Really need some advice, in some trouble...

grayz

I have a flat with my ex-girlfriend – we broke up about a year ago, tried to sell the flat, had it on the market for 6 months but couldn’t sell it. Money was getting tight, us both keeping up the mortgage payments, so we decided to let it out (this does not cover the mortgage payment), thinking that hopefully the market would pick up.

She has now contacted me and said that she cannot, and more importantly, will not pay her half of the mortgage – she wants out, completely, and is willing to default and knows the consequences. I cannot take on the mortgage myself; I don’t earn enough – I’ve been to several lenders and have been turned down. I’ve advised my provider of the situation, and explained that I am 100% committed to paying my half of the mortgage, and asked for their help and advice – which lets just say that have been less than sympathetic, and said there’s nothing they can do.

The only option I can see is to try and sell, but again, that means me having to pay all the mortgage as the ex has said she won’t contribute I’m now really at a loss – I wondered whether anyone had been involved in a similar sitatution or could offer any advice.

Anything would be most greatly appreciated.

Thanks for taking the time to read.

Graham.

Smurggle

Hiya,

I'm sorry for your situation, is your flat big enough to take on a lodger to help pay the bills?

spuds_2

Sorry to hear about your situation.

Will the sale of the flat cover the outstanding mortgage? If so, you could sell the flat (as cheaply as possible to get a quick sale) and then agree to take her outstanding mortgage payments out of the profit. You need to get an idea of what the flat is worth though - if you haven't owned it for long and have a 100% mortgage it may leave you with negative equity.

This site will tell you what other homes have sold for:

http://www.houseprices.co.uk/

koexelek

As hard as it might be, try and keep the payments up to date, even if you have to borrow money to do so.

She might not care about destroying her own credit rating, but if yours is destroyed, you'll probably not get credit again in the current climate

grayz

Smurggle wrote: »

Hiya,

I'm sorry for your situation, is your flat big enough to take on a lodger to help pay the bills?

Thanks for reply. No unfortunately it's not, its two bedroom, and I have a partner, and stepson and a baby.

grayz

spuds wrote: »

Sorry to hear about your situation.

Will the sale of the flat cover the outstanding mortgage? If so, you could sell the flat (as cheaply as possible to get a quick sale) and then agree to take her outstanding mortgage payments out of the profit. You need to get an idea of what the flat is worth though - if you haven't owned it for long and have a 100% mortgage it may leave you with negative equity.

This site will tell you what other homes have sold for:

http://www.houseprices.co.uk/

Thanks for reply, it won't cover the outstanding mortgage, the outstanding balance is £155k and flat is valued at about 140-145k currently.

grayz

koexelek wrote: »

As hard as it might be, try and keep the payments up to date, even if you have to borrow money to do so.

She might not care about destroying her own credit rating, but if yours is destroyed, you'll probably not get credit again in the current climate

Thanks for the advice

compact101

1) Ask parents
2) Ask friends
3) Ask bank for loan
4) Sell and see if you can get a loan for the shortfall
5) Maybe a 2nd job evenings/weekend to help pay. Will kill you in the shorterm, but if you can survive a few months then it will be worth it.
6) Don't default on payments and don't let them take the flat (sounds easy I know but try everything possible, which I am sure you are doing)

silvercar

You have limited options, you can't sell without finding the difference between the sales price and the mortgage; you can't pay the mortgage without your ex's contribution.

The only thing I can suggest is emphasising to your ex (maybe through parents of friends) how important it is that you don't build up arrears.

Would your partner be prepared to come on the mortgage with you? Could she be used to buy out your ex? Does your partner earn enough for the mortgage company to lend to you and your new partner together?

lester_bunham

In the property crash in the early 90s me and most of my friends found ouselves in a similar position in Negative equity, in a stalled housing market, and with unsympathetic banks. Also intrest rates were double digit.
We all dealt with it differently.
I let my flat out, the rent didnt cover the mortgage so I made up the shortfall. I was lucky in that I had a girlfriend who I moved in with but I was unable to sell the flat for what I paid until for ten years later. Not good.

One friend stayed put, saved up and when he sold handed over to the Bank a big cheque of his hard earned savings to pay off the shortfall in the mortgage. Also not a nice experience.
Finally a couple of others just handed their keys to lenders and walked away. They were chased a few years later by debt collectors, and paid a small amount to close the debt. This was happening all over the country and I think events will be repeated.
Nearly 20 yers on we all have mortgages, big houses, and a lot of equity, but it was a nightmare. Youve just got to see which route you are most comfortable with. It will get better I believe, but not for years.
Good luck.

grayz

silvercar wrote: »

You have limited options, you can't sell without finding the difference between the sales price and the mortgage; you can't pay the mortgage without your ex's contribution.

The only thing I can suggest is emphasising to your ex (maybe through parents of friends) how important it is that you don't build up arrears.

Would your partner be prepared to come on the mortgage with you? Could she be used to buy out your ex? Does your partner earn enough for the mortgage company to lend to you and your new partner together?

No mate, we have just had a baby together 1 month ago so she is currently out of work...

thanks for the reply