I think I need to downsize - difficult decision

sula1

I am just looking for some general advice as I don't know where to start. I seperated from my husband 2 years ago. At the time my absolute priority was to stay in my house for the sake of the children. I couldn't have afforded to buy my ex out, so he signed the house over to me - though I did extend the mortgage to pay off his debts. I am now facing up to the fact that the house is too big and I can't afford to live here. So before my finances get really out of control I need to start making some decisions. My mortgage is for about 135K, and the house is valued at about 250k. But how much on average does it cost to actually buy and sell - and how on earth do people find the right place to buy and seel your own house at the same time?
Any advice welcome.

ILW

You could go to an estate agent, but I have my suspicions that you may be one.

Jowo_2

Before the drastic step of selling the property, have you taken legal advice on your rights and his obligations to support his family?

Currently, you appear to have arranged to have paid off his debts, and then be saddled with another debt (mortgage) and are struggling with your finances so seem quite disadvantaged in terms of a settlement.

What child support is he paying? Do you have any debts (apart from the mortgage)? What is the sum of your husband's debts which you helped to pay off?

BitterAndTwisted

Estate agents charge between 1% and 2% of the selling price but there's no fee to them when you're buying. Conveyancing charges vary but could be in the region of £1,500, so if you're selling and then buying another property that could come in at around £3k plus all your moving costs.

Is there any chance that you could buy something outright less costs from your equity?

I'd be minded to get a few estate agents round to value your property and then try and make a decision then.

sula1

Why would anyone think I was an estate agent?
I do get child support, and the debts that I paid off were only about 15k. We agreed that I would not make a claim on his pension, which will be pretty sizeable whereas mine is very small - I thought of the equity in the house as my pension. It was all done without solicitors which seemed to make sense at the time -but I am now realising that what I have been given is a huge mortgage. I am not rushing into anything, but this is the first time that I have faced up to the fact that I maybe can't live here for much longer.
thanks for the help so far.

Jowo_2

Go and see a solicitor.

What is the price of the property you expect to buy and is it sufficient size for your household? Are you in employment at the moment and what do you earn?

You've assumed the house will sell for its valuation which may not necessarily be the case in these times when properties can easily for at least 10% less than the asking price so you could be looking at netting 220-230 for that property, less the estate agent fee of around 2-3k, the legal fees for buying and selling your properties (2-3k), stamp duty on the next property (poss 1%, so around 1-2k), moving expenses (1k), paying off the mortage at 135k which is going to leave you with about 80-90k (though these are just finger in the air estimates).

How far is the worse case scenario of nest egg of 80k towards the next property going to alleviate your financial problems?

sula1

Thanks Jowo - even finger in the ait estimates are useful at this stage in me starting to think about moving. Is it worth seeing an independent financial adviser rather than a solicitor?