Stuck in a 1 bedroom flat - is there anything we can do?

lightSwitch_3

Barnaby,

I think that is good advice but I don't understand the purpose of another 10K loan. Is it to pay off the mortgage? They can afford £650/month inc rental, bills, food. That will leave them £900 + per month to pay-off the loan, save and even go on a budget holiday. If Essexgirl works just 3.5 hours a day at minimum wage she can earn £400 a month that will definitely pay off the shortfall on their mortgage which will free up even more of their main salary.
They will be at an advantage later as property prices tumble.

They should sell quickly before the lose even more money on this flat.

barnaby-bear

lightSwitch wrote: »

Barnaby,

I think that is good advice but I don't understand the purpose of another 10K loan. Is it to pay off the mortgage? They can afford £650/month inc rental, bills, food. That will leave them £900 + per month to pay-off the loan, save and even go on a budget holiday. If Essexgirl works just 3.5 hours a day at minimum wage she can earn £400 a month that will definitely pay off the shortfall on their mortgage which will free up even more of their main salary.
They will be at an advantage later as property prices tumble.

They should sell quickly before the lose even more money on this flat.

I was suggesting a loan to pay off the difference between the amount needed to pay off the mortgage and the lower amount they could realistically get for the flat.

barnaby-bear

lightSwitch wrote: »

Barnaby,

I think that is good advice but I don't understand the purpose of another 10K loan. Is it to pay off the mortgage? They can afford £650/month inc rental, bills, food. That will leave them £900 + per month to pay-off the loan, save and even go on a budget holiday. If Essexgirl works just 3.5 hours a day at minimum wage she can earn £400 a month that will definitely pay off the shortfall on their mortgage which will free up even more of their main salary.
They will be at an advantage later as property prices tumble.

They should sell quickly before the lose even more money on this flat.

The mortgage company will usually want the mortgage paid up to sell - although they may consider converting the negative equity to an unsecured loan....

MigsyBigsy

robin_banks wrote: »

It is fair enough, there are people in a far worse predicament than yourselves.

You'd be even worse off under shared ownership, it's a con and be thankful you're not eligible for this scheme.

Hello,

whats the issue with shared ownership?

[Deleted User]

I just wanted to say good luck...I bought a 1 bed flat for myself and my daughter, when we split from my ex in 2004. DD was 3 then...and is 7 now. I'd planned to be able to move up the property chain when we got out of the tied period (last oct) - not great time for selling! maybe good time for buying!

At the moment we are still here. DD has the bedroom - she has far more stuff than me, and I needed to be able to put the toy clutter away in the evening for my own sanity! She now has a cabin bed, and I've made a reading den underneath it, with bookcases, cushions, soft toys and spot lights. We share the built in wardrobe and chest of drawers...and I have a high shelf that she knows is mine for all the other grown up girly stuff (make up etc). In the lounge I've worked hard to make every bit of furniture work for us...have a folding table, with chairs under it, built shelves in the alcoves, tv on the wall, and a futon for me, bedding goes in a blanket box that we use as a coffee table. I make sure the bed gets folded up every day...and that the lounge is just that - a lounge, most of the time. I've treated myself to a new mattress a couple of times since we've been here...no point making it miserable with lumpy sofa bed! The kitchen and bathroom also have to be multi-functional at times, but I've made the bathroom a really relaxing space - it can feel like the only private place I have to chill out sometimes! I've had to massively de-clutter (their stuff does get smaller, I promise...and every bit of ebaying helps) and it helps a lot that I'm working, so we're not here all day...but it can be done! Top tip: ask your friends / family who have bigger places if you can store some stuff (xmas decs/excess toys/out of season clothes/anything you don't use often) in their lofts...nearly everyone has some extra space somewhere, and it will instantly make you feel better to have less stuff around. Also useful if trying to sell! Just keep track of whats where....speaking from bitter experience of the missing xmas decs 2007!

Its much harder for you I know, with an OH to squeeze in aswell...but if you end up staying put for a little longer - good luck. Oh, and the other thing I've learnt..is not to worry about what others think. My daughters mates love coming for sleepovers, and indoor camping at our house! She isn't bothered by the lack of space yet...but at 28, I'd really love a bedroom of my own

patchwork_cat

Well done for posting your SOA. As others have said your water does seem high we are metered and have a 4 bed with 4 people and our payment is £50 and I am not frugal with water, much as I wish, I love my baths and we do a LOT of washing ( I wish we didn't!). My electricity similarly is £50 too - although we do have gas heating, is yours storage heaters?

I was surprised at the tax credits, I think you are just on the limit. WIth the wage your husband has actually been paid you should get £678 pa. SO if his boss doesn't back date his payrise get back onto the tax office and have a chat again. It isn't much, but every penny helps, doesn't it.

I think you really do have to get a little part time job. There are some to fit in with children, but I understand if you didn't want to work in the evenings . What about childminding or as someone else has had working in a nursery and then your LO could come too. Although a couple of evenings in a pub could make a financial difference and not impact greatly on your home life.

neas

*shakes head* regarding silly choice to jump onto ladder with a tiny place.

Congratulations on the child though, some things are more important in life even than being made bankrupt or stuck in a 1 bed flat for 20 years...

LittleCharlie

Essexgirl81 wrote: »

The flat went on the market January 2008 at the asking price of £129,000. It's since been reduced down to £125,000 and it's obviously going to have to come down a lot further now. The mortgage company currently need £114,000 to close the mortgage as we have an 'Early Repayment Charge' on our fixed term.

I think you will have problems selling at anywhere near this price. I'm in the market to buy, and I'll tell ya, you can get two bedroom, designer, contemporary, spacious apartments in Chelmsford town centre for £125k. That's closer to London, closer to a railway station, and bigger.

Sorry that's not the best news, but that's the way it goes.

clairet707

barnaby-bear wrote: »

To be honest (as someone churning out science graduates) your husband's salary is low for chemistry graduate, he'd get more without a PGCE working in a private school as a teacher and the salary escalation pretty good or most graduate management programs. If he 'loves' his job enough to sacrifice the salary and the flat was his idea then it might be in order for him to do 2-3 hours tutoring a week which could bring in £200+ after tax each month. If there aren't career prospects in his area.
Don't be put off by GSK laying off some people - some firms are hiring but in the right areas e.g. organic chemistry maybe laying off but catalysis or aerosol divisions are completely different markets for example.

Im only earning £23.5K as a chemistry postgrad and thats at GSK, so not sure where the jobs that pay more are...

Ive been looking round and I cant find many that pay more than that (Im currently a temp but am looking for perm work)

Hope Essexgirl finds / sorts something out soon, living like that must be hell :sad:

patchwork_cat

Clairet - agree, chemistry isn't a particularly well paid career. My brother is a chemistry graduate with a PGCE and although much older than OP's DH he is doing OK now, but has struggled and £23K is about the ball park for a fairly new graduate -assuming OP's DH is a similar age to herself.

My own DH is a graduate civil engineer and at 27 without chartered status in civils a lot of people are earning about the 23-25K mark ( higher in private sector in that field)