Parents selling house because of debt

Floxxie

My parents had their house repossessed and were rubbish with money. I was 15 at the time and for the next 15 years attempted to help them. It was all a waste of time. I lost a lot of my own money and sanity. The only advice I can give you is that they are adults who have made their own decisions. Getting involved is not going to change anything.

Selling and downsizing for them is better than losing it all.

kelpie35

Maybe it is time for you to get a place of your own. Can you not use your savings as a deposit.

It is your parents responsibility as to how they manage their money.

I am sure that they are sensible enough to realise that they need to downsize, so are making that choice.

I think you should be relieved they are taking action now before they face much worse financial disaster.

It must have been very difficult for both your parents to live apart for the best part of a week, week in week out.

I hope that the decision they have made will bring them peace of mind and a bit more financial security.

Jhoney_2

Also, £700pcm x 10 years = 84K,. Is there no way for you to get a 60K mortgage, contribute your 27K savings and thereby salvage their home and yours - giving you a share of equity along the way?

Despite your initial caveat, it seems you are so busy being angry/venting that you are not looking at your own ability/responsibility within the problem. Go and help!

Robisere

Have you tried to find work and accommodation out of London? I may be wrong, but as has been said, much of your post is concerned with you looking at this situation from purely your own point of view.

Between marriages many years ago, I lived with my parents and looked after them as they got older and one by one, became ill and died. For several years I worked at a job nearby, shopped, cooked, cleaned, washed and ironed for them. I was not always happy with the life, but they were my parents and had given me a good life.

thorsoak

Voyager89 wrote: »

Hi

Maybe this is just a chance for me to vent a bit but I just fancied posting something. Also this could be the wrong place, if so moderators please move the thread.

My parents revealed to me today that they'll be selling our house. The reason for this is because for the last 10 years we've been operating at a £700 loss every month.

Why this happened is because my Father lives away from home Monday-Friday for his job. He therefore incurs living expenses when he's away that weren't budgeted for when we bought the house.

I can't believe it because this is all news to me, not only that I don't understand how they could have allowed that to go on for so long and be ok with it. Apparently it's been possible because they have a mortgage that gives them an unlimited overdraft as they pay the mortgage. So simply put as the mortgage went down, the overdraft went up. Basically making no change to the money owed. Now the mortgage will be over soon and they will have to settle the overdraft. Because of their age (both still working) they would be unable to get another mortgage so they have no choice but to sell and downsize to another property.

I understand that now that is their only move, but I'm so !!!!ed off we are in this situation in the first place. Both my parents have good jobs and have been earning at least 70k between them over that time. I have no idea where the monies gone.
Assuming the take home pay for both of them is around 5k per month, they've managed to spend 5.7k per month consistently for 10 years! How I have no idea.

Not only that we bought the property when it was around 100k more than the small house we had mortgage free 10 years ago. We also had a relative die who gave us (I don't know the exact figure) around 100k.

They are both seem pretty bad with money, but not in lavish things. Just by general spendings. Takeaways, sky box, bills for the house (always got the heating on), health insurance, pets, 2 cars (but not good ones).

I'm just stressed because we're selling the family home, one that I have spent most of my memorable life in to downsize to something that will most likely be a 2 bedroom flat nearer my Dads employment.

I live and work in London in a job that pays pretty well in comparison to what I could get, but I work unsociable house which I have grown to hate. Property prices in London are stupid so I struggle to get on the ladder (I am saving, 27k so far), so I'm not invested in London or committed there. I've always had that safety net that I could come home, now it seems that it's mostly gone away. Although they have said that the spare bedroom would be mine when I needed it. It is nice, but it's a 2 hour drive away from everything I've know.

Like I say maybe I just needed somewhere to vent but I'm upset at all this. Especially when I consider most of this completely avoidable if they were better with money or had they done this 10 years ago when they realized it was unsustainable.

Any thoughts would be much appreciated

Kind regards

So in the years that you have been working and living at home, have you contributed in any way to the running of the house? After all, you will have benefitted from the heating and the sky box no doubt - not to mention laundry, food etc.

Jhoney_2

@ Thorsoak

Voyager89 wrote: »

Hi


I live and work in London in a job that pays pretty well in comparison to what I could get, but I work unsociable house which I have grown to hate. Property prices in London are stupid so I struggle to get on the ladder (I am saving, 27k so far), so I'm not invested in London or committed there. I've always had that safety net that I could come home, now it seems that it's mostly gone away. Although they have said that the spare bedroom would be mine when I needed it. It is nice, but it's a 2 hour drive away from everything I've know.

Kind regards

So unless I missed something, he doesn't live at the property, but has a sentimental attachment and uses it as a bolt hole from the London rat race and to spend time with his parents.

Thrugelmir

Jhoney wrote: »

@ Thorsoak

So unless I missed something, he doesn't live at the property, but has a sentimental attachment and uses it as a bolt hole from the London rat race and to spend time with his parents.

I would consider this to be more important in the overall scheme of matters.

to downsize to something that will most likely be a 2 bedroom flat nearer my Dads employment.

jgh

Voyager89 wrote: »

My parents revealed to me today that they'll be selling our house.

If it's "our" house, they can't sell it, only all three of you can sell it.

we've been operating at a £700 loss every month.

when we bought the house.

we bought the property

because we're selling the family home

Why don't you increase your share, and commenurately increase your share of payments? Can you afford to go to, eg, 50% and your parents drop to 25% each?

missindecisive

op. how old are you?
your parents have made some financial mistakes..so what. Its only a house, atleast they are both still alive. Help them to make the move they need to do and maybe its time to stand on your own two feet.

Jhoney_2

@ Thrugelmir

Thorsoaks post suggested OP lived at home and use of amenities etc. My inference is he does not live at home as per my quotes.

As to what is important, i'm not sure- but your post seems to be a suggestion based on the situation the parents are in now, and how to mitigate some of OP's need for a family home to go back to. See bold:-

Voyager89 wrote: »

Hi

Now the mortgage will be over soon and they will have to settle the overdraft. Because of their age (both still working) they would be unable to get another mortgage so they have no choice but to sell and downsize to another property.

I'm just stressed because we're selling the family home, one that I have spent most of my memorable life in to downsize to something that will most likely be a 2 bedroom flat nearer my Dads employment.

I live and work in London in a job that pays pretty well in comparison to what I could get, but I work unsociable house which I have grown to hate. Property prices in London are stupid so I struggle to get on the ladder (I am saving, 27k so far), so I'm not invested in London or committed there. I've always had that safety net that I could come home, now it seems that it's mostly gone away. Although they have said that the spare bedroom would be mine when I needed it. It is nice, but it's a 2 hour drive away from everything I've know.

Kind regards