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Original poster

What would you do in this situation?

99 replies

Frogmarching · 12/10/2020 17:07

Need a bit of impartial advice/other opinions as DP and I are just going round in circles about this.

We bought our London flat in 2016, in Spring, just before our DS was born. It's technically a 2 bedroom but the second bedroom is an odd shape and it wouldn't really work as an adult or teenager's bedroom - it's been fine for DS because he was in a cot and then a toddler bed, and it would be fine for a study (it's actually not a bad size, it isnt' "box room" sized), but if you wanted a second double bedroom or a room for an older child or teenager it just wouldn't be for you. It also has no garden.

We bought it for 345k which at the time given the area was booming was a pretty reasonable price. Then Brexit happened. Then the pandemic happened. We are desparate to move somewhere bigger but as it is no one wants to buy it - flats without gardens in London are badly struggling at the moment. It's on the market for 325k and I'm starting to accept that we are going to have to drop it even further. I never wanted to make money off it, but as it is it's looking like we're going to be financially no better off and potentially worse off than if we'd just rented for the past 4 years. We've 260 left on the mortgage - not enough equity to rent it out (I've explored this option).

So essentially we either sell at a massive loss or we wait it out and hope the market picks up a bit. My immediate fear is that the market will crash completely and we'll be in negative equity.

WWYD in this situation? I'm driving myself crackers thinking about it. Comparable flats in the area are selling once they drop to about 315k (on rightmove - how much they're actually selling for I don't know). The market is very sluggish in general for flats but some stuff is selling.

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Whitehorsewaves · 12/10/2020 17:36

You know you can apply for permission to let your property out even though your on a residential mortgage?

I've done this several times. Had to fill out a form and pay a fee. Didn't have any issues as my job was moving so I had to move, that was my justification which they accepted.

Worth a try.

TheTeenageYears · 12/10/2020 17:40

I feel like the school issue might be a deciding factor on timing. Moving locations at any point other than YR, Y7, Y12 and possibly Y3 if infant & junior system can be problematic. Have you looked at schools in new area, how full they are, is it harder to get a place as you go up the years etc etc.

Original poster
Frogmarching · 12/10/2020 17:42

I feel like the school issue might be a deciding factor on timing. Moving locations at any point other than YR, Y7, Y12 and possibly Y3 if infant & junior system can be problematic. Have you looked at schools in new area, how full they are, is it harder to get a place as you go up the years etc etc.

I honestly can't get worked up about the school thing. It is literally the least of my worries right now. If I try to add getting the timing on that right on top of everything else I will really and truly go bananas.

OP posts:

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Original poster
Frogmarching · 12/10/2020 17:43

You know you can apply for permission to let your property out even though your on a residential mortgage

Yes, but only for a year. Then I worry we'd be in the same position at the end of the year.

Also we pay £1100 a month on a residential mortgage and we'd get about £1300 in rent. If we had a BTL mortgage we'd go interest only so it would be less of a risk.

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FamBae · 12/10/2020 17:49

I would wait, I wouldn't have thought there are many first time buyers out there at the moment which makes you vulnerable to cheeky offers from people bargain hunting.

olderwhynotwiser · 12/10/2020 17:53

If the market gets worse, wouldn't the next house you want to buy also become cheaper...thereby offsetting the loss on your flat?

MiddleClassProblem · 12/10/2020 17:55

@Frogmarching

I feel like the school issue might be a deciding factor on timing. Moving locations at any point other than YR, Y7, Y12 and possibly Y3 if infant & junior system can be problematic. Have you looked at schools in new area, how full they are, is it harder to get a place as you go up the years etc etc.

I honestly can't get worked up about the school thing. It is literally the least of my worries right now. If I try to add getting the timing on that right on top of everything else I will really and truly go bananas.

See for me this would be one of the biggest factors.

I think the resentment thing needs to be addressed between the two of you. You need to factor in what’s best for all three of you and discuss how you would feel if either of you were “wrong” with timing. Is the moving and more space going to be ok even if it’s a financially worse decision in the long run?

Sometimes you take a big hit for a life you’d rather have but if you are the only one pushing for it, you shouldn’t do it.

How long have you wanted to move to Cirencester? Is it move recently or has been a goal as a couple for a long time?

olderwhynotwiser · 12/10/2020 17:55

Also have you looked around at the prices of houses you want now? The lower market could work out to your advantage. For example ...your flat goes on for 20 grand less than you wanted but house seller's house goes on for 40 grand less than they originally wanted?

Original poster
Frogmarching · 12/10/2020 18:08

If the market gets worse, wouldn't the next house you want to buy also become cheaper...thereby offsetting the loss on your flat?

I don't think so unfortunately. The market in the south west is booming right now.

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Original poster
Frogmarching · 12/10/2020 18:10

We've always wanted to move to the south west long term.

The schools thing really isnt a factor for me. Partly because I grew up in inner city East London and went to a school with a 20% GCSE rate where kids threw fireworks at you in the corridors. You'd be hard pushed to find a school that bad for DS in the area we want to move to.

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AdoreTheBeach · 12/10/2020 18:11

OP. It’s been said up thread but please listen. If the prices crash, they’ll crash for what you would be buying too. Historically London and area is always a bit higher than the rest of the country. Please be assured you won’t be that negatively impacted as compared to other places. You say you bought at 345 and gave 260 equity. You would really Need a big drop for negative equity.

Yes, at the moment flats and houses without gardens are slow to move but people will eventually remember why it was they bought some place without a garden (and the maintenance of it). People will down size to flats again too.

Sit tight. It will be a few years for economy to recover from covid do just be prepared for that.

Original poster
Frogmarching · 12/10/2020 18:12

If the prices crash, they’ll crash for what you would be buying too. Historically London and area is always a bit higher than the rest of the country. Please be assured you won’t be that negatively impacted as compared to other places.

I know that but my impression was that London was struggling but other places are not, the opposite in fact. So it would just be a London crash iyswim?

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Original poster
Frogmarching · 12/10/2020 18:13

You say you bought at 345 and gave 260 equity

No we have 260 left on the mortgage, not 260 equity.

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Original poster
Frogmarching · 12/10/2020 18:14

So only about 65k equity, assuming we can even sell it at 325, which is unlikely as it stands.

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TheBabyAteMyBrain · 12/10/2020 18:19

Personally I would wait it out for now if you can.

As for a dining table have you looked at space saver tables? We have one which folds out and the fold out chairs are kept inside. The top is used as a sideboard for gubbins and then we just put the leaf up for meals. We're also in a far too small space but can realistically move for the foreseeable.

AWiseWomanOnceSaidFuckThisShit · 12/10/2020 18:20

I was going to ask if you were planning a second child but you've said you're not so... assuming you like the area and there's nothing other than space causing you a bit of a problem (so no anti social neighbours or high crime area etc) I think you'd be mad to move. 2 years or so will fly by and your son will still be young. I would stay put for now!

Original poster
Frogmarching · 12/10/2020 18:22

As for a dining table have you looked at space saver tables

We have one, it's just awkward to sit round all at the same time. I grew up in a very large Mediterranean family and I always wanted to have a big table to feed everyone round. Sounds ridiculous I know and it obviously isn't a major factor!!!

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Original poster
Frogmarching · 12/10/2020 18:24

DH's view is, let's stay, there's nothing immediate forcing us to move, we like the area, it's a nice flat, let's overpay the mortgage as much as possible to build up equity.

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MiddleClassProblem · 12/10/2020 18:26

But for me the importance of the school timings is very much related to how DD would feel leaving friends. That’s a factor you consider.

SuzieCarmichael · 12/10/2020 18:29

I would wait. Can you describe this second bedroom in more detail? We may be able to help with that. Draw us a floor plan perhaps ?

Original poster
Frogmarching · 12/10/2020 18:32

This is the floor plan

What would you do in this situation?
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Original poster
Frogmarching · 12/10/2020 18:34

The chimney breast is very annoying as without it you'd get a full size single bed in there, but I cant face removing the bloody thing

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madcatladyforever · 12/10/2020 18:34

Having been through many boom and bust situations since the 70s I'd advice waiting two years then put on the market again. You are on a hiding to nothing with covid and brexit. Sit tight and wait for a sellers market.

kowari · 12/10/2020 18:43

It looks like you should be able to fit a single, they are less than one by two metres.

Original poster
Frogmarching · 12/10/2020 18:44

You'd get one in there, it'd just make the room very cramped. At the moment he sleeps on a futon which folds away and that works well as means there is floor space.

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