A dilemma - what would you do???

kazmc · 8 January 2009 at 9:57PM

If this is in the wrong place I'm really sorry, please do move if necessary.....

My situation now - single mum to a 7 yearold little girl. Work fulltime. Living in not a very nice area (It was all I could afford after my partner left me), which is getting far far worse by the day, (joyriders, travellers, burnt out cars, kids with asbos living opposite - you get the picture) but I own the house I'm in with about £40-£45K equity (as the market stands now). My DD is in the top group for all subjects and I was advised that she would be easily capable of passing her year 2 sats when she was in year 1 so am very proud of her. Unfortunately the school has gone so far downhill in the last 18 months or so due to a new headmistress (teachers are currently getting a vote of no confidence together to try and get her out) All the bright kids are leaving in droves and being replaced by traveller children and even children that have been excluded from previous schools :eek: (how can that happen at the age of 7?!!!) so needless to say I would like to move her out. She has never read to her teacher this year and infact has only read to a helper once!
Anyway my mortgage is £700 per month.
I have been offered the opportunity to rent a property in a beautiful area about 30 minutes drive away (no traffic) and have an appointment to meet with the headmistress of a school nearby there on Monday.
I will have to rent my house out, estate agents coming round Saturday to value for rental market but he advised could get £1000 but realistically lets say £850-£900.
The rent on the other place is £660 so I will have some extra money per month which will make a huge difference to me.
BUT (isnt there always one!!) the property in the really nice area is very small with no garden and we will really be downgrading.
All the decent schools where I live now are quite a drive away.
I would be renting the property from the family I work for (firm of accountants) so I know its a secure rent and could last for years. I would actually be living opposite one of my bosses and his family who I am good friends with.
I'm 90% towards giving it a go for a better quality of life for us both but as nervous as hell.
Are there any major pitfalls (apart from my house not renting out for some reason) that I've missed??.
its such a huge step for us both and I'm struggling with having to make this decision on my own. All my friends are positive I make the move but I have to make sure I'm not making a huge mistake.
I've just read this back and it sounds like the ramblings of a mad woman!!! but I'll post anyway in the hope that someone with letting expertise will have some words of wisdom
Sorry for such a long post
thanks
Karen x

LLC · 8 January 2009 at 10:22PM

Hi Kazmc,

only you can make the final decision.
Reading between the lines, It sounds to me as if you already have ... it sounds as though your gut instinct is to give the new place a go. Gut instincts are often right ....
If I were you ( which Im not) I'd go for it. Your dd deserves the best chance of a good education, & you'd have friends near by ...
Good luck.

Lavendyr · 8 January 2009 at 10:26PM

I can totally understand your reasons for wanting the change, your daughter's education is really important and if I were in your position I would want the same things to happen. So please take these questions, not as criticism but as 'thought-provoking'. If you can answer them comfortably, that's a good start, although I am by no means an expert and I am sure others will be along with even better advice & suggestions!

Things you may want to think about:

- If you couldn't get a tenant in, how long could you afford to pay both mortgage and rent?
- If you did get a tenant in but they stopped paying rent, how long could you afford to cover the mortgage, and would you know how to evict them in the most painless (and legal) manner?
- Do you have a reputable letting agent to take on management of the property, or would you plan to do it yourself?
- If the latter, do you have a good understanding of the laws surrounding tenancies and landlord obligations? (and even if the former, you should still have a good understanding - as any letting agent will be just that, an agent, and you will ultimately be responsible for the tenancy)
- If something breaks (e.g. boiler, cooker) can you afford to fix it in a timely manner?
- Can you really stand to give up your home to someone else? (I know it sounds daft but really, do think about it - you will need to be able to detach yourself from it and accept that to all intents & purposes it will become someone elses' home, to treat as they like while they are there).

And on the other side - are you sure it is a good idea to rent from your employer, especially living so near? It may be a little too much 'togetherness' after a while! Could you bear your employer inspecting your home every six months/year? If your employer didn't repair something as promptly as you would like, would it affect your working relationship?

Just some thoughts. Hope they help. For more information I would suggest a read of https://www.landlordzone.co.uk and also https://www.shelter.org.uk as they have some good information about private tenancies, both from the landlord's and tenant's perspective.

poppy10_2 · 8 January 2009 at 10:51PM

I'd go for it.

space_rider · 8 January 2009 at 10:55PM

I live on a new estate but the local school isn`t very good. My 2 daughters go to schools out of the catchment area which are very good schools. It`s 5 miles away which isn`t too bad. Could you find your daughter a better school until you could sell yours. You could price it at a price where it will sell quickly for.

JonathanA · 8 January 2009 at 10:59PM

A tricky dliemma to have. My gut reaction is you should go for it - but:
- how confident are you that you could rent out your house quickly and therefore not have to pay your mortgage and rent
- will your lender allow you to rent your property out?
- don't forget to factor in costs such as gas safety checks etc
- some of the income you receive from rent will possibly be taxable (depending on your expenses and mortgage interest), so remember to make provision for that
- do you have / or know good tradespeople who can sort out issues at a reasonable price if they arise

How long have you worked for your employer? Is it a long term relationship with them? As others have said, you need to separate the work from the rental property and make sure one doesn't interfere with the other.

But the over-riding concern is clearly for you and your daughter. It sounds like your daughter may thrive at a different school, and would at that age make friends easily I'm sure, which in turn I think will make you happier.

In regard to no garden etc, is there a park, area of green space where your daughter can play outside nearby?

Good luck with your decision

Darth_Marty · 8 January 2009 at 11:20PM

Given the area you want to move from would it be fair to assume the people who would be comfortable renting it may not be brilliant tenants? Or potentially problematic then....just a thought....

kazmc · 8 January 2009 at 11:28PM

Lavendyr wrote: »

I can totally understand your reasons for wanting the change, your daughter's education is really important and if I were in your position I would want the same things to happen. So please take these questions, not as criticism but as 'thought-provoking'. If you can answer them comfortably, that's a good start, although I am by no means an expert and I am sure others will be along with even better advice & suggestions!

Things you may want to think about:

- If you couldn't get a tenant in, how long could you afford to pay both mortgage and rent? Maybe a month :eek: but see below...
- If you did get a tenant in but they stopped paying rent, how long could you afford to cover the mortgage, and would you know how to evict them in the most painless (and legal) manner? I don't but the guy I am renting from owns some other properties and he would help and also the Estate Agents of course
- Do you have a reputable letting agent to take on management of the property, or would you plan to do it yourself? I am going through Andrews Estate Agents and was thinking that I would pay the % management fees for peace of mind
- If the latter, do you have a good understanding of the laws surrounding tenancies and landlord obligations? (and even if the former, you should still have a good understanding - as any letting agent will be just that, an agent, and you will ultimately be responsible for the tenancy) I think that one is probably a chance I will have to take, but I am sure that if that ever became an issue Alan (the guy I'm renting off) would help all he could with his knowledge and I know that he would never see me out of home. And of course there is always the last option - move back into my own home and commute to the new school until I could sort something out!!

- If something breaks (e.g. boiler, cooker) can you afford to fix it in a timely manner? I will keep all the insurances I have going, ie British Gas full cover which is for central heating, electrics and water pipes etc so that should be ok
- Can you really stand to give up your home to someone else? (I know it sounds daft but really, do think about it - you will need to be able to detach yourself from it and accept that to all intents & purposes it will become someone elses' home, to treat as they like while they are there). No problem there, I've hated this house since the day I moved in, bought it in panic mode as I had to leave my previous home due to the split!!! I cried for days when I moved in!

And on the other side - are you sure it is a good idea to rent from your employer, especially living so near? It may be a little too much 'togetherness' after a while! Could you bear your employer inspecting your home every six months/year? If your employer didn't repair something as promptly as you would like, would it affect your working relationship? The guy who actually owns the property used to own the company I work for, its his son I work with now (along with the rest of the family!) I knew them before I started working for them nearly 6 years ago and they really are the loveliest kindest family I know. They are so supportive of me as they know my situation and they let me change my days, hours I work all the time to suit me and Maddi and have been very good to me. To be honest I have only considered this option because I would be renting from them because of the security. He owns some other property and I know from dealing with his tenants through work that he looks after his tenants and deals with things immediately.

Just some thoughts. Hope they help. For more information I would suggest a read of www.landlordzone.co.uk and also www.shelter.org.uk as they have some good information about private tenancies, both from the landlord's and tenant's perspective.

I REALLY CANT THANK YOU ALL ENOUGH..
As I'm sitting here typing my brain is whirring with options, possibilites and what-ifs which is exactly what I needed. An un-biased opinion.
and to the person who asked re a nearby park.... open rolling fields....:D The road is a little cul-de-sac with lots of very posh houses and 4 tiny houses nestling in the middle so I would be happy for Maddi to play out the front so i'm really not bothered about not having a garden and I hate gardening and there is a gardener to do all the front included in the price!!:j
I've made my mind up havent I????!!!!
I'm going to view the house on Sunday with Maddi - I have seen it before when my ex-bosses daughter lived there but cant remember it exactly and then viewing the school on Monday (indoor heated swimming pool

) so I'll let you all know my decision probably Monday night!!!!

Do you all think I've thought things/problems through enough? I do have a tendancy to dive in headfirst!!

JonathanA · 8 January 2009 at 11:34PM

Sometimes you get a gut feeling that something is right and need to follow your heart. Who knows whether it is the right decision? None of us knows what is around the corner, but if you don't seize opportunities when you get the chance, you may spend time afterwards regretting it or thinking 'if only...' or 'what if..'

You have asked if there is anything you have missed and had a few replies with other thoughts. No-one seems to have come back and said, don't do it because xyz will create problems, but even if they did, the final decision is still yours!

Ulitmately, only you know what is right for you and your daughter - can you find out from anyone whose kids go to the school you're looking at what it is like before you visit? That may help with your decision. Is your daughter going to look at the school too? She may also make up your mind finally for you!

Good luck.

Geenie · 8 January 2009 at 11:36PM

The schooling your child receives is priceless and worth any amount of down sizing. It can have an impact on her confidence, success long term and choices of life style. I know this isn't set in stone, as there are always exceptions to the rule, but in general, a happy, achieving school, produces end results to match in the main from my experience.

If the figures stack up I would consider going for it, and look to review in a few years time when markets have changed, and you could sell your old place and buy in the new area you are renting. As others have said, the very best of luck to you.

silvercar · 8 January 2009 at 11:36PM

Before you do anything about the house check that you DEFINITELY have a place at the school. If you move and then her year group is full, there is no obligation on the school to increase the class size just for you. There may even be a waiting list, and you may not be top of it.