Worst situation ever!!!!!!

siowenson

I put my name down(bought) a 3 bed semi in nov 2007 for 183k. I moved in with my fiancee at the end of may this year and basically since then our lives have been a misery because of financial woes. To cut a long story short we broke up 3 weeks ago.
I am now staying with my friend, paying him basically nothing for rent and my ex is living in the house looking after the dog(which will be re-homed soon).

The house will be going up for sale after the year but god knows if it will sell.
We have a morgage of 165k so if we sell it for that we will just have to pay all the normal fee's (4K?). Ideally we would have to sell it for 175k, as her parents have 10k in the deposit, but that isnt going to happen.

I'm wondering, if we sell it for less than 165k what would happen?

Also, if we dont sell the house within a year or so, what is stopping me from changing bank account and bumping the morgage and bills? Obviously the house would be repossesed but what would i be liable for?

Please dont flame me for being an idiot in buying the house in the firts place. Sometimes you want to give the person you love everything she wants. It all went tits up, I'm in a !!!!!! situatution, I dont need people giving me grief about it.

Any help would be much appreciated.

Si.

ceebeeby

Hi Si,

What a tragic situation for both of you (hugs!)

Trying to think practically, as opposed to emotionally, you're both responsible (equally and individually) for the profit and / or any loss relating to the house.

I wonder if there are any temporary alternatives:

* Leasing out the house
* Separated but co-habitting

If not, then as mentioned before, I think if the house fails to reach your mortgage repayment figure, you would both be equally liable for the short-fall.

If the house makes a profit, morally (even if it was a gift to you both) given that you didn't marry, I'd say your ex would be entitled to the first £10k, and anything over this to be split. I'm almost positive this won't be the legal stance, but probably feels the most "right?"

Good luck with getting this situation resolved - I hope it works out for you both.

mbga9pgf

Whats happened has happened. Life goes on. Most important thing in life - family and friends.

If you sell, you will be in negative equity. To that end, you will still have an outstanding debt on the mortgage, which is fine. You will both be expected to pay it off though. Bearing in mind prices falling, it may be worth taking the hit now and dropping the price significantly, to try and shift. You could potentially have a fair whack of the mortgage to pay off. But, thats only what I would do. I would suggest that you need professional advice, preferably free. (CAB, speak to the bank manager?) This unfortunately is not the first time this has happened and it certainly wont be the last. You can, from what I gather, still pay the mortgage off. Thats all the bank will care about. Without speaking to a professional though, who can take into account of all factors, dont go firm on any decisions with the ex. Oh, thats another thing, no matter how tumultuous the breakup, do not allow emotion to get in the way of any financial decison. Never, I mean NEVER allow the ease of cutting roots to make a hasty, bad financial decison in the long run.

But keep your chin up! In years to come, when you find the perfect girl, you will look back on this as a chapter in your life. You have your health. Some would argue that is by far the most important thing in life.

97trophy

best of luck in the new year! big hug from me.

silvercar

You can't sell without paying the fees, including any mortgage early redemption charge nad clearing the mortgage. If the sale doesn't give you enough money to do this you would need to borrow elsewhere to make up the shortfall.

If you were repossessed, the lender could chase you both for any shortfall. They have 12 years to find you, so they normally allow you a couple of years to get back on your feet. Then they will want you to start paying to meet the shortfall, repossession costs, interest etc.

Being repossessed is a big black mark on your credit record and will hamper your ability to get a mortgage for a few years.

siowenson

WOW!
Some really nice posts there guys. Not the usual internet abuse at all.
Thanks so much.

We are still talking. We have been best friends for the last 8 years so we're still friendly.
Thankfully. I really hope money doesn't make us have bad blood but its going to be hard as we dont have a lot of income after all the bills.
I love her family so if there were any profit I have no qualms about giving them their money back.
You are right about the chapter comment.
I'm looking forward to my new life but its not to say i dont miss her company. We were ideal for each other but the boring, stressfull life of having no money and not being able to do anything together or with our friends made us just grow tired of each other.

I think renting it out would bring in 700 p/m. our morgage is 1100p/m and our bills amount to around 500p/m. I take it we wouldnt have to pay the bills in at rent scenario giving us an extra 600p/m each?
Thats okay but I would rather get rid of the house and pay back any debt remaining.

Darth_Marty

When it comes to negative equity a lot of the time if you speak to your lender they will be far more understanding than you think. Theres a good chance that they would allow you a loan to cover the shortfall so for example you sell for 150k, you owe 165k plus fees they will loan you 20k to cover the shortfall then of course you have the 20k loan to pay back.

Theres always a way but as you seem to be doing full disclosure is the way forward.

On a side note if you guys are stressed about cash ask her out on a date when the house is no longer a financial burden, sounds like your flame still burns a bit.

iolanthe07

You sound as if you still love her. Is there no hope of reconciliation? Have you tried Relate?

siowenson

The choice was hers to split.

She deosn't know what she wants to do with life.
The whole time we have been together she has wanted to marry me and have a family and now she's having doubts as the wedding would have been may and i think it just got too much for her with all the pressure of her parents spending all that cash.

I honestly dont know what I would do, if, when we are free of this house and have a bit of cash she were to ask me back as, although I love her, I want someone who will be there for me through thick and thin.
Fook knows. I'm just taking each day as it comes.
I'm applying for bar jobs up town to have a bit of fun socialising and earning a bit of extra cash. I'm also in the process of starting a computer repair company so I've got plenty to keep me busy.

Darth_Marty

Good lad, bar work is awesome for totty so im guessing you wont be sad or lonely for long!

Hope the house sells for as much as possible and you get to move on quickly!

Have a good christmas.

ceebeeby

Ahhhh, Si .... that's desperate sad.

TBH - from a girls' perspective, she sounds like she's caught the collywobbles, and needs the big gallant protector to step in and take charge (but then, I've got a hopeless imagination!!) and be the strong one. Find a solution.

Eight years is a massive amount of time to fling away without a fair crack at restoration.

If you're willing to get a second job now that you've split, would you not be willing to do the same together to ease the burden?

Was it a mad wedding, or a small one?