Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By disneylover43
#298853 Our mortgage is on interest only right now and we were considering just letting it go along with the charge which is on it, the house is in negative equity because of the charge , just wondered if we should hang onto the house and hope the prices rise again , its such a strange situation to be in , because even though we are able to pay everything right now but have hardly anything for luxuries at the end of the month, if we were in a rented house we would be £200 a month better off because we would be entitled to housing benefit , no help for mortgage holders it seems unfair .
Anyway although we are paying our way we just wondered what others think ?
getting a rented house wouldn't be easy though our credit rating is in the slum right now because of missed mortgage payments and dmp .
what to do :?
By debtor99
#299093 During depressions property prices slump but they do rise again. This time it might take many years longer due to over inflated property prices caused by banks making mortgages too easy.

Its hard but I would suggest keeping your home on.

We've been through the mill on our home but think in the longer term it was worth it. It's not much but it's home.

Just my thoughts good luck
By disneylover43
#299103
debtor99 wrote:During depressions property prices slump but they do rise again. This time it might take many years longer due to over inflated property prices caused by banks making mortgages too easy.

Its hard but I would suggest keeping your home on.

We've been through the mill on our home but think in the longer term it was worth it. It's not much but it's home.

Just my thoughts good luck


Thank you for your reply , yes its home and security where as renting is not secure the owner could sell anytime, this is really the reason why we stay put , but hopefully there is light at the end of tunnel and house prices will rise once again.
thanks again dis x
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By DuffNCustard
#299153 Depends on the location and area. Reading the financials tonight seems that things are going to get a whole lot seriously worse. Spanish banks cannot get Merkel to agree a DMP :) French banks are horribly exposed to spanish debts, some British banks may need to ask for exta bailouts due to undeclared losses (aka bad debt - all under Chandjays slumberland!) and whilst the UK has done a lot of jaw flapping about cuts nothing has actually been delivered yet.

So those with cash in Spain, Greece and Italy are using it to buy London property - if you live in Kensington, Chelsea etc you're sitting in a goldmine. if not house prices will fall - unemployment and strict lending (UK banks are having to pay more to raise funds in the money markets) will see prices diving down to what in reality is 'the norm' wiping out all the gains of the last decade.

So depends on how you think of your house - is it an asset in which case stop throwing money at it and bail out.

Or is it a home where you have chosen to live in which case forget how much its worth and just consider the mortgage to be the rent.

Over decades bricks and mortar have been a good investment - but then so has the stock market - very simply over decades the economy has grown. I personally reckon that we are on a downward slide in an economic cycle of 15 years plus.

At 56 I am now too old to give a rats @rse what happens to the value of my house - its still got a mortgage on it - but hell its mine and I can do what I like to it!
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By JaneClack
#299183 Mrs Duff, I could not agree more. If your house is your home then it is your home and regarding it as an investment is a different thing.
By disneylover43
#299303 We bought the house when both son's were still at home, its massive it has four bedrooms, two bathrooms, one of which is en-suite , large gardens, now its too big for us we bought it when the business was thriving now we are struggling .

We can't sell and downgrade as there isn't enough equity to buy another house plus our credit rating is rock bottom now because of missed payments and dmp so we would never get another mortgage.

Its as if we are stuck with nowhere to turn, i realise we could sell it and lose money on the house and go rent a house, but i am nervous of taking that step because i need security and renting hasn't got the security like having a mortgage has.

Its a shame because we would be about £200 per month better off renting but i am a scare cat when it comes to big changes .
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By TalbotWoods
#299313 Just a stupid idea, why not rent a suitable property for yourself, and let the 4 bed house out, via a reputable agency.

That way the 4 bed pays its mortgage, with no cost to you, and the cost of renting a suitable house for you both will be cheaper.

Possibly a win win for you

Tim
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By Ransid
#299513 Tim's suggestion is certainly something you should think about.

Also remember this... (apologies but I can't remember your circs - I seem to recall not bankrupt or in an IVA)

If you walk away, hand the keys back and rent then you will still be liable for the mortgage and charge, as well as paying the rent.

The mortgage debt will increase whilst not paid, until such time as the property is sold (most likely for less than if you sold it occupied). You would be liable for the shortfall (including costs of sale) and they are likely to come looking for it.

This might be a trigger point to think about bankrutpcy/iva, but it might be avoidable if you do something like Tim is suggesting.

Yes it is risky e.g. bad tenants (but that can be mitigated) - and you might need the agreement of the mortgage lender - but it has a potential win / win outcome if values do rise (and you can always move back in!!)

All the best.
By disneylover43
#299543
Ransid wrote:Tim's suggestion is certainly something you should think about.

Also remember this... (apologies but I can't remember your circs - I seem to recall not bankrupt or in an IVA)

If you walk away, hand the keys back and rent then you will still be liable for the mortgage and charge, as well as paying the rent.

The mortgage debt will increase whilst not paid, until such time as the property is sold (most likely for less than if you sold it occupied). You would be liable for the shortfall (including costs of sale) and they are likely to come looking for it.

This might be a trigger point to think about bankrutpcy/iva, but it might be avoidable if you do something like Tim is suggesting.

Yes it is risky e.g. bad tenants (but that can be mitigated) - and you might need the agreement of the mortgage lender - but it has a potential win / win outcome if values do rise (and you can always move back in!!)

All the best.



thanks, we were going to let it go and rent a place , but my dad advised us not to as he is leaving us a large sum of money in his will, we also get a 3rd of his house when it sells , but i hate thinking about that although i know its going to happen.
He can't release any of the money to help us for legal reasons, but he does help us out with money every so often .

If we rented the house out to a tenant and then rented somewhere would we still be able to claim housing benefit because the whole point of moving is to lower the monthy outgoings.
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By JaneClack
#299563 No, I am afraid you could not. Your rental from any tenant would have to cover any mortgage payment and buildings insurance and the rental you took on would have to be cheaper. It is one of the specifically prohibited things for claiming housing benefit - sorry.
By disneylover43
#299573
Sarah wrote:No, I am afraid you could not. Your rental from any tenant would have to cover any mortgage payment and buildings insurance and the rental you took on would have to be cheaper. It is one of the specifically prohibited things for claiming housing benefit - sorry.


So Tim's idea won't work then ?
No point in letting my house then renting one for the same ammount , its a no win situation.

As my mortgage is on interest only the monthly payment is £450 you can only get a rented house for this ammount where i live .