Selling up to become debt free?

brownedoff_2

Hi Jayphe,

thanks for the advice, you are right, I'll scrub that bit then as in the short term period it wouldn't make any difference to my finances. I'd get paid either way, so why deprive myself of something that i actually enjoy doing?

I am actually on annual leave this week as it happens. I work at the local hospital, so next week I'll post on the staff noticeboard for the room to let, I'm sure I'll get lots of interest.

I'll plod on with the rest of the plan though.. starting tomorrow... as my head hurts now :doh:

I have to say that discussing this on here has really helped to motivate me, I'm beginning to see a speck of light at the end of the tunnel, at last!

I'll keep you all posted... x

CH27

Reapply for DLA using a CAB advisor to help you complete the forms.

Have you considered applying for sheltered accomadation?

jayphe

That's great news that you work at a hospital, a good place for finding lodgers and fantastic that you enjoy the work as well.

Honestly, best of luck, I'm sure you can make this work.

beanielou

Keep plodding & keep posting.

brownedoff_2

I'll phone the CAB tomorrow for advice on the DLA application... i dont think its come to sheltered accommodation yet, i've a few options before it comes to that hopefully.

Been reading posts on here about renting out the room and have made lots of notes. i'm feeling quite positive about it now, in fact i'm almost looking forward to the challenge.

de1amo

good luck with it--i always enjoyed having lodgers and only had 1 or 2 rogue ones in many years!--i was terrible at setting out the rules and some people take it as cart blanche to takeover but they were the exemption.--make sure they are securely employed.

undaunted

brownedoff wrote: »

Regarding releasing equity.. i queried that with the mortgage company and they wont consider it because of the arrears plus it doesnt address the issue of maintaining the monthly payments.

I’m 55 soon to be 56.

I think you may have misunderstood what I suggested above. I was not talking about borrowing more from your existing lender nor having to pay rental (either here or elsewhere). If you view the link there is an option of taking cash from it but still staying in your own home, paying no rent or interest in the meantime (it's paid out of the value of your home after you die), ie


"With a lifetime mortgage, you take out a new loan secured on your property. You do not make repayments, instead interest is rolled up to be paid when the scheme is ended. You continue to own and live in your home.
After you and your partner have died or moved into long-term care, your house is sold and the amount you borrowed, including rolled-up interest, is paid to the lender. Anything left over, after costs, passes to your, or your partner’s, estate."


"With a home reversion plan, you sell all or part of your home, but you continue to live in your home. After you and your partner have died, your house is sold and the proceeds are split between the home reversion provider and your, or your partner’s, estate. "

Your existing mortgage / debts could then be cleared from the proceeds you take out of these schemes


From a quick google, Aviva, for example, do offer a Lifetime mortgage scheme for someone of your age group but there are likely to be other options out there.

If you have a partner, any children you wish to leave assets to etc this could obviously impact upon that but if you are single & childless / unconcerned about leaving an inheritance it may be an option for you

Obviously you should seek professional & I would suggest ideally independant (not just one insurers representative) advice on the full implications before proceeding if you are interested in investigating these possibilities further

brownedoff_2

Thanks Undaunted.. i did misunderstand.

I've just been having a quick read up on the different schemes and it does seem an option, although I'm not quite clear on how i would stand should i want to move, which ideally i would in the not too distant future.

I'll make an appointment with an IFA and get some professional advice. Most of them seem to do a free first time consultation, so I've nothing to lose.

Superbiatch

You say your mum and family live nearby, if there any chance you could move out in with one of them and rent the whole place out for a 6 month period? It might help you out of a hole whilst getting the benefits sorted.

jayphe

I would not recommend renting the whole house out. Becoming a landlord is a much bigger, riskier proposition than taking in lodgers; you will need to spend money upfront to get the appropriate insurance, safety certificates and energy performance certificates, you would also need approval from your mortgage lender and to be a responsible landlord would also need a pot of cash to cover any repairs that you would be responsible for.