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........

Kynthia

It's clear that you want to move for many reasons and don't want to stay where you are. It seems like you're whole life will be better and the only thing stopping you is it will be very difficult to sell. That's no reason to be miserable forever. Do what you can and make what sacrifices you can to make it happen.

Shirtygert

Thank you for taking the time to make a comment - much appreciated and you are so right..xxx:j

silvercar

2. Let house go back to mortgage company and housing association,

If you do this, the mortgage company will chase you for the shortfall. If only you went bankrupt and the property was jointly owned, your partner will be chased for the lot.

Shirtygert

Silvercar, the shortfall after a sale will go into my bankruptcy.. thanks for taking the time to comment, appreciated...

silvercar

Shirtygert wrote: »

Silvercar, the shortfall after a sale will go into my bankruptcy.. thanks for taking the time to comment, appreciated...

Was the property in your name only? If so you are correct. But if the property was in joint names and only one of you went bankrupt, the non bankrupt can be chased for all the debt.

Shirtygert

Hi there, yes it was in my name only and the BR was all before my partner moved in etc so all just my details. thanks again for the response...

silvercar

Shirtygert wrote: »

Hi there, yes it was in my name only and the BR was all before my partner moved in etc so all just my details. thanks again for the response...

In that case, I would go for it. I would also stop paying the mortgage now - no point throwing good money after bad.

ognum

You know I think you should move, life is way, way to short so please do what is important to you.

Shirtygert

Thank you so, so much for your comments.. I am going to do it.. decision made!!!!! Thanks so much for taking the time to read my message and respond.. :j