How can I use some of the equity in my flat before selling it?

Shaunblueboy

Dear Financial Whizzes, all suggestions very gratefully received from an ignoramus...
My situation is this: I am currently unemployed and extremely cash-strapped. However, I own my flat and have a very small mortgage - about 31k left on it. I need to sell the flat as the leasehold (a subject for another thread another time grr..) is rapidly running down. I conservatively estimate the flat would sell for at least 231k even with the shortish lease (similar properties with standard leases are going for up to 300k locally) which gives me, I am confident, about 200k equity, (and in this part of the S.E the property market is insane.) 
My problem is that I need some cash to decorate and fix up a few things before putting it on the market. Most avenues seem to be closed because of my employment status. I have, I believe a good credit rating, have never been in debt other than having a mortgage and standard overdraft facility on my current account, and have never had a credit card.
How - if it's possible - can I best borrow say 3k, on the basis that paying it back with interest will demonstrably be no problem when the flat is sold? Are there credit cards that I would be eligible for given my situation? It seems that lenders instantly dismiss me because of my current lack of income even though I have a surefire asset that even in the worst case scenario would ensure they get their money back and plenty to spare...
If anyone has any good suggestions I would be very very grateful. Thanks so much for your help in advance.  

[Deleted User]

You almost certainly can't.  With no job and little credit history, your real 'credit rating' as measured by a lender, will be very poor, despite any numbers given by the CRAs.

Assess what absolutely needs to be done.  A property will sell in any condition, for the right price.

HummingBird76

Could you not just put it on the market as it is, and accept a little less for it?  Getting a loan is not going to help you as the repayments will more than likely start immediately (although some companies do offer repayment breaks where you start repaying in a couple of months).  You are unemployed and skint so it's highly unlike you will be accepted for any kind of credit.  Do you have somewhere to go if you sell up?

warby68

What are your mortgage payments and have you applied for a payment holiday?
A payment holiday pending further employment and/or the property selling with a very small LTV might be acceptable risk to a lender. Not sure how they view full job loss though. 
Its probably not £3k but possibly enough for some basic sprucing up, especially if you do it yourself. You are in the position of only doing what is absolutely essential though so what do you need £3k for. Some decorating done by you would be very cheap. What is it that needs fixing up - people might have ideas for the problems that don't involve borrowing.

Shaunblueboy

Thanks very much you guys, really appreciate your thoughts and insight. I think I am looking at doing some basic decorating and selling asap. So frustrating though - if a lender agreed to give me a small amount I could pay it back plus generous interest the moment the flat sells (which is unlikely to take long around here.) Fortunately I do have somewhere else to go. 

macman

Why don't you just accept a slightly lower price for the flat if the decoration is a bit shabby? People normally want to decorate to their own taste, so it shouldn't be a deal-breaker if the blemishes are merely cosmetic.
Alternatively, since you are currently unemployed, why don't you decorate it yourself for the cost of a few cans of white emulsion?
That should cost you a couple of hundred, not £3,000?
As others have said, without any income you have no way to service the debt, and potential lenders have no way of knowing at what point your cashflow might resume. You might sell the flat next week. You might not sell it at all.

yksi

Short leases can make flats unmortgageable And short leases reduce your market considerably to cash buyers only, which can sting in the selling price a lot. On the plus side, the buyers who aren't put off by short leases and cash buys are also not put off by minor cosmetic work needing done, like a lick of paint.

Can you borrow off a relative? Can you ask for a payment holiday on the mortgage? Can you get a lodger in with you? Can you find paint being given away free, lino, tiles, can you find anything else free on Facebook Marketplace to do the work that needs doing? 

foxy-stoat

If you have credit cards then borrow on them and repay once your flat sells.  No one is going to lend you money with zero income.