Skip to main content Skip to footer

What can you do if you want to sell your roperty but it is in negative equity?

Myself and partner are looking into the possibility of selling our flat which is roughly in £13-15,000 of negative quity. Does anyone have any advice or information/experince of being in the same situation and could someone help us by explaining how they dealt with the problem of the debt afterwards resulting form the sale? Any help really appreciated.

Asked on Sep 4 2010, Selling in Sheffield | Report content

Answers (3)

Was this question useful? Yes 0 No 0

Sort by: Oldest | Recent | Highest rated

  • First, really check if you're in negative equity. Many banks and sites like this are completely inaccurate and use previous sold prices and estimates. To get a true reflection, you need two to three agents to actually visit and then take the average figure from all those estimates. Most things, such as the demand in your area or what class of area it is will be out of your control. However before getting your house valued, setting up neighbourhood watch schemes with other residents and refreshing your house with redecoration can be things which help value but also what someone is prepared to pay. My advice in the current market though, would be to wait a few years at least if you can. It isn’t a sellers market at the moment, just a buyer's.

    Answered on Sep 5 2010, Report content
  • For once I am finding lenders are being helpful as previously you could not sell unless you had the money to apply off the negative equity at the same time. If you really need to sell then speak to your bank and see if they will transfer the negative equity into a non secure loan which you can pay off monthly. Some will still not allow you to do this and will insist on the £13 - 15k on the day of completion. Remember you will need the money for fees as well for solicitor and should you use an agent. As the previous answer said, prices will recover if you can keep hold of the property or even consider letting it.

    Answered on Sep 10 2010, Report content
  • This is a very complicated question. I will try to give you a simple answer. First obtain 2-3 quotes from local agents on what they suggest the price to be. See what mortgage you have outstanding. If you are in negative equity, speak to your lender. There are now 2 routes available: If you are just selling they may have an exit strategy/loan that you can come to an arrangement. If you are looking to buy on another house, you will have to talk to them as to what strategy they have. Every lender is different. Just talk to them. Good luck and if you need any other advice just call. Ian

    Answered on Apr 13 2011, Report content

Didn't find what you were looking for? Ask a question

More Selling in Sheffield questions on AskMe

See more AskMe Q&A about Selling