Woman’s £80,000 Home Now Worth Only £1
July 16, 2008 · Print This Article
If you’ve been complaining lately that your home lost some value in the recent real estate downturn, quit your bitchin’ - it could be a lot worse. British homeowner Jane Archer got the shock of her life this week: her 3-bedroom bungalow with uninterrupted sea views in the small Norfolk village of Happisburg was appraised at just £1 ($2). The property had previously been worth £80,000 ($157,000). The reason? Chronic coastal erosion.
From Money.co.uk:
When the Mum of three originally purchased the property for £20,000 ($39,000) in 1987 it sat over 400 metres from the striking coastline. Now just 60 meters of land separates her bungalow from the sea. This leaves her faced with the prospect that after 20 years of mortgage payments her family home is now worth less than a loaf of bread.
Ms Archer and her partner Chris Cutting had planned to use the property as collateral for a business loan and arranged the valuation accordingly. The couple’s intention was to expand their car repair business with the funds raised. However, to add insult to injury they have now lost out on an additional £60,000 ($118,000) by backing out of the deal.
Several homes and a long stretch of road have already been lost to sea after the wooden groynes that previously protected the 80ft high cliffs began to fail. A 12th century church and listed lighthouse are soon set to follow, along with the many other houses and businesses in the village, as Happisburg is left to slip into the sea.
Apparently, the British government stopped ‘coastal defense measures’ in smaller towns to focus on protecting ‘main resorts’ from the sea. There is no kind of compensation scheme in place to reimburse families like the Archers, who stand to lose everything they’ve worked for.
Link [Money.co.uk]
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so sad. I hope the people demand the government do something about this.
Heh. In America this house would be prime beachfront property and sell for seven figures.