Seperation.......dont know what to do for the best with the house?????

mushy220

Hi everyone
I really have a problem, as Im sure thousands of people do at the moment, and dont know what to do.... any advise would be gratefully appreciated....
My partner and I bought a house for £104,500 2 years ago and took out a 100% mortgage.We have an unsecured loan of £5,200 on top of that too.We split up 5 months ago and decided to put the house on the mortgage and live in the house till its sold...that isnt an option anymore as we cannot live with each other the way we are doing....its unbearable!!The house has been on the market for £115000 for 3 months but I think that this is very optimistic indeed! We have had 3 viewings but no interest in making an offer.Houses like ours sell for anything between £99000-£106000.We would need £108,500 to pay off the mortgage and early repayment fee (mortgage fixed until 2011 with northern rock).Estate agents fees are £2100 and solicitors £700.The unsecured loan can be paid over time.
I have the option of moving to a friends and paying her rent aswell as the mortgage on this house which would be a struggle.The way the housing situation is going at the moment our house could be on the market forever and possibly be in negative equity.
The other option it to rent but it is such a hassle being a landlord and do people really want to rent a house that is on the market and could be sold at any minute (I wish!!!!)
Would voluntary repossession be an option if I explained that I can no longer live in the house with my ex but I cannot afford to pay rent and a mortgage.Would I be losing anything seeing as I know that there will not be any profit what so ever on the house...if anything we will be in debt.We pay the mortgage 50/50.
What is the repossession procedure and would I be in any debt after it?
HEEEELLLLPPPPP I dont know what to do for the best
Any advise appreciated
Thankyou
Michelle

unite79

Voluntary repossession - No such thing.
Technically - Yes the lender can come after you both for any shortfall - but think may be rather a lot - estimate is 1,000,000 more will be in neg equity in 12 months....
Can 1 of you not stay in the house, and assume responsibility whilst the other takes the loan.....
Renting may be a hassle, but trust me being repossessed aint gona be a stroll in the park....

ad9898_3

Sorry to hear this mushy but as unite has said and I have said in another thread, unlike the USA, you cant just hand keys back, your lender would sell the house at auction and pursue you for the difference.

mushy220

Thanks for your replies.:p
Well we have decided that my ex partners friend is moving in and he will pay my half of the mortgage as rent.My name will still be on the deeds and mortgage payments and I will still be paying life and building insurance.If my ex partners friend,a couple of years down the line, says that he is part owner, even though my name is still on the deeds, is there anything I could do to stop this from happening.Would it even be possible as the house is still in mine and my ex's name.
Any info would be great.....Thanks
Michelle

m1ntie

"If my ex partners friend,a couple of years down the line, says that he is part owner, even though my name is still on the deeds, is there anything I could do to stop this from happening.Would it even be possible as the house is still in mine and my ex's name.
Any info would be great.....Thanks"

I would not worry to much about this, realistically your house is worth circa £90,000 at the most, so you are already in serious negative equity. Prices are unlikely to recover enough to clear this for at least 5 years - maybe more.

However, If you are still worried about it, get him to sign a tenacy or lodgers agreement.

sarkin

Ask for a consent to let form from lender

computerbar

I agree with m1nite get lodger and wait til the prices are stable or there are buyer back in the market.
Keep paying the mortgage from the rent received and if there is any surplus save for the legal/agent fees.
If you really do not want to do this and want to get rrid of it as soon as possible then there are alot of people/companies looking for people like you to buy their houses, some pay upto 85% of the value. say your property is not worth 90,000 9as so m1nite said above) then you will get only £76500 and you'll still be short of £28000 (£104500-76500) and don't forget the penalty you might have to pay for early mortgage settlement.


But remember that NOT every lender allow the property to let as it must be OWNER OCCUPIED.

So I think the best option for you are
1)- either one person live in the house and also get a lodger to share the house with you using your rent a room relief. like this you are not breaking the lender condition of not letting the house as you are still living there.

2) Make two flats of the property i.e. you use upstairs and the OH use the ground floor. you use back door OH use front door etc. (Any joiner will be able to do all the job for you for around £500-£1000 to partition the house)

3) Rent out the whole house to a family/friends (If you are struggling to find a tenant get registered with your local council landlord scheme and then you would able to get council tenant) (do not forget the morgage condition of owner occupied) Ask for a consent to let form from lender as sarkin said

mlz1413

mushy220 wrote: »

Thanks for your replies.:p
Well we have decided that my ex partners friend is moving in and he will pay my half of the mortgage as rent.My name will still be on the deeds and mortgage payments and I will still be paying life and building insurance.If my ex partners friend,a couple of years down the line, says that he is part owner, even though my name is still on the deeds, is there anything I could do to stop this from happening.Would it even be possible as the house is still in mine and my ex's name.
Any info would be great.....Thanks
Michelle

I doubt as others have said that there will be any equity for many years and I can't see someone wanting to buy into negivate equity. But Computer Bars suggestion of splitting the house in two is very good, it gives you both independance and the bills remain the same - just remember the electrians cost for putting a cooker in upstairs and plumbers costs for a shower / loo downstairs. (All very do-able just go and have a look at any converted terrace house)

Another option maybe for you Ex to buy you out (if possible) or for the friend of his to 'buy you out' I would assume this would mean friend going onto mortgage and the costs involved being paid between you and friend, as there is no equity in house the the friend may want money from you to go onto the mortgage. But this would mean you are free of Ex to start again, also Ex then has the worry of the house and mortgage jointly with his friend.

Sonofa

I got the impression that the OP is saying that the Ex's mate is moving in to share the house with the Ex so no need to get consent to let from the mortgage provider and the house is still owner occupied.

AMILLIONDOLLARS

Any possibility of putting the house up for auction? it might be worth investigating this route. The auctioneer would come around and give an indication on how much it might go for, so you could could decided if this is something worth doing.

AMD

Incisor

mushy220 wrote: »

Thanks for your replies.:p
Well we have decided that my ex partners friend is moving in and he will pay my half of the mortgage as rent.My name will still be on the deeds and mortgage payments and I will still be paying life and building insurance.If my ex partners friend,a couple of years down the line, says that he is part owner, even though my name is still on the deeds, is there anything I could do to stop this from happening.Would it even be possible as the house is still in mine and my ex's name.
Any info would be great.....Thanks
Michelle

It might be the cleanest way out for you if your ex's friend buys your share. You will walk away with vey little, there is the loan to be decided, but there is not much for you to walk away with anyway. You can't just sell your share to the friend, your ex and the friend would need a new mortgage, but something along those lines could be done.