to want to get out of this house? Really appreciate opinions on what you would do

[bubbleandsqueaks]

Our neighbours have made our life hell since we moved in four years ago. None of them work and they use their back garden and front garden like a car garage to mend vehicles for cash. Their sons (18 and 16) hang around the front of the house in the evenings with all their friends which disturbs us and worst of all my 3yo dd who has to go to sleep listening to their swearing and shouting.

We have had to involve our local councillor to try and solve the noise issues which worked and things are slightly better now. The teenagers are no longer as bad, although I do still feel intimidated when I have to walk past them. All that can be done via official channels has be done and the noise they make now has to be tolerated. I hate using the garden, once they realise we are outside they come outside and start swearing and shouting to each other and I hate dd1 hearing it.

Our other neighbours have been no help in trying to resolve the issues, even though they affect them as much as us and one lot even thanked us for making things quieter They keep their heads down and their mouths shut due to fear of repercussions. I don't blame them, we have had our TV ariel damaged, our house egged, our car had brake fluid poured over it. This was at the height of the trouble about 2 years ago.

We reported every incident and eventually things calmed down. Last week however one of the neighbours sons friends threatened dh and near enough chased him, the following night he broke our front fence and then after the police had been round he came back shouting things at the house. All this was reported to the police and is being dealt with.

But I have had enough, I can't keep fighting and living in fear. The problem is though we are in a mess financially. We are in a debt management plan which will take about 6 years to pay off and on an interest only mortgage.

We had an estate agent round yesterday and to let our house out and rent a smaller one we would just about break even, but it would take us a long time to get into a position where we could a deposit up, pay the letting agent a months rent to let our house out, do minor repairs in our house etc. And we are in such a weak position financially that having a house with no tenant would break us.

If we sell, after fees, we would walk away with about £10,000 which would pay off half our debts but then we would never be able to buy again as we could never save like that again for a deposit - we have 2 dc now! So we would be renting for the rest of our life. Which worries dh, he worries about paying high rent in old age, being forced to keep moving if we rent etc. I think having a big mortgage, which until I return to FT work we won't be able to pay is pointless.

Its causing us to argue, he wants to stay put and doesn't think they should drive us out. I'm not sure how much longer I can live like this - AIBU to think renting for the rest of lives (we are 30) isn't the end of the world.
I think dh needs stability. I need to get out.

I am truly sorry for the situation you are in. I do not however, think that it is fair to just pass this on to someone who will rent your house, apart form anything else they would leave as soon as they could.

If selling the house would pay off half your debts, that would be my course of action. Houses will not keep increasing in value.

Bubble - I would ring around a few solicitors and just ask for a quick word with someone - I've done this before (for other things) and some have been completely unhelpful and others have been lovely and helped me loads. It wouldn't hurt to mention that you are looking for a new solicitor to help you through you buying & selling a house :)

Weemee - that's very short term thinking though isn't it. It wont give them any stability in the future and a house is an asset - renting a place isn't - don't you think that's important?

A house is only an asset if you can maintain the payments on it. Houses are not going to increase exponentially in value. Renting is not unstable. I rent and have lived in the same flat for 3 years. I move when I want and it would cost me twice as much as I pay in rent to own this flat.

The situation the OP is in isn't exactly stable is it? She owns a house next door to the family from hell....so she should just stay because its an asset and a long term thing? Great in the long term she'll be stressed out of her nut.....but she'll own a house!

If the OP hates where she lives and is worried about her debts, and the value of housing is likely to drop further, it seems to me that selling up would be a prudent course of action. Just my opinion.

Just to add to what I said earlier about renting your house out. Never, ever rent a property that you own out if you are so reliant on the income that you can't afford for it to be empty for a while. I'm talking about having at least 3 months money in the bank to support it if it was empty, but ideally 6 months reserve.
Also, don't overlook ongoing costs such as repairs and redecoration, gas and electric safety certificates, letting agents fees, landlords and buildings insurance etc. Bubble, I really don't think you should even consider renting your property out and moving elsewhere. From what you say your finances can't stand the risk.

I have been in a similar situation with a house, although without the debt you are in. We sold the house for less than it was worth. It paid off the mortgage though. TBH we just felt lucky to have sold it. Looking back I think this was absolutely the right thing to do.

My OH was like yours saying that we shouldn't be pushed out our own house. But the living situation affected every aspect of our life negatively. From being on holiday and feeling tense coming back because you were wondering what you were coming back to, to not wanting to invite people back as they would shout abuse at them as well.

I would sell up. And get on with enjoying your life. By the way, years later, in a work capacity, my OH came across one of the main teenage boy ringleaders. He was now married with kids of his own, but didn't recognise my OH. He complained to my OH about where he lived (a few doors down from where he was brought up) and in particular about the problems caused by a tennage gang who hung around.shock

cant sell
cant rent

Its so upsetting I cant even speak to dh about it atm

I have a feeling this mortgage is to big for us anyway. We bought at peak time (more fool us!) and now think we were sold a mortgage we cannot afford.

We owe £160,000. Can't see us ever paying it off.

Weemee - B&S doesn't have a problem paying the mortage and renting isn't any more forgiving if you don't pay. They are also on an Interest Only mortgage which is costing them less than the rent on an equivalent house. Yes, it's like renting off of the bank until they can pay some (more) of the capital back as well, which she has said they will be able to do when she can go to work fulltime. The fact that you have been in your house 3 years is neither here nor there as far as this is concerned - any landlord can give you notice at any time.

B&S's financial situation is very stable. Her neighbours are horrible neighbours but not the neighbours from hell, there are worse ones out there. If they rent in the same/similar area there is no guarantee the neighbours will be any better. Being given notice by a landlord is pretty stressful too.

B&S doesn't seem unduly worried about her debts - no more so than a lot of people right now. (It is just the neighbours causing the problem.) If they rent they will be worse off - they will have to pay the same in rent for a smaller house as they are paying for their mortgage now. They may even pay more in electric etc as they have no control over double glazing/central heating problems.

Myleetle - agree completely, I think this would be the very, very worst option of all.

Lesley bloody kids eh!! Have you bought again since or are you still renting?

B&S - why are you now saying

Can't sell
Can't rent

? Has something happened or have you just decided neither option would be good financially?

B&S - over the lifetime of your mtge house prices will go up. When you can pay some of the capital back as well (when you return to work FT) it will seem more 'doable' OR when I win the EuroLottery Friday night

Can't sell - Who would want this house after we have declared all the disputes?

Can't rent - We are not in a position financially where this would be option.

Stuck.

House prices rise and fall. Historically whenever house prices have fallen dramatically they have always risen back to the original price and more.

If you can afford to keep paying your mortgage I think Chipping is right. Stay put and do whatever you can to get your neighbours out.

I need them to rise about £10k above 2007 prices - not likely!

B&S they will in time. House prices will go up. No matter how much they have dropped, they will go back up. You can't buy a house now for the same price you could 20 years ago can you :)

If you still want to think about moving you should post a thread in both Chat & Legal with what you need to know in the title, we have lots of helpful legal brains on here :)

@ChippingInSmellyCheeseFreak

When you have an interest only mortgage, you are renting the the money from the bank, not the house. So if the house price goes down (which is what is going on), you are still liable for the full amount of interest and capital outstanding at the end of the term of the mortgage!

The fact that I have been in my house for three years is relevant because I mentioned it in response to your earlier post about stability. It is an example of how renting can offer a stable housing option for a family.

I am only suggesting that they consider selling up and get out of a situation in which the OP is clearly unhappy. If they did sell up they could pay off their mortgage and half their outstanding debts, rent for a period until their finances are more stable, in a location where they are happier to live and look to buy a similar property at a possibly lower price (if current market trends continue) in the medium term.

The thing is all I am doing is offering my opinion and at the end of the day it is up to the OP to decide on the most appropriate course of action to suit her specific family circumstances. I really hope she can find a solution that will improve her current situation.

I'm going to phone the council tomorrow to find out what disputes they have on record. If they have none then surely we can't be sued. Evidence would be needed wouldn't it?

very sorry you are in this situation

just a few other things you might need to check before you decide. Firstly, are you on a fixed rate morgage? If not there is a (fairly strong) chance your repayments will start to move up sometime this year as intersts rates rise. Can you cover any increase and would any rent cover increase? Secondly, interest only mortgages are getting rare - i assume you have 'for life' one and there is no danger that you can be moved to an interset/repayment one at some point? if so, again you need to check you would be able to afford it and that any rent would. Finally, both mortgage rate and insurance may very well go up if you rent out the house - and it may be a trigger for moving you to a new repayment mortgage. Again, you need to check

sorry but i really think you need to look at these things before you decide too - no-one would want to see you even worse off financially by renting out.

the mortgage landscape will change again in the future, and i dont think you should assume at all at 30yo that you will never be able to buy again. But i know this is a tough decision

You said if you sell, you would end up with an extra £10k and half of that would go on your debts, but would that mean you'd have the spare money each month that you are currently spending on your debts? Surely you can try to live within your current means, save that over the next few years until you go back to work FT and then look at home ownership, when you'll be earning more and hopefully have some cash behind you.

Honestly, renting for a year or 2 might be the best thing for your family. Lots of people don't buy their first house until they are in their mid-30s.

Nobody has mentioned this, so I will. Your reaction will initially be "NO!" but think about it.

You only have max £10k equity in your house and this may be lower on sale - in fact it could be negative equity. Who knows in this market.

You have c £20,000 + debts and are in a debt management plan which no doubt is making some money for payplan.

I don't know what your combined incomes are, but I'm guessing quite low.

So my suggestion:-

You could allow the mortgage company to repossess, and apply for council housing which, if you had young children and a possession order you would probably get. You could then petition for your own bankruptcies.

You would then have affordable housing and no debts, and in a year no bankruptcy either. Your credit record would be scarred for 5 years but tbh I'm not sure you need credit right now, you need to get back on your feet.

I would go to Citizens Advice or to phone the national debt helpline, both of which will help you with no bias and no fee, unlike many debt repayment companies. I would also sound out the local council as to your chances of being housed if your mortgage company repossesses.

Look into it?

Weemee

When you have an interest only mortgage, you are renting the the money from the bank, not the house. So if the house price goes down (which is what is going on), you are still liable for the full amount of interest and capital outstanding at the end of the term of the mortgage!

No kidding?! There really isn't any need to be patronising. As an accountant, I'm actually quite aware of what an IO mtge means.

Anecdote is not fact. You have been in your landlords house for 3 years - that is luck not stability. Your landlord could give you notice at anytime - the fact he has not does not give you stability.

If we sell, after fees, we would walk away with about £10,000 which would pay off half our debts but then we would never be able to buy again as we could never save like that again for a deposit - we have 2 dc now! So we would be renting for the rest of our life

Where are they going to get a low/0 % mortgage from exactly?

[I agree - we are both giving our opinions and both want the best for B&S - I'm quite enjoying the debate :) ]

B&S - I hope you can read through our 'debate' and get something out of it :) That does seem reasonable - but why don't you also do a couple of threads tonight - wont hurt!

(Sorry if I've x-posted, I started this post ages ago, but had a couple of phone calls!)

The problem with selling now and paying off your debts is that you'll have nothing left to help you get a deposit in the future. Lenders want a minimum of 10%, but in reality are more likely to demand 20% ( and to get the good deals you need 40%)

As an earlier poster said, find out if your mortgage is transferable to another property.

I don't think you should let the property. If the neighbours are that bad people won't want stay longer than 6 months and that will cause you untold amounts of stress.

All that said, there's nothing wrong with long term renting if that's what you decide to do. You can find properties that could be your home for years.

FPT - no, what she said was that the £10k would pay off half of the debt :(

have you contacted your MP and complained about uselessness of HA?

I would report neighbours on tax evasion

@ChippingInSmellyCheeseFreak

Wasn't trying to be patronising. Couldn't tell from your name that you are an accountant.

What I said was an anecdote, and I didn't present it as anything else. There are a great many people who rent privately and without problems. I don't see it as unstable and its no more unstable than having a mortgage I struggle to pay in an area where I feel unsafe. Renting has allowed me to save a large deposit over 5 years. I would not have paid off as much of a mortgage in the same space of time, and thats because my rent is less than a mortgage would have been.

You are stating that housing will go up in price as fact. That is opinion.

I agree on one thing. This is a good debate .