Now There’s Even a House Prices Crash Calculator

After years of talking up the property boom and the ‘you can’t lose with property’ articles in the media, the newspapers are now full of doom and gloom about the future of UK house prices.

The reality may be that a housing market depression may be caused by nothing more than the fact that we all start to believe that house prices will fall, we don’t put our houses on the market and we don’t try to move home.

This means that house prices will fall and those affected most will not be those who can ride out the storm and stay put in their homes, but those who are facing repossession.

This Is Money the website arm of the London Evening Standard have even published a price crash calculator so that if you aren’t scared enough already, you can truly frighten yourself into worrying about what your house will be worth if prices fall the same way they did in 1992!

The threat of negative equity however is now a very real one and millions of people will find it impossible to refinance their mortgages and will be forced onto their lenders’ top standard variable rates.

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Divorce & Repossession – How it Can Affect You

This week we had a call from a concerned mother in Nottinghamshire regarding her daughter.

Married with 2 children, the daughter’s husband had not only moved out of their home but had also stopped paying their mortgage payments for over three months, which triggered the inevitable repossession threat and legal letters from their mortgage lender.

The daughter, “J”, was extremely concerned because she believed that her husband had the right to sell the property to a cash property buyer without her consent.

Of course, where the house title on the Land Registry and the mortgage are both in joint names, both sides need to agree to a sale before it can take place.

This does bring its own problems as fighting over the matrimonial home can be as bad as the fight over the custody of children.

Divorce & Repossession - How it Can Affect You

We advised J to inform her lender of the situation, and that she wished to remain in the home with her children, and to ask the court to make a judgement to allow her to stay in the home and to force the husband to contribute to the mortgage payments.

Unfortunately, this is just one more area where although the law does provide for these conditions, the time scale or funds available to take legal action can be out of step with the lender’s actions to repossess the house. It’s important in these situations to document all your actions and attempts to sort out the problem so if it does end up in court, you can show that you have made a serious attempt to reach a resolution.

In all cases you should take legal advice and basic advice for divorce and the home can also be found on the UK Shelter website.

If you are facing similar circumstances then please feel free to contact us directly