selling house at the same price we bought house for

[BWJA921]

We bought house for £580k 5 years ago. 5 years later house is back on the market for £610k (due to separation / divorce). We are getting viewings but have received 2 very low offers (£565k).

If we decide to reduce the price and sell it for £575k, are there any repercussions? I understand that we will take solicitors / estate agent fees out of profit. But negative equity wouldn't be a factor would it?

ps - we need to sell by end of July as our 5 year fixed rate tracker ends then.

Negative equity means that your mortgage is higher than the value of the property. Is that the case here? Is your mortgage more than £565?

If not it doesn't matter at all if you sell for less than what you paid for the house, it happens when markets change.

If your mortgage is more than the value of the house then you need to cover the difference from savings or some other way.

All depends how much you owe on the property.

5 years ago was a peak in prices post covid so you bought at the recent height and are selling in a downturn, which is unfortunate for you OP.

as others have said, how much do you owe in your mortgage. The balance will be split between you.

Pretty much illegal to sell a house at a loss in this country.

People have short and selective memory.

Thank you. We have £250 left on the mortgage. So depending on how much we sell for we will have approximately £260 to split.

Ok so I'm not sure what problem you thought you may have? You will get enough to pay the mortgage off, pay the fees and have some money each.

That's less than 7.5% oof the asking price. I'd bite their hands off and get on with your life as soon as possible.

You what?

Are you asking me?

565/610 = 0.926 (to 3 dp) - equivalent to 7.4% off the asking price of £610K.

Take the £565K, pay off the mortgage of £250K and split the rest between them according to the settlement. Waiting for an extra £5K each is a terrible way not get on with your life.

so 565 offer = 2.5% "loss" against purchase price .
Are they proceedable?
Better to have the cash and move on given it is a divorce rather than hang on then relist at 575, as that may produce sub 565 offers anyway

Another way of looking at it.
15k loss over 5 years between 2 of you means it cost each of you £1,500 per year to live in that house, which itself presumably has no sentimental value given the divorce.

Thank you. Your figures and opinions have really put it in perspective. We will proceed as soon as possible so we can just get on with our separate lives.

Good luck OP. Enjoy the rest of your life.

Based on what you’ve said - you won’t end up in negative equity.

I’m guessing you both want the property sold asap so you both can move on with your lives - I would just come to an agreement with each other and accept the offer.

July is only 3 months away so you accept now and you should just be fine - the sale will /should complete by then providing the purchasers are cooperative and both you and your ex are too.

What are you chatting bubbles about, it was happening back in 1990 and 2008

Then you won't be in negative equity.
I would accept one of the offers at 565 asap and get on with your life, otherwise you will end up paying a variable rate which will be a lot higher than the rates 5 years ago.

Sorry not you, post quote fail! I was supposed to be responding to @Papricat! How is it illegal?

Not any more, the outlook is definitely darkening now, driving bans being talked about in the media tonight.

Good advice, grab the 565 offer if you can, waiting will mean lower offers in this environment.

I think that was a joke about how silly the "houses always go up" thing became.

You are assuming the potential buyers have the money and ready to go. Lets hope they are not trying to sell their own house before being able to proceed. Many people on here will have property chain horror stories.....