Least worst option for getting out of London 1 bed leasehold
I’m looking for some advice on what is a pretty grim situation. I was a first time buyer in 2020, used HTB to buy a new build 1 bed leasehold in SE London in a nice development for £400k (40% HTB loan). Clearly that was a terrible decision but what’s done is done.
It’s now on the market for £315K. In common with the many other identical flats on the market in the development, we’re getting very little interest and are facing the prospect of losing a lot of money. The reality is we need to move, we have a baby on the way and a 1 bed isn’t going to be practical for much longer.
Obviously we can’t rent it out without paying off the HTB loan, which would be £126K assuming the flat is valued at £315K. I could pay off a little over half of this with savings but with the ever declining value of the flat this seems like it would be madness.
Being resigned to taking a large financial hit, does anyone have any advice on what the least most awful option would be in this situation?