Unwell, unemployed and about to be repossessed

[Desparatessusie]

My job was terminated last December ( I refused to take overseas money into my personal account) Fellow directors are now in prison. At the time I felt very unwell but thought it was the stress, it wasn't. I had developed a life changing condition that means I will end my days in a wheelchair. I can no longer walk without aids. I'm late fifties.
I never received my final wages, notice or holiday pay. Neither did my colleagues. We all have tribunal awards which have not been paid. The offices are mothballed.
I contacted my mortgage lender to request an interest only arrangement. They refused. I didn't have a job so I didn't meet their lending criteria. They offered a three month repayment holiday.
I did manage to pick up a couple of months consultancy which I did from my sick bed and duly paid my mortgage with it. However I ve not been able to secure another job. I can't work locally as I can't stand or sit in one spot. My GP is happy to medically retire me.
We've now got to six months repayment holiday and the building society have started the process to repossess the house. I have 25% equity.
This would not buy me a house where I live.
I have a final salary pension due in 12 months but it's got a 90%, penalty for early payment. I have a few shares but they are locked until December 2025 when a company I helped found will be sold.
I've no assets that would raise sufficient funds to pay off the arrears. No jewellery, cars, art etc.
I have two adult DC at home and commuting to university. The older has his finals next year. They fund their selves. I have no other family who could help.
I don't know what else I can do.
Any advice or signposting would be gratefully received.

If your mortgage is £4k a month you either have a very large property of live in a very expensive area.

Agree with others you need to sell and move somewhere cheaper. You aren't looking for somewhere with employment so that frees you up a bit.

Your children will have to live near uni while they finish if needs be and you can accommodate them after if you can afford a property that big.

It's shit - no one is denying that but that size of mortgage would be unsustainable for most of the country.

Does your pension not include the possibility if ill health retirement (,on better terms)?
The first thing I would do is get a lodger, it's tax free to a certain amount.
Kids need to get jobs and help out.
Good luck!

I agree, there are some great deals out there if you can move, my 3 bed 1960s bungalow in the SW is worth £420K, I saw an almost identical one, in a similar close on Rightmove in County Durham for just £120K, so if you can move away to retire there is likely a cottage or bungalow you can buy outright for your equity, giving long term security and meaning you outgoings are just council tax and bills.

You don't say if the shares and DB lump sum will easily cover your mortgage plus living costs when they come in. As it stands, you can't afford to hang on to a £4K a month property with no income. Cut your losses and sell now before you end up walking away with nothing and a ruined credit record.

Approach your local Council- they may have sheltered housing properties you can rent (but you would probably not be able to bring your adult kids).

Or if you have enough equity, you can buy sheltered properties at greatly reduced prices. I know of ones near Sussex and Kent for £100K but there are monthly service charges (around £200). Others in the Midlands for £70K. Again, young adults unlikely to be able to live there but many are good for disabled living, near shops and transport.

I simply can’t fathom posts like this. What do you think a lodger is going to pay her 4 grand a month?? She’s got 2 coming in and 4grand on the mortgage, she needs money to live, eat, pay the bills etc. so any lodger would need to be paying a grand a week. And has both the op and her daughter are disabled, they may not wish a stranger there. Even if they could find daddy warbucks.

I expect you didn't bother reading my other post in which I gave lots of other advice.

If OP sells her house, which she obviously needs to do, it won't be immediate - she's going to be living there for several more months, at least. So a lodger would help bring in some money - not enough to cover the mortgage, but some - in the meantime.

£2k a month is needed. Okay let's work with that. Go on Upwork and peopleper hour today and start bidding for work. Email everyone with whom you have ever worked on Linkedin to get notified of any work you can do from home. (I have worked for myself since 1994 from home so have had a good amount of practice at generating work). If make your children share a bed room or even sleep in the living room and advertise 2 or 3 bed rooms today for rent.

£2k is not that much to generate although I agree that being ill and not able to leave the house etc for a full time job is going to make it harder.

Then move on to equity release schemes instead of the mortgage (not a good deal but might mean you keep the house and even student age children really do need a stable home - I still have 2 living at home in first jobs after further education).

Also not checked the whole thread, but there are some rights to claim employment lay off money from the state if the company has gone bust.

Its not too late to stop the action but you have to approach the building society with a plan.

Are you willing to put the house on the market more or less straight away, some complex house sales are taking a long time to go through anyway. It's better to be the person overseeing the sale than letting the building society sell it as their costs are horrendous.

Some providers are better than others ask for clarity that no further action will be taken whilst you have the payment holiday and make the offer to sell it, get some valuations and work out which agent will be best for your circumstances.

It's worth checking with your council but a lot of waiting lists are years long.

https://www.citizensadvice.org.uk/work/pay/getting-paid-if-your-employer-goes-out-of-business-or-disappears/

Op you are already receiving amazing advice. I love mumsnet when I read threads like this 🥲

I wanted to say this must be so destabilising for you, but you made such a good call to hold firm with the directors re fraud or you would be in prison now too. But your health is a serious blow, I am so sorry it must feel like the final straw. Talk to your gp about accessing free counselling. You need time to talk through this life changing news.

Are you 100% certain there is no critical illness enemy yo your mortgage protection policy?

Given the size of your repayments, I would be surprised if it wasn't recommended.

This page is helpful because it includes info about what to do if your employer is not insolvent (OP's employer isn't insolvent yet).

OP, see https://www.citizensadvice.org.uk/work/pay/getting-paid-if-your-employer-goes-out-of-business-or-disappears/#h-if-your-employer-still-won-t-pay-you-after-you-ve-got-a-tribunal-judgment

Many schemes allow full pension early / no reduction on medical grounds & ill-health retirement.

Have a look into local and / or charitable trusts that offer low-rent options for over-50s etc.

Have you had an appointment with CAB to ensure you ate getting everything you are entitled to?

Have you discussed the situation with your children?

You could contact Shelter for advice re: housing

Although I do agree with pp, selling and downsizing (a bungalow maybe?) seems the most sensible idea

Good luck

@Xenia what is the second thing you mention in your first paragraph- upwork and ?. Thanks.

I presume you're speaking to the building society? If I understand from your OP, your financial situation will change in 12 months to enable you to pay the mortgage? If so, I doubt repossession will go ahead, providing you communicate and engage with the building society?

There aren't many places where that will happen. I also need accessible housing, and have been on the list for five years. I am nowhere near the top.

If not you should claim, you shouldn't have any Council Tax to pay

its very rare a council will not expect someone to be paying something towards their council tax - even on benefits.

Pension credit and SMI & full time student, but everyone else pays some contribution towards council tax

Yes put in a claim for council tax reduction, but please don't have an expectation that you'll not have any council tax to pay

I get a £500 discount for disability.

Advise on benefits, do you?

Didn't think so.

OP, contact citizens advice as I suggested. I CBA to argue with people who think they know the system.

I've told both DC.
My daughter is very upset.
She can't help financially as she can't get part time work due to her disability.

Look at uc. If your savings are below £6k there's a mortgage interest arrangement. Speak to housing at local council as they can try to keep you in your home especially if there's an end point called pension next year.

Does the former company have any assets? Is there anything to distribute if it's wound up? Intellectual property? As several of you are owed a local firm of solicitors may be willing to take it on and your bank may hold off if that would cover what's owed.

Most of all best of luck in getting what's rightfully yours

Hi OP,
Have a look to see if you can afford to buy a 25% share of a shared ownership property with your equity.

You would need to inform the housing association of your circumstances as I think home owners are only allowed to buy shared ownership if they can no longer afford open market homes.

On right move you can use the filter "Buying Schemes" in the must haves/filter option to view shared ownership properties.

Edit to add I believe you can claim benefits to help with the rent element if you are on a low income.

https://www.rightmove.co.uk/property-for-sale/find.html?locationIdentifier=REGION%5E789&radius=20.0&sortType=1&index=24&propertyTypes=&includeSSTC=true&mustHave=sharedOwnership&dontShow=&furnishTypes=&keywords=

You need to sell your house ASAP before it gets repossessed so you get to keep your equity.

It wouldn't be fair to ask your uni age DC to pay a mortgage of £4k a month, loads of full-time working people don't even earn that in a month!