Active discussions

Meet the Other Phone. Protection built in.

Meet the Other Phone.
Protection built in.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

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.

OP posts:
SuzieCarmichael · 12/10/2020 18:46

Looks like it might have high ceilings - could you get a raised bed with desk under?

HotDiggidy2017 · 12/10/2020 18:46

London house prices have been consistently falling for at least 2 years now, I understand it’s not expected to come back up again unfortunately. House prices outside London are mostly in a boom since Covid but they’re saying this should settle down by middle of next year who knows if that’s true but maybe it would be worth waiting till then? A lot of the large agents have some good market commentary based on research - try Savills’ website it’s quite interesting!

Palavah · 12/10/2020 18:46

@Frogmarching

*Could you rent it out and move out of London and rent ? So.hold onto it until its the right time to.sell?*

Unfortunately not, we don't have enough equity for a BTL mortgage. That would have been our back up plan.

If you dropped it to 315, would you be able to raise a big enough mortgage to buy the size of property you need? If not, then there's no point moving.

Yes, we would have about 50k from the sale of the house, plus 40k approx in savings. The stamp duty holiday would also help.

In that case why wouldnt you just go for it?

Interested in this thread?

Then you might like threads about this subject:

Property
MiddleClassProblem · 12/10/2020 18:47

Yeah, it looks like a tricky shape.

Original poster
Frogmarching · 12/10/2020 18:48

In that case why wouldnt you just go for it?

I don't know 😫😫😫😫

OP posts:
SuzieCarmichael · 12/10/2020 18:48

9’9 by 9’2 is not that small - it’s the combination of bay and fireplace really isn’t it. I would stick shelves into the alcove, ignore the fireplace and put a raised bed in along that wall.

kowari · 12/10/2020 18:49

I found they need less floor place after the age of about 8, and DS is still in a single bed at 14 (he was given the choice at 11).

MiddleClassProblem · 12/10/2020 18:50

I’m not sure there’s enough length between chimney and door or door an bay...

Original poster
Frogmarching · 12/10/2020 18:51

I’m not sure there’s enough length between chimney and door or door an bay..

There isn't. The only place that feasibly fits a full size single is the alcove and then it sticks out into the full length of the room.

Like I say - fine for a small child's room or study, but not a proper bedroom.

OP posts:
Clockwork99 · 12/10/2020 18:54

Is this the flat in Hither Green? Recall a thread over the weekend.

If not, advice would be the same. Either you lower the price if you want to sell now. Or take a chance in the future... Where prices could easily be lower or higher.... No one has that crystal ball.

MiddleClassProblem · 12/10/2020 18:54

I’m trying to think of things I’ve seen on Amazing Spaces😂

Original poster
Frogmarching · 12/10/2020 18:55

Believe me we've thought of them all 🤣

OP posts:
Original poster
Frogmarching · 12/10/2020 18:56

We work as well as we can with the space we currently have in any case.

OP posts:
MiddleClassProblem · 12/10/2020 18:56

Could one not fit to the bay with a desk in the alcove?

Original poster
Frogmarching · 12/10/2020 18:58

No, the bay is too small. That's where his bed currently is but it is a toddler sized one (which will do him for a while yet as he is tiny).

OP posts:
UltimateOwl · 12/10/2020 19:05

If this is the same thread as before, have you changed / made up your mind about more dc? Do you think that decision is affecting how you feel? Flowers

Original poster
Frogmarching · 12/10/2020 19:07

I haven't posted about this before so think you may have me confused.

I'm not able to have any more DC due to a botched C section.

OP posts:
NoSquirrels · 12/10/2020 19:07

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

If I were you, I'd either make the decision to take the hit right now (stamp duty holiday) OR I would move anyway and let it out. Most residential mortgages still allow you to rent and will extend the term after a year, so you could let it out for as long as you have decent tenants paying the mortgage. Then just rent in your new area.

We rented our London flat out for 5+ years on a residential mortgage. After a while we did have to pay a bit extra, but not much. They allowed us to convert it to interest only, and we overpaid it anyway but it gave us the breathing room. We rented a larger family property in a new place. Worked well. The flat went up a lot in the time we did that, and I'd previously thought it was at a ceiling price. A lot can change and London is very resilient in general - people will start to forget about the garden thing the longer the distance from lockdown.

Original poster
Frogmarching · 12/10/2020 19:08

I'll ask my bank about consent to let; thank you. Could be another option for us. We'd allow tenants to have a pet so maybe that would give us an edge.

OP posts:
NoSquirrels · 12/10/2020 19:10

How much equity/LTV do you need for a traditional BTL mortgage? If you have savings you could put some in to bring it under the right band...

Plussizejumpsuit · 12/10/2020 19:10

Did you post about this the other day op?

UltimateOwl · 12/10/2020 19:11

There was a thread identical to this including the same figures and futon in 2nd bedroom. Ppl calling the OP "negative" because their suggested ideas were no good!

Plussizejumpsuit · 12/10/2020 19:11

Oh cross post you said you hadn't. Just there was a very similar post yesterday or day before.

UltimateOwl · 12/10/2020 19:11

Sorry to hear about your csection Shock Flowers

MiddleClassProblem · 12/10/2020 19:12

@MiddleClassProblem

Could one not fit to the bay with a desk in the alcove?
I meant from the opposite wall to the bay, not sure if that was clear