Can't Buy / Can't Rent

pollyanna24

Just wondered if anyone had any ideas as to what I can do in my situation.

I own a house with my brother and he wants to sell up. I will get approximately £85,000 out of the sale. This amount along with any mortgage I might be able to get will enable me to buy at most a one bed flat in my area (£180,000 approximately).

Now I know people will say, move to a different area, but I've lived here a long time, have a job in London, and I rely on my mum for childcare.

I can't get on the council housing listing as I will have too much money in the bank.

I can't afford to rent privately without dipping into my equity as a 2 bed flat is about £1,200 rent.

I can't afford to buy a 2 bed flat/house which is what I need with two children.

I can't get shared ownership as I have already owned a property.

I know this isn't the worse situation to be in as I will have the equity from my house, but it does seem very unfair that I've spent the last 11 years scrimping and saving only to potentially lose it all if I now have to use it to put it towards private rent. I should have spent my 20s spending all my money instead of putting it on the mortgage!

Kevie192

Get a job that pays more, then you can afford to either rent or buy a better place?

Move in with your parents?

Use the equity to put down 6-12 months of rent whilst you work on getting a better job/higher wage?

Live in a 1 bed flat, giving your children the bedroom and having a sofa bed in the lounge for yourself like many people have to in London?

All options!

Bantex_2

You can get a 2 bed within the M25 for less than £200k.
What is your preferred area?

pollyanna24

Bantex wrote: »

You can get a 2 bed within the M25 for less than £200k.
What is your preferred area?

Watford. Where I am living at the moment.

lincroft1710

pollyanna24 wrote: »

I will have the equity from my house, but it does seem very unfair that I've spent the last 11 years scrimping and saving only to potentially lose it all if I now have to use it to put it towards private rent. I should have spent my 20s spending all my money instead of putting it on the mortgage!

If you hadn't had a mortgage, you would be renting and with 2 children that would be £1,200 a month and you wouldn't have £85,000 equity.

You have 2 children,does their father not pay Child Support towards the cost of raising them, which should include an element for accommodation?

pollyanna24

Kevie192 wrote: »

Get a job that pays more, then you can afford to either rent or buy a better place?

Move in with your parents?

Use the equity to put down 6-12 months of rent whilst you work on getting a better job/higher wage?

Live in a 1 bed flat, giving your children the bedroom and having a sofa bed in the lounge for yourself like many people have to in London?

All options!

Thanks. Not that easy to just get a better paid job though is it? My job pays okay, but I'm only part time at the moment, kids are only small for a short time, right?

Have also thought about moving in with the parents, something to think about. Bit far from girls' school, but hey ho.

And yea, quite like the idea of a 1 bed flat, but people have tried putting me off it, as in when girls get older, won't be practical, or will be hard to sell when I need to etc.

Em88

I think for shared ownership a lot of them do allow you to use the schemes still if you don't still own the property, i.e. you have to sell the current property before you can get a shared ownership property. Might be worth looking into a bit more.

pollyanna24

lincroft1710 wrote: »

If you hadn't had a mortgage, you would be renting and with 2 children that would be £1,200 a month and you wouldn't have £85,000 equity.

I appreciate this, hence why I said it wasn't the worse situation to be in. Still annoying though when some people just get everything paid for with housing benefit.


You have 2 children,does their father not pay Child Support towards the cost of raising them, which should include an element for accommodation?

He does pay a little bit. But as much as I hate him etc. etc., he still has to fund his own living arrangements. What he pays me goes towards my childcare.

Pete9501

What stops you buying your brother out for as much as you can raise with an IOU for the remainder in 15 years? You each have £85k worth of equity and can borrow on your own £180k. So borrow that on a mortgage and buy your brother out for £70k. With a min of £20k to follow in 15 years. Start a saving bond for 15 years to pay brother back and offer 50% of profit above £20k.

Yes I know it could go pear shaped between you but I have sat on an IOU from my sis for 12 years whilst a small inheritance went all to her to cover schooling for her son. I could manage without the money and it helped her out. She has recently cashed in the bond and paid me, which will help me move house in a couple of weeks. I was happy to do this for my sis.

pollyanna24

Pete9501 wrote: »

What stops you buying your brother out for as much as you can raise with an IOU for the remainder in 15 years? You each have £85k worth of equity and can borrow on your own £180k. So borrow that on a mortgage and buy your brother out for £70k. With a min of £20k to follow in 15 years. Start a saving bond for 15 years to pay brother back and offer 50% of profit above £20k.

Yes I know it could go pear shaped between you but I have sat on an IOU from my sis for 12 years whilst a small inheritance went all to her to cover schooling for her son. I could manage without the money and it helped her out. She has recently cashed in the bond and paid me, which will help me move house in a couple of weeks. I was happy to do this for my sis.

This sounds great. And it was what we were planning at first. I take on the mortgage of £100,000 (or thereabouts as it will be when we sell) and leave his equity in the house until I could afford to buy him out. He was seeing it as an investment.

But he wants the equity out of the house to buy with his fiancee. Which is fair enough I suppose. Her parents put £100,000 into her flat, so they would have about £200,000 deposit to put down on their own property.

Then he changes his mind and says that they will live in her flat for a while after they get married (at present we all live together).

I just feel a bit in limbo and would rather just do something about the situation rather than waiting for my brother to make up his mind (again).

Cisco001

pollyanna24 wrote: »

Thanks. Not that easy to just get a better paid job though is it? My job pays okay, but I'm only part time at the moment, kids are only small for a short time, right?

Have also thought about moving in with the parents, something to think about. Bit far from girls' school, but hey ho.

And yea, quite like the idea of a 1 bed flat, but people have tried putting me off it, as in when girls get older, won't be practical, or will be hard to sell when I need to etc.

I suggest you go for 1 bed flat option.
By the time they get older, may be teenager, you don't have to rely on your mum for child care, and you will be able to get full time job and move to less expensive area.