First time selling a house, need help with costs.

milocat

Hi,
Thanks for reading  
Here is my situation. 
1) I am flat broke. I'm waiting on a paypal refund to be able to buy food for the kids; at present I have £0.16 in the bank account.
2) I accepted an offer on my second property this morning for £302,000. It was listed at £310k, with a guide price of £310-325k, but with the market looking unstable in the near future, I think it was sensible to accept the offer to mitigate my current poorness, hopefully complete around Christmas time, and be in a position to buy another property if/when the market crashes for better value.

I've never sold a house before myself.  When my parents passed, everything was held in trust, and I did not have any actual dealings with purchases/sales, and as such am clueless. I do not have a mortgage on either the property I live in, or the one that I've accepted the offer on. I know I have to pay Capital Gains tax at 18%, and solicitors fees, but is there anything else I am missing? I'd like to know what I will roughly end up with so I can plan the best thing to do with the money (aside from clearing the remaining debts).

Lastly, is there anything else I can do to raise funds in the interim period? I'm jobhunting, but we are approaching a 2 week lockdown (minimum). My credit rating has improved this year, but not enough that I am able to get a personal loan. And I can't get a homeowner loan because I am unemployed and have no mortgage. I don't qualify for government support as I'm currently doing my MA and count as a full time student and have the aforementioned assets.
Any suggestions regarding this would be welcome.

Comms69

Estate agent fees. CGT isnt 18% flat, you can work it out on the online calculator. 

That aside, nothing i can think off. Just any utilities, council tax etc. 

Assuming you are claiming all benefits youre entitled to? e.g. child benefit

milocat

From what I've worked out, I think I will need to pay about £8500 in Capital Gains, 0.85% (£2720) to the Estate agent, and about £1500 for a solicitor?

I'm liable for the Council Tax, and can't afford to pay it currently  
I already claim Child Benefit, but that's all I can get. Thanks for your reply! 

Unicorn_cottage

Can you sell anything? It sounds like you may need to do some work on yourself to get yourself "financially fit" as like you said you are clueless & that you also have debt. You are going to receive a large amount of money shortly but you need to make sure you manage this money well. Aside from Martin Lewi's guides on here I do find the Meaningful Money guides by Pete Matthew really good and you may want to start by taking a look at some budgeting help https://meaningfulmoney.tv/2020/10/14/the-ultimate-guide-to-budgeting/ Best of luck!

Rambosmum

Your university should have a hardship loan/ grant you could access

milocat

Rambosmum said:

Your university should have a hardship loan/ grant you could access

Unfortunately it's only available to Undergraduate students. I have looked into this! But do not have much luck in this type of thing. 

milocat

Unicorn_cottage said:

Can you sell anything? It sounds like you may need to do some work on yourself to get yourself "financially fit" as like you said you are clueless & that you also have debt. You are going to receive a large amount of money shortly but you need to make sure you manage this money well. Aside from Martin Lewi's guides on here I do find the Meaningful Money guides by Pete Matthew really good and you may want to start by taking a look at some budgeting help https://meaningfulmoney.tv/2020/10/14/the-ultimate-guide-to-budgeting/ Best of luck!

The car is currently up for sale, because although we need it, we need the money more. I've been trapped in a cycle of debt for years, that only worsened when I was married to my ex-husband who spent all my money that he could lay his hands on. It's been a slog to get out of that hole, I've been with Stepchange for years now and have about £25k left to pay off, plus the conservatory on our main property that was financed by my partner, and has about £13k left to clear the balance. 
I had some money back in May, and that saw us through the first 6 months of lockdown and helped clear a large chunk of the debt we had (including Council Tax arrears), but that has now run out and until the final IHT bill is calculated there will be no more cash forthcoming.

My long-term plan, is to sell this property, invest in more down in Wales where I live (houses nearby sell for about £80k and rent for £550-600pcm) and invest in a business, and find a full time job. That way, we should be financially secure, and have backup finances also.

FinallyStoppedLurking

Can you not take out a loan against your main residence? I say main residence as presumably you wouldn't be able to complete the sale of your 2nd home whilst you have a loan against it. 

milocat

FinallyStoppedLurking said:

Can you not take out a loan against your main residence? I say main residence as presumably you wouldn't be able to complete the sale of your 2nd home whilst you have a loan against it. 

I assumed I could get a secured loan, but because of my poor credit and the fact I don't have a mortgage on the main residence, I can't get a second charge loan. I also don't qualify to actually mortgage because I'm not working. 

FinallyStoppedLurking

I would have thought there will always be someone out there willing to lend you the money it just means it might cost you in repayments. 

How many companies have you tried to get a homeowner loan through? Surely the risk to them, even with your poor credit score, is fairly low?! 

Just speculating here though as I don't have experience in this area. 

kazwookie

Contact your local food bank for food now,   ring the local council and ask if there is a hardship type payment available.