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  • How to sell your home in a recession

    There are a lot of people struggling to sell homes in this economic climate, and to pull it off there are a few things you should bear in mind. This article is designed to give you some basic advice which will put you on the right road to make your next move.

    Be realistic – You should realise that there is no way you will get the price for your home you might have done a few years ago. As you will know, most prices have fallen and so your asking price might have to as well, even if this means you get less for the home than you asked for it. Negative equity is a manageable situation and if you do find yourself in this position there are ways out.

    Neutralise – Try to remove some of your furniture as well as personal touches and decoration if you possibly can. Presentation is everything, and when someone is viewing a property, they want to be able to envisage themselves there. If you have lots of clutter and decoration suited to your taste, there is quite a large possibility that people will be put off. Try to put yourself in the shoes of the person looking around – what would you want to see?

    Think about other options – The traditional channels of selling your home, which includes estate agents, are not the be all and end all. Other routes for helping you sell your home include specialist home buyers such as The London Property Buyers, as well as putting the home up for auction. Another option for the more brave amongst you is the self-sell option. This involves promotion of the house you have to offer by yourself, including listing the property online and putting up your own for sale board. For the more business savvy this can be a highly effective and economical solution.

    Although these are only basic ideas for steps forward, we do hope they have helped you to take the next step. If you need some help pushing forward with your home sale, give Laurence a call or contact us here.

  • Re-mortgaging when you’re in Negative Equity

    It’s a problem that many of us find ourselves in, or could find ourselves in at some point in the future, so it’s best to gain as much knowledge and help so you can deal with it effectively. As a homeowner I’m sure you know, negative equity is when the value of your property is less than the price of your mortgage, and with the fragile state of the housing market, more people may find themselves in this situation.

    It is possible to remortgage when in negative equity, but in reality it’s hard. Most mortgage lenders will not be willing to offer you a loan when you are in negative equity, however, some lenders do offer special mortgages to people in negative equity, so be sure to check that out.

    The options available to you are:

    Overpay your mortgage – This is essentially coughing up the extra money you owe to pay off your mortgage. This is really only a viable option if you can afford it and the terms of your mortgage allow you to.

    Play the waiting game – House prices will continually rise then fall, so it is up to you to make an assumption on the housing market, and whether waiting will help resolve the issue, or push you further into negative equity. At this moment in time, it would probably be best to overpay your mortgage, as the forecast for the housing market is looking bleak.

    Save for a deposit – If you are able to save for a new deposit, then you will benefit from a better mortgage deal. Also, by the time you have saved up for the deposit, your house price may have recovered, bringing you out of negative equity.

    To help ease these problems and your fears, we at The London Property Buyers help many people whose properties are currently in negative equity by agreeing a price with them that is actually more than today’s market value.

  • Housing Market Continues to Decline

    UK Mortgage lending and approval numbers in the UK from the Bank of England has continued to stay at a low level throughout February, as the housing market continues to struggle from the current economic downturn.

    The trend follows on from that of January, with gross mortgage lending throughout February being estimated at around £9.5 billion, according to the Council of Mortgage Lenders (CML). Again forecasts for 2011 are not looking good, with the lenders group declaring that 2011 will be ‘challenging’ for the housing market.

    One of the reasons attributed to the poor figures is the fact that a shortage of homes has caused rents to rise for tenants as they rose by 0.2% in February, averaging £684 a month.

    Lending has remained weak because banks have been restricted on top of the fact that there has been little motivation for new borrowing among people who fear for their job security.

    These tough conditions have also had a negative effect on the rental market in February, with tenants falling behind on their rental payments, and the average price of rent rising, although there were regional variations throughout England and Wales.

  • Many will struggle to sell their house quickly as UK house prices fluctuate

    Government figures were published last week which indicated that UK house prices had fallen by 1.4% in January, when compared with the previous month.

    Many would expect such statistics to be published in a time when the housing market is witnessing a serious slump. However, these governmental figures also showed considerable regional variations in the monthly data which was collated by the Department for Communities and Local Government (DCLG).

    The biggest variations were between the East of England, where prices rose by 2.8% compared to a 3.6% fall in property values in Yorkshire and the Humber.

    The DCLG also reported that the typical value of a house had dropped over the past month, and that we should now expect to pay an average of £208,552 for the cost of a typical home in the UK. At the same time, this also meant that over the last year to January, house prices have increased by 0.5%.

    It is looking like a bleak year for the property market in 2011, with many forecasting that house prices will fall further as the year commences, especially in areas that are suffering from a high level of unemployment.