Apartment in Negative Equity and site

[marnif]

Hi all,
I bought an 2 bed apartment in 2007 valued at 276,000. I am not sure of its current value, but I would estimate between 95-100k. I currently owe approx 213,000.

I have a site kept for me at home, that I think I could get planning permission on again. I am in stable employment.

I am looking on advise on to whether -

1. I could sell the apartment and build a new home?
2. I should just sell the site and apartment and buy a home?

Any advise welcome.
Thanks.

 

[huskerdu]

A few issues and questions arise.

You cant sell the apartment unless you have the cash to clear the entire mortgage unless your bank have agreed to allow you to take a loan for the NE.

you cant sell the site, unless it has outline planning permission for anyone to build, not just you ( what are the rules of the local authority about who can build a once-off house in this area). a site without planning permission is a field.

If there is planning permission, what is the current valuation of the site ?
is it more or less than the NE ?

Finally, do you have any savings ?
How will you fund the deposit and costs of buying a house ?
Where do you want to buy a house and will you get a mortgage for a house in your chosen location ?

Why do you want to do this now, is it to get rid of the pressure of the NE, because you and your family need more living space or because you really want to move to where the site is ?

I know these are personal questions, but you need to know why you are doing this to help you make the best decisions ?

 

[marnif]

No, there is not currently but it did so I would say that I have a good chance of getting permission that again.

The site value with full planning permission in 2007 was 450,000. I would say the value would be around 200 - 250 with planning permission.
My savings are limited, I am a single parent working fulltime. I try and save a bit each month ... but not to the level that would allow me fund the deposit of a house.

I have been to the bank and the would fund me to build if I didn't have negative equity. I want to move closer to home - 3/4 bed property in an estate values 250,000

I am lucky enough to be able to pay for everything, but my inital plan was to stay for a while and then move back near home. I am worried now with my son starting secondary school and I know will probably be going to college.

I have 7-8k set aside (all money given to him since he was small) for his education. But I know that fees will be a lot more than they are now. So in general I feel I need to use what I am lucky to have to my best advantage.

Now, if I can't build or buy a new home should I just pay off my mortage at 1.25 tracker rate and save for a deposit for a new place?
Thanks