Selling house question

I can't see how you'd be able to take a loss. We're having this problem at the moment. Our house is worth less at the moment that what we paid for it and even though it's still more than what our mortgage is just it's cutting down our deposit for the next house and we don't really have any savings that we could put into increase the deposit that we could put down.

The way we're able to move though (once we find a house that we both like) is that my dad is going to buy our house from us at the price which we paid for it, this will then give us the deposit we need to buy the next house and he will then sell the house when prices go up again. In the meantime he'll rent it out to cover the mortgage costs.

I don't really see how it would be workable, sorry. Unless you had savings for a deposit on a new house then you'd need a mortgage in excess of 100% to buy the new house and cover the remainder of the existing mortgage and AFAIK these aren't available any more at all. It sounds like you're maybe going to need to stay put to wait for the market to recover ☹️ hopefully once you're out driving again it might not seem so bad. I sympathise though I would hate to have had my babies without being close to my family for support. ?

It can be done but selling in negative equity is unadvisable.

You'd basically have to find the difference between the price you got for your house and the mortgage. This would have to be with your solicitor BEFORE completion so couldn't be added to another mortgage

Could you not ask the agent to put the house on at £85k as a starting point?

I believe that when negative equity (which is what you have at the moment) was a widespread problem in the late 1980s/early 1990s banks were letting customers transfer their mortgage to a new property notwithstanding the fact that the customer was in negative equity.

However, I don't think banks are going down this route at the moment and in any event I would suspect your bank, if they agreed to transfer the charge, would ask you to stump up the remaining equity for the new house (rather than increasing the mortgage).

Thanks all. We definitely do not have enough savings to cover the loss. Looks like we'll have to stay put for a while longer ☹️

Cx