Lots if issues in one! Advice needed

cfcboy

Innys1 wrote: »

£200 a month on insurances?

What exactly are you insuring? Ave annual house insurance should be around £500.

Yet you're paying five times that. If the extra's on life insurance, you're being ripped off, big time.

Also, you have nearly £1k a month going out on unsecured loans. It may be worth you tackling that as well, if you can.

Life insurance - £15pm
House Insurance - £25
Phone Insurance - £15
Pet Insurance - £35
Leasehold building insurance - £50
Car insurance - £55

cfcboy

mlz1413 wrote: »

I don't think the problem is your lease, I think the problem is you live to your earnings.

I'm sorry to be harsh but there is a lot in your outgoings that could easily be reduced, but rather than cut down on going out and saving some cash you are thinking of selling..........

I think if you sell and have £30k equity in your pocket it would just get spent.

For the next month really look at what your money goes on, keep all the receipts regardless if for a store card, credit card or out of the bank. Log your cash spending too.

At the end of the month split your spend into
Heat / Light
Shopping / Eating in
Eating out/ takeaways, drinks
Clothes
Shoes

This should help you see where you could stop spending to cut out the £250 per month on store card payments.
Put the £250 pm off a loan and that will pay it down without an early redemption.

Really look at your insurance policies and the cost of home entertainment, they really do seem a lot!

Fill out Martin's Budget Planner - it has loads of sections and helps you see where your cash goes.

No thats fine, was looking for open opinions, gives me a reality check which i was looking for in posting

So you think i should really look to cut back and look to pay off the debts first? What should i prioritise first? Those that end soonest or those with highest interest? One store card of £95 is paid off in two months time so that could be another saving.

Hate to go back to the leasehold but thats still a big worry. Should i just look to pay off all i can now and worry about the leasehold in 12 months?

Innys1

cfcboy wrote: »

Life insurance - £15pm
House Insurance - £25
Phone Insurance - £15
Pet Insurance - £35
Leasehold building insurance - £50
Car insurance - £55

You've counted car insurance twice - once in the insurance section and once in the car section.

Phone insurance is a waste of money.

What's leasehold building insurance if you're already paying house insurance? Plus, you may have omitted to include the annual service charge from your list of expenses (I assume you pay monthly)

Like mlz says, you need to get a handle on your monthly expenses. Selling up will only just put off the inevitable - you running out of money to fund your lifestyle.

With no savings, how would you manage if one of you lost your job?

harrys_dad

You need to post on the debt free wannabe board and get some proper advice on how to live within your means and manage your debts at the same time.

bloolagoon

Just a point about phone insurance. Halifax ultimate reward is £15 per month, or £10 per month if you pay in £1000.

Ours is a joint account so mobile phone ins x 2 phones, plus annual travel insurance, plus AA cover, plus emergency house cover.

cfcboy

Innys1 wrote: »

You've counted car insurance twice - once in the insurance section and once in the car section.

Phone insurance is a waste of money.

What's leasehold building insurance if you're already paying house insurance? Plus, you may have omitted to include the annual service charge from your list of expenses (I assume you pay monthly)

Like mlz says, you need to get a handle on your monthly expenses. Selling up will only just put off the inevitable - you running out of money to fund your lifestyle.

With no savings, how would you manage if one of you lost your job?

Apologies, double counted there. Should be against insurances.

Leasehold buildings insurance is where im above a commercial property and all residents have to pay a yearly fee against terrorism, landslides.. basically stuff that never happen (touch wood) but its part of the lease so no escaping it.

Phone insurance has been fine for me, two IP5's smashed and didnt pay any excess so saved a fortune in replacement/repair costs.

Money_Bunny

I think you misunderstand me. You have the right to extend the leasehold because you've been in the property more than two years. If someone bought the property they the wouldn't have been there two years so they wouldn't have the right to extend - the freeholder could agree to extend (obviously for a price) but the freeholder could equally just refuse. The new owner might have to wait two years until they had the right to extend by which case the cost to extend would have gone up.

I would think that this would make a buyer very reluctant to purchase your property - and bear in mind some institutions won't give mortgages on properties with leases this short. A buyer might be pursuaded if you extended the lease yourself before the sale went through.

I should add this is just my understanding. I'm not a lease expert or anything.

None of this really helps you (sorry). But it does perhaps point to selling not really being a viable option and the best way forward being to some how scrape together the money for the lease extension.

cfcboy

harrys_dad wrote: »

You need to post on the debt free wannabe board and get some proper advice on how to live within your means and manage your debts at the same time.

Didnt really post to say im in debt, i need help tbh. Was really asking if it was worth selling up and paying off all that i owed and making a fresh start or stay put, wait for leasehold to go up. Wanted opinions on what i should be looking to do, lots of people have asked about the debts but only couple have said try and pay off what i owe.

So focus seems to be stay, cut down, pay off... and then see where i am with leasehold then? Agree? :beer:

Money_Bunny

Sorry, more doom and gloom. Location above a commercial property probably isn't going to help saleability.

cfcboy

Money_Bunny wrote: »

I think you misunderstand me. You have the right to extend the leasehold because you've been in the property more than two years. If someone bought the property they the wouldn't have been there two years so they wouldn't have the right to extend - the freeholder could agree to extend (obviously for a price) but the freeholder could equally just refuse. The new owner might have to wait two years until they had the right to extend by which case the cost to extend would have gone up.

I would think that this would make a buyer very reluctant to purchase your property - and bear in mind some institutions won't give mortgages on properties with leases this short. A buyer might be pursuaded if you extended the lease yourself before the sale went through.

I should add this is just my understanding. I'm not a lease expert or anything.

None of this really helps you (sorry). But it does perhaps point to selling not really being a viable option and the best way forward being to some how scrape together the money for the lease extension.

Yes i understood, sorry my reply might have seem a bit confusing. Yep know the two year rule, ive been discussing with the estate agent that we put a written caveat into the sale that i will extend the lease at time of sale, so i use the funds of purchase to subsidise the lease extension to obv get a good price. thankfully prices in my area (i live in west berks) have been pretty stable and recently seem to be on a decent rise.

The other alternative as you say is to try and sell now with the 71 year lease or hold off for a couple of years where the extension could have easily risen by 3-4k and make it unsellable beyond the 70 year mark (if it isnt already).

Not sure, its getting me so stressed out