Please be kind. I am in bits with stress. I know my assets might sound great on paper but reality is I’m losing £1k plus per month to debt right now, spiralling and the fear is making me majorly depressed which makes it hard to think or make decisions.
I keep having suicidal thoughts but wouldn’t act on them. The huge debt pressure and fear is making me ill though (I have chronic illness which worsens with stress and carries increased cancer risk- another stress!)
I own two properties, a house and a flat in nearby town. They are similar value. I live in house and the mortgage is reasonable and affordable. No capital gains if I sell.
The flat has a higher mortgage, a higher interest rate and the mortgage payments are almost double those of the one that I live in. Crushing CGT if I sell. It brings in some profit but not much bc landlords can no longer set interest payments against tax.
I have about £60k debt in overdrafts, loans and credit cards due to a specific major problem that occurred.
I eventually want to leave my home as kids have gone and I don’t like area. I really love the house but can’t cope with maintenance and garden- I work full time- very full on.
One idea I had was to sell now, pay all my debts and put profits into the flat, improving its loan to value, and remortgaging to a cheaper personal mortgage and living there. I’d have to renovate as it’s been rented for a long time. Living there would reduce the eventual CGT.
Another option is to sell home and put money into the flat but continue to let it. Then rent a smaller place, save increased profits from the flat.
Other option is to stay where I am to wait till house market is better, take second job and or a lodger, and keep on struggling. I find it hard to say goodbye to homes.
In current circs I can’t remortgage to pay debts but as interest rates improve I should be able to.
sensible take on my situation is much needed! Thanks!