Thread: Helping with finances

Right, my brother and I are, at my sisters request thinking about helping her financially on a fairly long term basis.

She has roughly £130,000 left to pay, I believe she has monthly out goings of approx £1,300pcm, after roughly going through it with her. Her income is £1445.79pm. She can't afford to keep paying this out and has work that needs to be sorted before she could sell and not be worst off. Electrics, new boiler, new windows, etc.

She has said that if we are able to pay either into the mortgage or bills or monthly money towards getting the works done she will be in a better position to sell, pay us back and have a lump sum to move to a smaller more manageable place.

Any advice on how to find out which is the best option for her and us.

And please, no bitchiness on how she shouldn't have got into this situation in the first place. It hasnt been entirely her fault.

Go see an IFA, and good luck x

I agree with Bootifull seek financial advice about it.

And just reading the post I personally would look towards helping to pay for the improvements like the boiler etc, get loads of quotes and see what kind of sum you're looking at for what needs doing. Helping towards the usual monthly bills or mortgage doesn't seem to set an end in sight so to speak and there are always other things that crop up that could eat into any monthly help you are giving your sister...life is sh!t like that I find! Also, then once she was able to sell the house there would be a more definate figure of what is owed back etc.

Good Luck

There are some places that are still giving help/discounts or grants with regard to getting replacement boilers/making homes more energy effiicient, a google search may be helpful with regard to her specific area.

Hope things get easier for you all.

So she roughly has £145 a month after bills to live from and needs work doing to the house to enable her to sell it? Just want to make sure I'm not reading things incorrectly, the moving is making thinking more difficult than usual!

If I have read it correctly I would think that paying for work that needs doing to the property to make it marketable would be really lovely of you and your brother and would suggest getting quotes for the work that needs doing and deciding what is essential and what isn't, if it will effect the marketing price of her property which will therefore effect her ability to clear her mortgage then it is obv essential but if it won't maybe it can just be left for the new owners?

GS,

You are such a lovely brother, and I am sure that people would not judge your sister. There are plenty of situations in life that forces people into debt. I expect it took a lot for her to come to you, and it is good to see you trying to help if you can.

Being a mortgage adviser this is "somewhat" my area. Or if you would prefer I can point you in the direction of a good IFA if you let me know roughly what area you are in.

Personally I would help with getting the repairs/upgrades done. This sounds like a better option as you could get the work done quicker and get her out of the situation quicker. If your sister is in an area I know I might be able to recommend you some work men (I have a rental).

One thing which I would consider would be to make absolutely sure that the mortgage is paid every month; mortgage providers are moving very quickly at the moment when payments stop, as I discovered when an old friend got into difficulties last year. Helping with the mortgage kept the bank happy and he was able to sell his property at the end of last year. Had he not been able to get help from friends, however, the bank would have had him in court within a few months. The same applies to council tax, as the councils will move quickly and it can be very stressful. Making sure that utilities are covered as well is important.

I wonder whether it would be a good idea to set up a bank account into which she, you and your brother could make monthly payments and which requires all three signatures to withdraw the money; this way, you could save towards the final works which need to be done before selling.

As far as prioritising the works is concerned, I would prioritise anything which affects her safety and comfort in the short term, especially as the seasons are about to change and you can't be sure that the sale of the property will happen this year. I see that you mention electrics and a new boiler. If there is any doubt about the safety of the electrics in the property, that needs to be looked at sooner rather than later. With regard to the boiler, if needing a new boiler means that there are problems with keeping warm or having hot water, that should also be a priority. I'm not sure what kind of boiler it is, but I see that British Gas has a Flexible Heating Improvement Plan which allows you to spread the cost of the new boiler - they also have an offer in August giving customers an extra £100 trade-in on their old boiler:

How do I pay for a new boiler? - British Gas

With regard to the windows, I would leave these till last, as that is likely to be the biggest expenditure.

It might be worth asking an Estate Agent to appraise the property. He/she may suggest leaving the windows as they are. There is no point in spending thousands on new ones if it won't make a substantial difference to the chances of selling.

As well as seeing an IFA for the mortgage stuff, it might also be worth having an appointment with a CAB Debt Advisor, just for the extra support.

Its also worth doing a SOA (statement of affairs) there are internet sites that have them (moneysavingexpert etc) they are really helpful as doing a rough draft of outgoings is sketchy at best, these more or less account for every penny- the little things you over look.

Soleil's advice is good, although when I worked as an Estate Agent, things like new windows etc didn't always add massive value to the house but to the buyer they were always important as even though the house would be valued to reflect such things the buyer always mentally deducted the cost of whatever needed doing from the sale price which obviously determined their sometimes stupidly low offers. It was amazing how some of the most hideous houses sold purely on the fact that the electrics, boiler and windows had been replaced recently and had certificates etc to prove it.

I think you have already had some brilliant advice from RPers.

Just wanted to say, the statement of affairs works really, really well. It can be a huge wake-up to see it all written down in front of you in black and white, there is simply no denying what the final sums outgoing or outstanding debts are.

I take my hat of to you and your brother for helping, I actually blubbed when I read your OP!

TLC x

Thank you ladies for advice so far. Just to clarify, the £145ish she has at the end if each month goes on food and travel, so she is left with literally nothing.

Will look into the IFA, Gonzo, will PM you shortly.

The thing we are most concerned about is the mortgage, so far she has managed to maintain payments for that, but in turn has had to miss payments on other things. We want her to carry on living there for the next few years and for the house to be safe. I will look into the schemes available over the weekend.

In truth I am a little pissed with her for letting it get to this stage and not coming to us before. I would have been more than happy, as would my brother, to pay off a couple cards and debts when it wasn't quite so desperate, rather than taking out more loans against the house!

I'm just glad the brats are at decent comprehensives rather than private schools!!

Originally Posted by Tootsie_Le_Coq

I take my hat of to you and your brother for helping, I actually blubbed when I read your OP!

TLC x

Time of month?!

Just looking to SOA's now

Responded G_S. I will do anything I can to help, albeit from Cyprus. Having been in a sticky wicket situation before after 5 redundancies in as many years I know how hard it must be.

G_S dependent where you/your sister are in the country I dealt with a lot of IFAs in my last job and may be able to point you in the direction of a decent one who won't charge the earth. The majority of my contacts are in the South.

G_S i take my hat of to you and your brother. There arent that many people i know that would be so willing to help in this day and age. I hope that you get it all sorted and that your sister gets some of the stress and strains away, it wont be helping her x

Gonez, thanks.

Pixie, please do. Greater London area is where she is now.

I've not put this up so you can all tell me how wonderful I am, (I am already fully aware of that). I'm sure that most family would help if they are in the position to do so. I can, and my brother can. It'll be fun and games telling the wife tonight!

I've PM'd you G_S, sorry brain cell is hidden under a pile of boxes but have remembered two firms, give me a shout if they're no help and I'll try and kick the brain cell into gear!

Grants and Discounts Database / Energy saving grants and offers / Easy ways to stop wasting energy / ' - Energy Saving Trust

Don't know if this will help.