Negative Equity Shouldn’t Mean You’re Trapped
What is Negative Equity?
The phrase negative equity simply means that you owe more on the mortgage than your property is currently worth. For example, if your house is worth £100,000 and your mortgage and other secured debt totals £110,000 than you have £10,000 worth of negative equity.
What does Negative Equity mean in practice?
In the example above if you wanted to sell your house and your sold at £100,000 then you would have to pay the bank another £10,000 (plus estate agent’s fees, legal fees), etc to be able to work away from your property. Obviously for a lot of people this kind of property sale is neither desirable or even possible. Hence the expression “trapped in Negative Equity”.
One thing to bear in mind about negative equity though is that if you don’t want to / have to sell your property then it doesn’t matter. Provided you keep up your monthly mortgage payments then the negative equity won’t be a problem. You just have to wait for your property value to go up and your mortgage debt to go down.
However, if you do need to sell for whatever reason then negative equity can be very a very tough and stressful problem to deal with.
What is the Solution to Selling a Property With Negative Equity?
If you’ve been trying to find a buyer for your negative equity house you’ve probably found it near impossible.
However, there is a solution. We buy houses in negative equity allowing you to move on. We will buy your house from you for the value of your existing debt allowing to walk away from the property free of negative equity. That is, we will pay more for your house than it is currently worth! Not only that but there are no fees of any kind payable to us (although we would strongly advise you to consult your solicitor).
Why on earth would we do that you may ask! Well, because we act on behalf of investors who are looking for long term growth rather than a quick buck, we are able to look at the longer term prospects for the property market.
If you are in negative equity and want to move on from your property then contact us for a free, no obligation chat as to how the process works.
Fill in the form on the right or call Mike on 020 8798 3332 / 07519 263827. Alternatively email on moliver@landlordsrentguarantee.co.uk