Selling your property quickly when you are struggling with mortgage repayments
Our conveyancers appreciate the importance of speed when selling a property — whatever the reason. If you have a sale that needs to be completed quickly and would like to discuss the transaction with us, then simply call our legal helpline or send us an email.
When a borrower is unable to maintain their mortgage repayments one solution may be for them to quickly sell the property.
Selling up is usually much better than handing the keys back to the lender because it puts you in control of the process.
Borrowers often fail to realise that they continue to be liable to their lender for any remaining debt after their keys have been handed back and the repossessed property has been sold by the mortgagee in possession on the open market. That debt will include any shortfall between the amount borrowed and the net proceeds of the sale, along with any outstanding interest charges and other overheads such as legal costs. In a declining property market that shortfall can amount to a considerable figure.
While lenders have a duty to obtain the best price they can, the values recovered for repossessed properties tend to be lower than when the owners sell themselves. This can result in the borrower feeling that their property has been disposed of at an undervalue, adding to the debt they are then liable for.
For this reason, if you feel that your property is likely to end up being repossessed, consider selling your property quickly yourself. This will put you in the driving seat, allowing you to satisfy yourself that the best sale price has been achieved.
Before taking drastic action however, it is important to take professional financial advice. You may also wish to contact your lender to see if they are willing to help you. They may be prepared to extend the term of the mortgage, for instance, or switch it to interest-only repayments.
The key to selling your property quickly is to ensure that it is in a saleable condition and will be an attractive proposition for purchasers.
Clearly the price you market the property for will be key. The price needs to be competitive to generate interest. If you ask too much then there is a risk that potential purchasers will be put off. Your estate agent will be able to give you guidance on these issues, taking into account the national and local market conditions.
The property itself should also be in a presentable condition. There are often small, inexpensive jobs you can do that will make a big difference to securing a buyer at the price you want to achieve.
And finally, make sure you appoint solicitors who can act quickly and have the resources to prioritise your transaction, so that you can get it over the line with the minimum fuss and delay.
If you are looking at selling your property quickly because you are struggling with mortgage repayments or for any other reason, contact our team of conveyancing solicitors for a fixed fee quote and a chat about how we can help you.
