Help please with advice,give up s/o house to rent in dream location or stick with it.

Shirtygert

Hello everyone, looking for advice and thoughts on a matter I am really really struggling with please...

We have a shared ownership property and I am in neg equity to about 10k and about to be made redundant and it will bring in about 8.5k in total. I currently have about 1k of arrears on my mortgage. Discharged b/rupt in April this year.

My partner works part time only due to ill health and currently earns about 240 per month. I presently earn 1400/month and anticipate that being a drop if i am successful in securing a new job to about 1300 approx so total incoming 1540.

Ponderings.... what if's ...

1. Stay here in shared ownership house, try to find a new job and more or less my life remains as it is but we can afford to pay off the arrears, do some bits and pieces to our so house and hope to have 2k in bank to start our savings off.
2. Let house go back to mortgage company and housing association, and move to South East area to be nearer to family and quality of life - find a job down there, for me as main wage earner and my partner to find something part time to add to the coffers too. Rent a place, but it could only be a 1 bed flat due to price of renting, not a problem though and we would be on the coast so the benefits outweigh the lack of space and we can live differently to make the most of it. We would have savings of 3.5k and enough to pay for 6 months rent up front initially.

Problems in my thinking and keeps me awake at night worrying...

• Renting as opposed to shared ownership property... lack of stability - double edged sword as can be a good thing too if we had awful neighbours the village we live in changed and we hated the changes we are stuck here at present as no-one wants to buy our type of so house. We are tied to a rural clause in the sale, any potential purchasers would need to be local to the small rural area we live in and can only ever own 75% of the property, never own it outright. Plus if we sold now we would have to find about 10k plus just to sell which obviously I dont have. The house is getting older 25yrs+ and the lease is getting shorter so less attractive to potential purchasers... oh woe is me...
• Future changes financially...at present my partner is unable to work full time. This is not going to change, he is only going to deteriorate further and in the end work less or not at all. If we remain in my present house with a mortgage we get no help if I earn fairly modest wage under 18k with any benefits of any kind. My partner is unable to claim disability benefits at present apparently and although for a period could be entitled to jsa obviously that would only be short term and contribution based element which would eventually end. This would leave me in a pickle financially and trying to support a mortgage and the 2 of us .. although it is doable it would be hard long term until we retire in 10years and no private pension, with a mortgage still outstanding of 54k.. i have interest only element of the present mortgage so i am paying only part of it as repayment. So, we retire with an outstanding balance of 54k and no savings to pay it off... doom and gloom
• If we rented ultimately we may be eligible for some help if my lovely partner is unable to work in the future and my wages are low. Based on the calculations I have put in various benefit checkers. This would make life a little easier.
• Plus, we could move to the coast, nearer family and put our names on housing list and we have 10 years til our retirement, it would be a dream if we were offered a little place to rent in our retirement at some stage that i could call home...

I am so, so confused about whether to live our dream of being closer to family and the coast or remain in landlocked county in a house that is deteriorating around my ears and will only get worse and i would always have a battle to sell in long term...



I would appreciate any comments or thoughts or experiences please as my head is full of all sorts of questions and worries.. many thanks and so sorry for rambling on and on and on........

easygoingchap

If you have savings then pay your mortgage arrears and other debts

tigerfeet2006

Who's name is the house in? Who went BR?

Have you changed your mortgage product since going BR?

Shirtygert

Hi, it is in my name only and the BR was in my name too and no, no change of mortgage details at all... other than the arrears...

debt_doctor

Shirtygert wrote: »

I am so, so confused about whether to live our dream of being closer to family and the coast or remain in landlocked county in a house that is deteriorating around my ears and will only get worse and i would always have a battle to sell in long term...

Hi,

Your above paragraph says to me exactly what you want - I haven't altered a word - you just need the bravery of making it happen!
Bankruptcy has downsides but one very good side is that it makes possible the previously thought impossible. With no debt to service and only the type of roof over your head to think about makes a life changing choice much easier.

No one can make this choice for you, but we can provide practical ways to make it happen - if you want.

DD

Shirtygert

Debt Doctor - you are amazing
That is all x
:T

luvchocolate

I think you have answered your own question.....good luck in the future xx

Shirtygert

I think you are right.. I seem to have but just need to make the big jump.. have always been so sensible.. maybe I need to leap into the unknown.. xx

tigerfeet2006

Shirtygert wrote: »

Hi, it is in my name only and the BR was in my name too and no, no change of mortgage details at all... other than the arrears...

OK so you can just stop paying the mortgage and save the money for your rental deposit and moving costs.

When you move out and send the keys back be aware that you will still be responsible for the council tax and buildings insurance until the mortgage company repo. So maybe try and save some money for that as well.

The mortgage company will most likely try and get you to sign a deed of assignment, don't sign it as this will make you responsible for the debt. When it finally is repo'd the shortfall will go into the BR.

Shirtygert

Thankyou so much.. I am continuing to pay rent to the housing association but not the mortgage at present..difficult times... thanks for your kind words and advice.. much appreciated

tigerfeet2006

Just do what is best for you and your family. We did and we haven't looked back.