house valuation surprised us, now what???

hey all
well as i said before we had pretty much resigned ourselved to the low start payment plan with cccs, but we got our house valued just out of interest.
we didn't think it would be worth much more than £80k, giving us about £7k to play with if we did sell up, but valuations have come back at £87k, £89k and £85,500k.
Now we don't know what to do, this would give us about £14k left over if we got around between £87 and £89k for the house, but we are torn over whether to sell it and rent, or stay put as its value is only goin to go up and we might end up with enough to pay off the full amount of our debt (£22k).

what is everyones advice, stick with cccs for time being, or sell up now and offer lower settlement figures to creditors, are they likely to take a smaller amount?
on the upside, my hubby has 2 job interviews comin up, both better money and both closer to home, so that could give us more cash to play with monthly.

thanks all

Comments

  • Mads13
    Mads13 Posts: 58 Forumite
    Hi There

    We were in the exact position as you about 7/8 years ago. Both hubby and I in very good jobs, but i became disabled unable to work and hubby my full time carer. We sold up, made final offers of settlements and moved to rented..it was for us the best choice ;) We were also left with some excess money which we used very wisely!
    Good luck in your choice, but think seriously about any decision you make!
    Mads13
    xxx
  • deemy2004
    deemy2004 Posts: 6,201 Forumite
    It depends on how much your the rent would be as against debt repayments. If the rent would be significantly less than your current debt repayments then its a good idea, to come out with a cash reserve of some £14k.

    Especiallysince the housing market looks pretty bleak for the next few years.

    So say rent of £5k / £87k = 5.7% rent

    Debt repayments ? Are they more than 5.7% ? Highly Probably they would be ! So it does look like a good idea to clear your debts and rent, especially of your a working family...
  • johannamse
    johannamse Posts: 498 Forumite
    I would stay in the house. Debt is unsettling and stressful and depresssing, moving house into a potentially insecure environment (ie Landlord could ask for notice at any time) will be even more stressful. Get really sorted with CCCS and just keep your heads down for a bit. You will have a greater sense of satisfaction in 2-3 years time, if you have thrown all you can at your debts and you still have the house.
  • livilou
    livilou Posts: 148 Forumite
    My husband had to recently go bankrupt and we have a joint mortgage , I am fighting tooth and nail to keep our home and will have to buy his share of the equity somehow, but for us it is our home and the only bit of security we have left. I agree with the last post, possibly going into rented could be unsettling,. I'd stay put for a while and see if you can sort out paying off your debts and then reassess in a few months, if then you feel that the only opiton is to sell to be clear of debts and start afresh then go ahead. It's so hard isn't it to know what to do for the best.
  • thanks for all of your good advice.

    we still haven't made a decision, and all of your points are great ones. we will have to spend the next few days lookin into rental properties and seeing how much they are, but i do agree that a rental property never really feels like your home, and knowing that we will always have selling up as an option means that we are not in as much trouble as we thought we were, and gives us the breathing space to give cccs a go and sell up as and when we are in a better postition to move on.

    will let you all know what we decide!!
  • Xbigman
    Xbigman Posts: 3,879
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    I recall you were 22K in debt so you would be looking for full and final offers and hope to clear it all with 14K. Difficult but not impossible.

    Before you make any decision I would look at where you can rent and how much you save vrs your mortgage cost. If you save Less than £100 it is probably not worth it. Remember that property agencies usually run a credit check on you so if you can't pass one you might have problems. You also need a deposit of one months rent up front and removal costs (that 14K is already down to about 13.2K). Check out some house price websites and find actual purchase prices of property in your area. Estate agents valuations can sometimes be unrealistic.
    You could also ask your creditors about full and final offers now. If they all demand 100% you are wasting your time.

    Remember. Rent will increase over time, your mortgage won't (except interest fluctuations). So the financial situation will improve anyway.
    Regards



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