a few valuations? There can be a vast difference between Estate Agents.
Oh and you could always stick the extra on and see what happens. Nothing to lose, really.
Good luck

Aaron1978

iTrader: (12)

Can't you take the hit of renting your property out the £400 saving?

howellsy42

Had three valuations one was very low the other two where the same and came in on us taking a 10 k lose the problem was we got the house when the market was at its peak we took a 100% mortgage and used are saving (well mine) to do the house up it wa are first house

Midlife......

iTrader: (2)

So if you move the only debt would be £10K ?........

I've been working since 1982, have a bigger overdraft than that and will pay off my mortgage when I'm 62 years old....and even then, the low cost endowments I took out in the 80's will mean I will eventually pay off my debts when I'm in retirement...

As I read it you need £10k to move is this correct ??

Shaun

howellsy42

Yes just need to sell my house and move in to the new one the cost of living at the new house is bills plus cover what's let of the mortgage which is £290 a month for 10years I think

pslewis

I can't see the issue actually.

You have two choices if you want to take advantage of the cheap family house on offer.

1. Rent your place out until/if market improves .... you should be able to rent to cover the mortgage.

2. Take whatever you can get for the house and clear the debt.

I would choose number 1.

By the way, I must point out that when you say ARE ... you really should be saying OUR - I thought it was a slip of the keyboard first time, by the third time I realised that such a simple word is being mis-spelt.

Ramdog81

Its a no brainer and if you were my client I recommend you rent the property out. Quite simply you would be mad to sell for a loss unless you can see a greater return in the new house in the short term 1-3 years. Therefore turning your 10k deficit into a profit.

PM me if you need further explanation.

Littleted

I rang Halifax this week and get this

10% deposit for a old house 20% for a new build as they think new builds are **** lol

I'm in same boat really house is worth same as mortgage I need 40k to move gulp no idea where I can pull that from

Suppose I'd better start saving

Wooffy

Your mortgage provider will want to know where the shortfall is coming from (ie how you are going to pay it) before they will allow any sale to be finalised.

Throwing the keys back will end up with you owing a damn sight more than 10k as it will be classified as a repossesion and there are plenty of fees and other stuff that will be added on, never mind that they may end up selling it for a lot less than market value. They will chase you for this money regardless and bankrupcy isn't always possible but an iva may be but believe me you will either end up with an attatchment to earnings or paying a set amount each month and constantly have to submit pay slips and bank statements for the next 5 years. Also your credit rating will be pretty much decimated.

All you can do is start squireling away as much money as possible to make up the shortfall, and hope in the meantime that property prices don,t drop any further

pslewis

They need more on a new build because new builds have a premium price, the builders charge at least 10% more than the property will be worth when lived in.

I've always considered people who buy new as mugs ... they generally need to landscape the garden, carpet throughout, etc. AND they pay silly money for it!

That said, in todays climate, new builds are the ones you can hammer a big discount on - builders are not attached to their builds .... and they need cashflow. You can typically get 20% off most new builds. Ignore all the incentives and part exchange offers - they are all skewed in the builders favour PLUS the value of the property drops when the mortgage valuer comes to visit!

Rob Day

iTrader: (78)

I agree with a post earlier, get some more valuations. We had 5 valuations, and although its a pian in the ar$e its worth it in opinion. Our 5 quotes ranged over 35k, of which the mid quotes seemed realistic, and the higer quotes were optomistic, but still it might be the 10K you need.

Rob

john banks

The only valuation that matters is what you can sell it for. At the moment that might be worse than the valuation you've been given. Renting it out is risky unless you have a big yield, house prices could well drop further and you have the hassle plus you might get further into negative equity. In the US you could just hand back the keys, not in the UK, but perhaps if we had non-recourse mortgages your house and all the others would have dropped further in value.

billythekid

As above, if your valuation is (for example) £100k, you probably wont get anywhere near £100k as a final offer. Also, be ready for the "games" that buyers play... i.e getting close to completion the start to have "money problems" and "other issues" which means they can only "afford" to buy it if you reduce the price even more...

pslewis

House prices UP in October - announced today.

Gear Head

iTrader: (2)

Stuff the valuations. Put it on the market for what you want and see if you get any nibbles.

I must warn you though, your property might be worth A LOT less than what you think.
We had our 2 bed flat valued last June for around £120k. Got offered that from the builder of our new house so decided to part ex. It took the builder a further 8 months to sell our old flat which went for........................................





£105K!

So be warned!

howellsy42

It's going on the market for what it owes us and see what happens now I've seen the bigger picture losing 10k today on it doesn't seem to bad as what we will get in years to come is 20-30 times more thanks for all your advice il let you all know what it goes for !!

billythekid

I think the bottom line is at the right price it will sell. At the wrong price you will struggle or get time wasters / messers.

Houses on our estate have been selling in days, others have been on the market for years. Its all down to the price.

Galifrey

iTrader: (3)

Let it out, and move into the family house.

Use the rent to contribute towards the mortgage until such time as the market moves up enough to sell, convert your mortgage to interest only as that will save you in payments.

Gear Head

iTrader: (2)

This is the best option in my opinion.