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Can I rent, sell my property pay my debts, buy another property later?

I have a 2 bed first floor flat in Knebworth I own outright, I have my elderly mother living with me, it is getting a bit hard for mum going up & down the stairs, a bungalow or a ground floor maisonette would be better, the only trouble is the buying & selling. I already have a loan & credit cards, I have a poor credit rating [I am paying my bills] Can I rent, sell my property, pay my debts, buy another property later an area where they're cheaper, or do you have a better idea?

Asked on Aug 7 2011, Home Finance in Knebworth | Report content

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  • No, that's a good idea. You own your flat outright, but it will still be leasehold. So you don't need any mortgage company permission, but you do need leaseholder's permission. Check your lease, this is normally not a problem, but I bet the leaseholder has a £50 fee for a permission letter, they usually do :( Then go ahead and rent the bungalow. However, if you have bad credit, you might have a problem getting a tenancy. Try it and see, the checks for tenancy are not as stringent as those for a mortgage. The other solution of course is to sell the flat outright (although now is bottom of market) and pay your debts, then rent the bungalow for a bit until your credit score comes back, then buy the bungalow. Virtually all landlords will sell to sitting tenants. The main thing is to get your credit sorted and don't get in that mess again. It affects all kinds of other stuff. BTW DON'T be tempted to borrow against the flat from a non-status lender, you know CCJs welcome 20% intereest.

    Answered on Aug 18 2011, Report content
  • Just picking up on David's answer. Depending on what sort of credit profile you have, there MAY be some milage in raising finance against your flat to clear your debts. Just make sure you approach a reputable advisor and, if appropriate, go with a status lender.

    Answered on Aug 18 2011, Report content

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