single mum wants to sell up and rent

mrs_shoppie

New here, this is my first post!:eek:
I am a single mum with 3 children, own my house (mortgage free), worth in excess of £130,000, survive on maintenance, child benefit and tax credits (not working). Might sound nice being mortgage free but my problem is that although I have all this equity in bricks and mortar I only have enough monthly income to just survive.

I am thinking of selling up and renting in a nicer area, investing the equity in a monthly interest paying account and being able to have holidays with the kids, get a decent car, have treats for the kids etc.

What do you think.

Melissa177

Hi Mrs Shoppie,

The problem with this idea is: how far will 130K go?

Have you thought about down-sizing/moving to a cheaper area in order to free up some equity? Can you maybe do some part-time work from home in order to free up some cash using any skills you have?

I would worry about the long term implications for you and your family if you sell up and start to rent - you could find all that money gone in ten years (or less), and then you would need to find some money to live on.

I can't help but sympathise with your desire to want a better standard of living with your children, however. Good luck with whatever you decide, I'm sure other posters will come on and give you advice also.

ginger_nuts

if you sell up and rent you will have to pay your rent .you wont get housing benefit .

rebeccaj

I don't know if any of the benefits you are on are means tested but if you sell your house and have a lump sum in the bank, it would affect any benefits that are means tested so check that out first.

lynzpower

I would not do this.

Housing benefit, as others have said probably wont pay yur rent,. and other benefits will stop.

You dont know what the houseing market will do- as a renter ( which I am) the vagaries of renting - especially in this climate - could be your LL wants to sell up in 6 months. Renting is difficult with kids, you just do not have the stability to maybe keep them in the schools and so on.

I personally think that being mortgage free is FANTASTIC :T and you should be very proud that you have managed to have the most expensive but basic requirment- that of SHELTER taken care of FOREVER.

I suggest if you are struggling to cope on the money you have - come over to the Debt free wanabee board where we can look at your outgoings and see what advice we can give you to stretch out your income- and possibly make a bit more from home, or around childcare responsibilities to tide you over.

I really think selling your house to free up money for luxuries like holidays is a recipe for disaster.

dean_ham

I think your children would benefit more by leaving a house for them in the future....

Why cant you work?

Romani_Ite_Domum

mrs_shoppie wrote: »

New here, this is my first post!:eek:
I am a single mum with 3 children, own my house (mortgage free), worth in excess of £130,000, survive on maintenance, child benefit and tax credits (not working). Might sound nice being mortgage free but my problem is that although I have all this equity in bricks and mortar I only have enough monthly income to just survive.

I am thinking of selling up and renting in a nicer area, investing the equity in a monthly interest paying account and being able to have holidays with the kids, get a decent car, have treats for the kids etc.

What do you think.

I was a single dad going though a divorce about 4 years ago. Being a lone parent meant I could no longer do my job at that time.
The house had to be split 50/50. I had a £47K mortgage and £30K in the bank.
I was told I was not allowed to claim benefits as I had more than £8K in savings.
I was not allowed to pay off my mortgage to reduce my savings.
I was only allowed to spend my savings on necessities no luxuries.
If I sold the house and I could buy another one that would be ok. If not I would have to rent and live off savings until it was below £8K
So basically I lived off my savings for 12 months until the house sold.

Do not sell the house! Income support with 3 children in a house you like means you would be better off than most low paid working families IMO.

BTW I believe you are allowed to earn £20 a week with no affect to benefits. A few hours work a week would make a difference.

Good luck!

keeperbear

mrs_shoppie wrote: »

New here, this is my first post!:eek:
I am a single mum with 3 children, own my house (mortgage free), worth in excess of £130,000, survive on maintenance, child benefit and tax credits (not working). Might sound nice being mortgage free but my problem is that although I have all this equity in bricks and mortar I only have enough monthly income to just survive.

I am thinking of selling up and renting in a nicer area, investing the equity in a monthly interest paying account and being able to have holidays with the kids, get a decent car, have treats for the kids etc.

What do you think.

Sorry, but I think you should get a job if you want to get a decent car and have holidays etc. This is what most of us have to do, and many are also single parents. You have to be realistic, and I don't think you are being so.

vyvyan_2

Please don't do this - for all the good advice and reasons everyone else has just siad.

I typed up a long and detailed reply echoing much of the above and when I went to post it got lost - very annoying!

Gemma84_3

Pleeease dont do this, if you sell and have £130,000 in savings you wont be entilted to income support etc so will not get any help towards your rent, so you will be wasting more money.
Have a look round the forums, there are lots of money savings tips - ive saved around £10 a week, which is quite alot when ur poor like me lol!

advent1122

$$$ wrote: »

Growing up in the 70s - we didn't have a tv til I was five (then a 14 inch black and white which the whole family watched), holidays were camping in Wales, clothes were secondhand mostly and I doubt I used a telephone more than 6 times before I was 14. I did have plenty of books from the local library, a portable radio, trees to climb, fields to explore and a mum who was always there for us. Life seemed pretty rich.

You were lucky, I lived in a hole in the road and got up to go to work before I went to bed.
I was paid a piece of coal a week and had to eat trees to survive.