How can I raise £100k to buy another house?

[CinnamonApplePie]

Hi,

I’m pondering with ideas on how to raise £100k to purchase another house.

Currently in the family home, worth around £260-270k and mortgage free. 50% of that is £130-135k so probably around £130k once selling fees and moving fees are deducted.

Really struggling to find anything else affordable - 3 bed required. I’m 51 so don’t have long to pay back a mortgage. I’m not in receipt of child maintenance for the youngest (15) and eldest at university.

I am paying for a car £232/month for another 2.5 years. Car will then be mine and I plan on keeping it another 5 years, at least, once paid off.

I am due another pay rise in just over a year which will give me an extra £200-£300 per month.

I would prefer a new build for efficiency and the fact it’s all new and I wouldn’t have to throw money at the place.

I can’t afford more than £500 per month mortgage payments until I reach retirement at 67. I am really reluctant to work full time and in that job - it’s stressful.

I am due to get a lump sum from my pension when I retire (part available from 60).

Houses I am looking at are £230k.

Am I able to afford this with today’s interest costs? I was lucky with the family home as I paid over (so paid it off early) as we had a really low interest rate fixed for the full term.

Im looking for ideas! I don’t want to struggle financially. I enjoy weekends away and travel and want to go those now kids are older and I am over 50. Had a really bad few years and want to improve my life.

Any way around this to keep mortgage payments under £500??

Lump sum is currently £60-£90k. Depends how I take it.

Have you done any online mortgage calculations? It seems to me that £100K on a 15-17 year term at current rates is going to be more than £500pcm - but I haven’t looked, that’s just my hunch.

Is your ex staying in the family home, or also moving?

I am really reluctant to work full time and in that job - it’s stressful.

Could you change jobs and work full time?

I stuck it in a mortgage calculator £100k over 17 years would be 700-800/month which sounds possible once you either get a pay rise or car loan is paid off.
Could you look at 2 bed properties if oldest has moved out? Sell your current car and purchase an older vehicle outright? Increase hours worked?

How much is a flat in the area you want?

Shared ownership?

So there are you and two DC, one at university? If that's correct maybe look at 2 beds and sofa bed? Needs must. Lodger?

Lodger? Foreign Uni student if in a University town? Air B&B a room?

I could look at a two bedroomed property too. I could sell the car and buy an older one. I’ve applied for a job that comes with a company car so that would solve that problem.

Lots to consider!

Not keen on shared ownership. I’d rather get a smaller place.

Has another property he’s living in.

So neither of you want to stay in the marital home? I’m just thinking that it would probably be most cost-effective to raise a mortgage for £130K to buy your ex out? Is the property he’s in part of the marital assets? What about pensions etc - can you claim a larger proportion of the equity in the marital home?

@NoSquirrels
No, the house is too big for just two people. It has dragged on a lot and I have accepted the share of the house without anything else.

Is the house the only asset? If he has another house, should that be included in the por? Also pensions, savings etc.

crikey, that's a lot of 'have my cake & eat it too'

Why do you 'require' a 3 bed? 3bed might facilitate having a lodger, but I suspect that's not acceptable to OP, too. Could look at Airbnb for some extra income.

New build have a helluva premium, can you do any DIY? Most homes don't need money thrown at them, newbuild isn't the only option to avoid that.

People work full time so they can afford more things & have financial security.

People don't have weekends out & much travel because they have bills to pay.

Those are your choices.

and yeah, why isn't his 'other property' part of your joint marital assets.

Pragmatically, your real challenge is getting much mortgage at age 51, lenders might lend you 0.8-1.5x your salary, is my impression. What IS your salary (on the current part time, I suppose, working hours?)

You could do a gofundme

Why have you just settled for half the home you currently live in
What about
his savings ?
His pensions ?

you could off load his pension for bigger share of house ?
why is he nit paying maintenance for 15 yr old
you can get that upto 18 as they have to stay in school till then - that’s 3 yrs maintenance

It doesn't seem like you will be able to afford everything. You need to decide what's more important to you, a 3 bed, working part time, holidays, new build. You might need to pick one or two of those.

I work full time.

I think a financial advisor will help.