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WWYD- GET OFF HOUSING LADDER AND RENT OR SIT IT OUT

31 replies

cheekymonk · 12/08/2012 16:01

I have posted a bit about this before in terms of relocation offers. We live in a 2 up, 2 down house with me, my dh and ds aged 7 and dd aged 18mths. DS refuses to share rooms with dd and in all practicality, it is a bad idea. DS likes to chill out and read, do colouring when he goes to bed (we allow for this by putting him to bed a bit earlier) whereas DD needs quiet, calm and dark room. DS would wake her up each night and I feel he needs his space. So, we tried to sleep in same roon as DD but we became scared to move in fear of waking her up. This was a while back and now she is a bit older, we have moved our bed from the dining room?! back to our bedroom as it was resticting our living space so badly. My logic is she may need toddler bed soon and i want to keep an eye on her safety wise if she is in own bed. BUT, I got a crap nights sleep last night, 1st night being back in our room, again scared to breathe.
we have a crappy NRAM together mortgage which is 103K actual mortgage and 33k unsecured loan. Mortgage payments are £775. We also have an IVA due to finish next Sept.
NRAm had agreed to port or transfer our mortgage and we have an agreement in principle and we have been busy planning moving to wirral where dh can relocate with his job.
Now however we saw a financial adviser on friday and he was very doom and gloom! Saying we have no hope of current fresh mortgage due to IVA. Even if we wait 3 years for IVA to finish and credit history to rebuild we still may not be able to move due to financial status.
I said we were so desperate we would sell house and rent but he talked about how so many people are stuck renting and can't get on ladder, if we sell we lose our asset and deposit for next house. Realistically, we will never build up a 10% deposit plus.
I said we had considered renting this house to rent elsewhere but not sure if nram will give us buy to let mortgage and we know rental income is £650 approx so would not cover mortgage. Plus,we would need to get house up to renting out standard but have been doing general repair/tidying up.
Also, if we sell, we will have debt leftover from unsecured loan. This could be £300 per month which we definitely can't afford with £700 rent for our new home.
I am going crazy tring to think of solutions as it seems we have none! Can't afford loft conversions, extensions, etc.
Question is, do we just stick it out and accept we can't move for another 2-3 years, do we just sell or should we try double renting? are there any other options? DH and i both work. income is roughly £40K.

OP posts:
cheekymonk · 12/08/2012 16:02

I should also have said that financial adviser thinks NRAm will pull out of agreement and they are reported to do this, with people selling their houses and having no mortgage...

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Snog · 12/08/2012 16:04

If you sold your house and paid off all that you owe would you have money left over or would you still owe money?

LadySybildeChocolate · 12/08/2012 16:04

Is it possible to split the larger bedroom into 2 with a partition? It's hard to judge what the market is doing at the moment, but it seems as though there's tonnes of rental properties. You'll be better off when your IVA is paid off, so I'd review how things are then I think.

cheekymonk · 12/08/2012 16:09

We would still own money snog, about 5K depending on what house sold for.
As for splitting larger bedroom, cannot think of anything that will also partition noise as it is sound that is main problem. Thank you though ladysybildechocolate.

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noddyholder · 12/08/2012 16:12

What rooms do you have downstairs?

BramblyHedge · 12/08/2012 16:13

I would look at resolving the sharing issue. We have a two up two down and three kids. The boys 6 and 4 have a bunk bed and dd is still in with us but we will move her in with then soon. She is 17m. We don't have any toys in there. All they do is sleep and read in there. My 6 year old reads late and my 4 year old now knows he must go to sleep. Bunk helps with this as he can't are older brother and his light. Do you have any similar options?

cheekymonk · 12/08/2012 16:14

2 square reception rooms, kitchen and bathroom. previous estate agent suggested making front room our bedroom. all that has stopped us doing this is that i am not sure settees will fit through door! We have to have front window removed to get them in!

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BramblyHedge · 12/08/2012 16:15

Sorry cross post

noddyholder · 12/08/2012 16:15

I would do that. A friend did that and got rid of sofas and bought a corner one for back room so that they could still have a table. Worked really well and they are still there!

cheekymonk · 12/08/2012 16:23

I have just been confused because most people have advised us to stay put and adapt house to deal with it but my Mum said we deserved better and often comments on our small house etc which has mixed reactions with me. It has become unbearbale and whatever we have tried has other consequences.
DS has bunk beds but i'm not sure I could put DD in there yet safety wise? As for going with converting lounge into bedroom, could do... Just concerned that there would only be one room for living space but as i say whatever we do has consequence!

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LadySybildeChocolate · 12/08/2012 16:26

Converting one of the downstairs rooms into a bedroom seems like the best option at the moment. Do remember that it's not going to be forever. In the mean time, you'll find that you won't all be in the same room at the same time, especially as your son likes quite space. You could always put a shed/summer house in the garden if there's space.

cheekymonk · 12/08/2012 16:28

Thank you all btw, for your ideas and suggestions! Estate agent said every day he sees at least one couple in our situation- unable to afford to upsize! its mad too, as My Mum lives away and is in a 3 bed that only she lives in as her and my Dad split up! it is mortgage free but she struggles to afford bills/upkeep. House is immaculate, she is incredibly house proud. If it was normal, i would considering renting it from her as I know she wants to sell and downsize but my dad doesn't want to. he wants it partly for our inheritance but my Mum wants to release some equity for her now. She is rattling around in a house thats too big and we are cramped!!!

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cheekymonk · 12/08/2012 16:29

Yes son seems to be at that age of needing extra space. Summer house is a brilliant idea ladysybilechocolate. Will look into that...

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LadySybildeChocolate · 12/08/2012 16:30

Can you swap houses with your mum, but not buy it? Confused

cheekymonk · 12/08/2012 16:33

Have thought of that ladysybilde but she woould be getting crap deal! Plus she is happy where she is- we are 160 miles apart. It is frustrating!

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LadySybildeChocolate · 12/08/2012 16:36

If she wants to sell, is it possible for you both to sell at the same time, pool the money, then buy something larger with an annex for her? Would she move?

A summer house is looking like your best plan. They vary in price, so it will depend on your budget.

TribbleTuckandDismount · 12/08/2012 16:37

Have you thought about putting in a stud wall in ds's room?

That way they bought have space and you keep the space downstairs, my cousin did this with her two and it worked a treat. Obviously a compromise in space but it made it workable whilst they saved.

cheekymonk · 12/08/2012 16:57

yes have thought of that too ladysybildechocolate, but am worried we have nothing to bring to table (apart from 2 grandhchildren that she would adore being near!!) as selling our house doesn't leave any equity, only debt! So Mum would be cash buyer... Dad i think would agree as it is an investment. My sister is currently renting and she would question her share in things i am sure... but maybe we could get somewhere big enough for her to rent too! i could I make it fair to Mum? pay her a rent of some kind? If new house cost more than her house, would she get mortgage at 55 or we get one and she be guarantor?
Going back to our house, yes stud walls could be an idea...

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LadySybildeChocolate · 12/08/2012 17:18

I'm not sure, you'd have to look into it. I do have family members who have done this though and it's worked out really well for them.

noddyholder · 12/08/2012 17:21

How big is the biggest room. There are ways of dividing without using a straight stud wall that work a lot better

cheekymonk · 12/08/2012 17:39

Biggest room is quite big! I reckon at lease 14 ft long and maybe 12 wide...

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LadySybildeChocolate · 12/08/2012 17:41

Just put a stud wall partition to split the room into 2 . Noise is an issue in every house, so it's something that you'll have to manage. Cabin beds don't take up a great deal of room either.

noddyholder · 12/08/2012 17:43

You can insulate the stud it will be fine.

cheekymonk · 12/08/2012 17:45

My Dad is coming down to see us next week, will ask him all about it. it sounds a great idea! Thanks again...

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Snog · 12/08/2012 18:04

Tribble's idea is a good one.
Don't let your mum make you feel bad. Mum's are supposed to support you not make you feel bad.
Do you have any plans to increase your income as it sounds like this is key to moving on?