The Cladding Scandal – What You Need to Know.

‘The Cladding Scandal’ has affected millions of leaseholders across the UK since the Grenfell fire disaster in June 2017 exposed the issue of flammable cladding. Just 216 out of a possible 11,760 dangerous buildings have been fixed since the Grenfell tower inferno killed 72 in June 2017.

 

In an attempt to remedy the issue, the government announced funding to help leaseholders trapped in properties with Grenfell Tower-style cladding which needs to be replaced. However, the funding announcement leaves out leaseholders who are living in blocks under four storeys, meaning they may still be liable for the costs of safety work.

 

There’s additional complication where other remedial work is required such as examining fire gaps or removing wooden balconies.

 

Housing secretary Robert Lenrick made an announcement on February 12th, pledging an extra £3.5bn to the Building Safety Fund to remove dangerous cladding on blocks taller than 18m, and to provide loans for buildings with cladding issues between 11m and 18m or four and six storeys tall. Leaseholders will pay back the loans through their service charge but these will be capped at £50 per week.

Intervention

In an “exceptional intervention”, Jenrick said the government was taking a “safety-led approach” and aimed to “end the cladding scandal in a way that is fair and generous to leaseholders”.

 

Advertising worker Stephanie Lamb, 32, lives in an eight-storey block that has flammable cladding and is eligible for the Government’s five billion-pound fund. However, it also has other safety defects that are not covered, such as combustible insulation and missing fire-breaks. As a result, she is facing an anxious wait to find out if her block of flats will receive vital funds to replace unsafe cladding.

 

The total repair bill could be around £50,000 per flat. Miss Lamb, of Croydon, south London, said: ‘Leaseholders have been left in the dark and we can’t even prepare for how much this might cost us. I don’t know how they expect us to pay for the kinds of bills that are being talked about.’ She said her housing association, Clarion, was initially reluctant to apply for funding as it knew it would not cover non-cladding defects. Clarion said it was working to ensure repairs were ‘completed as quickly as possible’.

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Arsenal Of Problems

Stepanie Lamb’s story rings true to Rhiannon Creasey, who received an email which reduced her to tears and made her “sick to the stomach,” according to The Athletic. It warned of a potential £4.73 million bill to fix fire safety defects on the building she calls home, part of the Emirates Stadium development in north London.

 

Since then Creasey’s life has been “put on hold”, the lingering threat of being liable to pay up to £50,000 hanging over her for almost a year affecting her emotionally and financially.

 

Leaseholders at 1 and 3 Queensland Road and Highbury Square in London were told their flats needed remediation work. These companies are owned by Arsenal FC’s parent firm, and are the named freeholders of both sites – with Highbury Square being located on the club’s former ground and Queensland Road being next to Arsenal’s Emirates Stadium.

 

The Queensland complex – built by a housing trust on Arsenal land – has 110 flats, houses the club’s community hub and is used by players to access underground parking. Since the Grenfell disaster, however, it has failed safety checks. Ex-Labour leader Jeremy Corbyn, local MP and Arsenal fan, said: “The residents should not bear the costs here.” Arsenal said: “We take health and safety extremely seriously. We pay market rates and recharge to leaseholders. This is standard practice.”

 

Total costs to make the sites safe could surpass £10 million, according to The Athletic, with residents on Queensland Road told they could be forced to pay £50,000 per flat. At Highbury, residents could be liable to pay £36,000 each. This strikes many as absurd, not least Creasy, who stated that “it hurts. A club with all the riches in the world passing on soaring insurance”, in relation to her insurance rising from £310 to £673.

 

While politicians debate whether leasholders should be protected against repair costs as part of a Fire Safety Bill, pressure groups such as UK Cladding ActionGroup (UKCAG) continue to push for an end to what they describe as the ‘cladding scandal’.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

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Can I Switch Estate Agents During A Sale

An estate agent who is underperforming is one of the main reasons that property sales fall through. If you are viewing this article, it is likely that you need to switch your current estate agent with another. That sounds like it should be simple, but sellers often find switching agents more complex than they first thought. Here, we explore why you should switch, what makes a good one, the importance of contracts, as well as some benefits, disadvantages and more.

Real estate agents only sell about half the homes on their books. Agents not performing is pretty common, but most homeowners going into the selling process aren’t aware of this. They optimistically choose an agent based on recommendation or the fees they charge (or a bit of both).

Reasons To Switch Estate Agents

  • Very few offers on your home after a long time on the market.
  • You want a local agent who knows the area.
  • The fees your estate agent is charging are too high.
  • Your real estate agent is hard to get a hold of.

What Makes A Good Estate Agent?

According to MoveWise, a good estate agent “has a proven track record (preferably with homes like yours).” They are hard-working and determined – with a great list of prospective buyers on their books and they call them. If they’re relying on Rightmove, move on. They set up viewings with the right buyers – not just anyone who’s vaguely interested. Finally, a good estate agent pushes hard to close down offers.

How to Switch Estate Agents

The first thing you need to do is to talk to your estate agent. If the property isn’t selling, you need to ask why. In many cases, the price is too high, and that’s down to the estate agent valuation. There’s still a tendency to value properties a little too high on the basis that a higher valuation is more likely to win you over. Pay attention to when you pay commission and check what rights you have in the event your estate agent isn’t selling your property.

 

Contracts are important. You should look at your initial contract for the definition of “an introduction”, and then ask your current real estate agent for their understanding of the contract – do they have any future claim on commission? When talking to your new estate agent, be clear and honest with them about why you have switched and what you don’t want repeated. There is likely to be little in your contract to stop your first estate agent from continuing to advertise your home.

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Benefits Of Switching Estate Agents

If you switch to a competent real estate agent, you will be more likely to sell your property quickly, as they will better know the area, your ideal buyers, and so forth. They will have a better understanding of your circumstances and needs. If you need to sell by a certain date because of a job move or there’s a baby on the way, a new agent can speed up the process and minimise the fees you will have to pay. 

Disadvantages of Switching Estate Agents During A Sale

If you do decide to switch, you may still have to pay some charges to the real estate agent to cover costs, such as advertising, that the agent may have incurred. Furthermore, you may find that you will have to pay two commission fees. It may be that the agents can come to an agreement as to whether the commission should be split between them before the matter arises. However, in most cases this is rare.

Can You Use Multiple Estate Agents?

Appointing “multiple agents” is the big-bang, quick-sell option. Under a multiple agency agreement, you have three or more agents all acting for you at the same time. Basically, you are putting the house on the market with everyone. Only the agency who actually makes the sale gets the commission, and the others get nothing – so they are all competing with each other. This can make the sales process quite frenetic. Multiple agency agreements attract the highest fees – typically 2.5% or 3% +VAT.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Sell Your House Fast With Sell House Quick Now

What To Look Out For When Using a Cash House Buyer

In this article we will talk you through the things to keep your eye open for when you have decided to use a cash house buyer. You will want to find a legitimate firm that works in your interest, but there are many pitfalls and shady businesses that can stand in your way from selling your house for the right cash price.

But first, what is a cash house buyer?

Any individual or a company with the funds to pay for the entirety of your property is a cash buyer. Of course, the key benefit of a cash buyer is the fact that you can sell your house much more quickly than you would otherwise, however it is imperative that you work only with a professional, reliable, legitimate house buying company. Not all of these firms can be trusted – acting at the behest of other organisations and charging extra fees for irrelevant extras. Furthermore, some may even try to sell your information to third parties.

Luckily for you, Sell Your House Quick Now hides no secret expenses or fees (legal or otherwise), and guarantees that you will receive the full quoted price of your property.

What are the benefits of using a cash house buyer?

In short, no. Not all cash buyer companies are reliable, responsible, and honest like Sell Your House Quick Now. Some companies within the cash buyer sector do not follow any proper code of practice, instead resorting to underhand schemes to secure a purchase. There are a number of companies who run cash house buying scams – here we will outline some ways to spot an illegitimate cash property buyer.

  1. Accreditations.
    1. You should check whether the company is a registered member of NAPB, the National Association of Property Buyers.
    2. You should also check whether they are fully regulated members of the TPO scheme, The Property Ombudsman.
  2. Cash Funds.
    1. You should ask the cash buyer for evidence that they are purchasing the property with their own funds.
    2. As such, make sure you request evidence they will be directly purchasing the property – to be sure that there are no third parties involved.
  3. Market Value.
    1. If your cash buyer offers the market value on your property, some alarm bells should start ringing. There is no way that a genuine cash buying company will be able to offer 90-100% of the market value of your home, and the offer will drop considerably after you accept.
    2. If such an offer is made to you, enquire as to how the company makes money, and how likely it is that the offer will drop.
  4. Companies House.
    1. Look them up on Companies House. To do so, you’ll need their registered trading name – be sure to look out for how long they’ve been trading.
    2. Find the directors (under ‘People’) and research them. Use Google, LinkedIn, and any other sites that could be useful.
    3. Find their offices and ask ‘do they look like an authentic company?’
  5. Cash House Buyer Reviews.
    1. Check Google, Trustpilot reviews – how many negative ones are there, do the positive ones look real?
  6. Listing Properties Elsewhere.
    1. With those reviews, do any of them say they have spotted their property on a portal site, such as Rightmove?
    2. Search those portal sites. If the company is listed on there, then they aren’t a genuine buyer, and cannot guarantee you a sale.
    3. If your property is advertised on those portals, it means it will likely be marketed at less than market value – and will devalue your property.
  7. RICS Qualified Surveyors
    1. In order to sell a property, a survey must be completed in order to ensure that there are no defects. Any reputable cash buyer will cover the cost of this.
    2. Only RICS qualified surveyors should be used to assess the property. If this is not the case, your cash buyer is likely to be affiliated with an estate agent.
  8. Contract.
    1. You must read through your contract to check if the company can apply any unfair penalties or restrictions on your home.

Thankfully, you can rest assured that Sell Your House Quick Now provides a realistic, genuine offer from the outset, that they won’t rely on chains or third party lenders, and are members of NAPB and TPO scheme. They don’t list properties elsewhere, only use RICS qualified surveyors, and will offer a genuine offer from the start – which they will never climb down from. The reviews are solid, and the contract will never include unfair penalties or restrictions.

Another way to tell if a company is untrustworthy is if they are intentionally delaying the sale of your property. They can choose to string out the sale for months and months, until you have all future plans tied up, then suddenly drop the valuation in the hope that you have no option but to take their offer.

Sell Your House Quick Now will complete the sale in the time frame you want – with the quickest sale for cash possible in only 7 days.

Furthermore, some cash buyers are eager to lock you into ‘option’ agreements, which tie you to restrictive terms, placing this option on the Land Registry. As a result, you will not be able to use another service, even if you find a better offer.

These tactics rely on you not understanding the implications of this, and therefore you will be strong-armed into selling at a price you do not feel comfortable with.

Sell Your House Quick Now will never ask you to do this – there is a simple contract, everything is above board.

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Are all cash buyers to be trusted?

Selling to a cash home buying company is unequivocally the fastest way to sell a home on your own. There are no estate agents involved, meaning you are not charged anything to sell your house. You do not need to waste time advertising your property, you just send the company some information about you and your postcode, and they will contact you and handle the rest. How much do these companies charge? They do not charge you anything. It is the only way to 100% guarantee a sale. There are no agent fees to pay, your legal fees are often paid for, with offers realistically being 80% of the market value of your home.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Sell Your House Fast With Sell House Quick Now

Selling Your House Without an Agent

Do You Need An Agent To Sell A House?

You don’t need one to sell a house. Whilst it is likely to save you money to sell on your own, as estate agents cannot charge you anything, selling your house privately will cost you time. From advertising your property on your own to consulting with buyers and organising viewings, estate agents do the majority of the legwork in a property sale. Taking this on yourself is not an easy process, and you may be looking at the potential fees and thinking ‘how much?’

Why Sell Your House Without An Agent? Benefits of Selling Your House Without an Agent

Saves you money. If you’re thinking of selling privately, you may be asking how much fees would be. Well, hiring estate agents can be costly. Estate agents can charge 0.75% to 3% of selling price. To put that in real terms, if you are selling your house for £350,000, you will be paying estate agent fees of between £2,625 and £10,500.

Gives you more control. To sell a house as a private seller, you are 100% in control of the sale of your property. There is no reliance on third parties or any waiting around to see how much the agent will value your house at. You get to take things at your own pace, make your own decisions and play the game your way. Selling your house is a big thing to do, and passing that over to a stranger can be daunting. You want to make sure that everything is being done right and that you are aware, every step of the way, such as advertising your property fairly, controlling how much you want to spend on selling, and so forth. As a private seller, you lead your property to potential buyers.

Clarity of communication. By deciding to sell a house privately you are essentially cutting out the middle-man. All conversations are done between yourself, vendors and potential buyers. This way there is nothing lost in translation. Dealing directly with everyone involved gives you ultimate control, nothing is manipulated or reworded for any purpose.

How Can You Sell Privately?

To sell a house privately is an involved process, as estate agents would normally get this all done for you and charge you for it. When advertising your property, you must make sure it is clean, presentable and desirable. Make any necessary improvements to tired-looking aspects of your home, a lick of paint on doors and walls, clean the kitchen. Decide on an acceptable asking price, investigation is the buzzword here; look through websites such as Rightmove and Zoopla to discover what houses like yours are selling for in your area. Research shows that buyers in England are most likely to move between 3 and 6 miles away from their current homes, meaning you will be advertising your property locally. Furthermore, to sell a house privately, you will need to arrange viewings for interested buyers yourself. Speak to them and agree on a time that is convenient to you before they come to see your house. Once a price has been negotiated and agreed upon, you will have to hire a solicitor or conveyancer to finalise the deal.

What Is The Fastest Way To Sell A House Without An Agent?

Selling to a cash home buying company is unequivocally the fastest way to sell a home on your own. There are estate agents involved, meaning you are not charged anything to sell your house. You do not need to waste time advertising your property, you just send the company some information about you and your postcode, and they will contact you and handle the rest. How much do these companies charge? They do not charge you anything. It is the only way to 100% guarantee a sale. There are no agent fees to pay, your legal fees are often paid for, with offers realistically being 80% of the market value of your home.

Need Help Selling Your Home Fast?

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Useful Links: 

https://www.theadvisory.co.uk/sell-house-fast/ 

https://www.citizensadvice.org.uk/housing/moving-and-improving-your-home/selling-a-home/

https://www.rightmove.co.uk/

https://www.nationwide.co.uk/

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How to Stop a Repossession

Can I Stop My Repossession Order?

It can be worrisome when a property repossession order has been placed on your home – but it is possible to stop your home ending up at a repossessed house auction, even right up to the day of eviction. It is never too late to take action in the UK, as it’s not particularly profitable for your mortgage lender to resell your home. We will look at the house repossession process and some ways you can defer repossession, as well as asking, if your house is repossessed do you get any money back? On the other side, we will go further and ask what happens when you pay off your mortgage.

Ways Of Deferring a Repossession

Take me to your lender

In line with pre-action protocol, you are allowed to be negotiating with your lender, who has to give you the opportunity to talk with them outside of court. They should allow you a fair amount of time to sell your house, or to arrange another way to pay – even if your lender is already applying to the court for repossession, you should still try and avoid having your house be repossessed and ending up at repossession auctions.

To try and stop the property repossession of your house, negotiate with your lender to see if you can change the type of mortgage you have, extend it or reduce your payments. If you can prove that this will then allow you to keep up with repayments, lenders will consider all reasonable options. There is no harm in writing up a new mortgage proposal idea and negotiating with your lender. If this is successful, you may not have to worry about your home ending up listed as one of many repossessed houses for sale.

However, make sure you are negotiating with your lender and recording it in writing at this point. If you do go to court, you will then have the opportunity to explain your situation to a judge and will have evidence of your attempts to resolve the situation.

Pay your arrears

Even if you can not pay the arrears in full – or make a full mortgage repayment – if you can manage any amount, no matter how small, you should pay this as soon as possible. Paying even the smallest sum back shows that these repayments are your top priority and you fully intend to catch up with your payments and can lessen the likelihood of your house appearing at repossessed house auctions.

Get a lodger

Renting your home is a creative solution when faced with debt arrears. Consider taking on a lodger to live alongside you, or if you can, stay elsewhere and rent out your whole home. This income could cover a significant part (if not all) of your mortgage repayments.

Of course, you should only do this with the proper legal agreements in place. If you decide to go down this route, you should speak with a UK financial advisor or even a letting agent to ensure you’re not breaking any laws on contracts, and you must keep the wellbeing of your tenants at the forefront.

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Could I Make a Profit From a Repossession?

If you cannot keep up with your repayments and your financial situation isn’t expected to improve, selling your home quickly may be the only way to stop repossession or avoid voluntary house repossession. Although this is probably not ideal, it is better to sell your home yourself because you will probably get a higher price than your lender at an auction. Thus, you would not have to worry about your home ending up listed as one of many repossessed houses for sale.

One option to sell your house is through online or high street estate agents. If you are against the clock however this could be stressful as the average time to sell can be 6 months or more. Unless you are a buyer looking at how to buy a repossessed house, it is unlikely you will make a profit from a repossession.

You can sell to a UK cash buying company. All you will need is to agree on a price to sell your house, based on the value of your property. They often do the rest, including instructing and paying your legal fees. Providing you have equity in your home, money received from the sale of your property goes towards paying off your mortgage and mortgage arrears you have accrued. The remainder is cash in the bank for you.

How Long Does a Repossession Take?

To answer your question simply, a property repossession order will typically be a 60-day repossession order. If, however you do not contest the property repossession or don’t turn up to the hearing it is more likely to be a 30 day repossession order. However, you are not clear if you have even received a notice of intended court action or a court date. There is no hard, fast, rule which states when each lender will start repossession proceedings, they can be after just 1 missed payment – the average is between 2 and 3 missed payments. After this, the process of eviction will begin and the house heads toward being listed on house auctions, online auctions, and repossession auctions.

If you are worried and you cannot keep up with your repayments and your house is at risk from repossession, then it might be wise to consider selling your property for cash and moving to a more affordable house that doesn’t stretch your budget to this extreme.

What Are Your Legal Rights?

According to Gov.uk, you may be able to postpone or stop your home being repossessed. Check if you can get legal aid to help with your legal costs. You can get advice from UK Civil Legal Advice if you’re eligible, who may be able to help you out and make sure your house does not end up listed as one of many repossessed houses for sale.

Furthermore, they state your legal rights before court. Before a mortgage lender can repossess your home, they must:

  • tell you how much you owe
  • consider a request from you to change the way you pay your mortgage
  • respond to any offer of payment you make
  • give you reasons for turning down your offer of payment within 10 days
  • give you a reasonable amount of time to consider any proposal they make
  • give you 15 days’ written warning if they plan to start court action
  • tell you the date and time of a repossession hearing
  • let your council know within 5 days of getting notification of the date of the court hearing, in case you need to apply to the council as homeless

What Happens When a House is Repossessed?

What is the house repossession process? Properties are usually repossessed when an owner has defaulted on their mortgage and fallen into arrears (this is most often the start of the house repossession process) or the mortgage lender, who – as a result – applies to the courts for the issuing of a repossession order. As is typical with the house repossession process, the order is followed by an eviction order. That’s how most repossession houses enter the real estate market as houses for sale. It will likely find its way onto house auctions, online auctions, and repossession auctions.

The sale of the property goes towards paying off the previous owner’s debts, and the lender is legally obliged to get the best possible price. In order to recoup their investment as quickly as possible, lenders will often price the property below market value to encourage a sale.

Can I Get My Home Back After a Repossession?

Theoretically, you can get your home back after property repossession, but you would need to be able to cover all associated costs, including the mortgage and arrears first. It would be ideal if you could stop repossession by following the steps above instead.

Selling your house through a regulated property buyer allows you to sell your house without paying any estate agent or solicitor fees. It’s a fast solution that stops repossession efficiently, who aim to buy your property within three weeks for up to 85% of the market value in cash. The sale is confidential and doesn’t involve any hidden fees, meaning you can escape further financial duress. It is a more desirable situation for individuals than having your property end up at repossessed house auctions.

However, you need to be negotiating with your lender to check that you can do this, as it may not be possible to sell your house if it has negative equity, which means you owe more than it’s worth. The aim of selling your home is to pay what you owe, so if you have negative equity, this won’t be a good option for you.

If you’re considering selling your home to avoid repossession, you can sell your house quickly, and for a fair price.

Can I Get My Money Back After a Repossession?

If you’re pondering the question ‘if your house is repossessed do you get any money back?’ or perhaps you’re worried that you may lose it all, be aware that your debt problems don’t necessarily end after your house has been repossessed.

If your house is repossessed do you get any money back? The number one reason why you will not get any money back after your house has been repossessed is because your mortgage lender will sell your house at well under market value. Lenders are not in the property business, which means that all they want is to get their money back as fast as they can. Whether you’ll get any money back after your house has been repossessed depends on how much equity you have in your home at the time this happens. When asking if your house is repossessed do you get any money back, you should contact your lender to discuss your equity in the property. Even where you thought you had equity in your house, it is unlikely you will get any money back, due to the fees involved in repossession and your legal standing. Thus, the answer to ‘if your house is repossessed do you get any money back?’ is an unfortunate no.

Can I Be Repossessed Today?

Luckily, in these testing times, you do not have to worry about your home ending up listed as one of many repossessed houses for sale. The financial regulator has allowed borrowers to apply for a second mortgage payment holiday and extend its ban on home repossessions for a year. Those looking at how to buy a repossessed house may find properties thin on the ground this year.

In an update on Nov 2, 2020, the Financial Conduct Authority UK revealed further details of its plans to bolster support for mortgage borrowers in the UK-wide lockdowns. You do not have to worry about your home ending up listed as one of many repossessed houses for sale.

The regulator announced it would extend payment deferrals by up to six months and in yesterday’s statement confirmed borrowers who had not yet had a mortgage holiday would be eligible for two deferrals across this time frame. The FCA UK has also proposed borrowers who currently have a mortgage payment holiday will be eligible for another payment deferral of up to three months.

Mortgage payment holidays were introduced in March, and extended in June, as a way to support borrowers who were experiencing difficulties with making payments due to coronavirus restrictions.  Alongside mortgage payment holidays, the FCA UK has paused the house repossession process,  including guidance that firms should generally not enforce repossessions before 31st January 2021 except in exceptional circumstances, such as a customer requesting that proceedings continue. The FCA UK is now proposing to extend this guidance so that firms should not enforce repossessions before 1st April 2021, alongside their mortgage payment holiday proposal. If you are on the other side of this, you may ask how to buy a repossessed house…

Selling a House Before Mortgage Is Paid

Is it possible to be selling a house before the mortgage is paid? Yes, you can sell your house before a mortgage is paid. In fact, selling a house and relocating before paying a mortgage in full is relatively common. However, you won’t be able enjoy the entirety of proceeds coming from the sale; your remaining loan balance will need to be paid first. If you are thinking of selling a house before the mortgage is paid, the market is high enough and you need to make a swift sale for whatever reason, you should consider a quick house sale company. This lifts a weight off your shoulders if you are worried about mortgage payments, which can lead you to be selling your house before the mortgage is paid.

What Happens When You Pay Off Your Mortgage?

According to Experian, what happens when you pay off your mortgage is you’ll receive a number of documents from your lender that show your loan has been paid in full and that the bank no longer has a lien on your house. These papers are often called a mortgage release, or mortgage satisfaction.

You’ll likely receive a statement indicating that the loan’s balance has been paid in full and a canceled promissory note. This is all part of the official process of what happens when you pay off your mortgage. In many cases, your lender will file a certificate of satisfaction with your county government, which releases the home’s deed to you and indicates that you are now the sole owner. Ask your lender if they will do this for you. If they will, be aware that it can take a few weeks or months for it to be filed. Once your lender has told you they’ve filed the documents, contact your local records office to confirm that their records show your mortgage has been cancelled.

If your lender says they don’t file it for you, you can file it yourself—just check with your local county clerk or registrar to find out what the process involves with what happens when you pay off your mortgage.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Sell Your House Fast With Sell House Quick Now

How to Sell a HMO

In This Article

This article will look at the key aspects of putting up your HMO for sale, as well as looking at ground rents for sale. Whether you’re looking into HMO mortgages, HMO insurance, HMO sales documents, and HMO requirements. With regards to ground rents for sale, we will look at the ground rents income fund, and ask how to purchase ground rents. It covers buyers, sellers, freeholders, and leaseholders.

What defines a HMO?

An HMO is a House in Multiple Occupation. According to Shelter, Your home is probably a House in Multiple Occupation if 3 or more unrelated people live there as at least 2 separate households – for example, 3 single people with their own rooms, or 2 couples each sharing a room, or the 3 or more people living there share basic amenities, such as a kitchen or bathroom.

How to check if a house has a HMO licence

Before we get into asking about the ground rents income fund or how to purchase ground rents, we will start with the basics.

If you want to check if a house has an HMO license, you should be able to see it in communal areas. According to Foxtons, an HMO license must be clearly displayed within the communal areas along with the name, address and telephone number of the licensee or property manager of the premises. In addition, a copy of the current gas safety certificate must be on display.

If you haven’t yet turned your property into an HMO, it is essential you contact the freeholder to let them know.

Furthermore, before you decide to put up your HMO property for sale, if you are not sure whether the house needs to be given an HMO license, then contact your local borough council. More often than not the council’s website contains the relevant information.

To obtain an HMO license you need to ensure the property is suitable for HMO. It’s mostly about meeting the health and safety HMO requirements. HMO licences must be renewed before they expire (they usually last for 5 years, but can vary by local authority), and landlords have HMO requirements insofar as they need you to provide a license. They cost between £100 to £200 per year. Some HMO requirements may include the following; installing fire doors, supplying fire blankets and fire extinguishers, and installing specific types of door handles and locks (e.g. Thumb Turn Locks). The HMO requirements may vary from council to council.

HMO insurance information. As you would expect, the terms of your HMO insurance policy will be different to a single property. Make sure to register your property as an HMO property for sale, as if you don’t, you will jeopardise your HMO insurance cover. There is a chance you may have to examine the replacement cost of items in your property and include this in any potential HMO insurance quote.

Differences between selling a HMO and a regular property

Selling a property with an HMO license can be difficult, and very different to selling a regular property. When putting up an HMO for sale, it can be very difficult to accurately value, which we will expand upon below. Additionally, there are few people who would be willing buyers of HMOs. Those buying HMOs will predominantly be landlords and investors. As a result of this, it is hard to find these buyers. You will find that many estate agents will not have waiting buyers for HMOs.

What is the process of a HMO Sales transaction and how long does each process take?

HMO sales documents. When you put up an HMO for sale, the thing that gives potential house of multiple occupancy buyers the confidence to make an offer is the full package of HMO sales documents relating to the property, offering the buyer complete transparency. HMO sales documents include but are not limited to; HMO Floor Plan, Building Regulation Certificate, HMO Planning Documentation, Fire Alarm Certificate, HMO Licence Certificate. Before you decide to put up your HMO property for sale, make sure you have all the correct HMO sales documents.

Crucially, HMO buyers need to be able to raise the finance to buy your HMO or be cash buyers. Ideally, they should have cash waiting or an HMO mortgage in principle. Bear in mind that getting an HMO mortgage is usually more difficult and expensive than getting a standard residential mortgage.

With regard to how long the process of selling a house of multiple occupancy takes, it depends on the method you choose. If, for instance, you have chosen to sell your house of multiple occupancy at auction, it will take at least twenty-eight days for the sale to complete. This takes into account marketing and is only actionable if there are bids made on your house of multiple occupancy. However, after you have put up your HMO for sale, you can sell your HMO directly to a cash buyer, which is a quick and guaranteed way of cementing a sale. 

How to value an HMO property.

It can be tricky to value an HMO property for sale. In most cases, a House in Multiple Occupation is not valued as a property as a normal house would be. Typically, a House in Multiple Occupation is valued as a business. The value of an HMO is usually based on the income it generates not its bricks and mortar value.
There can be some exceptions to the normal rules of house of multiple occupancy valuation. For example, a small HMO property for sale that could also be used as a single home may be valued as a home instead.
When putting up your HMO for sale, it is important to value your House in Multiple Occupation accurately and aim to be realistic about your asking price, as incorrect valuations will cause problems with the sale later. Take advice from a valuer who is experienced in valuing . The valuer may need to view the HMO and see financial information about it to provide you with an accurate valuation.

A word on ground rents for sale.

What about buying ground rents for sale? If you’re wondering about what to do with the money you get from selling an HMO, and wondering how to purchase ground rents, we have you covered. A ground rent describes the full ownership of a portion of land where a second party, normally a leasehold property party, owns a long-leasehold property agreement on the said land. The leasehold property holder is typically the owner of any buildings or structures on the land and will be responsible for any rents relating to the building or buildings. For the buildings to remain on the land, the leasehold property owner pays an agreed ground rent to the freeholder. Therefore in simple terms, the freeholder receives a ground rent from the leasehold property owner who has buildings on that land. If you look into the ground rents income fund, they can assist you with any queries you may have.

Ground rents for sale are often there for freeholders (or perhaps head leasehold), interested in buildings which are arranged as flats, those flats having been sold off on long leases. You would receive a modest but very secure income stream. It would be a sensible question to ask how to purchase ground rents.

According to Investment Property, A ground rent investment is a good opportunity for certain property investors, with specific investment objectives and under the right circumstances. From an investment perspective, experience shows that it is possible to generate a return of around 5-10 per cent per annum on a ground rent. Thus, it is worth looking at ground rents for sale. Before anything, you should consult www.lease-advice.org on how to purchase ground rents.

You can consult the ground rents income fund, who “aim to deliver superior, long-term performance by investing in long-dated ground rents which have historically had little correlation to traditional property asset classes and have seen their value remain consistent regardless of the underlying state of the economy.” A link to the ground rents income fund is below.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Useful Links:

https://www.gov.uk/private-renting/houses-in-multiple-occupation

http://www.groundrentsincomefund.com/

www.lease-advice.org

https://www.londonpropertylicensing.co.uk/mandatory-hmo-licensing

Discover Sold House Prices in the UK: Property Values In Your Area

In This Article

When selling your house, you will want to make sure what valuation to put on your house, and this will lead you to checking the sold prices in and around your postcode.

How Much Are House Prices In Your Local Area?

A question you’ll ask yourself when selling: what are house prices in my area? Whether you’re a buyer, a seller looking to downsize for cash, put your property on the market, or just browsing, the internet provides a hassle-free way to find out anything you want about any property. Find out sold prices, estimates, averages, house value quickly, regardless of national location. From the widest area to discovering sold house prices on your street, we have you covered. Though we can’t guarantee you’ll sell your house for as much as your neighbour, we can nudge you towards a hassle-free process that may mean you can sell your house in 7 days.
Valuations between estate agents vary wildly, but several websites now give you access to the kind of detailed, specific data that was once the preserve of agents and mortgage lenders. The completion of a house sale is no longer shrouded in mystery for the layman, with sold property prices at their fingertips.
The main sites all take their data from the Land Registry and the Registers of Scotland, so the figures are similar for homebuyers to view. Newly-sold homes come up on these sites relatively quickly, normally appearing in searches three months after the deal is done, so house sale prices and therefore house value is reasonably up to date. You may be enviously looking around at houses sold in your area.
Many sold-house sites just list a location, a price and if it was a flat or house, not entirely useful for homebuyers looking around at houses sold in their area. The entry could refer to a derelict bedsit or an immaculate three-bedder with an Aga, walnut floors and landscaped garden – and there’s no mention of how the sale price compares to the asking price either. It is important to look around websites to get a full estimate of the sold house prices in your area before you put your house on the market. You will get a wonderful overview of sold house price trends.

What about with a cash offer?

If you’re a cash buyer, don’t be put off by the demanding high sold prices in your area. Likewise, if you’re wanting a quick sell to downsize as soon as possible, you may want a cash buy and take little notice of what’s on the market. Vendors will often accept an all-cash purchase offer over a higher-priced offer with a mortgage, highlighting the importance of cash in powering the market for property, especially those with a desire to sell quickly, chain-free. It’s not guaranteed, but it can mean you have a quicker sale, but may come out as a little cheaper than many of the sold house prices in your area.
With stretched affordability and historically low mortgage borrowing rates, it is unsurprising that mortgage sales volumes across the nation are 138% higher than cash sales volumes. But fresh research shows that buyers who do not take out a mortgage when purchasing property can typically expect to pay 9% less on average, suggesting that cash remains king in the buy-to-let market, irrespective of house value.
Sold property prices, house price data and sales volumes sourced from Land Registry Mortgage/Cash data reveals that across Great Britain, cash-based buyers pay less than those who purchase property with a mortgage, with the exception of those buying in London.
This method is ideal for those looking to eliminate chain-related problems. Alastair McKee, managing director of One77 Mortgages, rang the benefits of buying for cash: “Many home sellers will be drawn to a cash buyer as it can often mean a quicker, smoother selling process with less paperwork and no onward chain,” leading to a relatively simple purchase which can be hugely appealing to someone that needs a quick sale, irrespective of the houses sold in your area.
If you don’t care about sold house price trends, a service that offers a guaranteed quick cash offer for your home could be the way to go. A cash buying service is the fastest way to sell any condition of a house. A homeowner can obtain a cash offer almost immediately, and sell a house quickly. Once the property is valued and a cash offer made, the sale can be complete in as little as 7 days. Most house buying services buy all types of property in any condition or location, even in a slow market. You don’t need to ask what are house prices in my area. There are no valuation, legal fees or estate agency fees to pay, however it is important to check for reviews so that you are getting the best amount for your home. Cash buying services will be in acceptance of homes in any condition, ideal for hassle-free selling of your house. You may not want to rush to completion, but a cash buying service could be the way to go.

Browse Sold House Prices & Historical Property Value On Your Street

What are house prices in my area? To search house values by postcode, the Nationwide House Price Calculator is designed for people to put in their house’s price and when they bought it, to work out what it’s worth now, and can help you to find out sold house prices on your street. It will give you a great fast estimate and overview of the sold house prices in your area, but the location is always general. It has never been simpler to browse sold house price trends, there are no legal fees, and are available 7 days a week.
If you don’t know off the top of your head the most recent sold house prices on your street, it is useful to look up the most recent price for a similar property as yours, and find the sold house prices on your street and enter this. The tool is crude: it doesn’t take into account home improvements or even pinpoint exact areas, but it can give you an idea of how price fluctuations affect demand and value. House sale prices are at your fingertips like never before.
To find out sold house prices in your area, you can look on Rightmove. You can find house values by postcode by simply entering a postcode or street to see which properties have been sold and for what. You can narrow the search by property type to better the sale you want to see through to completion. If a property has been listed on the site, it often shows photos with floor plans. You’ll sometimes see a description with more details, such as if the bathroom’s been refitted. Plus you can see Street View images.
Zoopla also lets you search house values by postcode, but you can also match up sold prices with old property ads, including pics, asking prices, descriptions and floor plans, like a permanent estate agent’s window. Go to its sold prices section, search for an area and click on ‘property history’ next to a listing. The ads can be patchy, but even just a few archived reviews and records for sold house prices on your street are fascinating. This can give you a great insight into sold house prices in the UK.

Where Do Sold House Prices Come From?

As of November 2020, the average sold house price in the UK is £249,633, and the index stands at 130.93. Property prices have risen by 1.2% compared to the previous month, and risen by 7.6% compared to the previous year, suggesting sellers’ acceptance is more difficult, as they are more likely to demand higher prices, and homebuyers are more likely to pay them, for cash or not.
Sold house prices come from The UK House Price Index (HPI) uses local and national house sales data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland and is calculated by the Office for National Statistics. The index applies a statistical method, called a hedonic regression model, to the various sources of data on property price and attributes to produce estimates of the change in house prices each period.
This sold house prices index is published monthly, with Northern Ireland figures updated quarterly.
It is advised that low number of sales transactions in some local authorities can lead to volatility in the estimates at these levels. Geographies with low number of sales transactions should be analysed in the context of their longer-term trends rather than focusing on monthly movements. Visit the government’s guidance page to find out further detail about their data and its quality regarding sold house prices in the UK, it offers peace of mind for those buying and selling.
Historic data within this tool is derived. Under the UK HPI, data is available from 1995 for England and Wales, 2004 for Scotland and 2005 for Northern Ireland. A longer back-series of sold house prices has been derived by using the historic path of the Office for National Statistics HPI to construct a series back to 1968.

How Much Has Your House Previously Sold For?

There are many different ways you can find out sold house prices in the UK. Via the Government website, you can access HM Land Registry Open Data. If you want to downsize or otherwise, you can look through the dedicated Government site of sold house prices. You will need to fill in a form. The form will ask you to enter one or more search terms in order to locate the property you are looking for. You will need information about the property’s address to hand, and you can use the service to find properties that have sold in England and Wales. You can get Scottish house price information from Scotland’s land and information service (ScotLIS). You can get Northern Ireland house price information from Land and Property Services.
There are also other online property sites where you can see how much a property sold for, offering an almost complete overview.
Sites such as Zoopla, Rightmove and OnTheMarket.com can show you how much a property sold for or is estimated to sell for.
And if you want to check UK property price trends, this is also possible via the Government website through the UK House Price Index service.

Where To Get An Accurate House Valuation?

Several sites have free online tools for those buying and selling to help get a valuation, however their accuracy in determining the worth of sold house prices in the UK can leave you wanting. For more realistic valuations, use Land Registry sold prices combined with a survey. Get a free ‘valuation’, but only use it as a rough estimate, an estate agent will help you. You should take all factors into consideration, check reviews of the various sites, looking at sold house prices in your area will mean you can put your home up at a price attractive to buyers, increasing the chance of a quick sale.
The first to try is a Zoopla estimate, for a rough indication of what your home’s worth . Type in a postcode and select a home to get a bespoke valuation based on data such as previous sale prices, asking prices, property characteristics and market climate.
For a second opinion on how much value you can hope for, try Property Price Advice. You need to work through a few questions and it requires an email address, but the process is fast. You get an estimated value based on factors such as changes in local sold property prices. Use as many as possible to gain as complete a picture as possible, increasing your chance of receiving an offer of acceptance. There is no downside, no legal fees to obtain this information, you can browse house sale prices with freedom and fun!

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

Useful Links:
1.https://www.yopa.co.uk/homeowners-hub/review-online-valuation-tools/
2.http://www.zoopla.co.uk/home-values/
3,https://www.rightmove.co.uk/
4.http://www.propertypriceadvice.co.uk/
5.https://www.gov.uk/government/publications/about-the-uk-house-price-index/

How To Sell A House In A Slow Market

In This Article

So, you want to sell your house in a slow market. Are you looking to downsize to a more appropriate home? There are many things to consider when you want to sell your house, such as location, legal fees, chains, valuations, worth, and so on. These factors can all be exacerbated by selling your house in a slow market, restricting your chances of a hassle-free transition to your next home.

There has been an inevitable slowdown due to Coronavirus, and however quickly we might see a recovery, it may not be advisable to sell your house during lockdown, as data suggests that a fall in house prices is likely to result from the newest measures needed to protect sellers and buyers from COVID-19.

This article explores how to sell your house in a slow market, how a slow market affects house sales, the economy, how long it will last, and tips to sell within 7 days, such as being able to have your house purchased for cash. Hopefully we can save you the time you would have spent trawling reviews of the economic market to decide whether or not to sell your home.

Why Does A Slow Market Affect House Sales?

It is well known in real estate that housing markets are affected by the broader economy. When the economy is good, certain parts of the housing market usually see healthy growth. When economic times aren’t so good, those same parts don’t tend to do too well, and growth slows.

A slow market means that potential buyers are more quickly lured by low priced houses. This is critical in the house selling process as it ensures a large audience of responsive buyers. High prices mean a slow sell as many buyers restrict their search on price range. A slow market means that cash offers on more expensive and valuable homes are less likely, and people are less likely to be able to sell houses quickly.

When you are trying to sell your house in a slow market, there may be more likelihood of long-lasting property chains’. This begins with someone who is only buying, not selling, and ends with a vendor who is only selling their house, not buying. The ‘links’ in the chain are the people in between who need to both sell and buy a property. These can fail in a slow market as a buyer can’t get a mortgage loan to match the offer they made, or their own sale has fallen through, or unable to make an offer for cash, meaning there is no chance of your sale being in completion. 

How Does A Slow Market Affect House Prices?

A slowdown in the property market affects the value of houses, and can be brought on by many factors, such as additional tax on landlords, the impact of Coronavirus, heightened legal fees, new stamp duty, rise of interest rates, Brexit uncertainty, new holiday home tax, and much more. An estate agent giving a valuation of your property will take all of these factors into consideration when eventually trying to sell your house, ideally for cash.

Furthermore, prices will tend to be higher if fewer houses are built, reducing the supply of housing. The fewer houses that are built, the more people will need to compete by increasing the amount of money they are willing to spend to buy a house.

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How Does A Slow Property Market Affect The Economy?

Quite simply, house prices affect how much money people spend. The property market is closely linked to consumer spending. When house prices go down, homeowners risk that their house will be worth less than their outstanding mortgage. People are therefore more likely to cut down on spending and hold off from making any personal investments. This perpetuates a slowdown in the housing market. You are therefore less likely to sell your house quickly.

How Long Will A Slow Property Market Last?

It depends. With the advent of Covid-19, the slow property market will likely last until restrictions are eased once more, which is more likely due to the vaccine rollout, when growth will be more likely. There is more chance of an acceptance from buyers when the vaccine has been administered to most of the population.
However, in non-pandemic times, a slow property market is seasonal. If you are looking to sell and downsize, it is very unlikely that you will be able to sell your property in the 6 weeks before Christmas, in early January, or between July and August. Holiday seasons are not usually a time that people are buying houses. Buyers don’t want to purchase and move into a new property before Christmas or around the time of that family holiday in Spain. It also depends on location, as a slow property market is less likely to last in London, where it is desirable to live.

What Can You Do To Sell Your House In A Slow Market?

If you want to sell your house in completion in 7 days, it may require a little more effort and compromise to complete the transaction. By carefully considering your priorities and setting realistic expectations, you’ll be prepared for a successful house sale, and an acceptance at the right value will be most likely.

Cash Buying Service

If your principal concern is to sell your house quickly. A cash buying service is the fastest way to sell any condition of a house. A homeowner can obtain a cash offer almost immediately. Once the property is valued and a firm offer made, the sale can be complete in as little as 7 days. Most house buying services buy all types of property in any condition or location, even in a slow market. There are no valuation, legal fees or estate agency fees to pay, however it is important to check for reviews so that you are getting the best amount for your home. Cash buying services will take homes in any condition, ideal for hassle-free selling of your house in a slow market.

Pick a competent estate agent. For instance, you should ask your estate agent if they have Professional Indemnity Cover before you decide to put the selling of your home in their hands to secure the downsize of your dreams. As always, be sure to check reviews online of the best estate agents in your local area.

Set a realistic price for your property. Having the right valuation is important to make your home desirable to purchase, and ensures a hassle-free sale. Sell during the seasons when buyers are most likely to want your property and put a cash offer in at the right worth. Even in a slow market, the best time is when the weather is good, Spring and Summer. Putting your house on the market in November or December is pointless unless you are in an area of particularly high demand.

Finally, take your property off the market during the winter period and put it back up for sale in January. If your property appears to be ‘stuck’ on the market, you may attract lower offers and may think you have to be in acceptance of those offers. Properties that have been on the market for a year or longer may attract rather cheeky, low offers. Buyers are able to find out how long your property has been on the market for and may try to take advantage of the fact you have been struggling to sell.

 

According to Experian, what happens when you pay off your mortgage is you’ll receive a number of documents from your lender that show your loan has been paid in full and that the bank no longer has a lien on your house. These papers are often called a mortgage release, or mortgage satisfaction.

You’ll likely receive a statement indicating that the loan’s balance has been paid in full and a canceled promissory note. This is all part of the official process of what happens when you pay off your mortgage. In many cases, your lender will file a certificate of satisfaction with your county government, which releases the home’s deed to you and indicates that you are now the sole owner. Ask your lender if they will do this for you. If they will, be aware that it can take a few weeks or months for it to be filed. Once your lender has told you they’ve filed the documents, contact your local records office to confirm that their records show your mortgage has been cancelled.

If your lender says they don’t file it for you, you can file it yourself—just check with your local county clerk or registrar to find out what the process involves with what happens when you pay off your mortgage.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.  

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents. 

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How To Sell Your House When Separating Or Divorced

  • Though there are circumstances in which you may be forced to sell the house in a divorce, it can often be avoided.  
  • If you want to sell your family house due to divorce and your partner doesn’t, or the other way around, one partner can apply for a court order for an Action of Division and Sale. 
  • If one partner or the other wants to force the sale of a home when divorced, they have to obtain an Order for Sale from the court. 
  • Having a joint mortgage is common and fortunately there are several ways this can be dealt with in a split or divorce. 

In This Article

Selling your house is complicated enough at the best of times, but how do you deal with the question of selling when your relationship has ended and you face separation or divorce?
Divorce or separation often create a number of financial issues which normally have to be solved through legal processes. Dealing with the marital property in a split is one of the main problems. Usually, the family home is the most valuable asset involved in marital property, and it’s often complicated deciding how to deal with it. If you are selling a house due to a divorce, it’s important for both members of a couple to know your legal rights, so your first step should be to consult a lawyer.

Do You Have To Sell Your House When Divorced?

The first question is whether you have to sell the house in a divorce. If the house is subject to a mortgage, you need to contact your mortgage provider immediately to inform them of the split.

Whether you are paying the mortgage on the marital property, or your ex- is contributing to payments, the payments must still be made until the mortgage is paid off or you remove your name from it.

If your name isn’t on the deeds of the marital property, to protect your rights you should register your interest with a lawyer using a Matrimonial Home Rights Notice1.

Can You Be Forced To Sell Your House In A Divorce?

Though there are circumstances in which you may be forced to sell the house in a divorce, there may be ways to avoid this depending on your situation.

  • If there’s a requirement to get cash quickly, perhaps as part of a settlement agreement, it is possible that the house will have to be sold immediately
  • Alternatives include one party (the ‘in-spouse’) buying out the other’s interest in the property (the ‘out-spouse’), allowing them to retain the property. This is often desirable to maintain continuity of residence when children are involved.
  • In many cases neither party can afford to buy out the other, or they cannot agree on the value of the house. If this is the case one party can re-mortgage the property and use the funds to buy out the other partner.
  • If that’s not possible, the only way to resolve the issue is to sell the house for whatever it will reach on the open market. The net equity realised from the sale can then be divided.

If both parties are agreeable, it’s also possible for them both to retain ownership rights of the property until market conditions are ideal, or perhaps when the children are grown.

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Can You Sell A House If One Partner Refuses?

If you want to sell your family house due to divorce and your partner doesn’t, or the other way around, one partner can apply for a court order for an Action of Division and Sale under the Trusts of Land and Appointment of Trustees Act 19962 (laws differ in Scotland and Northern Ireland).

Bear in mind though that the other half of the couple has rights to apply for a court order for a division of the proceeds, or to buy the house at a fair market price, or for a price dictated by the court.

If one person is owner of the property and the other withholds permission to sell, the court can allow the sale only under particular circumstances, such as if one or other partner cannot sign an agreement for medical reasons, cannot be located, or if the court believes permission is being withheld unreasonably.

Who Can Sell Your House When Divorced?

If one partner or the other wants to force the sale of a home when divorced, they have to obtain an Order for Sale3 from the court. This requires the other partner to provide a good reason for being unwilling to sell. If none is provided the court will decide the value of the shares in the house for each partner.

Aspects to be taken into consideration will include:

  1. Whether the mortgage has been paid off, or
  2. Whether the property is in negative equity
  3. Whether there are children involved, and
  4. Whether both parties can afford to buy new homes.

It’s important to remember that even after a split, both partners may retain rights during the divorce proceedings. Any violation of these rights may result in a Court Order for Occupation4 being taken out, so you may have to leave the home even if you are the owner.

A lawyer’s advice would be that it is never a good idea to force a sale as there may be serious legal and financial consequences.

Who Gets The House In A Divorce When Children Are Involved?

There’s no hard and fast rule as to who gets the house in a divorce when children are involved. As in most divorces the family home is the most substantial asset, both parents can have a claim, and any emotional attachment to the property is not as important as the question of how their housing needs and those of the children can be met in the future.

Normally, negotiations regarding family property have to take into account other factors such as:

  • Income of both parties
  • Earning capacity of both parties
  • Maintenance of standard of living of both parties
  • Pension provision
  • Duration of the marriage
  • Age of each party
  • Marital conduct of each party
  • The main consideration, welfare of the children (if they have not reached the age of 18).

The court will always try to achieve a stable home life for the children, and it’s usually thought that this is easiest if they live in owned accommodation. But of course this depends on individual circumstances and whether this is affordable.

All the factors the court has to take into account are covered in Section 25 of the Matrimonial Causes Act 1973.5

Check Out Our “What Happens To House Prices In A Recession?” Guide.


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How Is a House Sale Divided In A Divorce?

The best way to decide how a house sale should be divided in a divorce is between the two partners, in the same way that other jointly owner marital property should be divided. Though it’s wise to consult a lawyer, if you can avoid going to court it will benefit both parties.

But if you can’t come to an agreement about selling the house, the court will have to decide how the assets are divided.

The basic principle will be a 50:50 split between the couple, unless requested otherwise, but of course this could be affected by many issues, most significantly whether there are any children involved. In some cases it may be that there is more than one property involved, and here the decision may be to divide the properties between the couple and balance out the difference with other assets.

In all cases you should seek the service of a solicitor to make sure that your agreements are legally sound.

What If You Have A Joint Mortgage?

Having a joint mortgage is common, but fortunately there are several ways this can be dealt with in a split.

You must talk to your mortgage lender before you make any decisions, but here are the basic options:

  • PAY OFF. If you are near the end of the mortgage payments, it might make sense for both partners to continue to pay until it’s paid off, and the house can be sold and the profits split.
  • Sell the house, pay off the mortgage, and split the remainder. If you are in negative equity, where the outstanding mortgage is more than the value of your home, you will have to share the debt.
  • BUY OUT. One partner can buy out the other’s share of the mortgage. You may need to borrow money to do this, in which case you will have to prove to the lender that you can afford to repay the entire mortgage. If necessary a guarantor mortgage can be used, where someone agrees to cover the repayment cost if you can’t.
  • One partner could transfer part of the share of the property to the other. In this case the smaller stakeholder would be entitled to a percentage of the value if the house is sold.
  • COURT ORDER. In England and Wales, a Mesher Order6 can be made by a family court, usually to protect the right of one partner to stay in the house and prevent it house being sold until children turn 18, or a Martin Order7 can be made to protect one partner’s right to stay in the house until that person chooses to move out, remarries or dies. This sort of order can normally only be made if the other partner does not immediately need money from the sale of the house.

In all cases you should take legal advice before coming to any decisions, as some of these options have implications which may cause financial problems in the future if not taken into account.

What If You Want To Sell Your House Quickly During A Divorce?

If you are looking to sell your house quickly having recently separated or divorced then why not get in touch with Sell House Quick Now. At Sell House Quick Now we promise to buy any home, no matter the condition or circumstances. We pay in cash and often complete house sales in as little as 7 days, enabling you to sell as quickly as possible. You can get in touch with us today by using our contact form or by calling us on 0207 459 4546 and a member of our helpful team will be happy to assist and guide you.

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents.

  1. “Notice of home rights: registration (HR1)”. https://www.gov.uk/government/publications/notice-of-home-rights-registration-hr1.Last accessed 23rd Jun 2020.
  2. “Trusts of Land and Appointment of Trustees Act 1996”. http://www.legislation.gov.uk/ukpga/1996/47/section/14.Last accessed 23rd Jun 2020.
  3. “Part 73 – Charging Orders, Stop Orders and Stop Notices”. https://www.justice.gov.uk/courts/procedure-rules/civil/rules/part73.Last accessed 23rd Jun 2020.
  4. “Form FL401: Ask the court to make a non-molestation order or an occupation order”. https://www.gov.uk/government/publications/form-fl401-application-for-a-non-molestation-order-occupation-order.Last accessed 23rd Jun 2020.
  5. “Matrimonial Causes Act 1973”. http://www.legislation.gov.uk/ukpga/1973/18/section/25. Last accessed 23rd Jun 2020.
  6. “What is a Mesher Order?”. https://www.lawble.co.uk/mesher-order/. Last accessed 23rd Jun 2020.
  7. “Martin Orders – How are they different from Mesher orders”. https://divorceformsonline.co.uk/martin-orders/.Last accessed 23rd Jun 2020.


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What Happens To House Prices In A Recession?

  • It’s natural for house prices to deteriorate during a recession, just look at what happened during the 2008 financial crisis or the early 1990s recession. 
  • It is expected that we will be hit by a recession before the end of 2020 or early next year due to the Coronavirus Pandemic.  
  • A good time to sell a property is before a recession, if you can anticipate when that will be.  
  • Experts predict that people will choose to continue renting, or even living at home, rather than buy during a recession, so what buyers there are will be able to push property prices down. 

In This Article

It’s natural for homeowners, potential sellers and buyers to ask what will happen to house prices in a recession. With the coronavirus pandemic apparently coming to an end, can we anticipate a housing market crash?
The effects of a recession on the housing market are fairly predictable, but should you sell your house before a recession? Will it be a deep recession, like the 2008 deep recession? What kind of recession will it be – a property recession, an economic recession, financial recession or business recession?
Unfortunately, it’s too early to say how house prices will be affected by a recession. The problem is a lack of new pricing information, without which it’s difficult to predict trends.

What Is A Recession?

One common question is how do we know when we are in a recession? Normally, we can expect the country’s economy to grow, with everyone getting slightly more wealthy as a result of the growth in the value of goods and services reflected in GDP (Gross Domestic Product).1

If that value falls, we start to enter recession, and when this carries on for several quarters it is known as a recession. A particularly bad or long-lasting recession is known as a depression.2

Recession normally leads to a fall in the number of jobs available, reduced pay and lower dividends for shareholders, and a reduction in tax revenue for the government, which then has to cut benefits, public services and public sector wages. All this has an inevitable knock-on effect on the housing market. So are we in a recession yet?

How Does A Recession Effect House Prices?

With most of the western world seeing falling GDP in the first quarter of 2020, and nothing but bad news for retail and manufacturing since, it’s pretty clear that we are already on our way to a recession, which will more than likely be confirmed before the end of the year.

The Office for National Statistics3 announced a fall in UK GDP of two percent from January to March, but 20.4 percent in April, the largest monthly contraction on record. This first full month in the coronavirus lockdown was of course followed by an equally locked down May, and it wasn’t until mid-June that restrictions on estate agents eased, and later in mid-June, non-essential shops were allowed to re-open. It will be some time before we can assess the effects of recession on the housing market, and longer still until it is likely to recover.

The government has tried to shore up the housing market by extending its mortgage holiday for a further three months, so anyone having trouble making their payments will not have to make a repayment until at least September. However, this is unlikely to be enough to have any impact on the inevitability of a recession.

Experts suggest that most of the factors are in place to lead to a market crash later in the year.

  • The number of jobs lost or furloughed suggests that many businesses will close permanently, and rising unemployment is bad for the property market
  • Buying a house is the biggest financial commitment most of us will ever make, and a lack of financial security will make people wary of commitment
  • Only historically low interest rates4 are preventing another deep recession or depression

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When Will The Next Recession Be?

Some economists believe that if the Bank of England continues to put money into the economy, the inevitable result will be a rise in inflation, and a resulting rise in interest rates to try to keep inflation at 2 percent. This will inevitably lead to a collapse in the housing market, because owners will have enough difficulty servicing their current debts without committing to further expenditure.

When the recession ended in the third quarter of 1991, it took five and a quarter years for house prices to recover and exceed the pre-peak high. If recession history teaches us anything, it is that house prices tend to fall when the economy shrinks as a result of falling output, and this has a knock-on effect for unemployment or higher borrowing costs. This may in turn lead to more people being forced to sell because they cannot service debts.

In general terms, the history of the last 50 years shows a positive trend in house prices, but there are some deep lows, and in the short term we can expect lower rates of nominal house price growth compared to the long result.

So if we can expect a dip in house prices towards the end of this year, now may be the best time to sell – we are unlikely to see a big increase in forced sellers in the near term, while mortgage interest rates are at their lowest level ever, and mortgage payment holidays and government support for business means we can’t expect any big movement in house prices just yet.

Checkout Our “How To Sell Your House When Separating Or Divorced” Guide.


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Is A Recession A Good Time To Sell A Property?

A recession isn’t a good time to sell a property – a good time to sell a property is before a recession, If you can anticipate when that will be.

Nobel Prize-winning economist Robert Shiller5 predicted a recession in 2020 even before the coronavirus pandemic, and argues that this will usher in a buyer’s market, not a seller’s.

Shiller predicts that people will choose to continue renting, or even living at home, rather than buy during a recession, so what buyers there are will be able to push property prices down.

American economist Daryl Fairweather says: “Homebuyers have more options and more negotiating power during a recession because there are more people out there trying to sell homes than there are people trying to buy homes when the economy is weak. That’s why dream homes are more likely to retain their value. During a recession, homebuyers won’t have to settle for a condo or a home with fewer bedrooms or only one story. So those less desirable homes will drop in value more than a single-family home with two stories and multiple bedrooms.”

How To Sell Your Property During A Recession

So, the housing market may look tough for sellers in the next recession, but if we look at recession history it will probably not be as deep of a recession as the 2008 recession.

We won’t really know the long-term results until the coronavirus lockdown is fully lifted, the economy is back in gear and we have some sense of the impact on pricing. It seems likely that while government measures continue to support business, price levels will probably remain as they were in March. Any downward pressure on prices could certainly trigger much reduced market activity.

But experts say that there is a large cushion of housing equity to absorb the impact of house price falls, perhaps five times higher than the £1,000 billion odd held in outstanding mortgages. The likelihood of negative equity6 is low while 15 percent deposits are common.

But, as peer-to-peer lending expert Stephen Moss says, “The current state of the market may bring cause for concern to many but at present, it sits in limbo and any impact of the current pandemic will be easily rectified once normality returns.

“However, the real worry is that any prolonged period of national lockdown could bring about a recession and it is at this point the market could begin to struggle.

“We know from market data on previous recessions that such an event will cause property prices to drop and with current market conditions and values most similar to that of the previous recession, this could mean a drop of ten per cent and upwards.

“Not only this, but those taking such a hit will be looking at a lengthy recovery time before their property regains its current value, a recovery that could stretch until 2025 or longer.

“That said, a decline in property values would be the preferable option when you consider that for tens of thousands of homeowners, the reality could be the repossession of their home.”

If you are wondering what your options are when it comes to selling your house quickly during a recession then why not get in touch with Sell House Quick Now. We guarantee to buy any home no matter the circumstances or condition of the property. Give us a call on 0207 459 4546 or use our contact form today to find out more about what options you have when selling a house quickly during a recession…

* With SellHouseQuickNow.co.uk, you can get your house valuation quickly, and complete on your house sale fast with no fees.

* Sell House Quick Now is the cheapest way to sell your property, avoiding costs such as agents’ fees, estate agents’ charges, solicitors’ fees, clearance costs, utility charges, mortgage payments and cosmetic repair costs.

* The best part is that selling to Sell House Quick Now is fast – within days, compared to six months or more selling through estate agents.

Sources

  1. “Gross Domestic Product (GDP)”. https://www.investopedia.com/terms/g/gdp.asp. Last accessed 23rd Jun 2020.
  2. “Depression (economics)”. https://en.wikipedia.org/wiki/Depression_(economics). Last accessed 23rd Jun 2020.
  3. “Gross Domestic Product (GDP)”. https://www.ons.gov.uk/economy/grossdomesticproductgdp. Last accessed 23rd Jun 2020.
  4. “Statistical Interactive Database – Official Bank Rate History”.https://www.bankofengland.co.uk/boeapps/iadb/Repo.asp.Last accessed 23rd Jun 2020.
  5. “Robert J. Shiller”. https://en.wikipedia.org/wiki/Robert_J._Shiller. Last accessed 23rd Jun 2020.

  6. “Negative equity: what it means and what you can do about it”. https://www.moneyadviceservice.org.uk/en/articles/negative-equity-what-it-means-and-what-you-can-do-about-it. Last accessed 23rd Jun 2020.

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