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  • FIRST POST
    • sireade
    • By sireade 2nd Oct 17, 3:34 PM
    • 2Posts
    • 1Thanks
    sireade
    Advice on selling to clear debts
    • #1
    • 2nd Oct 17, 3:34 PM
    Advice on selling to clear debts 2nd Oct 17 at 3:34 PM
    Apologies if this post is in the wrong place. I wonder if I can get some opinions or ideas on my situation.

    Me and my ex-wife have been separated for 6 years but we still own a house together. She was living in it after we split and I was paying half the mortgage until she moved in with a new partner a couple of years ago and I moved back into the property.

    I am approximately £25k in debt, feeling swamped by that and starting to struggle with monthly outgoings. So I've decided to sell the house and clear my debts.

    The house should sell for approx 210k. We owe £90k. In the divorce it was agreed that I would receive 40% of the equity when it was sold so after fees I should get about £47k. and be left with about £22k after the debts are paid.

    My ex does not want to sell, though she isnít preventing it. She loves the property and sees it as a good investment and the current mortgage rate on it is very good (a tracker at 1.24%). She isn't in a financial position to buy me out at the moment though she'd like to.

    Another aspect of this is I have a new partner and we're considering moving in together and think a new property and clearing debt would give us a better start.

    What I'm wondering is, am I missing something? Is there an alternative solution? Am I being sensible to clear debts rather than cling onto a house as an investment? I like the house and I'm feeling sad about selling it but I think it's for the best. Any thoughts or advice appreciated.
Page 1
    • hazyjo
    • By hazyjo 2nd Oct 17, 4:05 PM
    • 9,843 Posts
    • 12,487 Thanks
    hazyjo
    • #2
    • 2nd Oct 17, 4:05 PM
    • #2
    • 2nd Oct 17, 4:05 PM
    Why would anyone want to keep a joint investment with their ex? I would definitely sell.


    Can you imagine being called at 1am over something that's happened at the house, and having to deal with your ex-missus? You new OH might not be too keen either.


    You'll also presumably be clobbered with the higher rate of stamp duty if you hang on to it.


    I am presuming you don't have kids together.


    Advisable to sort this immediately before your debts escalate further and affect your credit rating - if they haven't already.


    Surely any happy memories are in your head not in a house. Many of mine have been hard to move on from as I've loved them so much, but I wouldn't dream of hanging on to them for emotional reasons. Worse still, I presume you'd be renting it out and that never works out well when you rent something to others which you love rather than see as a business venture.
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    • bouicca21
    • By bouicca21 2nd Oct 17, 4:45 PM
    • 3,292 Posts
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    bouicca21
    • #3
    • 2nd Oct 17, 4:45 PM
    • #3
    • 2nd Oct 17, 4:45 PM
    Would she be able to buy you out at a bargain price of 90k plus pay costs?I.e can she and her new partner take on the existing mortgage plus your payout? It's less than you'd get on the open market, but avoids costs of a court action to force a sale.
    Last edited by bouicca21; 02-10-2017 at 8:12 PM.
    • AdrianC
    • By AdrianC 2nd Oct 17, 5:20 PM
    • 15,759 Posts
    • 14,055 Thanks
    AdrianC
    • #4
    • 2nd Oct 17, 5:20 PM
    • #4
    • 2nd Oct 17, 5:20 PM
    Me and my ex-wife have been separated for 6 years but we still own a house together. She was living in it after we split and I was paying half the mortgage until she moved in with a new partner a couple of years ago and I moved back into the property.

    I am approximately £25k in debt, feeling swamped by that and starting to struggle with monthly outgoings. So I've decided to sell the house and clear my debts.
    Originally posted by sireade


    That seems to be a good idea.

    The house should sell for approx 210k. We owe £90k. In the divorce it was agreed that I would receive 40% of the equity when it was sold so after fees I should get about £47k. and be left with about £22k after the debts are paid.
    Sounds about right.

    My ex does not want to sell, though she isn’t preventing it. She loves the property and sees it as a good investment and the current mortgage rate on it is very good (a tracker at 1.24%). She isn't in a financial position to buy me out at the moment though she'd like to.
    Then it's academic as to whether it's a good investment or not, tbh. It's not an investment she can afford to make... and it certainly isn't one you can afford.


    Even if she could afford to borrow the additional borrowing to buy you out, the interest rate on the current mortgage is irrelevant, since she'd need to remortgage in her sole name, and - presumably - she'd be looking at BtL borrowing rather than residential.
    • TBagpuss
    • By TBagpuss 2nd Oct 17, 7:22 PM
    • 6,084 Posts
    • 7,837 Thanks
    TBagpuss
    • #5
    • 2nd Oct 17, 7:22 PM
    • #5
    • 2nd Oct 17, 7:22 PM
    If she an't afford to buy you out then it is reasonable to sell, unless you *both* want to keep it s an investment.
    If she is in a new relationship then she and her new partner could think about buying you out, then she could retain the house as an investment jointly with her current partner.

    What does your order say about selling the house? If you have a consent order providing for a sale then enforcing that will be less expensive than having to start from scratch to force a sale.
    • sireade
    • By sireade 3rd Oct 17, 12:40 PM
    • 2 Posts
    • 1 Thanks
    sireade
    • #6
    • 3rd Oct 17, 12:40 PM
    • #6
    • 3rd Oct 17, 12:40 PM
    Thank you all for the replies. I'd just like to state that I'm not having to take legal action to force the sale, my ex has agreed to it, just with some reluctance. Everything is very amicable and if financial circumstances were different I'd consider keeping the property on as an investment. She has explored possibilities for buying me out but she cannot borrow any additional money.


    I think your comments have helped confirm that I'm doing the right thing - clear my debt and start from scratch.


    Thanks
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