Mid life pivot - any suggestions?
Hi all, looking for some advice. Please be gentle as I’m going through a divorce and my life has had to unexpectedly pivot in recent months
Mid 40s, one child in nursery for another year
I am keeping the family home in the divorce but need to give my ex a lump sum once the mortgage fix ends next spring
Residential property worth £400k, mortgage remaining £210k 4.5% interest 18 years
I have a BTL flat that I have tried to sell but is proving difficult - value £160k mortgage £90k - service charge p/m £180 which is a killer.
Salary £80k, rental income £11k, company car, I also get a bonus which I salary sacrifice to keep my income under £100k
£20k in S&S ISA
£120k in pension (my good salary only happened relatively recently)
Questions:
Should I pay off my ex by remortgaging or by selling my BTL? The tax on the BTL means it makes a loss but the market for selling flats is terrible and I’m worried I will need to keep cutting the price to sell it.
I’m going from quite a comfortable double income lifestyle to what will be more stretched position. I’m oscillating between a ‘have fun and live for now’ approach with fun holidays and trips for me and my kid and ‘protect yourself, you have nobody else to rely on’ careful approach. Is there anything I should do immediately to shore up my financial position?
Once my kid is out of nursery that will help cover the extra mortgage contribution I need to make