Feeling so down about this

[BakedBlossoms]

firstly can I say that I know how lucky we are to have a roof over our heads. I really do. I feel horrible feeling sad about this when so many others have much worse things going on but I do feel sad and I can't help it. Please be kind.

We (dh and I) bought our 2 bedroom flat (one double, one single, no garden) in late 2015. We were not intending to have children yet as we were both still quite young but then I got pregnant accidentally and we had DS in 2016. It has been fine for us the past few years, we have nice parks nearby so haven't been bothered about a garden etc. But we have also been wanting more space and we definitely could not have 2 children here, so we decided to put the flat on the market. It went on literally just before lockdown and we had loads of interest. Then lockdown happened. Since it opened up again we've had very minimal viewings and the last 2 weeks they've tailed off completely. We have dropped the price. Everything is completely decluttered etc. Flats without gardens just don't seem to be budging at all.

I'm feeling so sad that we are now probably stuck here for the forseeable and we can't have another baby. We bought with a 10% deposit and thanks to brexit it's barely gone up in value at all since 2015 so we don't have loads of equity (we bought it for 350k and have 270k left on the mortgage). I'm feeling so miserable. Every time I see pictures of other people's homes it feels like I've been punched.

I know this is pathetic. But I can't stop.

I completely sympathise.. I'm an estate agent and since 2015 we have been hammered with issues in the market and its affected my salary and my own property purchase in a similar way to you.

I'd recommend speaking to a good mortgage broker, and see whether you could hold onto your flat as a buy to let in order to release some funds so you can buy elsewhere. I get this isnt a perfect option but it would hopefuly allow you to move and tenants are much less fussy about outside space.
Alternatively I know its frustrating but give it time, there is a buyer for every property and someone will love your place.. make sure you are using your local independent agent as they will have the expertise and personal service to actually sell the benefits of your property whereas a larger corporate will just stick you on rightmove and tell you to reduce your price.
Good luck

Give it time. There's still a lot of uncertainty out there.

Pre lockdown, it took me a year to sell my nan's 3 bed house with garden. There was no parking guaranteed - it was an area where cars were essential. And employment prospects in the area are dire.

It's still not a done deal. Hoping to exchange in the next couple of weeks.

Are you in a position to do a part exchange with a home builder at all? Forgive my naivety if not possible, I'm a renter so I don't really understand how it all works

We have considered renting it out and just renting somewhere bigger as a stopgap but I worry very much about being a landlord as it sounds like a lot of hassle.

I think we will be ok here for another year if need be but just the thought of it stretching beyond that makes me feel so low

Thank you for your replies

You could use a full management service from an estate agent rather than taking on the landlord responsibilities. Honestly I would consider it, if you paid that price for a 2 bed flat without a garden I'd imagine you are in an area where prices will increase when the market picks up so it would be good to have a long term investment. Also the idea about part exchange is a good one, just that most new build developments seem to be in the middle of nowhere and miles from transport

I just feel like we don't have enough equity for a BTL. I think we'd get about 1350 in rent. Our current mortgage is 1200.

What you would do is switch to an interest only mortgage, then your repayments could be as low as £500 - making you a considerable profit monthly Your loan to value is slightly higher than it would need to be, but if you could pay £7000 ish off your mortgage debt, many lenders would do this for you. You could always sell in the future when the market is more buoyant.