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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think "I can't sell my property as I will lose money" for her is ridiculous

48 replies

Itsgonnabeacoldone · 17/11/2017 08:12

Family member, she bought the flat almost 8 years ago and has had an offer for 10k less than she paid and says she can't sell for that and is complaining.

In those 8 years the only mantaince has been a new toilet cistern. After the service charge is paid and the mortgage it's less than half the cost of renting the same.

So compared with renting she really hasn't lost any money, she's still tens of thousands better off. So not sure why she is making her life difficult by claiming she can't sell. If you see what I mean?

OP posts:
MrsOverTheRoad · 17/11/2017 08:14

Well why's it an issue for you? Just let her do as she wants.

Original poster
Itsgonnabeacoldone · 17/11/2017 08:17

I've had an evening of complaining and seeing if anyone shares my pov.

OP posts:
LaurieFairyCake · 17/11/2017 08:19

I think most people expect their property to rise in value as over the last 50 years it’s gone up about 400%

So even though there’s been a down turn it’s hard for people to accept

Finola1step · 17/11/2017 08:19

Sounds like she bought at a time when prices had peaked and is now trying to sell during a slump. Some people seem to expect that their property will make them a fair wad of cash no matter what the market conditions. What do her estate agents think?

JoJoBow · 17/11/2017 08:21

It depends if it's a can't (because she hasn't paid off enough off her mortgage to sell at 10K less without owing the bank money) or a won't (disappointed that she's not made a good gamble on the value of the property rising).

MaisyPops · 17/11/2017 08:21

She needs to realise house prices now aren't the dame as they were 8 years ago. That's part of the risk when you buy a house.

I mean she's free to do what she likes but if in 8 years she's not done anything to it then the valuation and offer will reflect thr change in house prices nationally/regionally as well as the fact that inside it is probably a little dated/worn and torn.
That would be my guess.

If she keeps complaining I'd just say her option is to sell or not sell and hope someone else comes along who'll pay the asking price, but ahe might be waiting a while in this market.

LazyDailyMailJournos · 17/11/2017 08:22

Did she buy on an interest only mortgage? If she did, then an offer for less than she paid might be leaving her in negative equity. Likewise, if she's planning an onward move then she may need to achieve a certain asking price in order to have enough money to pay the deposit on the new place.

TrojansAreSmegheads · 17/11/2017 08:24

This reply has been deleted

Message withdrawn at poster's request.

MaisyPops · 17/11/2017 08:24

Shpuld add, the person I'm buying from rejected my first offer and when I went back and worked it out it's because my first offer wouldn't allow her to break even on her mortgage because they bought it at the peak of the housing price rise.
I worked out their house price at the time (which is on rughtmove) and then added inflation and offered under the asking price but over that figure and had the offer accepted.
Sometimes can't is a thing. Other times it's won't.

Gingernaut · 17/11/2017 08:25

People expect to make a profit because they've seen it on TV.

Sarah Beeney has a lot to answer for.

Original poster
Itsgonnabeacoldone · 17/11/2017 08:26

The estate agent is saying she should accept it. It was on a repayment and she's moving in with her partner.

OP posts:
Original poster
Itsgonnabeacoldone · 17/11/2017 08:26

The estate agent is saying she should accept it. It was on a repayment and she's moving in with her partner.

OP posts:
goingbonkers123 · 17/11/2017 08:30

Maybe she wants to keep it as a fallback plan in case things don’t work out with her par𝐭ner? She could rent it out. If so that’s a sensible decision- I did that myself and even though I’m married 5 years I still rent it out!

HerOtherHalf · 17/11/2017 08:31

She's already lost the money, she just hasn't realised the loss yet and converted it from capital asset to cash yet. If she holds off she might get a better price but she might also end up getting even less than she's being offered now.

Mummyoflittledragon · 17/11/2017 08:32

I can imagine her annoyance. Property in London has sky rocketed just not for her because she happens to live elsewhere. Perhaps she paid over the odds for it if it was a new build or it was too high spec for the area etc.

If she doesn’t want to sell, she can rent it out. My feeling is property prices are not moving upwards anymore with Brexit uncertainty. More likely they’ll perhaps stay the same but move down in the areas, where prices went up the most. But it’s up to her.

Whinesalot · 17/11/2017 08:33

Well it might be worth her renting it out then. But it's a simple choice of selling and sucking it up or not selling and dealing with the consequences.

LazyDailyMailJournos · 17/11/2017 08:36

It will take her about 30 mins, if that, to do a quick bit of googling on property in her area - what the asking prices are, what's selling, how long it's taking to move and how close people are getting to their asking prices.

All of that will point towards a realistic asking price for her property. If she feels that she can't sell for that amount, then she needs to face up to the fact that she can't sell right now - and she'll have to hang on until such time as the market recovers to a level where she feels she can sell. Things have cooled off - especially in London - quite considerably over the last 6 months. Ultimately a property is only worth what someone is prepared to pay for it.

Original poster
Itsgonnabeacoldone · 17/11/2017 08:37

She doesn't want to rent it out as she wants the money for things next year. Also is worried that interest rates may go up and won't be able to offset all the interest on the mortgage.

OP posts:
Trills · 17/11/2017 08:38

I feel like in 2009 we all "knew" (or thought, because you can never be certain) that we were at a peak, and that buying was not a sure-thing investment but only worth it if you actually wanted to live in the house.

Sounds like she's confusing "can't" and "doesn't want to".

What are her other options?
Stay living in it? (that's not what she wants to do)
Rent it out? (PITA and probably won't bring in that much money)

Sarahjconnor · 17/11/2017 08:39

This reply has been deleted

Message withdrawn at poster's request.

Lonecatwithkitten · 17/11/2017 08:40

The interest on the mortgage can be set against tax so interest rates going up shouldn’t worry her.
Really she has got to make her mind up either sell and have a loss or let the property and wait for it to rise in value.

Mummyoflittledragon · 17/11/2017 08:42

Well then she needs to get real and stop complaining. Then make a decision. Step away if you can.

Lonecat
Rules have changed significantly on that one.

FlowerPot1234 · 17/11/2017 08:53

What is she actually complaining about? Market forces? She wants somebody to change market forces for her? Confused

BarbaraofSevillle · 17/11/2017 08:55

If the mortgage and service charge really is less than half the cost of the rent she could charge, then renting it out might be the way to go, although it is understandable if she doesn't want to do this.

She would need permission from her lender and subject to equity, she might be able to release funds for 'things next year', or else she could just save up the profit. If she did that, providing she had a standard 25 year mortgage, in 17 years time she would own the flat outright and would still be getting rental income from it.

However, if she continues to own the flat, any property she buys with her partner would be subject to extra stamp duty I believe, so it's not a simple answer, especially if the service charges are high.

GriefLeavesItsMark · 17/11/2017 09:04

If she rented it out she would be responsible for maintaining it. A new toilet cistern every seven years just won't cut it.