Buy Freehold or Pay off Credit Card

Dual

Ok..heres the issue

We have about £11,000 in savings, but, we have a combined £18,000 credit card debt accumulated over a good few years between us.

I have about 10 years left on our mortgage but we havent purchased the freehold as yet which I reckon will cost about £8,000 (my neighbour bought hers last year a paid £6,000) so £8k is a rough estimate. I have about 40 years left on the leasehold.

My question is, do we pay £11,000 off the credit card debt or do we purchase the leasehold?

We are concious that each year we dont purchase the freehold it becomes more expensive.

Your opinions please.

Many thanks

Cat695

IMHO i would do freehold as its getting more expensive (if that is the case) as you would find it very difficult to sell a house with that remaining time left


then pour everything you can into your credit cards.....live a hard life for a few months

longers

Can't add to what the previous poster said. Buy the Freehold first. Every year there is less on the remainding term of the lease, your property will become less mortgagable i.e. most lenders will require at least 30 years left on a lease at the end of any new mortgage term (so mortgage term 25 years, minimum term remaining on lease 55 years). Obviously this is assuming you may want to sell at some stage. That said even if you don't, owning the Freehold will give you much more freedom with your property.

Good luck.