Housing after divorce - options?

[interstellar]

I posted several months ago about a friend I was helping with her finances a bit after her divorce as she had a CCJ she knew nothing about (ex binned all the paperwork including the court docs). she has made good progress and is going to court to ask for the CCJ to be set aside and wants to move forward.

She is renting at the moment but wants to move to her own place if It’s financially possible. This started as someone told her to get a lifetime isa or a help to buy isa to boost her funds.

Unfortunately I have scuppered that by telling her she is over 40 so the Lisa is out and she owned a home with her ex so the help to buy isa that finishes this month is also out.

On her salary she will only get about 100k mortgage with her 10k deposit which will scrape a studio flat here. As help to buy is out is it worth considering shared ownership or the equity loan from the government?

My feeling would be to get something that’s hers ie the studio with a straightforward mortgage and the freedom to sell it or rent it our if her circumstances changed.

Or when it’s that tight would she be better facing up to it’s tough and if she is going to not enjoy a small studio flat then renting an nice 2 bed house or flat would be better long term or stay where she is even if it’s not hers she might be happier being financially more comfortable?

Opinions would be appreciated or any other idea that could work in her circumstances?

[Sarnie]

interstellar said:

I posted several months ago about a friend I was helping with her finances a bit after her divorce as she had a CCJ she knew nothing about (ex binned all the paperwork including the court docs). she has made good progress and is going to court to ask for the CCJ to be set aside and wants to move forward.

She is renting at the moment but wants to move to her own place if It’s financially possible. This started as someone told her to get a lifetime isa or a help to buy isa to boost her funds.

Unfortunately I have scuppered that by telling her she is over 40 so the Lisa is out and she owned a home with her ex so the help to buy isa that finishes this month is also out.

On her salary she will only get about 100k mortgage with her 10k deposit which will scrape a studio flat here. As help to buy is out is it worth considering shared ownership or the equity loan from the government?

My feeling would be to get something that’s hers ie the studio with a straightforward mortgage and the freedom to sell it or rent it our if her circumstances changed.

Or when it’s that tight would she be better facing up to it’s tough and if she is going to not enjoy a small studio flat then renting an nice 2 bed house or flat would be better long term or stay where she is even if it’s not hers she might be happier being financially more comfortable?

Opinions would be appreciated or any other idea that could work in her circumstances?

Whats her income?
Age?
Kids?
Credit commitments?
Income?

[EarlofDrift]

On the info you've given I'd say buying is going to always be better than renting but it depends on what she wants. If she just after somewhere to settle for a year or two while she get herself back on her feet after divorce I'd say rent in the meantime.

[interstellar]

Sarnie said:

Whats her income?
Age?
Kids?
Credit commitments?
Income?

25k income but will go to 35k in 2 years time
No dependants
She is 45
Credit commitments are £220 a month for her car including tax and insurance
Current rent and bills equal about £850 a month

[interstellar]

Does anyone know much about shared ownership or the government equity loan?

Are these worth considering or only if you are going to stay in one place long term?

https://www.helptobuy.gov.uk/

[mholt1995]

Is renting a room an option in order to get money saved before she gets that pay rise and uses the extra money on a mortgage payment?

[interstellar]

mholt1995 said:

Is renting a room an option in order to get money saved before she gets that pay rise and uses the extra money on a mortgage payment?

Unlikely as she is renting a place at the moment and managing but don’t think she wants a backwards step at 45 like that but I can see it’s a good thing financially and a good option but I don’t think she would do it.

[Tony427]

What the hell is this place coming to?

A thread about a recently divorced woman requiring assistance and no one, I mean no one, has asked for pictures.

Unbelievable.

[General Price]

Tony427 said:

What the hell is this place coming to?

A thread about a recently divorced woman requiring assistance and no one, I mean no one, has asked for pictures.

Unbelievable.

[Marcellus]

interstellar said:

Does anyone know much about shared ownership or the government equity loan?

Are these worth considering or only if you are going to stay in one place long term?

https://www.helptobuy.gov.uk/

My daughter did the shared ownership scheme and a good way to make her money buy more, then a couple of years later bought the other side out as she had more money and could remortgage, sold the house and did the same on her 2nd larger house.

[interstellar]

Marcellus said:

interstellar said:

Does anyone know much about shared ownership or the government equity loan?

Are these worth considering or only if you are going to stay in one place long term?

https://www.helptobuy.gov.uk/

My daughter did the shared ownership scheme and a good way to make her money buy more, then a couple of years later bought the other side out as she had more money and could remortgage, sold the house and did the same on her 2nd larger house.

Thats useful Marcellus thank you. I am surprised no one has mentioned the equity scheme but thats good to know the shared ownership was flexible for your daughter.