selling flat to clear debts?

taylor72 · 4 August 2014 at 3:18PM

Over the last 15 years i have run up a lot of debt , my own fault but not helped by my bipolar and when manic i tended to spend stupid amounts of money on absolute rubbish - i have managed to stop this trend the last few years but am still paying for previous mistakes. My father in law owns a bungalow which he currently rents out and he is leaving it to my husband and I when he and my mum in law pass away. Financially speaking, if i were to sell our flat (looking at what they are currently selling for in our area) i would be able to clear all debts and have a little nest egg (after paying estate agents,solicitors etc) - we would then rent the bungalow as it would one day be ours anyway. I used the budget tool on here and we would be better off by around £400 per month so would start adding to the nest egg but also having a few treats now and then - i am looking for peoples thoughts on this, good idea, bad idea etc

Tixy · 4 August 2014 at 3:25PM

Personally I would base the decision solely on whether to sell up and rent compared to continuing to own your own house.

I wouldn't 'bank' on the bungalow definitely being inherited in the future as very many things could change that mean that won't happen.

If you continue to live in your existing property how long do you expect it to take you to clear your debts? Is the £400 better off all down to not having to pay debts anymore? how does the rent compare to your mortgage?

taylor72 · 4 August 2014 at 3:42PM

i grant that the inheritance can never be seen as a given - but the property my mother and father in law live in is mortgage free and currently valued at £750000 so i think they are unlikely to loose all that by going into a care home and having it eat into their money - thats what they figure as well, also they have other properties that could be sold to release money for them if needed so financially they are pretty ok. the debts should be cleared 6 years from now and we would probably be financially better off staying in the flat at that point- but the area i live in is not pleasant - so much noise and arguing and bickering - the bungalow we would move to is in a quiet area near to the sea and i feel it would really benefit my mental health - just trying to weigh the options up without making a stupid decision

jodles16 · 4 August 2014 at 8:36PM

Hello!

Im by no means an expert or even well versed in this kind of thing, but I know one of my friends, parents have signed over their home to their son (my friend) but signed a contract they they can live there til Xtime.... dont know how this would work in your case but could be a way of guaranteeing the inheritance?

Sounds like a move to the bungalow could be positive all round, would you consider renting you flat out and renting the bungalow therefore keeping the property?

Sorry if these are pants ideas!

Good luck!

selling flat to clear debts?

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