Selling house and going into rental dilemma

James2201

Good evening all, I was just wandering for some advice and I’m curious to see if anyone has ever been in a similar situation.

Basically a few years ago I bought a 1 bedroom house, at the time it was ideal for me and my partner, the plan was to extend the house. This has since turned out not really to be an option as there is not enough equity in the house to do what we need to do. Las year we had a baby, knowing space would be at a premium the plan was to move in about 12 months time.

We want to buy a bigger house together as this house is solely in my name, the problem with this is my partner has some debt which she has a plan to pay off but as a result her credit rating is poor. She has been advised it will take approximately 6-12 months to improve it once the debt has been cleared (not sure how true this is) We have since been told more likely to take 2 years

I feel a bit stuck and under pressure, I feel the only real option we have for the next 12/24 months is to sell our house, and move into rented. This would give us the space we need. Also would allow me to clear some debt as I stand to come away with a decent chunk of month from the house sale (most will be kept back for deposit on next house) and allow any credit ratings to improve.

I am worried about coming off the ladder so to speak, but I can’t see what else we can do. The only other option is shared ownership then my thought with that is that when we come to sell it will be much harder to sell.

I apologise for the long winded message but curious to know if anyone has been in a similar situation to me or if anyone can offer any advice or opinions?

Thanks

DCFC79

Credit history is what your improving as that is what lenders etc see.

Bossypants

James2201 wrote: »

I am worried about coming off the ladder so to speak, but I can’t see what else we can do.

I know that you feel stressed right now and like you absolutely must move now, but in reality your best bet is likely to be staying put. You say you have a one bed house - that means you have at least two rooms which aren't kitchen or bathroom, right (one bedroom and a lounge of some kind). While it may not be your ideal, it's still enough space for two adults and a baby/toddler, and many people make do with more people in less. Get creative in how you use the space. Look up storage options and unconventional room configurations. Leave kiddo with someone and go to Ikea for the day. Maybe bedroom becomes toddler room and storage room combined, and lounge doubles as bedroom for Mum and Dad (maybe using a curtain or something to create two halves). Make it work for you, knowing that it's only for another year or two, for the purpose of getting yourselves more options in the future.

need_an_answer

If there wasn't enough equity in the house to support an extension to the property, after fees etc how much do you think you would get if you actually sold the property now?


Realistically is that really as big an amount as you hoped for?


Tight as it may be at the moment I would persevere with living in the house and trying to save as much as you can in order to build up a deposit whilst also trying to bring down your OH's debts.