Sale Price of Flat Less Than Total Charges

Go to this website and key in the postcode of your flat, or failing that the road, and you will geta true idea of what flats in your location are *actually* selling for:

Don't get involved with these financial vultures.

You may already be at the point where bancruptcy or something like that is a good idea. Last time around with "negative equity" the banks waited 15 or 20 years until the defaulters had built up a bit of equity, and then came back at them - worth pulling up the drawbridge if your situation is becoming like that.

Don't just "hand back the keys".

Good luck.

Oops, doesn't time fly! I suppose I must mean 5 to 10 years :)

I thought it was a bit too long to wait ;)

Thanks for the info. I checked the site and the prices are not too far off what the sales company proposed. Maybe £20k over what they said but if i sell through this company the buyer pays *all* costs. I don't have legal fees or estate agent fees to pay and I get a quick sale (in theory).

Given that the companies that hold the charges are holding off applying for repossession I'm not sure where that leaves me. Every month I fall deeper into the hole as my income does not support the repayments plus my own rent and living expenses. I have a reasonably good relationship with each lender and I have kept in touch with them over the months to make token payments as & when I could and I think this has bought me some extra time.

I think that given the state of the market at the moment it could take a couple of years for the price to rise to a level that would allow me to sell & clear my debts. But I don't think each lender will drop their repayments that much in the mean time. So if I do sell and there isn't enough to clear the 3rd charge what will they do? Presumably I would have to come to an agreement to continue smaller unsecured repayments.

Thanks.

...is where you are building up false hopes.

Some ideas:

Looking at it from a completely different angle, are you in a position to keep the flat and take on a 2nd job? Can you reduce your spending?

Obviously I don't know the details of your situation and I'm not an expert anyway so I may be talking complete rubbish.

Good luck.

Gareth

In message , Stephen2 writes

I don't trust these companies and would suggest that you should be able to get a better deal selling it through an Estate Agency and paying your own Legal fees if you have the time to do so.

Can you clarify some figures, say you were currently offering it at 120k and having looked at the above you find the price there is about 100k. From what you posted before if I understood you correctly the company offer to pay all costs but only pay 85% of market value so would give you 85K.

If that is correct you would be better of offering at 100k through the Estate Agents and paying your own costs but as I say check the actual figures first and post back if you are not sure.

That's correct. They buying company acts like an agency and apparently have a 'database of investors' they contact to offer the property to them at the price agreed between the seller and the agency. So when I contacted the agency they did a search on their computer at property prices for that type of flat in that area and came up with an average figure (I confirmed this with my own search later). They then told me their investors will only pay 85% of that (as that's what the mortgage lenders will lend them). But that they will pay all costs to buy & to sell. It literally took 2 hours for the company to call me back to say they had a buyer. They say the average time for a sale to complete is

The problem is timing. I've had it on the market for 6 weeks already and haven't had much interest. Normally 6 weeks is not that long and I would be happy to wait but I feel there is an eviction notice coming soon. That's why I'm trying to beat them to it and sell first. I was thinking of keeping it on the market with the estate agent until the sale completes. If another buyer comes along to offer more money then I might take it and let the first one down.

Just think about what you are saying. "They can sell it tomorrow for the full market value..."

You should be selling it tomorrow for the full market value, not playing into the hands of shysters.

Why not work out what they will pay you i.e. the 85% of market value so simple enough to see what you would get from them.

Then consider if you advertise it cheaper you may still be able to sell it yourself for more than they are offering after expenses. So work out what the costs are (agents fee, solicitors) and come up with a new reduced sale price thus looking for a quick sale but still giving you a better return than the 85% that they would give you. It must be worth a try for a quick sale.