Shared Equity Mortgages

Leftie_2

Evening folks,

I have a question please that I was hoping someone maybe able to offer a little advise on.

My financial situation is as follows (I'll keep it brief!):

Mortgage balance = a little over 120k
House Value = £110k

Unsecured Debt = around £40k
Secured Debt = just short of £6k

I'm currently in the process of setting up a DMP with CCCS so my question is not relateed to my debts as such.

My question is:

If I sell my house for market value and then purchase a 50% share in another house (worth £65k) can I use the £45k to pay my neg equity, deposit on new house and a large chuck of my debt?

I'm just not sure if that's "allowed" and without being flippant, the list of my debts above will clearly show my track record with money isn't great so thought I'd ask the experts!

I'm trying to get myself out of debt and pay what I owe and wondered if this was a viable option.

Thanks in advance for anytime spent on my question.

Caz3121

when you sell your house the mortgage must be repaid so if you sell for £110k you need to add £10k to it (or come to an arrangement with the lender re repayment for the remaining mortgage) the same will be required for the £6k secured debt

In short if you sell you will need to find £16k just to pay your mortgage and secured debt so there will be nothing left for deposit or debt.

You would only be able to do this if you sell for over £126k - you would get the difference (eg sell for £140k you would get £14k to do what you wish with - although some will be taken with selling fees etc)

poppy10_2

Leftie wrote: »

can I use the £45k to pay my neg equity, deposit on new house and a large chuck of my debt?

What £45k?

You can't sell, you are deep in negative equity. Even if you could, you would have no money left over to buy a half a house or pay off any of your debts. I really don't understand your thinking