Lots if issues in one! Advice needed

cfcboy

Money_Bunny wrote: »

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

Well no, unless someone like me buys it

Money_Bunny

Now I feel really bad for being such a doom monger.

You sound like you need to take a deep breath and try and calm down so you can take a clear decision.

The good news is that you have a roof over your head for the next 71 years and not everyone can say that.

cfcboy

Money_Bunny wrote: »

Now I feel really bad for being such a doom monger.

You sound like you need to take a deep breath and try and calm down so you can take a clear decision.

The good news is that you have a roof over your head for the next 71 years and not everyone can say that.

Oh yes indeed

I think a visit to a financial advisor is in store, ive got a free visit as part of the estate agent dealings so will have a chat with them and see what they think.

If it wasnt for the leasehold id be breathing easy, id look to cut down on most things and start to pay off but time is not a luxury i have at the moment.

The thought of trying to get a sale, get debt free and start a fresh is so very tempting. Learnt the hard way... by buying a leasehold and living above my means for so long, but we live and learn !

Innys1

cfcboy wrote: »

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.

Just because you claimed for it, doesn't mean it was good value.

I have had cheapo mobile phones (uninsured) for at least 10 years and only lost one once on the train. I paid £10 to get it back from lost property. I've never had a phone damaged. You could say I'm extra careful but, as the phones were worthless ones easily replaced, surely I should have been careless instead?

You, on the other hand, have had two expensive phones which you've had to claim on the insurance as so think it is good value. I wouldn't come to that conclusion.

cfcboy wrote: »

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:

Yes, up to a point. Trouble is, time isn't on your side. As you've said, every month you delay, extending the lease becomes more expensive.

I reckon you need debt help first - before you are in a position to deal with the lease. Once you cut your outgoings, quickly save some money and you will be able to pay to extend your lease. It then becomes more saleable.

Finally, I don't know many couples who take home £60k after tax annually and have few assets to show for it.

ValHaller

cfcboy wrote: »

which leaves me with about £100 a month on paper but normally gets spent somehow :S

I make it £450/month that you are left with, of which £250 is spent on socialising, £100 on smokes and £100 not accounted for

This is where your fight out of your situation begins.

houseimprover

ValHaller wrote: »

I make it £450/month that you are left with, of which £250 is spent on socialising, £100 on smokes and £100 not accounted for

This is where your fight out of your situation begins.

Realistically from the rough figures given if the OP cut back they should have an extra 4-500 quid to throw at debts or to save and in less than 2 years they would have the money to extend the lease

cfcboy

Innys1 wrote: »

Just because you claimed for it, doesn't mean it was good value.

I have had cheapo mobile phones (uninsured) for at least 10 years and only lost one once on the train. I paid £10 to get it back from lost property. I've never had a phone damaged. You could say I'm extra careful but, as the phones were worthless ones easily replaced, surely I should have been careless instead?

You, on the other hand, have had two expensive phones which you've had to claim on the insurance as so think it is good value. I wouldn't come to that conclusion.

It was good value for me, i paid for expensive bit of kit, i wanted it insured so i wouldnt have to pay for replacement. Different strokes for different folks to be honest. Im not moaning about a £10 pm mobile insurance, as you can see its the least of my worries. Cheers

cfcboy

ValHaller wrote: »

I make it £450/month that you are left with, of which £250 is spent on socialising, £100 on smokes and £100 not accounted for

This is where your fight out of your situation begins.

Absolutely, smokes binned next week and limiting social to £25 a week. Should leave me with an extra £250-300 to throw at debts or save to extend lease. Cheers all

ValHaller

cfcboy wrote: »

Absolutely, smokes binned next week and limiting social to £25 a week. Should leave me with an extra £250-300 to throw at debts or save to extend lease. Cheers all

On the Debt Free Wannabe forum, the normal advice is to pay down your debts highest APR first. What I would suggest you do is make some estimates of the cost of the lease extension in 1 years time and for when you would be able to clear your debts. You can then estimate an APR off the back of this for the cost of the lease extension and decide whether to clear debt or extend the lease first.

mlz1413

As an outsider looking at your snapshot of finances I'd say spend a year getting to grips with your debts and learning to living not just within your earnings but on less so that you can start savings.

It seems from your posts that various things are happening that will stop certain monthly outgoings, ie the change of car and finishing a store card within 2 months.

Go to Martin's budget planner and fill it in, this will help you see what you pay out and stop you double adding things in. Main advise is to pay off short term high interest debt first. My advise is to use money you are not used to having to pay off further debts i.e. I pay my rates over 10 months, as I can live without that money each month on months 11 & 12 I pay a cheque for the rates value direct to my mortgage - therefore I never 'live' on that money.

Also MoneyBunny is on a downer! flats over shops do sell, they may have less appeal to some and they may not command top price but then you wouldn't have paid top price at the time either.

As for the lease one year really shouldn't make that much difference to the price of extending it and if you can stop spending every penny you earn then the £10k needed should be far more achievable.

Also I can't make out if you want to stay in the flat or want to move? You don't say you want to move more you want to sell to be debt free.....
I mention this because when I bought a leasehold flat it only had 55 years on the lease, I made the sellers extend the lease before I bought it, as they had no money this was all done on the sale day, my solicitors weren't happy about this so lots of clauses were written in and everything went fine. Obviously if you did this it would mean £10k less to buy somewhere else with so you have to decide what you want over the next few years to ensure you do things in the right order for you.