Negative equity 1 bed flat & expecting twins!

saterkey

look into all the clubs you can join, like tesco baby, and kids, etc for vouchers etc, ask for pressys of baby toiletries and get lots 2nd hand or free off freecycle.

BigAunty

Get them to download the budget planner on this website and identify a pre- and post baby budget to help them develop a savings plan. They should go through this website to identify how they can slash their costs and be extra thrifty, anything from cheap recipes to changing tariffs.

Get them to check their post baby benefit entitlements on the Turn2us online benefit calculator to see if they will be entitled to any child tax & working tax credits, housing benefit.

I don't understand fully how shared ownership works but I also don't understand why they, as owners, expect to be able to swap to a larger property. I know it's part rent and part mortgage but wouldn't they have to sell the property, not simply transfer as they aren't actually full social housing tenants? Does the HAs website or SO scheme documentation has info on how selling/moving operates?

It is unlikely that they will get consent to let from the mortgage lender if the property is in negative equity. Perhaps they also need to check the HAs policy on sub-letting as there could also be restrictions from their landlord.


If they are strapped for cash, it's extremely risky for them to let out their property as it will only take a small void in the letting, a non paying tenant or a big repair bill to cause them great financial issues.

Pop over to the Debt Free wanabee board to understand their negative equity problems and if they give up the property, see what kind of strategy the members there suggest and the implication.

The Shelter website is a good source of info for owners struggling to pay their mortage and the various schemes to prevent repossession. They strongly recommend that owners do not simply hand the keys and detail the consequences.

EDIT - and where will they live after they have gone bankrupt?! Many landlords are averse to letting their properties to tenants with poor credit records and will either not grant them a tenancy or will ask for a guarantor.

Also, if they apply as homeless to the local council they will assess whether they made themselves intentionally homeless, i.e. left a property that they could have remained in or didn't pay the rent/mortgage when they could have. Not really sure how the circumstances you've outlined would be treated.

ILW

Unlikely she would be accepted for bankruptcy.
It is not designed to be a way of getting a bigger house.

BitterAndTwisted

Not "they" have gone bankrupt. Only "she". The one who won't be working for rather a long time.

jc808

You dont need another bedroom just because of a baby.

rachelhen

I just want to say congratulations on the babies.