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    • Kieran2001
    • By Kieran2001 8th Feb 18, 6:03 PM
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    Kieran2001
    Moving from Bought House to Long-Term Rented
    • #1
    • 8th Feb 18, 6:03 PM
    Moving from Bought House to Long-Term Rented 8th Feb 18 at 6:03 PM
    Hello,

    Me and my parents currently live in a 3 bed room house in a town on the outskirts of County Durham. We are planning to move to a 3 bed room rented house in the same town, which has a smaller footprint, as my parents donít want to deal with the possibility of anything going wrong in the house as my parent has a low income and has recently split from my other parents permanently after 25+ years.

    My parents have had a mortgage on the house for about 20 years, and the mortgage still has a few decades left and the price of the mortgage isnít going down, pretty much just paying the interest. My parent has received a 25% reduction as she is the the only adult living in the house.

    My parents concern is that if they move from mortgage to rented, they will have to pay council tax until the mortgaged house sells which could be 3-6 Months. Is there any additional reduction schemes she can use, as she is on low income and divorced? She is unable to pay 2 council taxes, however she also canít afford to pay for repairs if thereís faults in the house, such as a pipe bursting, two breaking etc.

    Thanks fo any advice, and let me know if you need any further information to assist me.
Page 2
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:55 PM
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    Kieran2001
    As there are houses on the market what is the rush to do this before selling the house? I had assumed probably wrongly that the reason your mum wanted to do this now was because she had seen a 3 bed rented that she liked but if that is not the case then there is no reason for you mum to move before she has sold the house that she owns. The local council will not give her any benefits to move to a new rented house because she already owns one. You are expected to sell that before you move.

    To get a rented house you also have to pass credit checks and if a landlord finds she is going to be paying mortgage payments and rent and that she can't afford them both she will not pass the checks and will not be offered the house.

    The only way out of this situation is that your mum sells the house she owns first.
    Originally posted by Cakeguts
    Sheís already discussed with the landlord of one particular house, as her ex created £10,000 of mortgage arrears. She can afford everything or has figured out a soloution apart from council tax and water rates.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 7:56 PM
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    Kieran2001
    Please, please don't. Who is giving your mother financial advice?
    Originally posted by Penitent
    Divorce Solictor from a North East Solictors firm that deals with divorces, finances, housing, mortgages etc.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 7:57 PM
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    Cakeguts
    For some people it is, others it isnít. Thereís very little property supply in the local area, out of a thousand homes, 10 are for let.
    Originally posted by Kieran2001
    10 are available to let now at this present time but there could also be 10 available to let next month and the month after. People move a lot so new rented houses are coming on the market all the time. Anyway it doesn't matter what is available she can't afford to rent a house just now. She has to sell the house she owns first.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:00 PM
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    Kieran2001
    I still can't get my head around moving out in an attempt to avoid potential repairs. Does she have buildings and contents insurance? Wouldn't getting this be more cost effective than selling the house for peanuts to one of those instant sale cowboys?
    Originally posted by Penitent
    I donít believe she does have any, unless it is part of the mortage. Also, another reason I believe is due to the potentional of blacklisting of the property, as the total debt from the ex tied to the pro toy other than mortgage is also a few thousand pounds. The house is also joint names with me ex, who she doesnít want access to the property, as he doesnít communicate with us, and he doesnít pay anything whatsoever towards the mortage. Currently my ex is being taken to court by pay day loan companies, is failing to pay for furnishings in the house which he got, that my mam didnít want, and is in his name and he is failing to pay maintenance.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:07 PM
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    Cakeguts
    I can't get my head around how she thinks that any decent landlord is going to let a property to someone who is going to be paying a rent and mortgage on a low income that isn't enough to pay the mortgage and mend pipes. I would have thought that mending a pipe would have been much cheaper than paying rent, and a mortgage and council tax for two properties and the heating for two properties and the council tax for 2 properties.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:15 PM
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    Cakeguts
    I donít believe she does have any, unless it is part of the mortage. Also, another reason I believe is due to the potentional of blacklisting of the property, as the total debt from the ex tied to the pro toy other than mortgage is also a few thousand pounds. The house is also joint names with me ex, who she doesnít want access to the property, as he doesnít communicate with us, and he doesnít pay anything whatsoever towards the mortage. Currently my ex is being taken to court by pay day loan companies, is failing to pay for furnishings in the house which he got, that my mam didnít want, and is in his name and he is failing to pay maintenance.
    Originally posted by Kieran2001
    Houses don't get blacklisted. People get denied credit. Your mum will not get any help with moving until she no longer has an interest in this house. If the landlord thinks that she is going to get benefits this is not the case. She won't because she owns a house. She will have to pay both the mortgage on th house she owns and the rent on the rented one out of the low income.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:20 PM
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    Kieran2001
    Houses don't get blacklisted. People get denied credit. Your mum will not get any help with moving until she no longer has an interest in this house. If the landlord thinks that she is going to get benefits this is not the case. She won't because she owns a house. She will have to pay both the mortgage on th house she owns and the rent on the rented one out of the low income.
    Originally posted by Cakeguts
    Iíve lost track of it now. She gets roughly £900 Per Month from her 60 Hour A Week job, and about the same in a variations of benefits. Once my DLA Appeal has being completed, there will be an additional £500 Per Month, and she has stated when this happens, she would be able to handle both properties.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:22 PM
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    Kieran2001
    I can't get my head around how she thinks that any decent landlord is going to let a property to someone who is going to be paying a rent and mortgage on a low income that isn't enough to pay the mortgage and mend pipes. I would have thought that mending a pipe would have been much cheaper than paying rent, and a mortgage and council tax for two properties and the heating for two properties and the council tax for 2 properties.
    Originally posted by Cakeguts
    Itís more long term issue, than short term, as if something breaks like an oven, she canít magic out hundreds to repair it, and she refuses to get any loans / finincal aid that isnít provided by DCC.
    • AnotherJoe
    • By AnotherJoe 8th Feb 18, 8:24 PM
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    AnotherJoe
    Your mum needs to be saved from herself.

    Other son is going to have to lump it.

    She sells in the normal way to get best price, and moves into rented.

    Anything else is perverse and more expensive
    • saajan_12
    • By saajan_12 8th Feb 18, 8:26 PM
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    saajan_12
    OP, stop sticking to your plan and try to think about the issues with it.

    1. Landlord will want to check affordability, will see mortgage and deduce mum can't afford rent, so rental isn't possible.

    2. Benefits won't cover rent when she has a perfectly good house to stay in

    3. Lender won't give an open ended payment holiday for however long it takes to sell, when mum can afford mortgage without the unnecessary rental, so they aren't backed into a corner. So she will be covering rent + mortgage.

    4. Letting it go to auction will mean MUCH lower sale price, plus repossession, auction room etc costs .. does she WANT to throw away money?

    5. Council tax discounts for empty properties are minimal ~1 month if that, for extended periods can be higher than the usual bill to disincentivise leaving properties empty. So she'll be liable for 2x council tax.

    6. Utility bills usually have standing charges, even when you're not in residence. If you turn off heating/water, pipes can freeze, making it more likely to cause repair bills.

    7. Mortgage can be paid down atleast. Long term renting has no end in sight - what will happen when she no longer has any income?

    Your realistic options are sell then move or stay put. Your plan isn't feasible.
    • dimbo61
    • By dimbo61 8th Feb 18, 8:28 PM
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    dimbo61
    Minimum wage for someone over 25 is £7.83 an hour.
    60X 7.83 is alot more than £900 a month.
    Mum needs to stay in the property until it is sold.
    She needs to speak to a Good solicitor so her ex cannot run up any more debts in her name or use the property as security on a loan or other debts.
    PS your dad maybe entitled to 50% of the equity in the property.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:29 PM
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    Kieran2001
    Your mum needs to be saved from herself.

    Other son is going to have to lump it.

    She sells in the normal way to get best price, and moves into rented.

    Anything else is perverse and more expensive
    Originally posted by AnotherJoe
    3 Bedrooms are only £25 more than 2 Bedroom houses, so that part really doesnít make any diffence. Also, sheís canít afford all the sale fees, evaluations etc.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:33 PM
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    Kieran2001
    Minimum wage for someone over 25 is £7.83 an hour.
    60X 7.83 is alot more than £900 a month.
    Mum needs to stay in the property until it is sold.
    She needs to speak to a Good solicitor so her ex cannot run up any more debts in her name or use the property as security on a loan or other debts.
    PS your dad maybe entitled to 50% of the equity in the property.
    Originally posted by dimbo61
    She works alternate weeks, and she doesnít like the job TBH neither, as she gets 0 work befits beyond that legally required, despite working for 20 Years, and pension is a mear £500, which is a laughing stock.

    And she is aware of the 50% split on any earnings from a sale. The only thing tied to both names is the mortgage, unfortunately the largest asset. On top of this her ex is pushing her to sell the house, as he is trying to get as much money as possible from her.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:34 PM
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    Kieran2001
    She also doesn!!!8217;t want to be dealing with constantly returning letters, and more than likely having numerous high court enforment officers turn up, as all his debts are registered as my mams house.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:36 PM
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    Cakeguts
    3 Bedrooms are only £25 more than 2 Bedroom houses, so that part really doesnít make any diffence. Also, sheís canít afford all the sale fees, evaluations etc.
    Originally posted by Kieran2001
    They get paid out when the house is sold not up front. If she can't afford the sales fees she cannot afford the rent.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:37 PM
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    Kieran2001
    They get paid out when the house is sold not up front. If she can't afford the sales fees she cannot afford the rent.
    Originally posted by Cakeguts
    Most agents charge over double, unless you pay up front from what Iíve seen. And some fees will probably have to be paid regardless of a sale.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:40 PM
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    Cakeguts
    She works alternate weeks, and she doesn!!!8217;t like the job TBH neither, as she gets 0 work befits beyond that legally required, despite working for 20 Years, and pension is a mear £500, which is a laughing stock.

    And she is aware of the 50% split on any earnings from a sale. The only thing tied to both names is the mortgage, unfortunately the largest asset. On top of this her ex is pushing her to sell the house, as he is trying to get as much money as possible from her.
    Originally posted by Kieran2001
    Well that is good isn't it because she wants to sell the house. She still won't get any benefits and she won't get benefits for a 3 bed house when only 2 people live there. Your brother will be expected to find his own accommodation.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:42 PM
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    Cakeguts
    Most agents charge over double, unless you pay up front from what Iíve seen. And some fees will probably have to be paid regardless of a sale.
    Originally posted by Kieran2001
    Well find one that doesn't.
    • Kieran2001
    • By Kieran2001 8th Feb 18, 8:45 PM
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    Kieran2001
    I thought you weren't in contact?



    "Not at this address. Return to sender." Yes, it's annoying, but it's a really bad reason to go down this bizarre route that's going to leave her financially worse off.

    BTW - you also said you DLA appeal isn't complete. What stage is it at? Has the Tribunal made an award? If not, then there's no guarantee that you'll get the amount you think you'll get. I've been fighting over my PIP for nearly two years (I had to go to the Upper Tribunal). I know what I'm likely to receive at this point, but there's no guarantee until it's reheard by the First Tier Tribunal and I know whether or not the DWP intend to appeal.
    Originally posted by Penitent
    Iíve got a cover letter saying Iím entitled, but the points all say zero, only got the letter a few weeks ago.
    • Cakeguts
    • By Cakeguts 8th Feb 18, 8:50 PM
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    Cakeguts
    She might: http://forums.moneysavingexpert.com/showpost.php?p=73849620&postcount=6

    But not while she still has a house she could be living in.
    Originally posted by Penitent
    Thank you.

    I am beginning to lose the will to live.......
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