Moving from Bought House to Long-Term Rented

Kieran2001

Penitent wrote: »

Please, please don't. Who is giving your mother financial advice?

Divorce Solictor from a North East Solictors firm that deals with divorces, finances, housing, mortgages etc.

Cakeguts

Kieran2001 wrote: »

For some people it is, others it isn’t. There’s very little property supply in the local area, out of a thousand homes, 10 are for let.

10 are available to let now at this present time but there could also be 10 available to let next month and the month after. People move a lot so new rented houses are coming on the market all the time. Anyway it doesn't matter what is available she can't afford to rent a house just now. She has to sell the house she owns first.

Kieran2001

Penitent wrote: »

I still can't get my head around moving out in an attempt to avoid potential repairs. Does she have buildings and contents insurance? Wouldn't getting this be more cost effective than selling the house for peanuts to one of those instant sale cowboys?

I don’t believe she does have any, unless it is part of the mortage. Also, another reason I believe is due to the potentional of blacklisting of the property, as the total debt from the ex tied to the pro toy other than mortgage is also a few thousand pounds. The house is also joint names with me ex, who she doesn’t want access to the property, as he doesn’t communicate with us, and he doesn’t pay anything whatsoever towards the mortage. Currently my ex is being taken to court by pay day loan companies, is failing to pay for furnishings in the house which he got, that my mam didn’t want, and is in his name and he is failing to pay maintenance.

Cakeguts

I can't get my head around how she thinks that any decent landlord is going to let a property to someone who is going to be paying a rent and mortgage on a low income that isn't enough to pay the mortgage and mend pipes. I would have thought that mending a pipe would have been much cheaper than paying rent, and a mortgage and council tax for two properties and the heating for two properties and the council tax for 2 properties.

Cakeguts

Kieran2001 wrote: »

I don’t believe she does have any, unless it is part of the mortage. Also, another reason I believe is due to the potentional of blacklisting of the property, as the total debt from the ex tied to the pro toy other than mortgage is also a few thousand pounds. The house is also joint names with me ex, who she doesn’t want access to the property, as he doesn’t communicate with us, and he doesn’t pay anything whatsoever towards the mortage. Currently my ex is being taken to court by pay day loan companies, is failing to pay for furnishings in the house which he got, that my mam didn’t want, and is in his name and he is failing to pay maintenance.

Houses don't get blacklisted. People get denied credit. Your mum will not get any help with moving until she no longer has an interest in this house. If the landlord thinks that she is going to get benefits this is not the case. She won't because she owns a house. She will have to pay both the mortgage on th house she owns and the rent on the rented one out of the low income.

Kieran2001

Cakeguts wrote: »

Houses don't get blacklisted. People get denied credit. Your mum will not get any help with moving until she no longer has an interest in this house. If the landlord thinks that she is going to get benefits this is not the case. She won't because she owns a house. She will have to pay both the mortgage on th house she owns and the rent on the rented one out of the low income.

I’ve lost track of it now. She gets roughly £900 Per Month from her 60 Hour A Week job, and about the same in a variations of benefits. Once my DLA Appeal has being completed, there will be an additional £500 Per Month, and she has stated when this happens, she would be able to handle both properties.

Kieran2001

Cakeguts wrote: »

I can't get my head around how she thinks that any decent landlord is going to let a property to someone who is going to be paying a rent and mortgage on a low income that isn't enough to pay the mortgage and mend pipes. I would have thought that mending a pipe would have been much cheaper than paying rent, and a mortgage and council tax for two properties and the heating for two properties and the council tax for 2 properties.

It’s more long term issue, than short term, as if something breaks like an oven, she can’t magic out hundreds to repair it, and she refuses to get any loans / finincal aid that isn’t provided by DCC.

AnotherJoe

Your mum needs to be saved from herself.

Other son is going to have to lump it.

She sells in the normal way to get best price, and moves into rented.

Anything else is perverse and more expensive

saajan_12

OP, stop sticking to your plan and try to think about the issues with it.

1. Landlord will want to check affordability, will see mortgage and deduce mum can't afford rent, so rental isn't possible.

2. Benefits won't cover rent when she has a perfectly good house to stay in

3. Lender won't give an open ended payment holiday for however long it takes to sell, when mum can afford mortgage without the unnecessary rental, so they aren't backed into a corner. So she will be covering rent + mortgage.

4. Letting it go to auction will mean MUCH lower sale price, plus repossession, auction room etc costs .. does she WANT to throw away money?

5. Council tax discounts for empty properties are minimal ~1 month if that, for extended periods can be higher than the usual bill to disincentivise leaving properties empty. So she'll be liable for 2x council tax.

6. Utility bills usually have standing charges, even when you're not in residence. If you turn off heating/water, pipes can freeze, making it more likely to cause repair bills.

7. Mortgage can be paid down atleast. Long term renting has no end in sight - what will happen when she no longer has any income?

Your realistic options are sell then move or stay put. Your plan isn't feasible.

dimbo61

Minimum wage for someone over 25 is £7.83 an hour.
60X 7.83 is alot more than £900 a month.
Mum needs to stay in the property until it is sold.
She needs to speak to a Good solicitor so her ex cannot run up any more debts in her name or use the property as security on a loan or other debts.
PS your dad maybe entitled to 50% of the equity in the property.