Grammar School Bursary and Assets

[Minnielass]

I would be grateful of some advice please.

I have a house which I let and I rent the house that I live in. The purpose of this was to move closer to my family.

My DS has been fortunately enough to be granted a bursary at a grammar school. However, I owe my sister £15k and she now wants this back, therefore I have to sell the house that I let to do this. This will leave me with £20k approx which I hope to use at some point to buy another house.

My question is, will the school expect me to hand over the £20k to pay fees or will they let me keep it so that I can buy a house. However, due to my employment staus I would not yet get a mortgage. Therefore the £20k will be sat in my bank account waiting for ths opportunity to buy.

Any advice would be welcome.

If you have 35k equity in the house, can you take out (remortgage) 15k for your sister but keep the house?

I agree. Use the equity to remortgage. Never sell if you can possibly avoid it.

I don’t understand why you would pay fees to a grammar school. Aren’t they state?

Sorry meant to add if OP doesn’t work enough to buy another house she won’t be able to remortgage and there probably isnt enough equity to do so anyway

I don't know how to respond individually sorry.

I cannot remortgagd because my income is too low and sporadic.

I am seriously disappointed that I have to sell.

Many grammar schools are fee paying schools and are not state schools.

There is enough equiyty in the property but as you say my work situation prevents this.

I wish I'd got a regular job earlier before having to sell but I think I have to have regular income for 6 months or more before remortgage and I don't have that time.

I am trying to find out if the grammar school will want any profit I make from the sale leaving me to live in rented accommodation with no deposit for my next house in the future.

So it's a private school? Not a state Grammar. Yes you're going to have a problem as normally the school's bursar will ask you for an income declaration which includes a savings section. Maybe try to remortgage and withdraw the amount you owe your sister?

Can your sister wait A few months? If you explain the situation to her? And then try to gain some secure employment so that you can remortgage afte rhopefully six months. You did state you wish you got a regular job earlier.
See what the school says. Or... possibly transfer the full whack to her for her to hold and then she could ‘gift’ you the money back for your deposit? However, that could be against the terms of your bursary- that’s why I’d abides you to query loosely with them first?

Glint: many old Grammar schools chose to go private rather than comprehensive, but kept the name. So yes, this is a private school which has ‘Grammar’ in its name.

OP, your Ds has fine v well, but are you sure you can keep up the fees, increases and extras for 5 years given your sporadic income? Sounds stressful. No other options?

The school may well expect you to use the cash. In theory you have two years of school fees (broad assumption it’s a day school and fees circa £15k a year) sat in your property.

However, given your sporadic income streams (apart from the rent), a bursar would probably look kindly on it. Particularly if you have a formal written agreement with your sister with regards to the loan.

The problem is when you sell the property and it becomes cash. You can’t earmark cash for spending how you please. You might want to buy a house with it but it should actually be used on fees.

My main concern however is how on Earth you can afford it unless it’s a full bursary? Your main stable income stream will have been removed.

Is there any possibility you could switch to an interest only mortgage based on the rental income? Like a Buy to Let mortgage? Interest only works fine as long as your plan is to rent the house indefinitely. There are specialist companies that do this.