Can you sell a property at less then market value, if you want?

Pac2015

I have a one bed apartment in D24 in a great part of Tallaght beside all the amenities.
Outstanding mortgage is approx. 116K up until recently it was valued at around 100-110K which I was happy about as it meant I was in neg equity for only 6K but still qualified for the neg equity trade up mortgage with my current mortgage provider therefore needing 10% deposit as opposed to the 20% for non first time buyers however just recently it has gone up in value to between 120k-135 depending on the condition of the apartment and mine is in great condition.

My question is this....are you allowed as an owner to sell the property at whatever you want even if its below market value ? say I was offered 110K for it can I accept that offer and have 6K neg equity or will my bank want a valuation done on it before sale.
With the trade up option you sell and buy at the same time.
Thanks

L1011

The bank will want its own valuation for a negative equity deal of any kind (even when it doesn't cause them to lose money) and this would stop the option even being open.

A hypothetical buyer could have tax implications on the difference you basically gifted them too

Pac2015

L1011 wrote: »

The bank will want its own valuation for a negative equity deal of any kind (even when it doesn't cause them to lose money) and this would stop the option even being open.

A hypothetical buyer could have tax implications on the difference you basically gifted them too

Thanks yes I was thinking the valuation would be done.

thebiglad

If it is now worth up to €135 - €29k equity (which would be yours to keep) why the concern.

If you were happy to pay a 10% deposit on new house and walk away from current deal with nothing you should be overjoyed that you now have €20k which you can put towards the 20% deposit which is required without the trade up mortgage?

You also need a smaller mortgage for the new property and have the option to shop around.

Not getting it, sorry...

Michael D Not Higgins

thebiglad wrote: »

If it is now worth up to €135 - €29k equity (which would be yours to keep) why the concern.

If you were happy to pay a 10% deposit on new house and walk away from current deal with nothing you should be overjoyed that you now have €20k which you can put towards the 20% deposit which is required without the trade up mortgage?

You also need a smaller mortgage for the new property and have the option to shop around.

Not getting it, sorry...

Let's say he's looking to buy something for €250k, so he's got €25k saved. If it sells for 120k he only gets 4k equity, which leaves him 21,000 short of the deposit. Even if he got 19k equity, he's still 6k short.

On the other hand, 6k negative equity allows him to transfer it to the new property and get a mortgage with 10% deposit.

This is crazy talk however. Even if it was possible, it could be a couple of hundred euro a month in the difference between the mortgages and cost tens of thousands over the life of the new mortgage.

Pac2015

Michael D Not Higgins wrote: »

Let's say he's looking to buy something for €250k, so he's got €25k saved. If it sells for 120k he only gets 4k equity, which leaves him 21,000 short of the deposit. Even if he got 19k equity, he's still 6k short.

On the other hand, 6k negative equity allows him to transfer it to the new property and get a mortgage with 10% deposit.

This is crazy talk however. Even if it was possible, it could be a couple of hundred euro a month in the difference between the mortgages and cost tens of thousands over the life of the new mortgage.

I will explain....
We will have around 20K saved by next year when we want to buy a house in the region of 240-260K, as I am a non first time buyer I fall into the 20% bracket meaning we need around 50K deposit for a house. I went to see a broker in Feb of this year and at the time my apartment was in neg equity of just about 7-10K so I explained this all to him, the plan has always been to sell the apartment so the broker advised that we can do a trade up / switcher mortgage with my provider and take the neg equity with us and then would qualify for the 10% deposit therefore that was more in our reach.
Since Feb the apartments have gone up in value and of course I will get a valuation done and with owing 116K approx if it sold for 120-125K that is a profit of 10K which would go towards the deposit but we would still be 20K or more short for the 50K we will need.

Whatever way it works I am not really going to lose out but it had been suggested that if someone made an offer of ex. 110K even it was valued at 120K I could accept that offer and go forward with the neg equity trade up but its all so complicated.

I hope this is clearer to you all.