Pay off mortgage and start having fun!

Moneyfordreams

well done you.. at least your home is safe.. :T

No chance of anything back. No contact with them. This is why we are behind in our timescales.. my OH parents died, left them a business.. they struggled when recession hit, sold off equity... bank called in loans and OD, couldn't pay for products... OH used his CC then my CC, used our personal OD, our savings... made us liable for £120k... I'm a very proud person. I'm glad he's paid his debts... He was too scared to tell me , his confidence rock bottom.. The only thing he had was me and our girls.. so we have a big mortgage, lots of love, and now a house full of paying guests ..

newgirly

Blimey, I am so sorry to hear that but well done both of you for getting on with things and making the best you can of the situation, you will get there one day!

I felt a bit strange posting this the other day so didn't, but my dad was also at the meeting with the accountant and has offered to buy the building from the company. He mentioned it to me months ago and I said thanks but no as its hopefully (fingers massively crossed!) our pension in the future.

He would be buying it and renting it back to us at market rate (I assume) which is probably around £20-25 k ish. It's around the same as we are currently paying now. But we have a £35k loan with 4 years left £25k ish owing as some was overpaid. And we have £80k IO loan whch we want to try and get to a mortgage at some point.

He is trying to help as he says we would have a lump sum of £120k ish left which means we could easily afford all redundancies if we wanted to make them, and as he owned it a security as he wouldn't kick us out. He does already own with a partner many other residential and commercial buildings.

I am struggling to see the benefit in this really though as if we can keep going it a really good asset to have, I think the value is now more like £250-280 ish ( it was valued at £250 and we bought at £200k ) and any lump sum would very quickly get sucked up.

Obviously I would like to keep the building and selfishly for us if there is equity left which there should be some if we go under then we come out with something.

Am I missing something?

wantabetterlife

I agree with you ng...I would only sell the building if it was a last resort...otherwise it is the best assets you have

getmore4less

newgirly wrote: »

Everyone is already on short time /lay off which means they can request redundancy at a time anyway

They need to be on very(50%) reduced hours and it is possible to manage round that with rotations in the qualifying period.

How can using holidays reduce liability?......

Accrued untaken holiday is a payroll liability.

newgirly

Sorry yes you are right, I must have been thinking of those staff who were on full time lay off previously. As for the holidays i thought you meant in regards to redundancy pay calculations rather than accrued holiday.


The boys birthdays went well today, nice Barbie and good weather but I can't believe they are 16

AlexLK

Happy birthday to your sons.

Glad to hear you're operating as a limited company. I can't see any benefit in having your father buy the building, other than you'll (presumably) see it back one day. I suppose one option could be that he buys the property and you effectively pay him back at a lower amount over a longer period of time as a mortgage?

Do be weary of tangling business and family, though.

newgirly

Hi Alex, he would not be lending us the money to buy it, and would probably finance it through a mortgage. I can't see a benefit really either. If we can keep it, it's such a good asset to rent out in the future, new "green" small commercial property in London is impossible to find.

As for mixing business and family, we have my brother and dd plus me working for us But working for your dh can be extremely stressful :rotfl::rotfl:

newgirly

Just had a good look and juggle of money this morning and I noticed I have still listed £20 pm for dds oyster top up, as I am getting her a yearly season ticket I can cross that off :j

So it frees up £480 over the next two years, I am putting £300 to spending money for next years cruise, I will buy premium bonds with it as you never know we might win and also it's less likely to be borrowed

The rest I am buying the boys new trainers each and getting dh a few shirts and some shorts for work from primarni, nothing fancy!

Spending money for the cruise in sept still to be sorted, dh has a money jar at work with hopefully £100 odd in it and I have paid the parking already, need to find £100 ish still so will attempt a really frugal August

newgirly

Having a spectacularly lazy afternoon watching catch up tv and eating leftover crisps from the bbq and having a read through mr money moustaches post about early retirement.

His formula is based on withdrawing 4% of your investment fund per year, which should be based on 25x your yearly expenses.

Adding in the 2 years of paying the mortgage and living expenses after being mf of £1613 pm we could be retired when I am 57.5 and dh is 60.5 years old. That's living pretty frugally , but not including helping the kids out or any pensions we get or if we manage to rent out the factory.

A pointless exercise but interesting

AlexLK

newgirly wrote: »

Hi Alex, he would not be lending us the money to buy it, and would probably finance it through a mortgage. I can't see a benefit really either. If we can keep it, it's such a good asset to rent out in the future, new "green" small commercial property in London is impossible to find.

As for mixing business and family, we have my brother and dd plus me working for us But working for your dh can be extremely stressful :rotfl::rotfl:

Really cannot see the point, then. What's your father's motivation for buying it?

:rotfl: :eek: Re. mixing business with family. Mind, think positively it could be worse... at least you chose your husband.