Home owned outright - not working (receiving benefits) - need about £20k for repairs

plasticrubicon

Hi,

Could anyone suggest the best options (and warn of any associated pitfalls) for someone who owns a house worth about £160k, has no debts whatsoever, but has no income from employment. I need about £20k (most of this will be taken up by roof repairs but there is some other structural work I need doing) but obviously - I have little spare to pay off a loan. I am desperate for the roof to be fixed as it is starting to affect the stability of the whole house. The chimneys are in a terrifying state too.

Is a secured loan the only option?

I read in a seperate thread that if I do manage to get a loan my ability to repay it out of benefits will be hampered by the fact that I will suddenly have money and therefore - no longer qualify for the benefits. I've only been on benefits since a seperation in November - I don't know whether this will affect my credit rating. The house was my father's but he paid the mortgage off and signed ownership to me, so I have no history of being able to pay a mortgage either! Infact, will I have a credit rating? I've been an exemplary current account user for several years but that's because there wasn't much coming and going.

What about a remortgage (something I know nothing about)?

I tried to get a grant a couple of years ago but because I'm not a pensioner and my ex was in employment we didn't qualify.

Any advice will be hugely appreciated.

Kinnairdy

Avoid secured loans like the plague unless you have the income to repay them, unsecured ones will only mean you end up repaying 2-3 times the loan amount and you could end up having to sell your house to repay the loan if you can't make regular payments.
Don't you have buildings insurance that covers structural damage/defects?
Can you try again for a Grant now you do not have a working partner?
Benefits Agency may well consider your loan as income and stop any entitlement. Perhaps you could ask at your local office if this would indeed cause problems before going any further along the loan route.
Mates loan for £27.000 ish over 7 years = £400+ per month repayments, he was lucky though, had insurance maturing mid loan, any insurances you forgot about?
Any family members who could/may help financially?
Could you sell and buy smaller property?
Is the £160.000 you mention the value before or after necessary repairs?
Sorry not being much help just throwing thoughts around in the hope they may be of some use.
As someone in the position of having no debts why start now? By that I mean would selling be out of the question?
Good luck whatever you do, am sure some of the financial wizards will be along soon to offer you more detailed borrowing advice.

pioneer

Why don't you rent out a room for a while, it would help secure a loan and repay it. One option anyhow.

Good Luck

Tustastic

Kinnairdy makes a good point about considering the option of selling. Apart from the work that needs doing, does your benefits income bring in enough to maintain an older house long term? In your position, I would probably decide that I could not afford to live in the house and would find somewhere more manageable to live. Emotion may be mixed in with this, as the house was a gift from your father, but I am sure he would not wish you to be in financial difficulties as a result. The decision is yours. HTH:)

black-saturn

I'd like to know if there is another option. I own my house outright and I'm on a very small income and need an extension built.

plasticrubicon

I don't have building or structural insurance, never have. I don't think they'd fork out for the roof anyway because it was already in a hellish state when I moved in ten years ago. Infact, if I remember correctly, it was some sort of stipulation in the mortgage agreement that the roof would be taken care of - pronto! Also, I would love to sell. Emotional attachment - not much but my dad is still around and has made it very clear that I have to stay here (until he's 'gone'). This is mostly because my little boy is his only grand child and he doesn't want us a: to move further away from my ex and b: move further away from him (plus he loves the local pub). I hate the idea of any sort of debt, I had (what some might consider) miniscule debts when I was in my late teens (£600 or something) and it nearly killed me! £160k might be hopeful, might be cautious. With house prices rocketing I just don't know. A house, across the road, sold for £273k in 2004 (mind that's a detached one). Yes... Sell, buy somewhere cheaper, fix it up and invest the change and happily ever after. Lovely idea.

I think it has to be a case of hunting around for a grant. The building is about 300 years old so you would think some agency would want it to stay standing.

Thanks for your ideas everyone.

black-saturn

plasticrubicon wrote:

I think it has to be a case of hunting around for a grant. The building is about 300 years old so you would think some agency would want it to stay standing.

Let me know if you find one.

Kinnairdy

Ok, is there any historical significance attached to the building that may be of interest to some Heritage Preservation Group?.
If you don't mind being in the public eye you could apply to some of the TV Channels who do the restoration/repair type programmes on crumbling houses, Tommy Walsh springs to mind as an example.
Don't mean to be harsh but if your Dad is determined you stay in the house "until he's gone" (the exact date of departure which must remain unbeknownst to all but our maker) can't he help financially?.
Have you told him the burden of potential debt his " stay put instruction" would place upon your present financial situation?.
If you could move would it have to be very far from your present location and if so could your father not move with you?.
Please do not let emotional blackmail force you into doing anything you do not want to, if as you said earlier your father signed the house over to you then to be honest it is yours now to do with as you wish not as anyone else dictates.
I've been there with an extremely dictatorial and manipulative mother who tried every trick in the book to make us dance to her tune, I was the only one of 5 who refused and ignored her tantrums & sulks. Not saying you have this problem just your bit about "making it clear you had to stay put etc" rang a few bells hence this last bit.
All the best anyway.

Katyusha

Could you get a job??

Katyusha