hi all,

I have a lead with the following figures,

valuation £135k
mort outstanding £102k
sec loan £20k

my offer of £105k would be accepted but as there is a shortfall how would this work? would the vender be able to get the finance sorted or would it cause a sticking point. If the house is not sold then it means the house will be repossed. If this happens then the vender also loses her job as she works in a finances dept who constantly checks there staff.
the house has been on the market for a while and £135k is the RFQS price.

thanks for your help

guy

Whilst you could try and negotiate with the second charge, time is not on your side.

Others may disagree but in my experience so far, these negotiations take weeks and often lenders change their mind at the last minute.

1) I would pass her to a good, whole of market mortgage broker and get RM introducers commission.
If she has good job and temporary blip of arrears RM should be possible.

2) At the same time as her trying to RM you could speak to second charge and see if they will accept
reduction and conversion to unsecured. 3k is not a lot to offer them though. 8k would be a better offer and I would imagine within your affordability.

Also you can go to court with her if necessary and get 56 days extension to allow standard sale to proceed.

Is the goal here to rent back?

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thanks phillip

the reason she is in this position is due to a seperation. she can not afford to refinance by herself but also wants to move out because of the memories she has there.

my plans were to buy and rent out and possibly sell after 12 months to use my CGT allowance.

guy

how much is it on market for?

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originally £150k
now £135k

there are two others on the street priced at £150k and £160k in similar condition. But she has only had 1 viewing in 4 months when it first came on the market.