To want to sell our home and have the freedom to rent

[zestyflavour]

I'm a single parent and have owned my house for about 14years and it's been nothing but financial hardship, nitemare neighbours, and debts up to my eyeballs..plus never having any money to spend on the actual property itself, let alone holidays or anything else, however It's a nice house in a nice area.
If I sell up I'll make a tidy profit which will enable me to pay off all the debt and get my children and I away from any impending nitemare neighbours (house next door is a rental) Plus is have money to lock away for a deposit in the future...if I don't spend it on a round the world trip!
The problem is...if I sell I won't get back on the property ladder for at least another 10 years (poor credit rating) but at least I'd have no money worries (although rental prices are pretty high ) and could enjoy life - sort of!what do I do??? Upset the kids by selling the family home but then actually being able to live a life, or stay here for their stability but be miserable, angry, and skint!
All comments welcome pleaseeee

[iniquity]

When we moved from our last rental we had to pay for professional cleaning, oven cleaning and carpet cleaning. With a total cost of around £400 pounds. That was in the contract so even if you were there only 6 months you would still have to pay it. We had inspection too , but our letting agency even took pictures of all our belongings during them . It was such an intrusion.

[SmileAndNod]

@Sashkin I couldn't have put it better myself!

[ElsieMc]

I think this would be a serious mistake. I would explore downsizing and you need to get out to look at cheaper properties in good condition. It is all very well living in a good sized house in a good area, but you are clearly not happy financially or otherwise. You may be pleasantly surprised when you get looking. You could really reduce your mortgage and outgoings and enjoy life a bit more.

I rented short term and you can become comfortable doing so. I did, but I rented from a friend at a reasonable rate. However, when she split from her partner, we were placed in a very precarious position indeed and things became very unpleasant through no fault of ours.

However, my ndn are long term renters. They had a very bad experience with nightmare neighbours in their previous home and are very cautious now. She tells me it is great that she does not have to worry about maintenance of the property, breakdowns etc as her dh works away. Her landlord lives next door on the other side and he is keen to keep good tenants. She also knows that we will always help her out. She is happy but she has a lot of money in the bank that is a cushion from the usual ups and downs of renting.

[Motoko]

OP, please come back and answer some questions. We can give you more tailored answers then.

[heron98]

YANBU.

I loved renting. Bought a house 2 years ago and have regretted it. I hate having to pay for repairs and maintenance and insurance. Renting was so much cheaper and easier.

[BarbaraofSevillle]

The OP says she has no money and lots of debts on an interest only mortgage so may not be able to afford captital repayment.

Has your income dropped since you got the mortgage OP? Has it always been interest only, or was it repayment in the past? How much equity do you have? What is your IO monthly payment and how much would rent be? What is the interest rate you are paying now? If you have always paid on time, your current lender may convert to repayment without doing a credit check at a better rate, so that might be an option.

Have you had proper advice on your debts and has interest been frozen?

For the best advice, you should complete a budget and either post on the debt free wannabe section of moneysavingexpert or seek advice from a charity (do not pay for advice or use a debt management company that takse a fee for contacting your creditors).

forums.moneysavingexpert.com/forumdisplay.php?f=76

www.moneysavingexpert.com/loans/debt-help-plan?_ga=2.95240217.462663158.1511172089-1760007378.1430132676

Selling your home to get out of debt could be a solution, but a very big step and you need to be sure it is the right one, before taking the plunge. And as others have said, you would be very fortunate to have a stable home in a nice area with a rent that is more affordable than an interest only mortgage.

[reetgood]

Normally I’d say don’t sell, but interest only plus other debts change the picture a bit. I second the suggestion to post on a financially focused board like money saving expert.

Look at outgoings vs income. There may be a chance to lower outgoings so that you can start to save for end of mortgage term/ home maintenance. Am assuming remortgaging may not be an option. But you need to consider this with all facts and figures in front of you, rather than based on a knee jerk ‘must own’ or renting is easier. Both may have disadvantages, and I sympathise as it’s not an easy spot. However, I suspect your choices are make the house work or switch to renting completely. Without a big change in financial circs, getting a mortgage at 50 might be tricky.

[IsaSchmisa]

OP you may not need to change your mortgage to start paying off some of the capital. Lots of mortgages, even IO ones, allow people to make a certain amount of overpayments each year without penalty. Up to 10% is a common one. I don't know how much you owe or how much wiggle room you've got, but you'd be surprised what even £50 a month can do sometimes.

[kinkajoukid]

On the face of it OP it would be insanity to sell your house and to rent as I think you have very rose tinted picture of private renting.

I can only agree wholeheartedly with other comments unpredictable/ bad LLs, never knowing if your lease will be renewed and for how much, very likely no pets and commonly no children! Also very high tenant requirements as already posted - 3x the rent in salary, full time work, no bad credit etc etc.

Plus you might still have nightmare neighbours!

Plus always asking permission for this, permission for that, please can we have, please can you fix... don't forget the INSPECTIONS! Do you really want someone coming round to judge how you live? They might be great but they might not and if you want a particular house then you wont have any say over who the agent is. We have a black list of agents who we wouldn't rent with even for what appeared to be a dream house, simply because we know how they operate.

Plus the fees are astronomical - typically £350 to £600 across the south and south east/ home counties especially high. And those are fees we have paid for 2 people in a studio, 1 or 2 bed, not a family home.

If you were given notice after 6 moths or a year or however long (as happens when LLs change their minds) you will have to pay these fees plus removals and there will nothing you can do about it - it won't be your choice to move on. The as said you have the pressure of finding somewhere else in only 2 months with no gap in between tenancies and in the right catchment, with the right doctor etc. That's really stressful.

Plus having to pay out on another deposit before recouping your previous deposit - usually 1 and a half times the monthly rent. We have had to pay the deposit on a credit cards for a few weeks to a month, many times.

What if houses prices rise again and you cannot get back on the ladder?

Social housing is a completely different thing and gems like LittleMissDynamite have are very, very rare and if you have capital in the bank (over 16000 I think) then you usually wont get on the list at all, never mind be considered for priority that will reduce the years of waiting.

There will of course be a few particular areas of the country that buck the trend, and you could get very lucky but I would actually and literally give my right arm to be able to buy a house.

Whereabouts are you OP? Are you sure that your mortgage is lower than the rent? It is hard to imagine but not impossible I suppose if you bought at a high price and prices have since fallen, but it would help to know your area to give proper advice. Could you qualify for a shared ownership and part rent part buy?

Overall though, even if the same cost or slightly more expensive, I still think you would be better staying in a property you own if only that you have more control of your circumstances - when and if you move, if you repair, it is your choice and your timescale, not being at the whim of someone else doing what is best for them and not what is best for you.

[Madonnasmum]

Appreciate you ate interest only OP, but at the very least over 25 years there will be an equity build up which should enable you to get something small outright.

[Madonnasmum]

The basic state pension is 120 a week = 480 a month, so even a 300 rent is going to take a chunk of that. Add bills and I smell cat food for dinner!
If you've paid off your mortgage the 480 is yours for bills and cavier.

[Snugglysnuggles]

What are your monthly payments are you interest only already?
Could you sell and downsize or sell and move to a less expensive area to free up some money for home improvements.
I really would not advise renting.

[HotelEuphoria]

I've seen social housing in pretty villages, in fact most idyllic villages in the country (and I've seen dozens in the dales, the lakes and Cotswolds) have a small social housing estate.

How many people are really fortunate enough to get one of those? There are many sink estates too that are social housing.

I would say stay where you are OP, no way would I jump from the frying pan to the fire.

[Toprated]

I had to rent recently having not rented since my student days and it was very hard. Do you know how many places do not accept children or pets? Do you know the checks you have to go through? I had to pay six months in advance plus deposit. Have you worked out how much that is? Work out how much you would be paying in rent per year. That should put you off. Also I found that although it looked as if there were a lot of rentals to choose from in my area, so many were not available to me for various reasons.

You need to have a plan re your mortgage, either change it or overpay if it is interest only.

[LoniceraJaponica]

littlemissdynamite I would like to know what kind of Utopian world you livein where social housing is so easily available. In most areas the criteria for being eligible is so very strict and this option simply isn't available to most posters on here.

I suspect the OP's option will only be keep her house or private rent. She would probably have to make herself homeless before being eligible for a council house.

[ForgivenessIsDivine]

Could you sell and buy a smaller property? Could you sit down with a financial adviser, maybe even a mortgage adviser who might be able to help you get things under control? Depending on the debts and your income, you may be able to increase your mortgage buy reduce your overall repayments per month. The issue of the neighbours is a tricky one.... I would see if you can get some financial stability first..

[Motoko]

But Littlemiss, you're talking about social housing. You were very lucky to get it. It's unlikely that OP would be as lucky as you. She certainly couldn't sell her place and rock up at the council offices, as she'd be deemed to have made herself intentionally homeless.

Getting a private rental is difficult for someone in her situation, so she'd likely end up with a dodgy landlord, in a shit house, in a nasty area. And she'd be at risk of having to keep moving, with all the upheaval and costs that involves. The kids could end up having to keep moving schools too.

Even if she found a decent house, with a good landlord, tenants often find that despite being told it will be a long term tenancy, shit happens, and sometimes landlords have to sell due to unforseen circumstances.

What OP needs to do, is go to MoneySavingExpert.com, to get help with her debts, and budgeting advice. Perhaps change jobs, and get advice about her mortgage. She will have to sell up when the mortgage term ends, but hopefully, she will be in a better position by then.

[littlemissdynamite]

@blue25

Oh hell no! No chip on MY shoulder sweetie. That's just wishful thinking from you my dear.

Hell will freeze over before I would 'buy' again ... Not with the low-rent, lifetime tenancy, excellent repairs and maintenance home I have now. With NO worries about being off work, losing my job, or being long term sick. I will never lose my home, and have a home for life. Overlooking the North Staffs countryside.

I have been a home owner- 3 different properties over 20 years, It ain't all that.

All I said was that social housing trumps being a mortgage owner. A mortgage is just a ball and chain around your neck, and the property you are buying is a money pit. As I said, say goodbye to ever having any savings if you decide to be a mortgage owner!

Don't diss my wee cul de sac home, in the North Staffs countryside, with my great neighbours, in my little peak district village.

Jealousy doesn't suit you. Makes you look sour.

[blue25]

Crikey, someone has a chip on their shoulder. I think the likelihood of you being offered a social housing home in a "wee cul-de-sac" with lovely neighbours is quite remote, so I'd stick with owning your own home.

[littlemissdynamite]

Being a homeowner/mortgage owner vs private renting = homeowner/mortgage owner wins.

Being a homeowner/mortgage owner vs social housing = social housing wins.

And I know what I am talking about. I have been a mortgage owner/homeowner - (I had 3 properties over 20 years,) and I have privately rented - for 2 years back in the late 80's before owning - and then for 3 years several years back.

And now I am in a little social housing home where I have been for 4 years. In a wee cul de sac with 22 properties. Built in the 1970's and with a mix of several small families, disabled people, a few couples, and some elderly people. My rent is £300 a month. (North Staffs, near Leek.) It is the most beautiful place to live; a stone's throw from the peak district, and with the best neighbours ever. 7 of the 22 homes have been bought on right to buy, and the other 15 are still housing association.

We have maintenance done regularly, repairs done often within a week, landscaping done for us, remedial work done every 3 or 4 years on the outside of the property. We have window latches, taps, kitchen unit doors, and roof tiles fixed or replaced, right through to a new boiler or new bath if we needed it. We pay full rent as we work, but if we ever come out of work, we would get housing benefit. We have this tenancy for life. We will never leave.

Many other countries across the globe rent, and no-one cares or looks down their nose at anyone.

And is it bollocks 'dead money?!' I am sick of that shitty old chestnut; change the record. You are paying money for the rental of the home. You may as well call anything you buy 'dead money' if you are not getting the money back once you have used it/eaten it whatever!

I would never buy again if my life depended on it. I see people around my village having workmen at their homes left, right, and centre for this repair and that repair, getting deeper and deeper into debt for all the repairs that need doing. New roof? 10 grand. New boiler? 3 grand. New bathroom? 4 grand. And so on.............

Every last thing that fucks up, YOU have to fork out for it, whether you have the money or not. If you need 3 grand for a new boiler, do you have a spare 3 grand in your wages that month? No. So you will more than likely have to take out a loan or finance for it. (Coz very few people have savings, and if you decide to buy a house, say goodbye to ever having savings again!!!)

And God help you if you end up out of work/off sick for a lengthy amount of time. My DH went to work through illness, sickness, and depression, because he could not afford to be off for more than a couple of days every 6 months or so.

And I - even though I have always been paid for sick time, I had to return to work when my kids were 4-5 months old as we could not afford to lose my wage because of all the outgoings and costs of 'owning' a home. (20 years ago, maternity leave/pay was only 18 weeks!)

We are both in work - both with full sick pay for up to a year now, but it's a blessing to not have to worry anymore, about losing our jobs/being off work long term...

I know not everyone has the good fortune to rent social housing, but if you do, then go for it.

Hell will freeze over before I buy again. It's no longer the massive money making machine it used to be, and is little more than a ball and chain around your neck. In most cases, when you have a mortgage, you don't have much more security than if you rent.

And the first person to say social housing is subsidised by the taxpayer is an idiot. It's not. People pay rent to the housing association. The tenants 'subsidise' the properties. The homes were built and paid for many years ago by the housing association, and they now rent them to people and do repairs and maintenance when needed.

I re-iterate. Private renting - not keen.
Social housing - VERY keen.
Being a mortgage owner/homeowner - second choice to social housing.

Get on the housing list if you can. But having a load of equity may stop you being offered anything.

[dingdongdigeridoo]

Renting is horrendous. I’ve moved 5 times in 6 years with an autistic child. We barely scrape by, and might be able to get a shared ownership soon, but even that has endless horror stories attached. I’ve been curtly told several times on the phone that landlords won’t take children, even in 2/3 bedroom homes made for families. I was turned down for one home because they only wanted to rent to couples where one earned over £32k. Couldn’t be a joint income. Had to be one earner. My DH was just under the threshold at the time but LL would not accept that.

Tackling your debts is a better option. See how much it’ll be to go from an interest only to repayment mortgage. There has got to be a better way.

[Italiangreyhound]

Not read all the posts but have read lots and tried to read all of your posts. I would certainly not get off the property ladder. I would not want to be renting in my old age and if you get off now, with kids as a single mum with poor credit rating, would you ever get back on?

Does your house have any great features you do not actually use much? Garden, separate dining room and living room and you find you use one room more than other, etc?

If I were you I would consider downsizing, maybe, and releasing some money that way.

As the kids grow they are less interested in gardens etc so a smaller house or smaller garden would still keep you on the property ladder but mean you were not paying for a big garden you do not use.

But do remember location, location, location, do not go for a worse area, you will regret it.

I agree with NotSuchASmugMarriedNow1. I'd try and increase my earning potential, go for promotions at work etc. Or get an extra job, some jobs are naturally better than others. I waitressed years ago and made heaps in tips. But it is bloody knackering and I could not do it now! I am older than you!

[MillennialFalcon]

It sounds like if you step off the property ladder you might find it difficult to get back on and renting is so unreliable. Even if you do everything right you could be kicked out just because the landlord wants to sell the property, you can never really call anywhere home. The uncertainty could be unsettling for your children. I'm not saying children can't be happy in a rented home of course but I don't think giving up your own home if you don't have to is the best idea.

[usernameinfinito]

If you like the smell of damp and mould, repair work not being done, paying more to a landlord than your monthly mortgage repayments, no security because the LL can give you notice to leave, not being able to decorate your walls the way you want, not to have pets, plants, please do go on and rent.

[Sashkin]

You'll Be paying a fortune in fees to the agency every time you renew your tenancy. Your monthly rent will be whatever the mortgage on the house costs, plus 10% agency fees, plus 8% profit for the landlord. They will increase the rent every 6-12 months “in line with market values”. Or just kick you out, so they can keep your deposit for undisclosed “cleaning fees”, and get a new tenant in paying more.

They probably won’t fix things (it’ll still come out of your deposit though). They probably won’t lend to you anyway with children. I’ve never heard of a “long tenancy” mentioned by a pp - six month tenancies are the norm here so they can put the price up again.

I’m so SO glad not to be renting any more. It’s absolutely hellish. Lettings agents are cunts, and most landlords are money grabbing stingy bastards.