Urgent Advice Needed After Split

Hol084

Hi I am looking for some argent advice! Cut a long story short me and my ex boyfriend bought our flat in Dec 06 for £120’000 on a fixed rate paying £440 a month (which ends Dec 08) I put down 3500 and he put down 1000 with my dad loaning us both 7500 total 12000 deposit. Mortgage therefore for 108’000. We split up a few months after moving in (yeh I know don’t ask but mutual decision) and since I have been living in the flat paying all bills including our building factors while he has been paying me £220 his half of the mortgage. We planned to sell the flat in 08 as if we sold in 07 would have to pay a 3% of mortgage early repayment factor ( yeh I know probably a bed idea the way the market has gone)

The flat has been on the market since June so far having 17 viewers but no offers as of yet. It is on at 122500 and we can’t afford to drop the price any lower. My question is do you think it would be a bad idea for me to try take over the whole mortgage? As it looks like the flat may not sell any time soon. At present I do not earn enough to get a mortgage alone and my family discussed putting my brothers name on the mortgage to allow me to get a mortgage while I take over full payment of the mortgage each month, which would really stretch my finances to do so. (Can’t take in lodger 1 bed flat) I am reluctant to do this as I feel I would then be solely responsible for the whole debt to the bank and the 7500 given to me by my dad. The way the market is going I feel the flat may fall into negative equity.

My ex wants out ASAP and my mum is putting pressure on me by saying it is morally wrong for my ex to pay half while he is not living there and hasn’t been since march 07. I am also concerned he may just stop paying his half of the mortgage, as it is both our names what would I still be liable for his half?

Natty082

Hol084 wrote: »

The flat has been on the market since June so far having 17 viewers but no offers as of yet. It is on at 122500 and we can’t afford to drop the price any lower.

Why can't you afford to go lower if your mortgage is 108K? Even if you take account of the £7500 you owe your dad its still £115500 you need to pay back

Hol084 wrote: »

and my mum is putting pressure on me by saying it is morally wrong for my ex to pay half while he is not living there

Don't think this is the case - i'm no legal eagle but I assume if he is liable for half as his name is on the mortgage he has got an obligation to pay it 'moral' or not......... Don't quote me on that.

jayoh

I don't think your mom is being fair; you both signed the mortgage deal therefore you are both liable for the cost of the mortgage. The fact that your relationship has broken down is of no consequence as far as this is concerned. I agree with Natty082, you could potentially afford to drop the price by £7000. If you're after trying to recoup your deposit, I don't think in the current housing climate that it's going to be possible. Being able to sell in the first place is going to be no mean feat (in my humble opinion!)

Hol084

Yeh the reason was trying to keep most of the initial deposit , which i know is not likely with the market , thats why im wondering if im better trying to hold on to the flat or cut my losses and trying to sell at a reduced price.

Natty082

Hol084 wrote: »

Yeh the reason was trying to keep most of the initial deposit , which i know is not likely with the market , thats why im wondering if im better trying to hold on to the flat or cut my losses and trying to sell at a reduced price.

Definately not on a flat i'm sorry to say! (I know I bought one 3 years ago!), they are the worst to be hit and the last to recover! Its best to get what you can for it before it gets worse.

You've done well to get 17 viewings though! I had 2 in 8 months!! What was the feedback from the viewings?

Hol084

Mainly no parking space (parking under the building but my flat does not own a space) and some people thought flat was too small.

Natty082

Is it still on the market? Can you post the link?

pinkshoes

If you're only paying £440 a month, I presume this is just the mortgage interest, and you've not paid off any equity in the last 2 years?

Where is the flat located? In some areas they flooded areas with flats, so it could have dropped significantly in price if this is the case. Have you been on rightmove and checked how many similar properties are for sale at the same price or less in a 1 mile radius of your postcode.

1 bed flats are hard to sell, as they're only suitable for singles, or a childless couple. Many of these people are now holding out to see if prices drop enough so they can get a 2 bed instead.

Depending where you live, no parking could be a big turn off!

Personally, I'd just drop the price to sell, then take out a loan to pay back your parents. (Your ex should pay half of this too, as if the price had gone up, he'd be claiming half the equity increase, so he must take half the equity drop!). At least this will give you a clean break, and paying back the loan will be less evil than taking on the whole mortgage.

Hol084

Yeh i think im going to have to drop the price , part of me feels i should hold on to the flat for a few years as would need to rent somewhere nearby anyway just dont know how much the prices are likely to fall.

poppysarah

You need him to pay half. If he doesn't want to then move out and then you don't pay anything either. Getting repossed now would be a PITA and probably not good for him either.

ad9898_3

Woah, hang on you bought in 2006 for 120k and now its up for £122500 ??, not been funny or anything but have you seen the news in the last 8 months ?

I'm afraid you have two choices, keep the place, or put it on the market for say 99k and take the loss, this time next year you will be far worse off, maybe down to 85k by then