Many property owners who bought at the peak of the market, especially new builds or off the plan properties, find themselves in a situation where their property value has significantly reduced. It’s especially scary when that property owner has a mortgage on the property which is above the market value and he can’t find a way out!
This means that after a seller has paid estate agent fees, legal fees, monthly mortgage payment, service charges, maintenance etc until their house has sold, that they will owe the bank more money than they can get for the sale of their property. When your mortgage amount is higher than your sale price value, you are in what is called “negative equity.” The problem with Negative equity property is that it means if you must sell your property, the price you are likely to achieve for it will be lower than the amount you need to repay to the bank, and so you will walk away owing the bank money.
For example, if you have a mortgage of say £200,000, and similar properties to yours are selling for only £170,000, if you were to sell your property today, buyers would only pay you £170,00 (minus legal fees and estate agent fees). This means you would owe the bank over £30,000.
Until now, the only real solution for negative equity property was to rent your property out and constantly dip you hand into your pocket to cover the ongoing expenses for years. With interest rates set to rise, many sellers who are struggling to make their mortgage payments now are going to be in an even worse position soon when higher monthly payments kick in. On top of this, you are likely to have some or all of the following costs if you choose to rent your property out;
- high service charges
- rental void periods between tenants
- insurance payments
- maintenance costs
- property managing agent costs
- tenant stops paying rent
- other property related expenses
It won’t take long before your rent simply will not be enough to cover your costs for renting the property out. If your boiler breaks and needs replacing, this may be the straw that breaks the camel’s back.
Negative Equity Buster
In 2010, directors of Sell My House Quickly Please won the prestigious EHO award for “Property Buyer of the Year.” This was mainly due to our ability to buy property from sellers who were previously unable to sell their property, due to being in negative equity.
The good news is that there is finally a safe way out of negative equity that can protect you against interest rate rises, maintenance costs, and all the other expenses listed above and is financially a better alternative to renting your property out.
Sell My House Quickly Please, can now buy your house or flat at full mortgage value, even if this is ABOVE the market price. Finally there is a way out of negative or no equity properties that means you can simply walk away from your mortgage on a difficult to sell property. It’s almost as easy as transferring the legal responsibility of your property to us, handing your keys over, leaving your property how it is and moving on. In most cases, you can walk away totally debt free, without a further penny to pay. Our goal is always to try and get you out of a negative equity property without a further penny to pay.
Our Award Winning Negative Equity Buster offers you the following benefits;
- Allows you to get rid of property that is worth less than its mortgage
- Has no estate agent or commission fees
- Can stop repossessions instantly by transferring mortgage responsibility to us
- Allows you to sell a previously impossible to sell property
- Not a single penny more to spend on your property
So simply transfer the responsibility of the property over to us, and we’ll make your payments for you until we are able to sell the property down the track, and it is at this point we get paid for doing what we do.
How Do I qualify for a Negative Equity Buster Sale?
Unfortunately not every property can simply be transferred over to us. We select properties based on a formula that takes into consideration the following;
a) The mortgage amount
b) The market value
c) The remaining term of the mortgage
d) Your interest rate
To see if you qualify for out Negative Equity Buster without a further penny coming out of your pocket, fill out the form NOW so we can see if you qualify.