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Original poster

How to get out of our flat

27 replies

Shitthebed24 · 19/10/2023 09:57

I don’t know if anyone can offer some general advice. I do have a call with citizens advice next week so can get more specific help then.
We are finding ourselves struggling with COL. I work 3 days (DC in nursery, cannot afford to increase, 90 per day and not eligible for any other help than the 20% tax deduction ) and I earn circa 15,000 pa. husband is full time earning shy of 40,000 pa. Our mortgage is variable as we’re looking to sell (2 bedroom small flat in Herts) and is currently 1300 a month. We’re cramped with family of 4 but trying to make it work. Due to it being shared ownership we also pay rent and service charge. We don’t own it all.

We’ve had 2 viewings since it went on open market and so desperate to sell. Initial plan is to move in with in-laws. We have 2 cars and pay for DC1 swimming lessons.
Looking at our finances we’re very much living month by month.
Does anyone have any advice or help? Our mortgage is killing us but if we lock into a fixed rate, we pay when we sell and as in negative equity we cannot do this either.

Any help appreciated!!!

OP posts:
ssd · 19/10/2023 09:59

That sounds tough. Could you get rid of one of the cars.

Original poster
Shitthebed24 · 19/10/2023 10:01

no we can’t 😥my husband drives to work at 6am and my DC nursery is 2 miles away so impossible to walk to before school run

OP posts:
VanCleefArpels · 19/10/2023 10:15

If you work more than 3 days you can surely afford more childcare?

I would also question the strategy of selling your property. You are just crystallising a loss and making your future inherently uncertain.

Other than that the only option is to forensically analyse your budget and cut to the bare bones your daily outgoings.

ssd · 19/10/2023 10:32

Thats so tough. I hate to ask, but is it worth your while working?

Original poster
Shitthebed24 · 19/10/2023 10:45

I work 3 days a week, childcare is 700 (broken down into 1 full day and 2 half days where grandparents help) so about half my earnings so I’d say it’s worthwhile.

In terms of selling, we bought our 2 bed flat as a couple and have since had 2 children. Originally bought at 297;000 and marketed at 270,000 which is realistically the lowest price we can go to to break even and we are facing more loss if we stay. We cannot rent it due to shared ownership scheme.

Staying here longer term is getting harder with growing DC.

OP posts:
Whataretheodds · 19/10/2023 10:47

If you're fixed on selling, check whether you can get a new deal and then port it to your next property.

Can you you realistically extend the length of your mortgage or go interest-only for a period?

Original poster
Shitthebed24 · 19/10/2023 10:51

As we plan to move in with my mother in law there’s no new deal in place yet, unfortunately.

We could go interest free yes, that would save us about 200 per month. I am nervous to do it, but maybe that’s our best option!

OP posts:
Whataretheodds · 19/10/2023 10:54

You'll end up paying a bit more eventually but you can effectively defer that hit until you're no longer paying for nursery

MikeRafone · 19/10/2023 14:30

https://www.citizensadvice.org.uk/debt-and-money/budgeting1/work-out-your-budget/

If you have an appointment with Citizen Advice - it would be beneficial if you do there budget planner before the call.

Also have your HA paperwork ready - what are the terms and conditions? Can you just hand the keys back to the HA and let them sell it on? Will you be liable for council tax and rent if you did so?

Running a second car maybe is making one of you working unviable, depends on the true cost of the car, fuel. Is there a breakfast club that would work out cheaper than the running costs of a car? Or maybe someone else could walk your dc to school in return for a different favour - there maybe another solution.

What subscriptions do you have that you don't need? Can you shop around for cheaper broadband and mobile phone usage?

Work out your budget

Use a budgeting tool to help you understand what you’re earning and spending and where you might be able to cut costs

https://www.citizensadvice.org.uk/debt-and-money/budgeting1/work-out-your-budget

Original poster
Shitthebed24 · 19/10/2023 20:02

Thanks. I do have a budget calculator so I’ll definitely use that on the call. I think our biggest outgoing is the combined mortgage/ rent/ service charge at 1800, it just annoys me 😂 it’s so so expensive and our flat is so small.

Id give anything to hand the keys back but I think that’s called voluntary surrender (unless it’s different if it’s to the HA?) and that would stay on our credit file for 6 years.

our phone bill is 15 for both phones, broadband is 30 per month. Two cars isn’t ideal but we both need a car.

I just desperately want out of our flat!

appreciate all the suggestions, I know I’m just being difficult. I think interest free is the only option right now.

OP posts:
ImagineA · 19/10/2023 20:08

Are you 100% certain you can't rent the flat out? You say it's shared ownership so if a Housing Association owns the other percentage it's worth checking with them as some housing associations make this decision on case by case basis. For example someone I know has sublet with permission as she was stuck by the cladding issue, couldn't sell but also couldn't stay as flat too small for growing family. If you're facing real hardship you need to let them know the consequences of them being inflexible on this.

AnotherEmma · 19/10/2023 20:17

What % do you own (with the mortgage) and what % do you rent? Would it be possible to sell some of your share back to the HA, as it were, thereby reducing your mortgage and increasing your rent?

Might sound counterintuitive, but bear with me... you can get help with rent costs through UC (housing element) but not help with mortgage. There's no point paying interest on a mortgage you can't afford.

Have you checked whether you'd be eligible for UC? I think you most likely would, because you'd get the housing element, child element and childcare element... it's worth doing a calculation, try Entitledto or Turn2Us. Or contact citizens advice Help to Claim service (they have a helpline and webchat).

Can you find a childminder or nursery that's closer to school? Can you replace one car with an electric cargo bike, that way you could use it for the nursery/school run? Electric cargo bikes aren't cheap but they're cheaper than a car - no insurance, petrol or road tax.

monpetitlapin · 19/10/2023 20:25

Ah that's really shit! Would you consider sharing the Rightmove link on the Mumsnet Property board so people can critique your listing and suggest tweaks to the listing/presentation of the house to get it selling for you? You could do it under a namechange if you want anonymity.

Fallenangelofthenorth · 19/10/2023 20:28

Have you asked if HA would buy it back? A friend of mine managed to get out of her shared ownership this way.

BalloonsInWater · 19/10/2023 20:35

Quit work then you can cancel nursery and sell the second car. Or ride a bike to nursery, doesn't have to be cargo.

VanCleefArpels · 19/10/2023 21:28

Shitthebed24 · 19/10/2023 20:02

Thanks. I do have a budget calculator so I’ll definitely use that on the call. I think our biggest outgoing is the combined mortgage/ rent/ service charge at 1800, it just annoys me 😂 it’s so so expensive and our flat is so small.

Id give anything to hand the keys back but I think that’s called voluntary surrender (unless it’s different if it’s to the HA?) and that would stay on our credit file for 6 years.

our phone bill is 15 for both phones, broadband is 30 per month. Two cars isn’t ideal but we both need a car.

I just desperately want out of our flat!

appreciate all the suggestions, I know I’m just being difficult. I think interest free is the only option right now.

You are being very short termist- say you do sell. You’re sharing with the in-laws which unless they live in a mansion is never going to be ideal. Where’s your deposit for the next home coming from? Or are you willing to accept the inherent uncertainty of renting for however many years?

Interest rates are coming down. Your childcare costs won’t last forever. The property market will improve eventually. Bailing now on the basis of short term difficulty is not a great idea in my view.

user1494050295 · 19/10/2023 21:32

This

DamnUserName21 · 19/10/2023 22:00

Agree with AnotherEmma, you might be eligible for some UC with rent, 2 children and childcare costs. Check the calculator with just rent and service charge costs:

https://benefits-calculator.turn2us.org.uk/

Turn2us Benefits Calculator

Use the Turn2us Benefits Calculator to find out which welfare benefits you may be entitled to.

https://benefits-calculator.turn2us.org.uk

Original poster
Shitthebed24 · 19/10/2023 22:05

Thanks all. I’ve done the calculator again tonight which suggests we are eligible for some help which is good.

in terms of in laws move, it was purely to save money to buy a bigger house. At the moment it’s impossible to save and we’re starting to outgrow this place. Maybe as you say we wait it out for the foreseeable future and try and get our finances in check.

OP posts:
AnotherEmma · 19/10/2023 22:26

I don't understand why you're not claiming UC already. By my very rough calculations (with some guesstimates) you'd get about £380/month. You should claim ASAP.

Unexpectedlysinglemum · 19/10/2023 22:32

Have you asked to sublet it?

You can also advertised a shared ownership at 100% if it hasn't sold as a share after a certain amount of time

Unexpectedlysinglemum · 19/10/2023 22:33

Did you know you can move mortgage to interest only (google the mortgage charter)

FindRachel · 20/10/2023 05:37

I agree that you should go on interest only until you don't have those nursery costs. Selling your home and moving with two small children into your in laws house seems drastic.

Have they got a big house? How will they get on living with two children and the mess and noise that brings? Who is doing the house work and the food shop?

Original poster
Shitthebed24 · 20/10/2023 06:05

@AnotherEmma I had done the calculators before and it always said we weren’t eligible, I had inflated my husband’s salary (smart, I know)

OP posts:
Nodashians · 20/10/2023 16:51

I wouldn’t try to sell and move at the moment, I’d wait until both DC are in school and it may be easier for you to work full time.