£20k of unexpected payments in 9 months... feel like I'm going under

[badmoneyluck]

New username as I feel so ashamed to be in this position.

I've had 9 months of back luck after bad luck which has completely depleted my finances. I was always known as being such a good responsible saver with loads of savings but I've had £20k of unexpected costs so far this year and I'm now absolutely ruined. I'm not on a high wage, about £35k per year before tax, and self-employed so no protection.

Maybe it's my fault somehow but it all feels like bad luck and bad timing.

I bought my first home just under 2 years ago. I had done so much saving I was in a position to be a cash buyer (I put in 50% of costs and a family member loaned me the other 50% which I am paying back monthly). I got the L3 survey like you're supposed to and it picked up nothing significant. I kept £20k back to ensure I had some savings and a bit of money to do cosmetic changes.

Then in January I had to get a new boiler as mine completely broke (approx £2k).. then even, worse water started coming through in almost every room in the house and it turned out the roof had been badly constructed but the surveyor hadn't picked it up. A whole new roof is needed and because of the attic conversion, which makes it more expensive, it's going to be £15k.

I've already been having constant sleepless nights about how to cover the cost. The work needs to be done asap because it's causing more and more damage internally. Then today I've had a sudden dental issue which is also going to cost £500+ The unexpected costs just keep coming. My anxiety around what costs are coming next is unbearable.

Much of the original £20k savings is gone because I spent some on the new kitchen before the boiler and roof issue came to light. I've found family members who are willing to lend me up to £10k which feels horrible but is essential. Even then though I will be left with £0 in savings (excluding my tax money which I have kept aside) and completely vulnerable to anything else happening. I'm self employed so if work dries up or if I'm unwell no money comes in which always made savings so much more important.

I'm just at a complete loss of what to do and terrified for the future. The surveyor accepts no responsibility so can't claim any more from them. It will take me forever to save the £20k again as my outgoings have increased so much with the house and I'm just terrified what's coming next.

I don't understand what I did to deserve this.

I am self-employed and the only breadwinner in the family. I totally and utterly understand you. The stress never goes away, so you have to take it as a habitual part of your way of life. I even pulled in, stupidly, my dc into this - at the start of every academic year I told them - if I don't make enough money, they will have to change schools. The school was good in the sense it did not require upfront payment for more than one term. So putting some of the stress on my dc and dh was a way for me to cope. Do you have anyone close to share this stress with? And please do not take any notice of advice 'can you increase your income' etc. Yeah, right, as if self-employed people don't think of it all the time. Obviously, there were no holidays for us (foreign ones I mean), no flat repairs, no new cars, absolutely nothing. No extras. No socialising which cost money, only a visit to a museum, walks, etc. free stuff.

Can you take on a repayment plan with the roofers to stagger the costs?

RICS surveyors are getting caught out all the time. They do all that training going to university so that they can be full RICS surveyors. The problem is with a lot of them is they are not good at recognising defects. I can imagine your surveyor popped his head into the loft took a few photos and all was okay. My partner is an independent damp surveyor there is no stone left unturned he will find what the issue is and any other defect in the property. He has encountered some shocking RICS surveyors I would pursue him if I was you he should have seen that your roof was defective. It doesn't matter if his company folds he's still a member of RICS and you're probably not the only one after him.

Oh OP all that sounds super stressful but you will get through it and you will be in a stable position again. It will take time though. If it all gets too much you can sell although that will likely have cost you. As for how people protect against this type of thing - I don’t think they do really. They just muddle through like you are doing. Keep going

Did his report say further investigation needed in the roof due to limited access? Dear me he's a chancer if he didn't no wonder he's running go for his house op.

It is really shit and anxiety inducing OP.

FWIW though, I'd say most people don't have savings. It's nice to have them, but people do survive without all the time, it works out in the end x

Have you taken legal advice about taking action against the surveyor? Do you have legal cover through your home insurance? A L3 is a full structural survey isn't it? Your surveyor screwed up and is liable, whatever the small print says. As an absolute minimum they should refund the full cost of the survey.

Talk to brokers about getting a mortgage. The situation may be different when you're trying to get a mortgage for 30k (for example) against the house, not 100/200k etc and your have more months of work behind you.

Get 0% interest credit card.

As you're self-employed, if you haven't already, you must get critical illness and income protection insurance. It's more expense, but will protect you and is even more important now you're savings buffer is gone

Sounds very stressful OP. But sadly that is home ownership!

You’ve paid for a new boiler and kitchen so those are good now. There shouldn’t be other huge costs.

Can you get a loan to cover the cost of the roof? If you fixed the roof, and then did up a bedroom and the bathroom (replastering and repainting is quite cheap and quick to be honest) then the extra income from a lodger would help you pay off that loan much faster and build up your savings again.

Many lodgers will happily pay a lower rent for a less good room so as long as it’s not going to hurt their health they might not be bothered by unplastered walls etc.

Plus maybe you can get an evening job or something to supplement your income.

You are in a good position. You own half your house, presumably you can afford the repayment on the other half. 15k isn’t a lot of money in this scenario and it will be a short term blip.

British Gas were doing interest free over 5 year plans for boilers. I imagine you probably could get it cheaper but it’s convenient to spread the payment

We didn’t pay for a report.

We complained to the surveyor and yes, they had caveats. We disagreed, went to Ombudsman and they found in our favour. We did not have an expert witness report, just showed with pictures and what happened that anyone of reasonable skill using reasonable care should have seen it.

If you have had several people look and they reached the same conclusion and have written it down doing nothing other than what the surveyor said they did, then it strikes me you should win.

What I didn’t realised about the process is that you don’t argue against each other, you don’t see their information, so it’s up to you to prove your case, rather than argue that they are wrong.

It was stressful, because it took them a long time to pay, but we did get the money for some back, had I realised how I needed to make my argument in advance we probably would have got more as I only realised what was missing when I read the judgement.

Overall, I’d say get together the evidence you have that they reasonably should have seen it and go through the process.

I’ve been through something similar OP, it is very stressful but you will get through it in the end. Agree probably no point going after your surveyor - more money, more stress and no guarantee of success.

Many people live day to day with a lot more debt than you, I know it’s not ideal but just stick at it and pay it back in small steps. You will do it eventually. You can get a lodger when basic repairs are done and that will help a lot. Try not to spiral and worry about future problems that may not appear. Maybe seek counselling to deal with these anxieties.

sending hugs

Ask the dentist for a 12 month payment plan? Ask for a breakdown of of the treatment and see if there's anything you don't need or that can be delayed

With the roof, get a loan. Would the relative be willing to not have payment or half a payment so you can throw that towards the loan?

Same. I don't have tons of savings (as it cost everything I had when I separated to buy my own house and move) so have a 'rainy day fund' of about £2K for things going wrong in the house/with the car etc and that's it (I am adding to it though). It's a constant worry that things will go wrong that I can't afford to pay for. I would get a loan if it was me, or remortgage.

Without sounding harsh OP, the only way people can protect themselves against this sort of situation is by living well within their means and being extremely risk adverse. You have bought a property that unfortunately you can't afford via unconventional means. Had you tried for a mortgage you would likely have been alerted both to the costly repairs and to the affordability issues. By using the family loan you have missed out on the due diligence, and luck has not been on your side. In your shoes I think I'd be looking into selling up and starting over in a cheaper property that gives you some financial wriggle room.

I don’t think you going to get the sympathy you are after on this thread.

well yes, people don't put all their money into a property exactly because they need to set some aside.

the person who lent you this money was incredibly stupid to do that, there's a reason the bank wouldn't lend to you.

you need to sell the property.

and you also need to pay for self-employed cover so they pay out when you're not working or ill, because you're running reckless without that too.

Get a mortgage on the house. Then get the roof done and pay back your relatives. Don't borrow any more money from family members. It's cheeky. And maybe think about moving into secure employment.

I’d look at other income. Lodger, second job, rent out driveway/garage to make up some of what you have lost. I think I would rather borrow from the bank than family as less opinions…

Fir the surveyor - have you legal cover with your house insurance - can you speak to them for advice ?

Not sure why you're so averse to a mortgage or proper loan. Talk to a broker and see what your options are. If you can't get a mortgage or loan, you will have to look for more reliable work instead or as well. You can't keep borrowing from family.

As others have said, it might be worth trying to get a second job, if only something low paid and a few hours a week - that way you have regular income and you might be able to save a little.

Did you get a few quotes for your roof - just wondering if you could get it done cheaper. Had ours done in April (a number of leaks) and it cost £11k - they had to deal with a tiny dormer and velux on the front and a large dormer on the back - admittedly the flat roof on the dormer didn't need doing as it was done three years ago.

I know you're worried about money, but I'm sure it'll be a relief when the roof is done which will mean you can relax a bit more (no joke when it's raining and you know you've got water coming in). Paint can cover up a lot, have done three rooms since. Bathroom ceiling will be done when we get a new bathroom (which is desperate another expense).

You have been very very unfortunate in having to replace a roof. Its done now and once you have this sorted you can take in lodger(s) and get a financial buffer back. Its sadly the case that there are a lot of provisos in surveyor reports. Hope that you get back on your financial feet soon. You sound like you have taken all reasonable measures. In terms of what you can do differently in future perhaps just find out a lot about houses and how they are constructed. You may have been able to spot warning signs about the roof yourself (one tell tale one is if the next door houses have had theirs done, or does yours match theirs (sag etc). If its had work on it relatively recently then it should have been spotted and the houseowner informed. But to get remedy if you think they misled you about the property then you will need to sue I suspect. So really knowing as much as possible about housing (being your own expert) is a good idea when buying.

I'd say this is your best course of action to be honest!

You're not "ruined". Think about all the people who are in heaps of debt from careless spending who have never even considered having decent savings. You're going through a tough financial spot. Once you've figured out a sensible plan for paying for the roof, you will be able to get back on your feet and start accumulating savings again. £35k is not a bad wage.

I don't know why people are suggesting getting a mortgage or why they think a bank would be kinder to you than a relative!