Help me, stupid move!!

geri1965_2

Move into your parents house and let your parents live in your rented house (if the landlord will agree)? Depends on size, of course.

sham63

"Own a house which is in £25000 negative equity, moved out due to neighbour dispute and house too small for growing family. Rented out since we moved out 3 yrs ago no problems but having to add around £150 a month to the rent to pay mortgage (btl mortgage)"



Why not move back to your original house? Or move your parents into it?

themull1

your parents should have sold their house, downsized and lived within their means, its totally unfair to you and your husband to have that amount of debt hanging over your head, could you not have bought it at a slightly reduced price? you seemed to have paid full market value - given your parents a huge lump sum to fritter away, and been left fifty grand down!!

pineapple123

Sorry to sound mean but you paid considerably less than the market value for your parents home and now are struggling and want HB(taxpayer) to pay you surely you must have looked ahead and worked out if it was affordable longterm.

You have done your parents no favours as unlikely to get any HB as stated previous as it looks like they should still have a considerable amount from selling there home. instead they are very much out of pocket selling to you cheaply however you are still very much in pocket as the house is worth more than your morgage on it.

So you have to come up with a solution to your money problems , none are that appealling.

.cut down on your outgoings
.sell the home and give them the £50000 towards rental somewhere else
.Move in with them
.sell your first property (if has equity)
.let your parents live with you and rent out there home.
.take in lodgers into yours/their home.
.increase your earnings

Several of these suggestions may be long term and even relevent if parents are needing care.
I know you tried to do best by dad but why buy there home so cheaply as this is now the main clux of the problem.

Mobeer

You should not worry about being bankrupt. You own a 200k house bought for 150k and another house that has 25k negative equity. That puts you at 25k up, before considering other debts\assets you have.

The most serious thing here is what happened to the 150k your parents got from sale of their property. Did they pay off the 80k debts? What happened to the other 70k?

If you do want to sell the house, then I would suggest avoiding any complicated deals involving it being rented to your parents. Doing that narrows down the potential list of buyers and hence drives down the price you could get. You can still make a profit on a sale, maybe keeping any profit in a separate account to help out your parents when the need help (but not actually handing the money over straight away).

InMyDreams

Can I just clarify?

You own a mortgaged house with £25K negative equity that you currently rent out but it currently needs subsidising to the tune of £150 a month. How long do you have left on this mortgage? How big is this mortgage? Is it actually a btl or do you just have consent to let on your original residential mortgage? Is there going to be an issue / large additional costs when your current deal / consent expires? I'm not an expert, but I didn't think you could get a btl mortgage with negative equity.

You also have a £150K mortgage on a house that is currently worth £200K (that you only paid £150K for when it was valued at £250K). This was your parents house that you now allow them to live in rent free. (Seems reasonable given that they gave you a £100K discount when you bought it off them.)

You also rent a third property that you live in with your family.

Is this all correct or have I got confused somewhere?

Better_Days

If you are struggling with a shortfall of £150 pm what would happen if the boiler needed replacing, or similar capital expenditure arose in the BTL?

Have you considered selling the BTL, funded by a say £40k remortgage on your parents (ex) property?

You will then have a cushion to maintain your parents property plus possibly part deposit for when you want to buy.

In the long term it would be probably be a good thing to hang on the the BTL but if it bankrupts you in the short term then it is pointless. Selling the BTL would also remove the responsibility of being a LL.

Having a brother who went into bankruptcy a couple of years ago I know how difficult it can be, and I can totally understand your efforts to try and sort things out.

If you do go down the route of releasing capital, then you need to make it clear to your Dad that you cannot afford to bail him out further. Living rent free is worth a great deal, over what I hope will be many more years for your Mum and Dad. This will hopefully more than cover the undervalue at which you purchased your parents property, and got them out of a considerable pickle in the process.