Monday, 15 November 2010

Taking my life back

I saw the estate agent manager today and discussed what to do about my stalled house sale.

This is not the house I presently live in (which I inherited from Mum and Dad), but my former home. I put a lot of money into buying it in 2007. There was an even larger private loan. It was supposed to be an investment. But it's turned sour. The UK property market collapsed soon after purchase, and ever since then I've tried to sell this house. I've tried each year. This is the third attempt.

The sale has stalled because my buyer's buyer (it's a chain of three) has done nothing. So my buyer has done nothing.

That's no good to me. The house has been costing me over £7,000 a year in running costs and loan repayments, a heavy burden when I have my inherited home to run too. It's gradually diminished my remaining capital. One year from now all my ready cash will be gone. But I dare not simply rent the place out to cover costs, because that won't touch the underlying debt. My monthly repayments have been keeping the interest in check, but a small upward twitch in rates would see the loan start to snowball. Just now this huge personal loan is my biggest worry, dominating my life.

I want my life back.

I want it back so much that I have come round to accepting that, if necessary, I will lose everything I put into that property, just to be free of it. That's a very heavy financial price: £202,000 in capital alone. Plus another £22,000 in running costs and loan repayments since purchase, which is just money down the drain in the circumstances. The loss of all that money will in theory severely limit what I might do in the years ahead. But if I gain freedom from worry, and full control over my life, it's a price worth paying. And, relieved of the costs of ownership, I could gradually rebuild my capital.

So I have now dropped the asking price to a level that should quickly attract a serious buyer. It's £170,000 less than we started at. But what the hell. I want to repay that personal loan without delay, and I want to have everything settled before I have my operation on 1 March. So it's pitched at a price that cash buyers looking for a bargain should find very hard to ignore.

Fingers crossed!

3 comments:

  1. Fingers crossed for you Lucy. Worry like this eats away at you even when you don't think about it. The property market seems to be a nightmare with everyone playing a cross between Monopoly and poker. Good luck.

    Caroline xxx

    ReplyDelete
  2. I hope it works, Lucy. I can certainly understand your desire to be out from under that burden. Then you can move forward unencumbered.

    ReplyDelete
  3. The housing market is horrible over here too. Thousands are defaulting on their mortgages and everyone has sat, and helplessly watched as their properties values plummeted. You are wise to cut your losses, and get whatever you can out of your property, rather than let it drag you down.

    I was so fortunate to be able to refinance my house ten years ago, and pay it off just a few months before the sh*t hit hit the fan in the real estate market here.

    Fortunately for you, your mom and dad left you a lovely house to live in.

    Melissa XX

    ReplyDelete

You must be registered with a proper blogging platform if you wish to make a comment. I have had to deny access to completely anonymous commentators.

This blog is public, and I expect comments from many sources and points of view. They will be welcome if sincere, well-expressed and add something worthwhile to the post. If not, they face removal.

Ideally I want to hear from bloggers, who, like myself, are knowable as real people and can be contacted. Anyone whose identity is questionable or impossible to verify may have their comments removed. Commercially-inspired comments will certainly be deleted - I do not allow free advertising.

Whoever you are, if you wish to make a private comment, rather than a public one, then do consider emailing me - see my Blogger Profile for the address.

Lucy Melford