To consider selling my house and renting instead

[90sfilmsforever]

I've had a rough few years and I'm struggling to stay afloat financially as a single parent. Today I found out that my megalomanic boss isn't making my fixed term contract permanent, even though this was promised previously and I have worked my arse off to prove myself and had nothing but glowing feedback from my line manager.

I own my house with no mortgage but a small family loan on it that I pay back monthly. I've had a catalogue of disasters with plumbing and other house stuff in recent months that means I can't even afford to replace my only work shoes that fell apart two months ago. Since then I've been wearing a pair borrowed from my eldest that are too big for me. With necessary house repairs, a car disaster as well and the cost of living sky rocketing I've been in my overdraft for a good week before getting paid for the last few months, despite being in a professional salaried job. And now I find I'm going to be unemployed in less than 3 months.

I have no buffer or savings anymore due to afore mentioned disasters. There are no jobs in my field at the moment as due to the nature of my work they mainly come up at certain points in a year. I've been looking - just in case- since September and there have been two jobs. One I applied for and they withdrew due to covering the vacancy in house in the end. The other I applied for and heard nothing despite me always usually gaining an interview as my application is strong and I have lots of experience.

Would I be mad to sell up and rent to give me some breathing space, better job prospects than a small dead end town? I'd happily sell and relocate somewhere cheaper to buy but my daughter has to be within commuting distance of her dad and everywhere around here (south east) is so expensive to buy. Plus I'd have to pay back the family loan if I sold so that's already £50k I'm down. I have no real friends or ties where I am and we are both miserable. I love my little house but hate the town and the lack of prospects. Is it such a mad idea? In a few years my daughter will be at uni or old enough to decide where she lives irrespective of where her dad lives, so I/we could potentially relocate to a cheaper area then and still buy mortgage free with what's left, or with a better job I could get a mortgage in this area in the future. Am I mad??

I haven't read the full thread. Apologies OP if some of this has been said already. My advice, fwiw:
Don't sell and move into rented, even if that's possible;
Sell and clear the debt to your DM by moving areas;
Research those areas well, to ensure the best chance of gaining employment;
Do not worry unduly about your ex, and contact. I have a son at uni. Your daughter is nearly 15, so could be in that position very soon. She can have daily calls with her dad, and spend holiday time with him. Given what you've said about lack of maintenance payments, I doubt he would try to challenge your move in the courts, especially as you have good reason to move. My DS rings every day ( yes, I am very grateful for that) and your DD could ring her dad each day. In a few years, that's how it will be anyway. Bring that forward by a few years and take the pressure off yourself. ( If he complains, perhaps he can pay you more maintenance?)

I can't get a loan - poor credit history linked to the relationship with my ex husband. I can't even get a credit card.

You do know that letting agencies and private landlords do background checks on potential tenants?

Unemployed, disastrous credit rating; very few LL's will touch you with a bargepole. You'll find it near impossible to rent.

I am glad it has worked out for you so far and I hope that it continues to do so.

Just want to draw your attention to a current thread in light of your post:

www.mumsnet.com/talk/am_i_being_unreasonable/4688370-friend-evicting-elderly-tenant

The problem with renting is there is no security, nothing to guarantee a roof over your head. OP has only a £50k loan secured against her home.

Move areas to somewhere cheaper, your ex can follow
The priority is a roof over your head, bills paid, and food.

And renting isn't always insecure.....there are many properties attached to large country house estates which can be rented for a lifetime. Other properties are run by charities which rent out cheaply to a specific type of person, or to a certain age range, or alms-houses....the list is endless. Most you can stay in 'forever' if you want to, no-one is going to sell up or turf you out (unless you trash the place or are a nuisance tenant).

In your dreams. None of that security is the reality for most renters.

Never sell your home to rent, you will regret it. I know someone who did that and they bitterly regret it. They’re paying extortionate rent and have had to move every so often due to the landlord selling. They can’t afford to buy again.

I’d move somewhere with better job prospects and rent the house out. If you let the council rent it out for you they may do the repairs for you to get it back into rentable condition? The council are crying out for properties. You can use the rent to rent in a better work location.

You should also consider working in a new industry.

Yeah that sounds great, get someone in to trash the place, stop paying rent and unable to evict. Bonkers that people think renting their house is risk free!

Ok... I get the message that selling up and renting is a bad idea. However, if I can secure a new job asap is renting short term such a bad idea? We ultimately have to stay within the south east for the next few years so I would be in a weaker position to buy but there are lots of shared ownership options.

Something worse (which was what I feared) has happened which means both daughter and I really need to move (I really don't want to put anything outing into her as there are legal implications so sorry to not be specific). Not ideal during GCSE years but we can't avoid it without considerable distress to us both.

With the rental market the way it is you are going to have a hard time finding somewhere to tie in with your completion.

If you have somewhere else to go, a relative or friend in the worst case then it's less of an issue.

I can't help feel however that you are putting being close to your ex ahead of your actual welfare.

The thing is the physical money from your house will be devalued very quickly and spent equally fast.

The rental market is extremely competitive at the moment so even if you moved location you might not find something all the while your money getting spent etc.

In your shoes I’d rent out the house, get an income and rent somewhere smaller for you somewhere you want to be with prospects.

Once again rent out your house to someone who can't even afford to maintain it is bonkers advice.

The reality is that you only have 2 choices:

1. Sell up to buy in a cheaper area and risk being taken to court by your ex. If you can prove that you are struggling financially (which you can), he either won’t bother or will lose. A judge would also question how he can afford the court fees but can’t pay you maintenance, which is a big part of the reason why you’re in financial difficulties.
2. Decide not to sell up and muddle through for a few more years while getting further into debt.

Selling up to rent or renting out your home is madness. Don’t do it!

2 is out the question so the only real option is 1.

I do appreciate this view. However, whilst my daughter wants regular contact with her dad I am not going to prevent her by moving far away against her wishes . It would be very damaging to our relationship and I'm not prepared to take that risk. She needs one adult in her life she can trust.

Hi OP,
Could you look into shared ownership with a view to moving directly into shared ownership without renting first.

www.sharetobuy.com/guides-and-faqs/what-is-shared-ownership/

Your credit rating might be a stumbling box - but with no need for a mortgage it might not. You would buy a chunk with your equity and oay rent on the chunk you don't own.