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Mortgage Free creates big problems. DON'T DO IT!
Iwant2know
Posts: 2 Newbie
Dear Martin Lewis,
URGENT FINANCIAL ADVICE NEEDED,
We sold two homes in the UK, with the equity we bought a retirement flat in the UK for my mother and a house in France for ourselves. My mother has since died and the flat has been refurbed. We haven't been able to sell or rent it for over a year and a half due to the downturn and it's creating debts for us with the service charges, ground rent and council tax. We're still trying to rent it out but in the mean time it continues to cost us money ie over £3,000/year and the debts continue to mount.
We live and work in France but we want to raise a £30,000 secured mortgage against either of the properties for some debt consolidation and use the outstanding money for some other stuff.
We can't raise it in France because we already own the house and our business regime does not require you to have an accountant (the bank wants books!), we can't raise it against the flat because it's a retirement and we couldn't live in it because we're too young and we don't have an english income worth mentioning (accept we could let the flat for £650 a month). We've tried an expat mortgage - no problem, you can have a mortgage madam, but oh - you wouldn't be able to come back and live in it so you can't have one!
We have completely scuppered ourselves by putting all our money into the properties and becoming 'MORTGAGE FREE'.
Mortgage free doesn't necessarily bring happiness - you must always consider the things you might want or need later on (eg car or school fees)!
Keep some of your money in an ISA or PREMIUM BONDS - wish we had!
I am so depressed, I am desperate to urgently reorganize our finances and raise some capital.
CAN ANYONE GIVE ME ANY ASSISTANCE PLEASE I DONT KNOW WHERE TO TURN?
URGENT FINANCIAL ADVICE NEEDED,
We sold two homes in the UK, with the equity we bought a retirement flat in the UK for my mother and a house in France for ourselves. My mother has since died and the flat has been refurbed. We haven't been able to sell or rent it for over a year and a half due to the downturn and it's creating debts for us with the service charges, ground rent and council tax. We're still trying to rent it out but in the mean time it continues to cost us money ie over £3,000/year and the debts continue to mount.
We live and work in France but we want to raise a £30,000 secured mortgage against either of the properties for some debt consolidation and use the outstanding money for some other stuff.
We can't raise it in France because we already own the house and our business regime does not require you to have an accountant (the bank wants books!), we can't raise it against the flat because it's a retirement and we couldn't live in it because we're too young and we don't have an english income worth mentioning (accept we could let the flat for £650 a month). We've tried an expat mortgage - no problem, you can have a mortgage madam, but oh - you wouldn't be able to come back and live in it so you can't have one!
We have completely scuppered ourselves by putting all our money into the properties and becoming 'MORTGAGE FREE'.
Mortgage free doesn't necessarily bring happiness - you must always consider the things you might want or need later on (eg car or school fees)!
Keep some of your money in an ISA or PREMIUM BONDS - wish we had!
I am so depressed, I am desperate to urgently reorganize our finances and raise some capital.
CAN ANYONE GIVE ME ANY ASSISTANCE PLEASE I DONT KNOW WHERE TO TURN?
0
Comments
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I wish I still had a massive mortgage instead of the extra 1000 Pounds a month burning a hole in my pocket.0
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I just think of all those lucky people with huge mortgages over 30 years,and wish I could be one again.Space available for rent0
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Reduce the price/rent on the flat
Where is it, got a link?0 -
I'm hoping that if I want things later on, (in your example car or school fees), then what I used to pay monthly to the mortgage would cover those things. So I'm definitely heading for mortgage free days!
To be fair though, a lot of people on these boards do say that being mortgage free is only one part of retirement/future financial planning, along with pensions, savings etc.
£3000 debt per year created by the empty UK property wouldn't equal £30,000 after 18 months, so although it sounds a bit cheeky of me, can I suggest that your debts are caused by a problem other than being mortgage free? Not having a dig, but suggesting that you have a look at the larger picture of your spends to help you in the long term.0 -
everything rents at the right price! shimples0
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Try selling your UK properties at auction. No guarentee of a sale, however, but if there are interested buyers the process of liquidatiing your assets is generally quicker than going through an estate agent.
It all depends on the price you are are prepared to sell at.0 -
use a better letting agent, lower the price after all a bit of money is better than none!Mortgage free:beer:
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Lower the price of your mother's house, that will release the equity quicker0
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Peelerfart wrote: »I just think of all those lucky people with huge mortgages over 30 years,and wish I could be one again.
Oh I so wish we owed £250k again. How peacefully we slept in out beds then.0 -
Iwant2know wrote: »We have completely scuppered ourselves by putting all our money into the properties and becoming 'MORTGAGE FREE'.
Mortgage free doesn't necessarily bring happiness - you must always consider the things you might want or need later on (eg car or school fees)!
Keep some of your money in an ISA or PREMIUM BONDS - wish we had!
No one should pay off their mortgage if they don't have emergency savings - about 3 to 6 months worth is the suggested amount of savings on this board. The problem is not that you paid off your mortgage but that you did so before you had proper savings in place.
Most people on this board have savings.
Funny - we have had a spate of these posts in the last few days, haven't we?:cool:0
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