Best options after divorce

astanton111

So I'm currently in the middle of splitting from my wife. When the house is all sold we should get around 100k - 120k each from the sale of our home. 
I'm trying to work out my best options going forward. 

I can get a new mortgage for around 160k on my own but am thinking of buying a part buy/let newbuild. 

I'm thinking of just buying the % that I can afford now without taking out a mortgage. 
That way what I would usaly pay towards a mortgage I will save towards staircasing later on. 

Is this a good idea or am I better off taking out a mortgage as intrestrates over the long term could be cheaper than inflation. 

Sorry if not worded great, bit confused here about what to do. 

onylon

These social housing schemes warp the market so that the price of a qualifying new build is significantly higher than that of an identical pre-owned flat. This usually makes them poor investment choices and for various reasons they can be difficult to sell.

I would only consider it if the new build would boost my quality of life enough to justify the financial hit.

TBagpuss

Well, if you get a shared ownership property you will be paying rent on a portion of it, so you need to consider that, too - it may be that it makes better sense to buy 'normally' and pay a mortgage on the whole amount.

Also, shared ownership is designed to allow people who can't otherwise afford to buy homes a way of doing so so, and availability is  normally fairly limited - consider whether you feel i is is right to take a property in those circumstances if you can afford to buy elsewhere - you may also find that you are not accepted for he scheme depending on how it is run and what the criteria is.

Shared ownership can be positive but it does combine the disadvantages of being a home owner, such as costs of upkeep, with some of the disadvantages of renting, and you are often more restricted in terms of what mortgages you may be able to access, how easy it is to sell (and how quickly you can do so, as you may well be required to let the landlord market it first before you can sell on the open market) so you would need to consider those issues as well. 

Finally, there is a generally a premium involved if you buy a newbuild and that's likely to still be true even if it is also a shared ownership property. 

I'd suggest that you look around and do some serious number crunching, in terms of what the costs of rent, mortgage or a combination would be, how much house you could get for your money, and what kind of return you think you might get on your savings if you did decide to go mortgage free and invest any money you saved each month. 

I supect that you may be better off buying a 'normal' house with a mortgage, and given that you have a big deposit compared to the amount you will be borrowing, you should b able to get a decent deal , so look to fix your rate .

london21

I am personally not a big fan of new build or shared ownership.

Mortgage is a good option because stair casing you will pay the % of market value and rent on the percentage you do not own.

New build to me are sometimes overpriced and not always the best quality although you do get 10 years insurance. 

astanton111

Thanks for your thoughts guys. The main reason I'm looking at part buy is that with a mortgage my budget would probly be around 250k I'm looking for a min 3 bed house with garage preferably a 4 bed. I've got 2 kids who will spend half the week with me so they need there own rooms. 

Ive seen properties that I like around 300k so wouldn't be able to get a mortgage for the amount I need. 

Sistergold

Best option after divorce is to quickly do what you can afford, so don’t stress about “the children each need their own bedroom” when you can not afford it. What you and the children need is security (whatever that definition is to you), love and stability. Sharing a bedroom is not the end of the world, whether rented or owned. So also look at two bedrooms if it means it will be easier to afford that with a mortgage or rental. Divorce is so stressful it’s made worse as we try to meet high expectations on less household income. 

Just wanted to chip in from experience. Just focus on what you can afford not on what you think it should be. Later on you can review if finances improve. Don’t overstretch yourself 

Good luck

SuseOrm

Completely agree,  actually my children after the divorce did not want their own bedrooms They wanted to get in with me all of the time which was fine.  

It doesn’t have to be for ever just take your money and buy the best that you possibly can at the time and then as things improve on site all day and you can look at moving again if that is an option and it suits you better.  

Sistergold

SuseOrm said:

Completely agree,  actually my children after the divorce did not want their own bedrooms They wanted to get in with me all of the time which was fine.  

It doesn’t have to be for ever just take your money and buy the best that you possibly can at the time and then as things improve on site all day and you can look at moving again if that is an option and it suits you better.  

Same here, for a year I was in a rented 2 bed flat with 4 children. Youngest two slept with me in my bedroom, oldest in lounge, 2nd oldest in second bedroom. Children loved it as it was like camping but on comfortable mattresses. Best not to stretch yourself as already under stress. Focused on having a roof over our head.