Loan against owned house, but no income?

lardconcepts

Is there any way of raising a short term loan (up to about a year) of about £20k against a £200k property which is owned outright (but in disputed joint names) without any guaranteed income?

I plan to sell the property ASAP, but it's coming up to the wrong time of year to sell this kind of house in this location, and it can take up to 6 months to sell round here.

I've got £8k debt at about 17.5% interest; my business has collapsed and there is low employment round here. So I've got no guaranteed income, the house needs about £4k of work done on it to make it sale-ready, and I need to live (albeit frugally) until I can move to a city, downsize, get a 9-5 in my sector and pay debts off.

I've been following the guides, filling in eligibility forms etc, but this unusual situation makes me ineligible for all but the most expensive, long-term loans, and with my income situation, remortgating is not an option.

I've already borrowed +£5k off the parents to help with a family court fight. And that's part of the reason I don't want to post too much info if I don't need to. It's complicated and this is the internet!

I'm a grown up - this is my pickle and my fight, I shouldn't be relying on "bank of mum and dad" at my age.

I'm up for anything like peer to peer or some kind of lending society. I just can't find any that fit my situation and CAB aren't a lot of help either.

foxy-stoat

No lender in the land will give you a loan with no income - can you not sell it as it is and not sink any more cash into it.

Only thing I can think of is if you can find someone willing to lend you £20,000 cash and have their name put on the title deed and them take a percentage of the proceeds over and above the £20,000 they lend you - say £5,000 for example.

lardconcepts

foxy-stoat wrote: »

No lender in the land will give you a loan with no income - can you not sell it as it is and not sink any more cash into it.

Yes, I can - but even if I don't spend the £4k to get an uplift in the value and make it far more attractive for a quicker sale, I have £8k of debt, and £700 left in credit cards. That's not going to see me through until sale time.

OK, now you've added

foxy-stoat wrote: »

Only thing I can think of is if you can find someone willing to lend you £20,000 cash and have their name put on the title deed and them take a percentage of the proceeds over and above the £20,000 they lend you - say £5,000 for example.

I'd be up for that - except someone is already on the deeds, and that's in dispute and being fought over right now. Tricky, eh?

foxy-stoat

lardconcepts wrote: »

I'd be up for that - except someone is already on the deeds, and that's in dispute and being fought over right now. Tricky, eh?

Thats a no go then as the other owner would need to agree.

Can you apply for a few more credit cards and do the 0% shuffle for a while to live off, risky strategy though.

Brock_and_Roll

What's wrong with auctioning it?

lardconcepts

Brock_and_Roll wrote: »

What's wrong with auctioning it?

Foxy can answer that one!

foxy-stoat wrote: »

Thats a no go then as the other owner would need to agree.

foxy-stoat wrote: »

Can you apply for a few more credit cards and do the 0% shuffle for a while to live off, risky strategy though.

Yes, I suppose I could - but risky, as you say.

sleepyjones

Can you get a bridging loan?

[Deleted User]

Will £4k of improvements actually see an increase of £4k or more in the sale price? Most improvements don't actually increase the value of the property by the same or more as what you spent on the work. Adding square meters can increase the value but with a budget of £4k I doubt you're doing that.

As for the £8k of debt is secured against your home it's a non-priority bill, the same as the £700 on credit cards. If you can't afford to pay it then you can't afford to pay it. You could offer your creditors a token payment until you are in a position to start paying off your debts properly. The Debt Free Wannabe board would be a good place to start.

BrassicWoman

a property with disputed title is no use as security!

bris

You can't do anything with it until the dispute is resolved. Can't see it being easy to get another person off the title and will be very expensive in legal fees to even try.

warby68

With disputed title there is no way you can use the house to raise funds as the other party would need to agree. Even without the dispute, no income means no loan.

You seem to need income first and foremost - its coming up to Christmas. Something seasonal and park the non-priority creditors until your situation is clearer? I don't think family help should be dismissed as they can overlook the dispute and work out whether eventually you will be in funds and can repay.

Disposing of the properry sooner rather than later might be better (although funds would probably be held for the dispute) - not sure you are in a position to do improvements and wait for the best selling time. The hit from selling straight away may be smaller in the long run than hanging on in your difficult position.