Need to sell my house. just lost buyer number 6!

[mrsnec]

This is very long winded. I do apologise, And sorry if I posted in the wrong place.

We bought our house for 92k in 2005. We spent 40k on it. Its been on and off the market for 5 years. It's in an average area of the west midlands. Properties in the same cul de sac have gone for anything between 45 and 100k recently. We want to offload the place as its caused us a lot of stress we accept the losses of what we spent but want to at least recover fees and what we owe on the mortgage so we are trying to sell at 90 It's true market value.

We are covering the mortgage. Just, but we have a new life abroad and live rent free in our in laws second property. Money is tight for us but we wont be homeless.

So, after a few failed sales sales it transpired that lenders were refusing to lend on the place. We knew there had been a subsidence issue in the past but were assured it had been fixed. We also found out that the records hadn't been updated to show there hadn't been any movement since.

We got our own survey done when we lost buyer no 5. We got all the paperwork in order, spent another few thousand putting right everything it unveiled and then remarketed the place. We had viewings straight away and an offer within a week but weve lost this buyer again as a result of a survey.

We rented it for a bit. But our mortgage is interest only and the rental value only just covers it. We also spent thousands in maintainance costs when we had tenants and it's Hard for us to manage from abroad with no friends or family in the area.

The mortgage company know our situation. Both them and the agents are encouraging us to sell for a song and work out a repayment plan to cover the shortfall.that would break my heart it's a beautiful house I've already lodt 50k on.

We have discussed repossession as an option but wed still have to pay a shortfall unless we go bankrupt I think but since we have no ties to the UK that might be on option.

We are wondering if we can do anything legally as perhaps our lender shouldn't. Have leant to us on it if none of the other companies will lend to anyone else on it.

We are trying to obtain the latest buyers survey. He wouldn't even reduce his offer after his survey.

Thanks for reading all, just wondering what you'd do in this situation. Bottom line is want to walk away without spending one more bean, how can I do this?

I'd get a copy of the survey and speak to the agent. The agent works for you so should be getting at least a verbal account of the issues from the buyers. There is obviously something wrong with the house, something significant that is making buyers pull out, or mortgage companies refusing to lend on it. Whatever you did recently seems not to have resolved the problem.

Do you have your survey still from when you bought it? What was flagged up?

Whatever you do, only see repossession / surrender as a very last resort. Not only are you liable for the shortfall, but you lose any control I.e. what it is sold on for, what costs the bank can incur. Bankruptcy has massive implications for ever getting back on the property ladder, future employment etc.

First of all its not up to you to decide what the market value is, its up to the buyer

Im sorry this has happened to you though. Can you look at how much developers will pay for the land?

Thanks,

Yes we are waiting for the agent to get back to us.

We knew of the subsidence. When we bought from our survey but nothing more.

One of the issues. A subsequent survey bought up was an rsj wasnt good enough when we took a wall down so we fixed thst and got it certified and then we were told it would benefit from strengthening the roof so we did that so this could be an entirely new issue. As we were able to prove from our original survey to the new one that there was no movement whatsoever. In ten years.

I was just wondering if there was an option we hadn't thought of.

What is the difference between repossession. And surrender?

The worry about getting back on the property ladder is not a big concern in our situation. The inlaws intend to sign this property over to us but not untill we've shufted the UK one. We also have our own very established business here. So then it gets complicated as to if bankrupcy takes into account the situation abroad as we own a company here. But means future employment isnt much of a worry either.

Until the point of survey, buyers are happy to offer what we want so we have it pricesd according to what buyers will pay. Its a 3 bed semi in a cul de sac 1930s ex local authority. Backs on to a main road so i cant see them being able to do anything with the land. It is priced a but below properties of the same standard in the same postcode.

Did the original survey you had done when you bought it suggest you do any work regarding the subsidence?

It might be very simply that once your house has suffered subsidence, fixed or not, it becomes a red flag for any lending society. We set our heart on a beautiful house that hadn't been touched since the 1920's, choc full of original features needing total renovation. Survey found cracks and minimal subsidence, so our lender ran a mile. In the end it was sold to a cash buyer builder who ripped the heart out if it, poured concrete under the house and fitted the cheapest crappiest fixtures and fittings and sold it on to another cash buyer to let. Your could try and attract a cash buyer who might buy to let, but that depends where the house is and how attractive it is to let. Or auction it off if you can't afford to wait for the housing market here to recover a bit....?

Buyer no 6 was a cash buyer intending on doing just that shobby, the house opposite. Went for only 40k at auction. We owe 85! We think you might be right on the red flag thing too and wondering why our lender lent to us. They said they would lend again too, im not sure they would but we wondered if we could do anything legally. The agent told us the buyer Was a cash buyer but I had my doubts he lied to us about that before. Could wait but its been years already and its not a very optimistic area in terms of recovery.

Marvelous, no we were told the work the previous owner had done was sufficient. She had the work done on insurance. As a result her insurers are the only ones who will insure the place with a slightly higher excess than normal but thats wasn't a problem. For us and weve made each buyer aware of this. The insurers also know about our predicament and they dont see it as a stumbling block either when we can prove no movements.

Do you have something in writing to say that her work has been passed as good enough?

Wondering whether you should also post in legal, in case there is some paperwork that someone could issue that would reassure future buyers.

is it possible to take out indeminity insurance in case the subsidence re occurs?

Yes we do have that, it took months of fighting the mortgage company to get it then we paid for our own survey again to verify it. Our most recent survey was done in November yes I did wonder if I should post in legal.

We walked away from a similar house for the same reasons.We understood that the subsidence was fixed but once it was mentioned no insurance company would touch it. We were also worried about future resale. We are in the south east and the house sold later to a cash buyer. I think a retirement couple it cash buyer bit concerned about resale are going too be your only options.

House prices are on the rise in the UK. Rent the house out again for at least a year.

Hold your nerve and wait it out. You will then probably get your money back perhaps even the money you spent refurbing.

Its not worth considering bankruptcy yet. Rising prices and a rental income which covers the mortgage interest isn't that dire just yet.

However if you can't handle the situation mentally then clearly you need to act.

Again though your house must be good because you've had 6 buyers at the price you wanted.

Change your estate agent!! I worry that he isn't doing his job and deliberately setting up sales to fail so you will sell it dead cheap to his developer mate (who gives him back handers) when you get desperate.

Yes we have enquired about indemnity insurance, again only the existing insurers will do it. The thing is its not uncommon in the area as its alll built On old mines being in the heart of the black Country . The market Is entirely local people anyway as nobody would move there for any other reason to narrow that down to just retired cash buyers makes our market tiny!

Mrs florrick, I have been tearing my hair out with the agents believe me, this is the third one we've had! I do question his professionalism when he was trying to convince us into negstive equity as 'everyone is these days including all of us' we do worry about renting again as it cost us in maintainance and the managing agents convinced us it wasn't the tenants fault id be more optimistic about the prices if it was in a different area. We struggle to find trades to help us as we're. Abroad. Everyone just wants to rip us off the agent's contact for example to tidy the garden quoted 500 pounds and it was cheaper for my husband to fly home to do it himself but its a 5 hour flight! We cant keep doing this so that's why renting is out is not an option really.

Put it into an auction.

It will be sold relatively cheaply but it will be sold and off your hands.

Goimg bankrupt is the worst possible outcome and could limit your chances of working abroad.

Auction wont raise what we need to cover the mortgage as I have said. We dont have any money to cover the shortfall. We have our own business abroad. Im not sure how bankruptcy in the UK would effect that.

You've accepted lots of offers so presumably must have engaged a solicitor what's their view on all of this?

Our solicitor can't understand the sticking points. But isn't advising us further than that yet is quite happy to go through the motions each time and hope for the best! So perhaps he's as questionable as the agent!

Solicitor or one of those conveyancing firms?

No proper solicitor. Do you think a conveyancing firm would be better? I am also in a legal battle for another Issue at the moment with another solicitor and they seem to just process paperwork rather than advise too. I assumed that was just how solicitors operate these days.

Ah. I'm sorry you're having such a shit time with it. Estate agents are just a bunch of cowboys and I'm being very polite. Unqualified and practically unregulated and most are not afraid to blatantly break the very few regulations applied to them or worse.

I understand your issue. Re being abroad etc. it does make you vulnerable to rip offs.

But just because you're abroad doesn't mean you can't google a local gardener and handy man and contact them and get them to pick up keys for agents and give you quotes.

I presume the extortionate maintenance cost you experienced with your last tenant was due to the agent constantly coming up with "issues" and over charging you to fix?

Well strike a deal with a local handy man for maintenance. It's easy to do. A few phone calls should do it.

And change your agent and relet the property but on a LET ONLY basis so the agent doesn't have a vested interest in finding "problems" and "maintenance" which is passed onto a subsidiary company (ie another co owned by same folk!!) and ripping you off with ridiculous prices and problems.

And for example for peace of mind, you can get a Landlords contract with British Gas for maintaining boilers and has appliances (also electric). This means the tenant can phone BG direct and BG come out fix problem and there is no charge because you pay £30 per month for this. And obviously you don't need to arrange anything or pay extra. I have this for several of my rental properties and it works a charm. And tenants love it because they don't have to speak to me and they don't need to wait for me to arrange anything. They can do it at their convenience.

I honestly think you should steel yourself, find local trust worthy handy man and change agent and relet a year or two from now, you can then sell and recoup your full original investment.

And as others say Do not go bankrupt.

If you need other tips re being a landlord and how to set things up when you're not local (I own two properties that are almost 900miles from where we live), then PM me.

I would rent for a year and try again using a new solicitor and new estate agent.

The agents are just not very helpful and are very negative about the economic climate but we kept them on as the 2 we sacked weren't even marketing the place. The ones we are with know the area and get people through the door. They do the letting too and when we decided to rent last time we had a tenant in within a week.

The maintenance issues we sorted ourselves as the agent was too costly but it was hassle for us. One of the issues was the boiler. We had to replace it, we'd already put in a new heating system as part of the renovations and the boiler was just out of warranty. The other was damp patches as the tenants had a fridge in the lounge the agent told us it was wear and tear and we couldn't be bothered to argue but it needed re-skimming again we found someone to do that. We tried to get a handyman but didn't have any luck. It's quite ironic that this is what we do for business over here look after rental property, so on occasion one of our clients has helped and we take it off his bill but when your rent is only covering the mortgage its still going to cost in maintainance.

We have had a stressful time of late. I recovered from an illness, my father died and I'm being taken to court over my inheritance and I had an mc at 13 weeks 3 months ago and we'd been trying for years. So my dh is all for just getting rid.

I may try and persuade him again. If the rental value has gone up and would cover that bg service you speak of it may be worth it. I've just been told of plans for a state of the art school nearby that made the national news and im wondering if its worth checking if the house is in the catchment area.

Mrsn. I'm very sorry. You are having an awful time.

If getting rid of the house is that important, sell it at auction and work out a repayment plan with your lender. It's a million times better than going bankrupt. Being a UK bankrupt will still follow you to another country. Don't do it.

If I were you, and still with a mind to selling immediately, I would get a new agent (do not tell this new agent you're broke and desperate!!!).
Tell this new agent you've had it under offer at £90k 6 times only for a bad solicitor and a previous agent ruined those potential sales for you. And tell this agent you're giving him/her one crack at it.

Also incentivise this agent. Ie offer a higher fee for a £90k sale achieved (ie upon exchange/completion).

I've done this before both with a rental property and with a home for very different reasons (timing ie done by certain date and picking the buyer who could manage this).

Even offer to double the normal fee. You can do this just as you can negotiate a reduced fee.

In this instance a doubling of fee will make the agent look good to his firm and agents are extremely motivated by higher fees (higher commission).

I'm serious. If you wish to sell right now and you want a fast result at a particular price. Do this.

Also in writing (and in the contract you sign from the agent) make it clear that the offer of double fee is only available over a sale sum of over £90k achieved.

This is probably the way to go for you.
Anything else you wish to know, please ask away or PM me. X