get off the mortgate ladder?

kentyy

Hi I hope someone can give me some advice on my situation.
It's a bit long winded so apologies in advance.

I bought my top floor flat 8 years ago for £25k. It is now worth approx £110-£115k.
Three and a half years ago I became ill and am now disabled. Some days i can walk and other days i can't. Being in a top floor flat has become a nightmare as I now sometimes cannot get out of my flat because of all the stairs that I sometimes can manage and sometimes can't. I keep my wheelchair in the car because i cannot get it up and down all the stairs.
I have considered trying to buy a ground floor flat but in my area they are approx £130-£140k which i cannot afford.
I asked my mortgage lender if they had any advice and was told that I wouldnt be able to get a bigger mortgate and i may have problems getting a new mortgate in future because i now cannot work and am on benefits so the criteria for a new mortgate isn't great (not in those words but that was the gist of it).
The social services are very little help and i have had many problems with them on numerous things. After a long time of asking for help for housing i was told that i would have to sell my property and they would look at getting me help finding a ground floor flat or bungalow that would better suit my needs than the position i am in now. My benefits would be grately reduced due to then having money from the sale of my house. This isn't a big problem until i look into it a bit more. I pay just under £200 a month on my mortgate and to rent a ground floor flat would be approx £500 per month or a bungalow nearer £700-£1000 per month. The money i get from the sale of my flat would cover this for some time, but i worry what will happen when that money runs out(yes i know it will take some time).

I really don't know what the best thing is to do. Right now my life is not great so selling up and renting would help me greatly now and i could try and get out in the fresh air more than being cooped up day after day as i am now. On the other hand, is getting off the property ladder a bad idea, as i may have trouble getting a mortgate in the future.

Hopefully ive put in the info you need to give your opinions.
Do any of you have any suggestions on what to do in this circumstance?

Toto

have you thought about renting your flat out and using the income to rent another house? That way you get to keep the equity in the flat but still get the income to help cover your rent. After all income support and the like would not be paid if you had a lump sum from the sale in the bank.

PasturesNew

Toto wrote: »

have you thought about renting your flat out and using the income to rent another house? That way you get to keep the equity in the flat but still get the income to help cover your rent. After all income support and the like would not be paid if you had a lump sum from the sale in the bank.

They also won't take kindly to somebody owning/renting property as it changes the situation.

This is something the OP would need to look into as it is likely to again exclude them from some/all benefits

I think realistically you should sell the flat now. The market is going down. It might be that when the market is close to the bottom (3-5 years) you might be able to buy a ground floor flat. If not, you've given it a go.

The flat you are in doesn't suit your needs and never will. There's no benefit (while prices aren't going up) to holding onto it.

With the money banked, maybe the OP can look to see what job opportunities there are for somebody with a fluctuating disability. There are a number of organisations that help employ people with disabilities, including Remploy.

Alternately, maybe the OP can use some of the money to look to pursue an interest to generate themselves an income and be self-employed. e.g. a home-based job as a web designer, or a writer. Or offering book-keeping/accountancy services. Perhaps making jewellery, ceramics, crafts. With the cash in the bank, it would be possible to explore the options of training.

With a fluctuating disability it needs to be something where the OP is more in control of when the work is produced and able to set their own hours and take on/turn down work.

If we say the flat is worth £110k and there are £5k in fees/removals, that would leave £80k in the bank after the mortgage is paid off. Using High Street high interest accounts, this would currently pay about £5200/year.

It's an idea which I think could give hope and optimism for the future at least and an opportunity for the OP to become self-sufficient of The System.

Good luck OP, whatever you choose.

Toto

PasturesNew wrote: »

They also won't take kindly to somebody owning/renting property as it changes the situation.

This is something the OP would need to look into as it is likely to again exclude them from some/all benefits

I think realistically you should sell the flat now. The market is going down. It might be that when the market is close to the bottom (3-5 years) you might be able to buy a ground floor flat. If not, you've given it a go.

The flat you are in doesn't suit your needs and never will. There's no benefit (while prices aren't going up) to holding onto it.

With the money banked, maybe the OP can look to see what job opportunities there are for somebody with a fluctuating disability. There are a number of organisations that help employ people with disabilities, including Remploy.

Alternately, maybe the OP can use some of the money to look to pursue an interest to generate themselves an income and be self-employed. e.g. a home-based job as a web designer, or a writer. Or offering book-keeping/accountancy services. Perhaps making jewellery, ceramics, crafts. With the cash in the bank, it would be possible to explore the options of training.

With a fluctuating disability it needs to be something where the OP is more in control of when the work is produced and able to set their own hours and take on/turn down work.

If we say the flat is worth £110k and there are £5k in fees/removals, that would leave £80k in the bank after the mortgage is paid off. Using High Street high interest accounts, this would currently pay about £5200/year.

It's an idea which I think could give hope and optimism for the future at least and an opportunity for the OP to become self-sufficient of The System.

Good luck OP, whatever you choose.

Very good points pastures.

kentyy

Thank you for the replies.

Toto I had considered renting my flat and renting a ground floor one for myself but the mortgate would have to change and my new circumstances (not working now) wouldnt let me get a different mortgatge that changes what i have to one that is used for a tennant. plus you are right, i don't get the benefits if i have a property as that is still classed as an asset.

Pastures new that is interesting advice thank you. From your calculations getting to approx £5200/year it is better than nothing and then finding a way to utilise my time with a new job at home that could bring in some income, it really does help me see a way of getting a life back! I'm not proud to be on benefits as I have always worked until this illness and i would prefer to be able to earn my own money.
This gives me something to aim for and to think about for the future.

I think from this i am now going to look into the best way to sell the flat. At least it's a way out of the situation.

CYBERCIDERSAVER

I am probably way off the mark but there was a thread on here about someone renting out a flat whilst at the same time being given a council house.... Something about the flat not suitable for their housing need.
Are you on the housing register?
Might be worth looking into.

m00m00

if the flat isn't 'fit for purpose' it's definitely worth getting in touch with the local council as suggested.

fish10

I wonder if you have thought about having a stair lift installed. I know someone who has MS and lives in a first floor flat and managed to get one ( despite one or two grumbles from other residents! ). It would save a lot of money in removal costs and a lot of stress, particularly if your disability is affected by stress. Also your GP could refer you to your local Occupational Therapy Dept who deal with managing a disability at home as well as at work. They can be very helpful.
Good luck!