Woefully complex financial situation of debts and lack of income yet with equity in a UK property

NewNewbie

Hello,

After a long period of avoiding my financial issues due to mental health issues (I'm bi-polar with a sleep disease) I have finally taken stock, mostly due to an increase in the frequency of actively thinking suicidal thoughts and a desire to look after my dependents.

I have a flat with my ex in the UK worth >£550,000 with a mortgage of ~£150,000. It generates a post mortgage and service charge income of ~£300. I am unable to qualify for a mortgage for three reasons: low level income in a non-qualifying currency; living overseas; large personal debt. Further, the freeholder is a housing association who require paperwork and fees upfront even though I own 100% of the flat and i d not have enough money to pay them and survive for another two months.

I have been irresponsible in planning and lifestyle choices (typical with bi-polars) and have built up debts to the bank across my Credit Card, Overdraft and three Loans of just under £80,000 with an average interest rate of over 15%.

I am owed about £11,000 from three friends one of whom pays me back monthly £300, the other two are in their own financial difficulties and are unable to pay me back at the moment.

It hasn't been possible to sell the flat due to a post Grenfell legislation/cladding issue exaccerbated by Coronvirus and I even strugle to do the administrative paperwork at the moment (due to the increased stresses) to satisfy the housing association in order to sell it.

With the assistance of an expert friend I am able to generate 20% per annum on any capital I have but I don't know how to raise further funds in order to allow me to benefit from this and it is not without its own potential for risk.

I am due to run out of accessible funds within the next few weeks and have become desperate, which has increased my propensity for thinking that suicide is the only way to fix my issue. I know this is becuase of my illness and I hence I have finally accepted that I have to "face up to" the complex issues so seek advice here. Can anyone offer any advice as to how, from overseas, I can address my situation to produce enough income to live on until my house sells? I am unable to work under the conditions of my visa and unable to fly due to coronavirus.

Worried sick

NewNewbie

foxy-stoat

IVA would be the way I would go - you will be asked to remortgage the property in year 4 or 5 but you wont be able to so pay another year - all done and dusted in 6 years.

I am afraid ANY amount of personal unsecured debt isn't worth giving up your life for.

Speak to a debt charity and reduce your monthly payments to your unsecured debts to £1 a month until sorted.

bris

Who pays 20% PA?, sounds dodgy to me and something that could very well back fire if they are wanting you to invest further.

You need to seek professional help for you health problems first and foremost then find an independent financial adviser regarding everything else.

Being overseas isn't going to help the situation as lenders won't want to lend anything to someone with practically no income and living overseas. 

NewNewbie

foxy-stoat said:

IVA would be the way I would go - you will be asked to remortgage the property in year 4 or 5 but you wont be able to so pay another year - all done and dusted in 6 years.

I am afraid ANY amount of personal unsecured debt isn't worth giving up your life for.

Speak to a debt charity and reduce your monthly payments to your unsecured debts to £1 a month until sorted.

Thank you Foxy-stoat for taking the time to reply.

I have begun the process of research and filling in data on a few sites, including Stepchange and National Debtline. I am told that I cannot be helped by most when I enter my accurate details. Stepchange refuses for unexplained reasons.

In the process I learned and remembered a few important things:

1. To open another 'safe' bank account, which will be difficult from overseas, I await a 'referred' result from Virgin Money and will try others if that fails.

2. I am not entitled to any benefits nor further coronavirus assistance (one of my loans was under the corona-help umbrella) for being overseas and unable to return

3. £40,000 worth of the loans I have are actually from friends and one for £25,000 was in the form of a loan he took out on my behalf!

So things really do not look good at all. The total debt an IVA might eliminate is £31,000.

My awakening has just begun... hopefully I will be able to navigate my way through this dark time with the help of the knowledge-wealthy and refind a way to generate income!

sammyjammy

You just need to get that house sold, can the EX help?

DrEskimo

NewNewbie said:

With the assistance of an expert friend I am able to generate 20% per annum on any capital I have but I don't know how to raise further funds in order to allow me to benefit from this and it is not without its own potential for risk. 

I would stop this. You can't afford to take this level of risk with any money you do have. 

I also take it you have debts that are accruing more than the 20% (given that 15% was the average level) interest you are making back with this extremely high risk investment, which makes no sense at all. By using the funds to pay down those high interest debts instead, you are getting a 100% safe guaranteed return of ≥20%.