Help - I want to keep my house

pmlindyloo

pammii wrote: »

Would like to know if there are any company's or firms that would buy the house and rent it back to me.

These companies have been investigated and many have been forced to close down because of their practices.

There is a link here for further information:

http://www.adviceguide.org.uk/wales/debt_w/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/sale_and_rent_back_schemes.htm

Personally I have difficulty seeing the advantage of these companies - they will buy your house at a reduced price and your 'tenancy' is not guaranteed.

Because of this I think you would be better off keeping your house on the market, selling it and renting somewhere.

Of course this option may not appeal and I do understand why. You will have the insecurity of renting and you may lose benefits if you have some savings. (you should still be entitled to working tax credits though unless interest from your capital is more than £300 a year)

Difficult to comment further without knowing the sums but from what you say your options are few if you would not consider taking in lodger(s). (my favourite option - have done it very successfully)

zzzLazyDaisy

pammii wrote: »

Would like to know if there are any company's or firms that would buy the house and rent it back to me.

In theory there are such companies, but this is an extremely risky strategy. They will give you less than the market value for the house, and although you will get an initial fixed term rental agreement, this may be as short as a year and then the company can evict you even if you have done nothing wrong. If you break the agreement (eg fall behind on the rent) they can end the tenancy early. Also you should be aware that if you were to lose your job, you cannot get LHA (housing benefit) for a house that you now rent which you once owned. In practice the 'sale and rent back' sector has been virtually closed down http://www.bbc.co.uk/news/business-16872205

G_M wrote: »

So either
* you reduce the mortgage payments (interest ony; alternative lender etc)
* or you increase your income
* or you sell the house and downsize

This ^^^^^ is the only advice anyone can possibly give you. If you cannot reduce your mortgage payments (which is unlikely if you are in arrears as your own lender won't let you go interest only and other lenders won't touch you), then you must increase your income to cover the shortfall when your child leave FT education (which you have had several years to plan for). If you don't find the money to cover the gap by either reducing your outgoings or increasing your income, you will end up defaulting on the arrangement with the lender and they will repossess. So if you really don't want to increase your hours/take a second job and you cannot find ways to cut back on your expenditure, then the best advice is to start marketing the property now with a view to selling it.

pammii wrote: »

Really don't want lodgers

That is understandable, but you really have very few options, and it boils down to whether you wish to:

• keep your home albeit with a lodger,
• sell up before the lender repossesses,
• or find some other way of making up the shortfall on the mortgage repayments.

Sorry if this sounds harsh, but the quicker you face up to the situation, the better it will be for you.

JencParker

I was in a similar position some years ago (also just coming out of negative equity at the time). I extended my mortgage by another 8 years to enable me to make the payments (although cost more in the long run and should have been paid by now). I have also taken lodgers in over the years and really, I think that is your best option if you don't want to move. I can understand not wanting to, but it isn't as bad as it appears. I am still in touch with a couple of ex lodgers as we became friends. I had young children at the time too, so was a worry, but it worked well. Obviously you need to vet them carefully, or ask friends/neighbours/family if they know anyone looking for a room to rent.

Beachview_2

Maybe a fresh start would be better, especially if you can downsize so helping to reduce your debts, It will be a massive relief to get your debt down a bit.

A fresh start in a new home might be worth thinking about after a divorce. A friend of mine was 'strongly persuaded' (forced) by well meaning family members to stay. She didn't want to stay, but ended up spending all her savings, and taking out a mortgage to buy her ex out. She has the mortgage for 15 years and will be in her 60's when its paid off. There's no way she'll be able to pay it off early due to ill health. She's going to move now to a property of the same value, or cheaper, and says she's really looking forward to the fresh start.

moneyistooshorttomention

27col wrote: »

Your wants or don't wants don't really come into it. If taking a lodger enables you to stay in the house, then that is what you have to do, in the absence of any other way of getting money into the house. At some stage in life facts, however unpalatable, must be faced.

That's harshly put - but I'm afraid it is true. Its the lesser of two evils in the circumstances and it will only be a temporary thing.

I'm the last sort of person to take in a lodger - I'm too private a person to do so and I hate housework at the best of times (and lodgers don't do all the housework they create I found:mad:) - but I knew the choice was stark and that I had to either:
- take in a lodger and I would be able to buy myself a starter house in the first place

OR

- keep my privacy, but I would be unable to buy a house

Put like that - it was Hobson's Choice and I bought the starter house and found a (series of) lodgers for the first few years.

kanute50

Pammii, please heed the good advice given to you in this post and your previous post about Sell and Rent Back companies. It is very hard for you to consider leaving your family home, but believe me, you will be in a worse position if you go down the Sell and Rent Back route!! Obviously, we don't know your full financial situation, and you don't say how much your house is worth, or how much mortgage is owing, but if you market your house at a realistic price you will find a buyer quickly which will enable you to make a fresh start. As I said in my previous reply to your other post, there are some very good Landlords out there, so renting is a good alternative for you. Good luck with whatever you decide.

dawn_rose

I'm struggling to keep up with bills as it is, nothing left to trim, this winter has been harsh for everyone and I was feeding the gas and electric meters constantly. Doing more hours and earning more just means my WTC will go down the following year. Catch 22.:mad:[/QUOTE]

Hiya could you not switch to direct debit rather than meters, meters cost so much to run as they are priced at a higher rate than you would pay on direct debit?

hamster2013

1. your daughter is going to uni - so freed up room ? or will she be staying at home?
2. you dont want lodgers or work extra hours as you state WTC will go down - have you actually calculated if you gain a few £ or it is same before making that asumption?
3. you dont want to sell, but cant afford to live where you are living.... do you see a catch 22 there?

I would recommend what others have already said, but maybe more bluntly put:
either increase revenu by doing what you dont want to: get lodgers
or sell house and buy something at a lower price from the equity you get - HOWEVER, keep in mind, if you go down the sell route, you are very unlikely to get a new mortgage.... so do your homework before.

no magical solution from anyone really - maybe sell your car to buy a smaller one - or sell stuff you dont use on ebay to get some extra cash -

zzzLazyDaisy

Just to say, while having lodgers can be a scary prospect, it can work out really well. If I had not taken in a lodger, I could not have afforded to keep my bungalow, which has been adapted for me (I am disabled). I did not want to lose my home, and I have no way of increasing my income as I am on benefits.

So I took a lodger, who has now been with me 6 years, and has become a family friend. As my condition deteriorated, I came to depend more and more on my lodger, who is now retired and is my registered carer.

So things can work out well, if you are willing to think outside the box.

pammii

G_M wrote: »

So hubby is out as a source. Not sure why you say "and not paid a penny towards mortgage since." given that "the house has been awarded to me so he can't get anything from it." Why on earth would he?

So either
* you reduce the mortgage payments (interest ony; alternative lender etc)
* or you increase your income
* or you sell the house and downsize

Well he just walked away and the mortgage is still in both names so he still has an interest in it - that was up until March this year when the judge awarded me the house. Not to mention the other debts he has left me with. You are being a bit judgemental there.

As for your other ideas, as the mortgage is in arrears can't do anything about payments or other lenders.

I would love to increase my income - wanna tell my boss for me!!

House already on the market.