Need to sell house to get out of this mess - advice sought!!!

Barebear

Hi all

I am in a bit of a predicament at the moment. I've recently split up and been left with the house and the debt. Everything is mine. But the house is in a bad state of repair and needs around £2000 spent on it to get it sellable. I am paying over £500 per month on unsecured debt at the moment with a few balances sitting relatively low. I am in around £9000 of debt at the moment with virtually no extra money every month. (I have £140 in my account to feed me and the car until the end of the month)

Now to add to my misery, I need to borrow another £2000 on top of that due to my roof needing replaced.

So I need to borrow £4000 to get out of this house which I really hate living in now due to the split, but no bank will look at me due to past bad credit history. The Halifax want £108 for a survey up front before they will let me apply for additional borrowing on my mortgage which I don't have, but worst of all I owe a friend £120 which I don't have! I'm mortified.

All I want to do is get out of this house and start with a clean slate - no debt and in a new place - but there is no chance of the house selling in it's current state, no chance of me being able to borrow more and it seems no light at the end of this very dark tunnel.

Does anybody have any advice? It would be much appreciated.

Mrs_Jojo

Well I'm not an expert... but step one will be to post a SOA so clever people can give advice on your spending, but the thing that occurs to me is to ask if you have spoken to an estate agent about the house? Priced with the understanding that there is work to be done, there is no reason why it wouldn't sell.

Barebear

Thanks

I spoke to an estate agent back in December who advised me to give it a few months and get the work done. The valuation was done on the completed property, no as it was in December. I have worked quite hard and done anything I could myself, but it's the larger bits and bobs that need a tradesman to complete. I'm thinking I'll just take your advice and bite the bullet and get it on the market. I will still have a smell amount of equity if I put it on at a reduced price. The roof worries me though. It's flat and needing replaced. Kind of narrows the market.

I'm updating my SOA.

Thanks

cat10_2

An estage agent would be able to advise on the best way to market your property.

Selling at auction might be the answer. A cash buyer wouldn't have to get a mortgage approved so the roof may not be much of an issue to them.

Barebear

SOA






I've been using my spreadsheet for two years now and it is working well, I have reduced the debt by a good amount.

DarkConvict

Put in your monthly payments + surplus as your income, and each debts into this snowballing calculator. - http://www.whatsthecost.com/snowball.aspx

satchmo1

Hi BB

Sorry can't advise on house repair or sale, but looking at your SOA there are a couple of things you might consider.

1. Does the council tax on your spreadsheet show the reduced amount for a single occupancy? Also, have you checked your banding against your neighbours? We got ours reduced from E to D when we saw that our neighbours opposite was D through the on-line checking (you'll find a link somewhere on MSE site), and a nice rebate for the last 6 years.
2. Get rid of gym (unless tied into contract, but worth pleading poverty and see if they will forego notice period). Walk anywhere that's less than a mile away, if you have a garden some vigorous digging is better than a work-out indoors, clean the windows outside and in - great for the bingo-wings, and the kerb-appeal when you come to sell the house.
3. Get rid of Sky.
4. Can you reduce your mobile phone package or cancel and go pay as you go?
5. Pet insurance, get rid unless your pet is in the middle of treatment or is v.old.
6. GAS! OMG £90 a month - go search for a lower tariff. You may be able to get a combined gas/electricity supply for the price of the gas.
7. Groceries looks ok, but it may be possible to halve that for a while and live off store cupboard stuff (rather than "oh what do I fancy tonight"). It will also mean less to pack when you do come to move! Does that include packed lunches for work? Take a flask of tea or coffee if you have to buy your own at work.

Hope some of that helps. Best of luck with the debt-busting and house-move.
Satchmo

pennypusher

Here are a few suggestions to help you reduce your outgoings. Make sure your Council tax is over 12 months not 10 if your council will allow it and make sure you get your discount now you are a single adult in the house. Can you cut down your petrol costs, share with a friend or make fewer trips in your car?

Electricity and Gas are really high, make sure your don't leave anything on standby and turn the heating and hot water down a notch or several. Shower instead of baths.

Reduce your mobile phone bill. Go payg or telll your contract provider you can't afford it and ask for your tariff to be reduced. Get rid of Sky and get a box and go freeview.

Shouldn't your tv licence be £12 per month?

Finally you should be able to feed yourself easily for £80 per month - some people feed themselves on £10 per week.

Good luck with everything I hope my ideas help.

NorthernLas

Have you thought of getting a lodger? Try spareroom.co.uk

Barebear

Thanks everyone for your advice. I'm a serial offender, so I've most definitley been here before! I have a snowball, thanks DC, but the motivation now is to pay the debt off by selling the house. However I have been maintaining the log on th whatsthecost site. It does help to keep the payments regular and puts things into perspective.

Pennypusher, Satchmo - much appreciated advice. It falls into the category of been there, done that, slipped up again. Luckily there are few things I have slipped up on and the items you point out are things I must look at trimming. Council Tax is over 10 months and includes the 25% single occupancy discount. I really should ditch Sky! I've just cancelled the gym, but they asked for a £60 cancellation fee. I'll fob them off for a bit until I get sorted.

Gas is in arrears so I'll pay that off when/if I sell up. - Pet insurance is a must as the dog's been poorly for a while. TV lisence has just been renewed so is that payment for 6 months then reverts to £12.

NorthernLas, you need a room? Unfortunately due to the bad repair of the house, I wouldn't let the spare room to the dog! :rotfl:

Thanks again for all your advice - I'll call the estate agent on Monday.

Paulgonnabedebtfree

Barebear wrote: »

Thanks everyone for your advice. I'm a serial offender, so I've most definitley been here before! I have a snowball, thanks DC, but the motivation now is to pay the debt off by selling the house. However I have been maintaining the log on th whatsthecost site. It does help to keep the payments regular and puts things into perspective.

Pennypusher, Satchmo - much appreciated advice. It falls into the category of been there, done that, slipped up again. Luckily there are few things I have slipped up on and the items you point out are things I must look at trimming. Council Tax is over 10 months and includes the 25% single occupancy discount. I really should ditch Sky! I've just cancelled the gym, but they asked for a £60 cancellation fee. I'll fob them off for a bit until I get sorted.

Gas is in arrears so I'll pay that off when/if I sell up. - Pet insurance is a must as the dog's been poorly for a while. TV lisence has just been renewed so is that payment for 6 months then reverts to £12.

NorthernLas, you need a room? Unfortunately due to the bad repair of the house, I wouldn't let the spare room to the dog! :rotfl:

Thanks again for all your advice - I'll call the estate agent on Monday.

Let the lodger have the leaky room and install a large umbrella over the bed.
Seriously, all the points I noted on your SOA have been covered by others - except one that may save you a few pounds. Your petrol/diesel bill. Maybe you already do this but perhaps you could save 20%+ of that by leaving more time for your journeys and driving very gently - especially if you have a manual gearbox rather than an automatic.