Trying to sell in Meath

superman24

my house is on market awhile now in duleek,meath cos i split wit my gf, its on market for 285 at min but no bids. she wants to buy me out at 22k, mortgage is currently 230k . i`m wondering, cos i`m not so sure how market will fall,u guys will know more than me, but is this a good offer at the current time??
any help wud be super guys n gals cos this is all doin me head in at min
thnx

jdivision

I take it you don't mean 22k?

superman24

jdivision wrote: »

I take it you don't mean 22k?

yea, shes offering me 22k to buy me out??

Treehouse72

Do you mean she gives you 22k, you walk away and she carries the mortgage and gets the house?

If that's the deal, I'd snap her hand off. If the property is currently worth 55k above the mortgage, 22k is almost half that, and in this market the 285k valuation could fall by the day. I'd act quickly too.

superman24

Treehouse72 wrote: »

Do you mean she gives you 22k, you walk away and she carries the mortgage and gets the house?

If that's the deal, I'd snap her hand off. If the property is currently worth 55k above the mortgage, 22k is almost half that, and in this market the 285k valuation could fall by the day. I'd act quickly too.

yea, shes offering me that to walk away from it and let her take over the mortgage. how much do u tink the property will drop in nxt yr?? they seem to keep dropping but far will it go??

The_Conductor

superman24 wrote: »

yea, shes offering me that to walk away from it and let her take over the mortgage. how much do u tink the property will drop in nxt yr?? they seem to keep dropping but far will it go??

None of us have a crystal ball- but there is an interest rate rise pencilled in for the July meeting of the ECB, and a further rate rise possibly as early as September. Money is becoming more and more expensive, meanwhile the banks are severly tightening their lending criteria.

If I were in your situation- akin to the poster above, I would take the 22k and be satisfied with it.

A point to note- presumably this was your first property when you bought it. As such you will no longer be a First Time Buyer and will not get favourable stamp duty treatment. Further- as a previous property owner you are excluded from the Affordable Housing Schemes and the Shared Ownership Schemes. It will be that much more difficult for you to buy property in the future. Make sure that you are fully aware of this- even if you are getting 22k into your hand- you will pay far more than this in stamp duty most probably when you next go to buy a house (with certain exceptions).

S.

ciano6

take it and run. seriously, my opinion is that things are going to get a whole lot worse. check out this though (gift tax)...

http://www.citizensinformation.ie/categories/money-and-tax/tax/capital-taxes/capital-acquisitions-tax

and of course there is the whole loss of first time buyers status

i think you'll be very lucky to get away with 22k

superman24

A point to note- presumably this was your first property when you bought it. As such you will no longer be a First Time Buyer and will not get favourable stamp duty treatment. Further- as a previous property owner you are excluded from the Affordable Housing Schemes and the Shared Ownership Schemes. It will be that much more difficult for you to buy property in the future. Make sure that you are fully aware of this- even if you are getting 22k into your hand- you will pay far more than this in stamp duty most probably when you next go to buy a house (with certain exceptions).

S.[/quote]

ye, i was a first time buyer, but is the whole stamp duty thing not mean if u buy property over a certain value?? correct me if i`m wrong,i`m not sure? and why does this exclude me frm the such above schemes as well?? are u sure about this?
thnx again

sadie9

Stamp duty on on second hand house for a non FTB, house price 350 would be around 15k. New stamp duty rules are you take price of house, subtract 125k (as the first 125k is free of stamp duty), then 7% of the remainder. So your house would have to cost 450 to cost 22k in stamp duty.

johnnyskeleton

Don't forget as well that she is not entitled to "take over the mortgage", what she would have to do is refinance with her lender (or another lender) and pay off the loan she held jointly with you.

If she has a bad credit rating, or doesn't earn enough to qualify for a full buyout of the mortgage, your lender won't give it to her, simple as.

Take the money and run sounds (from what you've told us, you haven't given us all the details and it's probably best that way) like good advice.

Don't forget that if you don't take the offer the logical thing to do would be sell (unless you want to buy her out or stay living with your ex, which are not great options) and if you sell you will still lose your FTB status, so if it's a choice between being bought out or selling, it comes down to a purely financial question.

superman24

Don't forget that if you don't take the offer the logical thing to do would be sell (unless you want to buy her out or stay living with your ex, which are not great options) and if you sell you will still lose your FTB status, so if it's a choice between being bought out or selling, it comes down to a purely financial question.[/quote]

do u think it would be a good option to try and buy her out myself??

snellers

buy her out of you can comfortably afford it and like the house/area - irrespective of the likely price drop history shows it will eventually recover the negative equity if any (unless your plan would be short term)

losing FTB status is irrelevant - one of you will have to sell to the other or sell the house......selling the house for a potential gain of 5k or so in the current climate is unlikely...the longer you leave it the cheaper the valuation....

best of luck!

The_Conductor

superman24 wrote: »

why does this exclude me frm the such above schemes as well??

You are excluded from the AH and SO schemes, as they are ringfenced for First Time Buyers. I inquired with Laois Co.Co. and SDCC this week- regarding a query I was given- a girl whose relationship broke up and they sold their apartment in Clondalkin taking a loss from negative equity of 14k. They have now discovered that neither of them qualify for either scheme. The rules do state that exceptions may be made- neither Council were willing to budge either informally or officially when questioned though.

Ps- I'd be half inclined to agree with the advice re: buying her out, if you can organise the finances. In the current climate its very possible that either or both of you may be refused finances on your own (unless parents step in to act as guarantors on the mortgage and even then you are looking at a 85-90% mortgage, not a hope for 100%). While I can see why taking the 22k and running has its advantages- if you like the property and intend to continue living in the area- perhaps the better course of action may be to force a sale and whichever party is able to pony up the finances does so at open market rates?

NinjaTruncs

regardless of who buys who out, would either be liable for stamp duty on the half of the house they are buying?

jdivision

How much have you paid towards the mortgage so far?

DublinWriter

Duleek is a bit of a curate's egg regarding locations, so without knowing where in the village you are, it's hard to say.

On the face of it, it seems like an ok deal to me.

The_Conductor

NinjaTruncs wrote: »

regardless of who buys who out, would either be liable for stamp duty on the half of the house they are buying?

No.

superman24

jdivision wrote: »

How much have you paid towards the mortgage so far?

I`d say bout, of my half of weekly money 20k since we bought it 3yrs ago

The_Conductor

superman24 wrote: »

I`d say bout, of my half of weekly money 20k since we bought it 3yrs ago

I'll rephrase the original question- by how much has the mortgage been reduced sine you first bought it? (I.e. in early days the vast bulk of the repayments are interest and not capital repayments).

superman24

well she has agreed to pay me 25k plus i`m taking stuff that i bought as well. do any of yis think dats good offer? im thinkin yes tho.
she wants me to meet solicitor 2moro to draw up agreement on things. if i sign anythin cud she pull wool over me eyes n not pay??
thnx again guys n gals

ciano6

I've been thinking about your situation alright. At the very least, get copies of whatever you both sign tomorrow. Read everything carefully etc. I think you are probably doing well... Loosing the first-time buyers thingy is a bit of a shame alright. And as far as I know, Mortgage Interest Relief won't be the same second-time 'round.
If it's any consolation to you, I was in an almost identical situation about 4 years ago. And it all worked out for the best. I bought her out and she was able to buy another place with the €40,000(as far as I remember) she got.
Our key to success was that we were both very rational and fair and her mother was incredibly helpful (she worked in the solicitors office).
Don't drink the money when you get it!!!

DublinWriter

superman24 wrote: »

well she has agreed to pay me 25k plus i`m taking stuff that i bought as well. do any of yis think dats good offer?

Yes, take the money and run. Make a clean start of it.

The_Conductor

superman24 wrote: »

well she has agreed to pay me 25k plus i`m taking stuff that i bought as well. do any of yis think dats good offer? im thinkin yes tho.
she wants me to meet solicitor 2moro to draw up agreement on things. if i sign anythin cud she pull wool over me eyes n not pay??
thnx again guys n gals

Have your own solicitor have a quick look over it- remember that her solicitor is acting in her best interests, not necessarily yours. It does sound reasonable though.