To think we could live in London on £55k?

[Londonline1]

DH has been offered a job in London on a salary of around £55k. I'm mainly a SAHM; I do some pt work from home earning around 4k a year or so, but we're about to have baby #2 and I've no idea if I'll get back into it / if the work will have dried up etc.

We currently live in the North East and survive comfortably on an income of around £50k (including my earnings and CB). We have a fairly modest lifestyle and put most of our money into our mortgages which we were hoping to pay off early - we don't do holidays other than to visit family elsewhere in the UK; we live in a small house in a cheap area, and we have a flat we rent out in another city (income from that adds towards paying off the mortgage so it's effectively building up a savings pot but I haven't included that in the £50k above).

My question is whether we could realistically relocate to London with a £55k budget. Would expect to have to downsize and rent. Would prefer not a crazy commute for DH (to Battersea). Don't need to live anywhere fancy, but would like to feel safe and have some green space nearby for kids.

Please feel free to tell me it's ludicrous. I genuinely have no idea.

it’s a bit funny that people are actually suggesting Croydon as it doesn’t have the best reputation

God forbid anyone would have to live in anything but the absolute most desirable area. You might meet someone who earns under £100k pa and that just wouldn't do at all.

I think what many people are forgetting is that while London on £55000 is certainly doable- the difference of what you get for that amount of money compared to up
north is massive. so, while its doable if you are used to london prices and London commutes, it will be a massive shock and substantially chance in lifestyle for somebody coming from up north .
We live just across the surrey border, SIL and family in Leeds, same income. we live ok, they live in luxury (see previous post), both on more than 55 k.

What do you hope to gain by moving to London OP?

I’m not sure why people think there aren’t free things to do outside of London, yes you can go for a lovely walk in some lovely parks but you can go for some lovely walks in some lovely countryside and parks all over the country.

I’m not sure the move is financially worth your while OP, but good luck with the decision.

2 beds in Addington 1400
Council Tax 150
Utilities 180
Insurance 40
Season ticket 200
Mobile phones 50
Car (assuming owned outright) 150
Haircuts, shoes, suits for working DH: 70

3000 - 2340 = £660. For food, birthdays, emergencies, "spends". I know many on here spend very little on food but I think that will be very tight. Will there be any extra from the property rentals? I know that's more than many live on but the op I don't think is used to that level of budgetting.

I think what many people are forgetting is that while London on £55000 is certainly doable- the difference of what you get for that amount of money compared to up north is massive

^ this. absolutely this.

You could definitely do it. Since us the issue. You’ll have to pick carefully where you live. You’ll get more space in the commuter belt but the money you save will go on travel and your husband will have a longer commute. In London zone 2/3 you could probably only get a two bed flat - and not necessarily a nice one at that.

What sort of life do you want? Do you want to be close to things or do you mind being a bit further out? If husband is working in Battersea look at areas like Croydon which are only a couple of stops to Clapham Junction.

I never understand replies like these.

My husband and I moved away from London 3 years ago. We lived comfortably on one salary of £33k. We were in East London, paying a mortgage and we were just fine.

Perhaps I have a lower standard of living than most on here, but in my experience you would be OK on £55k.

But was your mortgage 1400 pcm magiclingdom?

What was your mortgage Magic because that is what makes the difference.

We had a mortgage of £800. Regular 3 bed terrace. So I suppose if you've got a massive 5 bedroom house you're looking at more.

You'd be hard pushed to get a regular 3 bed terrace in London for a mortgage of £800. I imagine you bought when prices weren't astronomical.

We bought in 2013, prices aren't massively higher.

I depends on the kind of lifestyle you want. Holidays, expensive clothes and gadgets, then no, probably not.

We were frugal and happy. My point is that it's not as impossible as everyone always makes out.

Clearly there's a big difference between house prices in East and SE London then!

Without being confrontational @magickingdomdizzy I have a real believing problem with that.

Where on Earth were you? TFL rail was very much boosting prices in 2016 and when we were looking round crapholes like Maryland because we knew they’d be on the Elizabeth Line an 800/month mortgage was the stuff of fantasy

Indeed. Between 2013 and 2014 London prices went bonkers, esp SW London.

How much would a house be to get £800 a month, if no massive deposit

Not much? Sounds completely out of the norm cheap

You could survive but it wouldn't be a great life. It would cover necessities - travel food mortgage/rent but I think not much else.

Marsha over a standard 25-year repayment period it would be about £220k. If they had a deposit to bump it up to £250-300k I can believe that for some areas of outer London, especially in 2013

Thanks Dodgeball, must be the case

PaulHollywoodsSexGut

Our first property purchased in 2009 was a one bed flat in Chingford bought for 125,000k. Around £520 a month mortgage.

Our second property was a 3 bed terrace in Woodford bought for 320,000k in 2013 and sold in 2016. Around £800 a month mortgage.

It was rundown and we renovated it whilst living there.

I should point out we never had 2 properties at once, sold the flat then bought the house.

I lived in London on my own earning about £55k and it was fine but I wouldn't have been able to do it with childcare costs on top, I think supporting two kids would be tricky on that.

You'd be hard pushed to get a regular 3 bed terrace in London for a mortgage of £800. I imagine you bought when prices weren't astronomical.

As I posted upthread, OP could sell her current properties and put the 120 grand down on a 500 grand 3 bed. (New Malden, Croydon, Surrey etc)

Get a 380 grand mortgage:

• 1538 a month repayment
• 506 a month interest only

www.lendingexpert.co.uk/mortgages/calculator/repayment/380000-pounds/

As I posted upthread I think it’s highly unlikely any lender will lend 380k on an income of 55k.