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Own property, no mortgage, low income - how to fund move?
MildredTalbot
Posts: 16 Forumite
Greetings all!
I'm in a position many would no doubt find very pleasant - I own a large mortgage-free property, somewhat decrepit and worn, worth on a recent valuation about 330K. I gave up working full time some while back and just do a couple of days - which pays standing bills. No chance of more hours with this employer. No debt and a few thou savings. No history of debt so no credit rating!
I now want to drastically downsize - there are many properties currently which I would be interested in at the 120 to 180 range.
How can I get my hands on 160K against the security of the larger house or other way? The banks and building societies won't touch me because I don't earn enough.
Ideally I'd like to get the other place, move the stuff I want to hang onto into that - clear the remainder at auction then put the empty large house on the market. I realise I'm going to have to pay many thousands in fees/charges/interest but I can't get any lenders to take me on at the moment.
It will take me at least a year to bring the large house to market - meanwhile I'm losing out on absolute (to me) dream properties.
Ideas anybody?
I'm in a position many would no doubt find very pleasant - I own a large mortgage-free property, somewhat decrepit and worn, worth on a recent valuation about 330K. I gave up working full time some while back and just do a couple of days - which pays standing bills. No chance of more hours with this employer. No debt and a few thou savings. No history of debt so no credit rating!
I now want to drastically downsize - there are many properties currently which I would be interested in at the 120 to 180 range.
How can I get my hands on 160K against the security of the larger house or other way? The banks and building societies won't touch me because I don't earn enough.
Ideally I'd like to get the other place, move the stuff I want to hang onto into that - clear the remainder at auction then put the empty large house on the market. I realise I'm going to have to pay many thousands in fees/charges/interest but I can't get any lenders to take me on at the moment.
It will take me at least a year to bring the large house to market - meanwhile I'm losing out on absolute (to me) dream properties.
Ideas anybody?
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Comments
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Don't forget the bank would need to loan you for the money to renovate the house too which could run into many thousands.
If you want to be rid of this house why not put it on the market now, ok you are going to have to accept less than if it was "done up" but there are still property developers/buyers out there who want a "project".
If it's worth £330 in its current condition you can downsize, pay cash for your new dream house and still have a nice nest egg on which to live.
Sounds ideal to me!0 -
Your better bet would be to rent a small place close by - and a lock up garage. Move into the rental, store stuff in the garage, then tackle the house for sale.
Then buy a house to live in.0 -
That's constructive - thanks. I've priced self-store faciities and it's not cheap. Hence lots of car-booting at the moment - when it's gone it's gone! I've frequently regretted that I didn't buy a lock-up garage 10 miles away from where I live a couple of years back for 6K - - that would be very handy right now. Trouble is - on my income I'd be hard pressed to fine the 4-600 monthly that small lettings locally fetch. All I have to play with really is the capital that's tied up in the house.PasturesNew wrote: »Your better bet would be to rent a small place close by - and a lock up garage. Move into the rental, store stuff in the garage, then tackle the house for sale.
Then buy a house to live in.
M0 -
Could you not sell it as a restoration project and price it accordingly? You could then save yourself the hassle of the restoration work.0
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The price I've been given is what could expect with the house *cleared* (or with absolute minimum habitation paraphenalia), with immediate vacant posession.Could you not sell it as a restoration project and price it accordingly? You could then save yourself the hassle of the restoration work.
Sadly - as outlined in the original post - I don't have the funds to do a restoration project and because of my credit history and income wouldn't get a loan to do it.
Also - I don't have the time to take on two restoration projects - one for the house I'm in, and the other for the property to which I wish to move. Tempus Fugit and all that!
Somehow, I need to make the most of the property opportunities that I find enticing right now - those too seem to be cash sale deals - some unmortgageable anyway.
The question remains - how do I free up the capital locked up in the property? If I had a mortgage on it it would be easy as I'd just "move" like everybody else does, transferring the debt.
But I can't get a mortgage ...
Catch 22.0 -
Ways to get capital out are to either sell the property or to get a mortgage on the property. The second you have ruled out as you can't get a mortgage. Anyone who gives you a loan will want interest paying which you can't afford. You can't afford to rent elsewhere which is cheaper than a mortgage anyway.MildredTalbot wrote: »The question remains - how do I free up the capital locked up in the property? If I had a mortgage on it it would be easy as I'd just "move" like everybody else does, transferring the debt.
But I can't get a mortgage ...
Why can't you just sell and buy in a chain in the normal way, then you will have the cash to buy the new place outright. Presumably this is ruled out by this mysterious year you need to bring the large house to market, but that isn't a renovation. If it's just clearing out and auctioning contents why can't you do that while you are living there? If you could speed it up to say six to nine months then that's a reasonable amount of time to find a buyer, build a chain and wait for a sale to go through.
As for the places you've seen, you like everyone else will miss them if you haven't a buyer for yours yet.0 -
Generally speaking, at the moment, any money you spend doing a house up is unlikely to get you back the money you put into it.
With a falling/stagnant market you're better off flogging it as it is.0 -
Why dont you auction the stuff of now from your house instead of storing it?
Then why dont you sell your house and move into the flat with the remainder of your items and the money from the sale of your 300,000 pound rundown property?
As for storage by me you can get a massive walk in container 80 pound a month.I am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
MildredTalbot wrote: »how do I free up the capital locked up in the property?
Catch 22.
Its not locked into the property,no mortgage, bottom line you aint got the money to do the house up wack the house and all your items in a auction, and spend what you make on your flat.
If you dont get enough for the house from the auction obviously its not worth as much as what you say, but thats what i would do, and it looks like you havent got any other choice really, apart from going down the traditional esate agent route.I am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
On a practical level your option sounds like to sell the house and move into rented...
Can you not start sorting out now?0
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