Silly offer on our house, minimum equity for mortgage ?

[jonny jeez]

Thanks for your thoughts though all appreciated.
Spoken to the estate agent and i am up against a smaller 2 bed house thats on the market for 5 k less they also like and as the buyers have no kids etc .... good luck to them i say .

I see.

It does seem that selling is a reasonable solution as it removes, or perhaps reduces the largest outgoing you have. Problem is it also removes/reduces the largest asset you have.

Could you let the house out (to cover its cost) and look at really alternative accomodation for the short term until works pick us. Perhaps things like static caravans, boats, houseboats and the like....

 

[EltonFrog]

No details but we have been trying to sell for 8 months and have already dropped the price by a about 15 k we have an offer another 20 k below our new asking price !
Thats 35 k below the valuation and its only a good size 3 bed semi , if we took it we would end up with the same size mortage and a smaller house just to move about 2 miles up the road .
Would the bank even let me move if our equity went from 40 k to about 10 k for the same payments ?

Going from a house with ensuite+cloak + garage to a house with 1 toilet , no garage to save £100 a month am i mad ??

Based on this information if it was me, I wouldn't do that deal, it's a terrible deal. If you need an extra 100 quid a month is there another way to find it? Can you put your credit cards on an interest free card, and budget to pay them off, this saving you interest payments. How about a part time job between you and the misses for a bit more cash. Have you got a spare room for a lodger( that'll get you about £70 a week right there) ?

 

[SpokeyDokey]

When was that, then? I mean, it has always been di-lemMa ('horns' or 'prongs') ever since Socrates used it as a rhetorical device 2400 years ago.
DilemNa would mean 'between two pieces of duckweed' or, more fancifully, 'between two women from Lemnos'.

I thought dilemna was old fashioned and dilemma was newspeak.

I was taught dilemna and have just Googled it and therein lies a world of controversy.

Are Lemnos women attractive?

 

[Doseone]

Mostly what Stonepark said, although I agree with what TMN says, those costs are probably an underestimate by the time you include agents fees and stamp duty.

From the info you have given I really can't see the point of moving. You may save a bit on travelling costs, but your main aim of reducing the mortgage isn't going to happen and you have eroded the value of your biggest asset. Also, as Jonny Jeez alludes to, if you need to remortgage down the line you would be stuffed on the loan to value. Good luck whichever way you decide to go.

 

[vernon]

I had this dilemna (yes, I'm old enough to still spell that with an 'n') about 30 years back when interest rates were 15% - incomprehensible to a whole generation I would suggest. My then wife and I had £10 left every month to spend on what we liked and we were looking for an 'out'.

Stuck it out and glad I did too. As a general rule, stay in the largest/best/whatever house you can afford until you want/need to downshift.

When prices rise you generally make more money on more expensive houses which can pay dividends near the back end of your life.

Scary memories!

 

[vernon]

I thought dilemna was old fashioned and dilemma was newspeak.

I was taught dilemna and have just Googled it and therein lies a world of controversy.

Are Lemnos women attractive?

I am old enough to have been taught the incorrect spelling had I had a set of teachers that propagated the error. Tonight is my first encounter with the word.

 

[colly]

Unless you really, really, have to move tell your would be purchasers where to shove their offer.

My sons partners mother is in the process of selling/buying and her house has been on the market for some time like yours. She had a buyer string her along and when she thought she had a deal it was suddenly ''Oh well we are still interested but we can't now afford the price but knock off 15k and you have a deal.''
Very fortunately she didn't have to sell and she could tell them where to go. One house she looked at, it turns out, was being sold by the very same couple, and guess what? They had bought the house at a knock down price by pulling the plug at the last minute from the previous buyers. Gave it a lick of paint and put it right back on the market at cost plus £40000.

 

[ASC1951]

I thought dilemna was old fashioned and dilemma was newspeak.
I was taught dilemna and have just Googled it and therein lies a world of controversy.

No, there's no controversy. Dilemna has always been incorrect, even though - a surprise to me - it was once a widespread error.

Are Lemnos women attractive?

I would expect so. It's an island I've never visited, but probably an improvement on Yorkshire muffin-rolls.

 

[threebikesmcginty]

Tell them to stuff it. It costs a few grand to move anyway all things considered and your saving isn't enough to warrant the effort/cost/benefit. I'd be minded to take it off the market over Christmas anyway, spend a month or two doing a few jobs to smarten it up (if needed) and put it back on in the Spring. You need a break from it if you've been trying to sell for a while, it all gets a bit much - give yourselves a rest from the whole thing as it starts to get you down, that's what I'd do...actually that's what we did once, worked for us.

 

[cyberknight]

Based on this information if it was me, I wouldn't do that deal, it's a terrible deal. If you need an extra 100 quid a month is there another way to find it? Can you put your credit cards on an interest free card, and budget to pay them off, this saving you interest payments. How about a part time job between you and the misses for a bit more cash. Have you got a spare room for a lodger( that'll get you about £70 a week right there) ?

had to borrow £500 a few months ago from the father in law so we did not keep going over the over draft limit every month .
I work rotating shifts so i cant get a p/t job as every 2 weeks my "free" time changes , wife has a few hours a week but due to her health problems she cannot do anymore, in fact she was told if she had paid enough "stamp" she would probably be eligible for disability but as we havent she can`t get sqaut .
Biggest issue is my finances never recovered from the short time i had a couple of years ago when i was £100 a week short in my hand for 18 months .We dont smoke,drink, go out etc just feeding and clothing 2 kids one of whom has to goto birmingham hospital a couple of times a month with suspected polycystic kidney disease which is a drain on the finances with travel.

 

[The Jogger]

My house has been on for about eight months, in prep for my early retirement in a couple of years. Luckily we are under no pressure to sell, so can reject silly offers and even stay if we want, especially as it is a nice area. If I was in your situation I wouldn't go through the upheaval and expense for such a relatively small monthly saving. I would stay away from the find a bargain thread though......

 

[Sandra6]

The only real way to know if the bank will go for it is to ask them.
But personally if it's only to save £100 a month I'd be looking at other places to cut back - it's less than £25 a week. What do you spend on that you can do without?
Also to put it in perspective and make you feel better about the offer, our "gracious georgian apartment" (also known as a 3 bedroom flat) has been on the market for 18months, with a starting valuation of £75k (£5k more than we paid for it)We paid £750 to market it, then another £250 to take it off so we could sell at auction with the promise that the auction company would cover that fee by reducing their selling fee from £3000 to £2750. We then paid them £500 to market it, they ran it twice we got an offer of £52k which we couldn't afford to take as we owe £56500 to the bank. They then refused to auction it again.
We then went with a "no sale no fee" company and put it on the market for £59500, they have managed to get me one viewing despite their website statistics claiming it has had 39 "visits" last week alone. They rang me yesterday and told me they are closing down.
Anyone want a holiday home on the western fringe of the lakes, sort of?!

 

[ufkacbln]

Slightly OT...

When we sold the MiL's house in Kent, we were lucky in that was selling to move her into a small flat up here. So no real hurry.

We had one guy who arranged to see and was shown around by her. He was interested in the cellar and developing the property. He then put in an offer at about 2/3 of the asking price.

This backed up with an "uneasy" feeling led her to turn it down.

She swears to this day that it was Peter Tobin, convicted of serial murder and hiding the body of one girl in his Margate house!

 

[Andrew_P]

I know your circumstances are dictating your position but if you can get by I would, downsizing to gain £100ish and lose a major part of your asset value due to the current housing market it could end up being financial suicide, at least at the moment you still have a fair bit of non liquid asset, if you take that down to 10k you have very little wiggle room. I would call the bank and see if you can add years to you mortgage.

 

[cyberknight]

Told the estate agent that its to low, i might be skint but i cant see the point in moving and ending up with a smaller house for the same outgoings.