To not have. A clue about the best option

[thisisasurvivor]

So
My family and I built a new house
Old one crumbling to pieces
Badly built , not a great long term option etc

We have the final 60k to pay to the builder

Sat down with my siblings at the weekend and we have two options

1. Sell the old house to pay off the builder debt and some of the Loans we owe (would hope to get 150k)

1. Work our asses off for the next year to pay builder (I mean take on an extra job work 7 days a week for 12 months) and still have the loans to pay over three years (and get 10K from somewhere to do up Old house to rent it out for 700 pcm)

Previously other wise posters suggested re mortgage the house but it has not passed building control as builder has few more things to do and will do that when we pay 60k to him

I realise I am very lucky
This is not a brag thread at all
I just have no clue what to do

Also prob need more than 10K to do up
Crumbling kitchen I should have mentioned earlier

New carpets and paint needed

I’m a simple person (but not rich) if it was me, I would sell everything and enjoy my life.

Sorry, I'm a bit confused and clearly missing something.
Is this your own house or an inheritance/parents home? Why are your siblings involved?
So you have knocked down the original house and re-built new on the same plot? Is that correct?
You owe the builder 60K. Surely they want paying now, and not in 12mths time?

See I hear you

Yessssss

I don't want much just an easy life

Apologies

Old home is our parents home
We were left it in a will for 3 of us
So we built a large house
Recently moved in
Cost to build went up as this everything else

Now we are not sure what to do
Struggle for few years to pay for house build
Or sell old house ??

You'll end up in court if you don't pay the builder now. Are you really saying that you've let them do £60k worth of work when you don't have funds to pay?

No court
He is a family friend

I asked him for bill ages ago
He had to re calculate costs

I paid for the rest up front so he had most of the money for the build around two months into the process

His estimate came in around 25-28k remaining
He wanted to re calculate cost of everything and said wait a while so we did

It sounds like selling the old house is your only option at the moment, unless you can get a mortgage and borrow against the value of either the old or the new house.

Unless the builder will put you on a payment plan for the £60k.

No mortgage paying for it ourselves

Plus we gave him machinery last year to keep so there is no pressure his end at all
Realistically aiming to have most of it to him by march 2024 (other sibling can take more loans to do this )

Don't think we can as old house linked to a farm

Yes I could over ten months and then add on 10 per cent
We asked for the final bill a long time ago so we have not been taking the piss here

Also it seems building control will take ages so can't use new house to get mortgage like we hoped

*original quote

..

I think I must be missing something. If you can't get a mortgage on either the new or old house, and you've moved into the new house so have a roof over your heads, why wouldn't you just sell the old house. Why is working 7 days a week, having loans to pay, and not even being able to rent out the old house even being considered as an option?

Do you mean that you and your siblings are living together in the new house? Or you and your immediate family?

But the new house hasn't passed building control yet?

And you can't rent out the old house because it's in bad condition and tied to a farm?

And you need a fair amount of money.

Is that about the size of it?

I agree

I think we were hoping it could be good to have both houses long term

But that means years of really struggling and for what ?!!!

I think we need to just sell

Large new house
My kids and I live in one part

Sibling and their kids in another

We had huge plot to build on

But yes that's pretty much it

So sell and maybe face a loss but have all the debt gone and pay builder in one lump sum

Also we are very lucky

I do know that

I just can not decide and strangely my family think I make the best decisions

Clearly not
Lol

When you set out on this journey, you presumably had a plan. That plan would have held some contingency.

What was your original plan?

I'm not trying to be smug, what I'm getting at is that it is often easy to lose sight of what we set out to achieve, so when you started this, what actually was your desired outcome? An additional property, or one property and reduced debt?

It's not building control/regs certificates the mortgage company will be asking for.
if it's a new build, it will be the new build warranty they will want. Until you get that, it won't be mortgageable.

Is it the warranty you are waiting on? It's completely separate the building control.

If there’s no pressure from builder can you extend the term so the debt is more manageable? Have you tried the banks for a home improvement/finishing loan? Much easier to get than a mortgage. Have you tried the credit union?

are you in Ireland by any chance? If so are you aware of the vacant homes grant?

I’m team keep the house - it’s an asset - but, you need to be smarter in how you finance it imo if possible so you’re not killing yourselves.