Desperate Plea for ideas please?

Jvic28 · 23 June 2011 at 1:40PM

Hi Everyone,

Right long story ahead.

I bout a shared ownership 1 bedroom flat in 2007 and have since had a baby. He is now 2 and I'm desperate to get out of the flat as we're running out of space. My mortgage is a portable interest only mortgage so i have no equity. Obviously, i've tried selling but haven't been able to but haven't tried dropping the price yet as i can't afford the shortfall.

My mortgage is with Leeds BS who will let me rent the flat out providing i move from 70% to 100% ownership.

i'm not sure if that option with work though as my mortgage is already £400 a month now and the estate agents will be taking 15% of the rent, plus the rent i charge has to include the service charge as i'm still liable for that. Leeds also want to add 1% to my interest rate for the privilege of being able to sublet. by the time ive covered all the costs ill have priced myself way out of the rental market.

to make matters worse my credit isn''t very good. i'm on a dmp with cccs and owe about £8000.

i want to move to a bigger but cheaper property in a cheaper area.

Any ideas anyone, I'm really desperate and find myself crying every day about it.

Thanks

Jvic28 · 23 June 2011 at 2:10PM

I know the story is a bit confusing but any ideas i hadn't considered yet would be appreciated. do you think i'd be like to get Leeds to change their mind on the 100% thing if I bend someones ear?

SouthCoast · 23 June 2011 at 2:20PM

i'm on a dmp with cccs and owe about £8000.

Speak to CCCS about bankruptcy.

Jvic28 · 23 June 2011 at 2:27PM

Trust me that thought has crossed my mind but my DMP only takes into account my income and expenditure. Would Bankruptcy have to include my boyfriends too. And could it affect his credit?

handytips · 23 June 2011 at 2:32PM

Guys Bankruptcy should be a last option, as it will appear on a bankruptcy search forever, so very difficult to mortgage. As for the original poster. I am afraid as you have a current DMP then moving in the near future is a total no go i am afraid, what about selling then renting, get rid of the dmp and get a decent deposit together, as working from criterias as of today, it will be 6 years before you may be able to get a mortgage. Sorry but you need to know the truth.

Jvic28 · 23 June 2011 at 2:37PM

You don't know the whole story so no need to apologise. My boyfriend will be buying the new property in his name as he has a perfect credit rating and can get a much better mortgage rate. Theredore as soon as i can get shot oif this place i can look for somewhere else. I'd gladly sell and rent now but what I could sell the flat for now wouldn't cover the mortgage outstanding so how would i cover the shortfall.

Jvic28 · 23 June 2011 at 2:58PM

On hold with Leeds now to see if Ican change their minds :-/

beecher2 · 23 June 2011 at 3:00PM

Ask them how you would pay off any shortfall you have if you sell up

Jvic28 · 23 June 2011 at 3:29PM

Ah ah...I can sublet! I'm still going to end up making a loss for the next year but I think it will be less of a loss than if I tried to sell now.

Yorkie1 · 23 June 2011 at 8:52PM

Just double-check the terms of your lease to ensure that it doesn't forbid sub-letting either.

Jvic28 · 30 August 2011 at 8:14PM

My lease does forbid subletting however the HA have changed their policy anf now allows subletting in certain circumstances and thet give permission on a year by year basis. So many decisions.....