If you are worried you are in negative equity, you may find this free property negative equity calculator useful. Being in negative equity means you could be trapped in your home and not be able to sell, as you may not have the funds to clear off the remaining debt secured on your home.
A handy property negative equity calculator makes it easier to calculate by how much you’re in negative equity if you sell your home, even if what you owe on your mortgage isn’t more than what your home is worth. The calculator takes account of selling costs and the balance to payoff your mortgage.
How do you find out if a house has negative equity?
To find out if a house has negative equity (being financially underwater) you need to get an up-to-date valuation of your home as well as getting a final settlement figure for your mortgage. You also need to take account of selling costs to give a true amount by which you are financially underwater.
With that said, you can use our “Property Negative Equity Calculator” to work out by how much you are financially underwater.
Please note: This calculator is offered for the purpose of estimation only. The costs included in the calculator may not include all costs associated with selling your property, so there are no guarantees that all possible costs have been included. This property calculator does not replace professional estimates.
What happens if your property goes into negative equity?
If your property goes into negative equity it means your property is worth less than what’s left to pay your mortgage off in full, plus what it costs to sell it. You’ll struggle to sell your home if you don’t have enough equity to repay the mortgage along with paying estate agent and legal fees.
Can you sell a house with negative equity?
It is possible to sell a house with negative equity, but you’ll need to pay the the balance of your mortgage not covered by the proceeds from selling your home, after deducting selling costs. Selling costs included estate agent fees, solicitor fees, plus costs to making your property saleable.
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Free Property Negative Equity Calculator: Are You Trapped In Your Home?
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Article written by Russell Bowyer who has been investing in property since purchasing his first commercial property in the 1990's for his own Chartered Accountancy business. But his first property investment project was to turn an old dilapidated restaurant into a large 5-bed home, which he purchased for £117,500 and sold for £450,000 (to see an "after" photo of the house before it was sold see here: About). Russell owns a number of investment properties, which includes houses, flats and HMO's. More recently he has turned his creative side to investing in property using lease options. His largest lease option deal to date was to acquire 12 properties worth over £2 million for just £12, which means he paid just £1 to acquire each property!
