Huge dilemma - Splitting from Partner

nick_w_2

Well the time has come to now split with the O/H. The dilemma i have now is the house. With the property market as crap as it is here are my option:

Buy her half out and take the house:
--Either live in the house (con being 30mins drive from where i want to live or be)
--Rent the house out

Sell the house
-- I buy
-- I Rent

She buys me out
-- I buy
-- I Rent

The quickest thing i think is either one would buy the other out.
Mortgage is also up for renewal on the 2nd Oct

What happens to contents, do we select what we each want and agree to taking it?

I have never dealt with anything as stressful and nerve racking as this..

Thoughts ideas and any advice would be a big help
Thanks

lynnexxxo

I'd say it all boils down to your income.

Will you be able to get a mortgage,for it including any equity she would be entitled to?

Would her salary cover it?

If the answer to both is no them your options become more limited.

You either rent it out, which is not without its problems (no tneants, bad tenants, rent not covering the mortgage, still have to have contact with her).

Or sell it, quite probably for less than you would have got a year ago, but with the benefit of knowing thats it, you can make a clean break from each other

nick_w_2

Thanks lynnexxxo
I know its a very hard decision, all my options have their pros and cons.
My income can cover the mortgage and i can buy her out.

The house its self is an asset i don't want to loose, i have never dealt with renting and don't know anyone who rents out property so I'm unaware of the risks.

Its a bungalow and we have owned it for 2 years and its been completely gutted and redone, so its very modern and clean.

If i chose to sell i don't think she can afford to buy me out and if i was to put it on the market i don't know how long it would take to sell, and at what lose either

pinkshoes

So if you multiply your salary by 3.5, would this be enough to meet the mortgage requirements? And after buying her out, would you still have 10% equity to get the mortgage?

lynnexxxo

You are saying that the house is an asset, yes, but by the time you have remortgaged and given her half of any equity there is unlikely to be a huge amount of equity left (correct me if I'm wrong).

For example (i'm making up some figures here)

House worth 150k
mortgage 100k
Sell now (assuming you can) both get 25k

You buy her half mortgage now 125K
this time next year you sell (as its too far from where you want to be) you get an offer of 130k
you only end up with 5k

Obviously it depends on actually getting it sold, whcih is a bit difficult at the mo. You could get a few estate agents round to give you an idea of what sort of price to expect in the current market (i here there not very busy just now)

Maybe you just need to forget about it for a couple of weeks to give yourself time to think straight, don't rush into agreeing to anything, while most people at first think they can have an amicible breakup, it doesn't always end up that way.

simpywimpy

If you can afford to buy OH out then I would do that. You are likely to get it at a good price with the market being low at the minute and if it isn't where you want to live ideally, as long as you can afford it, you can wait it out and probably make a profit in the long term on top!

LandyAndy

When I split with the first MrsLA, twenty years ago, she bought me out and we went round each room deciding what she was keeping and what I was taking (probably only works easily if you can both keep a cool head). We each kept what we'd brought into the marriage and split the subsequent purchases as equitably as we could, eg I had the lounge furniture and she had the dining furniture, we took a double bed each, etc,etc. I took a couple of classic cars we had bought together as part of the payment for the house.

nick_w_2

Thanks Troops

The house is valued at 160,000 (valued last week) the mortgage is 120,000

40K eq
My parents contributed 10k of which is mine. = 30k to split

15K for her

Problem is my salary is 30ishk. remotgage at 120,000 was going to be 730pm. So the mortgage goes upto 135,000 repayment could be 800+ causing me to be stretched and having to add to a predicted monthly rent of 750pm

ohh !!!!. this is going to be !!!!..

LandyAndy

nick_w wrote: »

Thanks Troops

The house is valued at 160,000 (valued last week) the mortgage is 120,000

40K eq
My parents contributed 10k of which is mine. = 30k to split

15K for her

Problem is my salary is 30ishk. remotgage at 120,000 was going to be 730pm. So the mortgage goes upto 135,000 repayment could be 800+ causing me to be stretched and having to add to a predicted monthly rent of 750pm

ohh !!!!. this is going to be !!!!..

4x - 4.5x salary. You may struggle to find a lender.

nick_w_2

LandyAndy wrote: »

4x - 4.5x salary. You may struggle to find a lender.

Thats if though the house was to sell for 160. after 3 motnhs i could offer 150.

I need to win the lottery!
Edit, i need to start playing the lottery

LandyAndy

You still need to find someone who will lend you at least 4x your salary. That won't be easy today.

You will also have to retain at least 10% equity in the property to get a mortgage.

I don't think you can do it, sorry.