shared ownership no equity release

Pfizzy

Thank you to everyone who is trying to help me, I have been researching for a month now, including CAB but no one will entertain shared ownership even if you have no adverse credit history, I am now looking for a millionaire! Lol (joke)

TrickyDicky101

Examining some way to release the bricks & mortar value from your property to repay a debt would essentially be converting an unsecured debt into a secured one which is usually not the recommended course. Can you provide any further details on what these debts actually are?

Thrugelmir

Pfizzy wrote: »

I just need to release a small amount to pay off some debts.

The purpose of the funds may well be an issue. Switching from £10k of unsecured debt to a mortgage doesn't resolve the underlying issue. Merely just transfers it.

Is the debt unaffordable to repay?

Pfizzy

Sorry everyone, the debts consist of several amounts credit cards etc .... I suppose I stupidly thought that as I have 50k sitting in my house which technically is mine as I have paid the mortgage off completely, there would be an easy way to release a small amount of it to help me, there is no point in it sitting there if I am now struggling. So the only way is for me to sell up and try to find a reasonable rental.

Jenniefour

Pfizzy, before you do anything about selling can I suggest you get over onto the Debt Free Wannabe board and see if those folks over there can help you come up with a realistic do-able plan to deal with the debt. Then you can decide if it's best to sell or not.

thequant

Pfizzy wrote: »

I have been in this house for 21 years and love it. I don't want to move but
I just need to release a small amount to pay off some debts.

Have you tried Wonga ?

Jenniefour

thequant wrote: »

Have you tried Wonga ?

Not sure going down that road is going to help - might even make things worse. OP has 50k equity in her home and 10k of debt. So borrowing again, as Thrugelmir has pointed out, doesn't solve the problem, it simply transfers existing debt. OP needs to find a way to pay down the debt, not keep it.

lindsaygalaxy

Would the LA/whoever you own the property from consider you selling back say 5% of the property to them? (I think 25% is minimum ownership).

Jenniefour

lindsaygalaxy wrote: »

Would the LA/whoever you own the property from consider you selling back say 5% of the property to them? (I think 25% is minimum ownership).

The associated costs such as legal fees and increased rent afterwards would add to the problem, rather than solve it. Other than selling out of the property altogether I doubt there are any more options on releasing equity - especially as some of the very best on this board have taken a look at this.

Pfizzy, see what can be done on Debt Free Board. Well worth a go to see if it's possible to make paying down the debt manageable and stay in your home.

dancingfairy

Getting more debt (or releasing equity) is likely to make the problem worse and not better.
I suggest you get some proper help from National Debtline, StepChange or your local CAB and/or hop over to the debt free wannabe forum. You almost certainly do not need to sell your house to deal with this debt.
df
Edit: obviously it will depend on what's caused the issue, if the house is unaffordable for you (with no debts) then I'd consider selling, otherwise I probably wouldn't.