When I bought 40% of my flat in 2005, I took out fixed rate mortgage for 2 years. The 2 years are almost up and I have to make a decision about what to do next
On 1 June 2007, the Government is introducing a new law in England and Wales which states that anyone selling a property must provide potential buyers with a set of documents providing important information about a property including energy efficiency, searches and evidence of title called a Home Information Pack. (HIP).The cost of a HIP is yet to be confirmed but figures mentioned in the press vary from £300 - £400
In order to escape paying the extra HIP costs, I would have to put the flat on the market before the 1June.
The flat was always a temporary thing- a way to get my foot on the property ladder. I determined from the start NOT to become attached to it. This wasn’t hard. It is tiny and has been built using inferior materials such as a cheap chipboard base and plaster board walls. The appliances that came with it such as the cooker, extractor fans, electric heaters and shower are dated and need replacing. Any changes I’ve made in the last couple of years, such as tiling the bathroom floor, have been very expensive.
So it would really be in my best interests to sell!
BUT am I in a position to do this?
The previous owner had owned the property for 3 years during which time it's value rose by 40% making him a profit of £22,000 when he sold it to me. I was hoping for something similar, but the property market has slowed down and value has only gone up by 5% in the last 2 years. Not worth selling for!
In addition to this, my sister who originally loaned me the 5% down payment when I first bought the property would be expecting me to repay her with interest and half the profits from the sale.
I have very little savings, which wouldn't even cover the solicitors fees - let alone other home selling related costs such as home staging, surveyors etc
It appears that I am stuck with the flat for a few more years!
I love my neighbourhood though! It’s quiet, clean, and safe. The nearest train station is only a 10 minute walk. After a busy day, it feels peaceful turning into my street which is lined with trees sporting pink and white blossoms! I love it!
Hopefully in another 2 years, property prices would have gone up and I'll be able to make a profit on the sale which I could then use as a deposit on the next property
I will also have saved up enough to move on.
Here's to hope!
