Thinking of giving my house away.....

zzzLazyDaisy

silvercar wrote: »

If the lender won't allow you to remove your name from the mortgage, you could still draw up a legal document saying you have no further interest in the house. You would still be liable for the mortgage if your ex defaulted, but all other obligations fall to your ex.

At the risk of stating the obvious, this could only be done IF the ex bf agreed to release the OP from her obligations to pay her half of the mortgage, and agreed to take over full responsibility for payment of the whole mortgage and all other expenses relating to the property himself. From what OP says, she doesn't appear to have discussed this with him yet. It does seem to me that there is no incentive whatsoever for him to agree to this.

Apologies if I have misunderstood.

mlz1413

IMO I'd put the property up for sale, it's unlikely your going to have the door battered down by buyers and so selling before the redemption period is up is not going to be a problem. It will also give you an idea if selling is even an option.

If the house does sell you and ex are in same position you would be at anytime of finializing a break up.

If the house doesn't sell then it's time to find out if ex can buy out your half of mortgage, ie give you no money just have your name off the deeds and mortgage so you are free to move on.

In between now and then would be a good time to get a lodger in with ex so the lodger pays the majority of your share, or for you to move back in and use a separate bedroom so your only paying out one lot of bills.

How you pay off your parents is an agreement between you, ex and family as it was when they lent you the money.

Snooze

mlz1413 wrote: »

IMO I'd put the property up for sale, it's unlikely your going to have the door battered down by buyers and so selling before the redemption period is up is not going to be a problem. It will also give you an idea if selling is even an option.

If the house does sell you and ex are in same position you would be at anytime of finializing a break up.

If the house doesn't sell then it's time to find out if ex can buy out your half of mortgage, ie give you no money just have your name off the deeds and mortgage so you are free to move on.

In between now and then would be a good time to get a lodger in with ex so the lodger pays the majority of your share, or for you to move back in and use a separate bedroom so your only paying out one lot of bills.

How you pay off your parents is an agreement between you, ex and family as it was when they lent you the money.

Yes I was just going to mention that myself. It's clear the OP just wants out at pretty much whatever cost. The problem is that there isn't any way out without a load of attachments, as detailed above in the other posts.

Personally I think you'd be stupid to try and sell it because no-one is buying at the prices people want (read: need) and unless you drop the price drastically so that it becomes a bargain - and hence a quick sale - you're gonna be stuck with it for a long time. Obviously you need as much as you can get because of the neg-eq but as house prices continue to fall you don't have time on your side. I reckon even if you put it on the market at £150k you'd be sat with it for a long time.

The only 2 options I can offer are

1. Rent it out as a whole and pray to God you can get a rental income of somewhere near the monthly mortgage bill, but if it were me I'd think carefully before mentioning this to your lender (which, legally, you're meant to do). (Imho, at 2007 house price you won't get a lodger willing to pay whatever half of the mortgage comes to)

2. [very thick suit of armour on] Walk away from it, don't pay a penny more and eventually declare yourself bankrupt. But... while this will eventually give you a clean slate you're gonna lose all respect you have/had with your ex, your family and also his if you've got debts owing to them, and it won't be pretty .....

Rob

zzzLazyDaisy

Snooze wrote: »

2. [very thick suit of armour on] Walk away from it, don't pay a penny more and eventually declare yourself bankrupt. But... while this will eventually give you a clean slate you're gonna lose all respect you have/had with your ex, your family and also his if you've got debts owing to them, and it won't be pretty .....

Rob

Just as a PS for OP - be aware that if you default and eventually declare yourself bankrupt, the lender will pursue your ex for the whole amount owing - not just 'his' share. If he cannot meet the repayments of the whole mortgage plus any arrears caused by your default, the lender will repossess, and then pursue him for any shortfall due to negative equity. The NE would be magnified by virtue of the fact that it would be a forced sale and the house would probably sell for much less than its current (hoped for) value.

This could ultimately result in your ex's bankruptcy too.

As Rob says...... it won't be pretty.......

Snooze

zzzLazyDaisy wrote: »

Just as a PS for OP - be aware that if you default and eventually declare yourself bankrupt, the lender will pursue your ex for the whole amount owing - not just 'his' share. If he cannot meet the repayments of the whole mortgage plus any arrears caused by your default, the lender will repossess, and then pursue him for any shortfall due to negative equity. The NE would be magnified by virtue of the fact that it would be a forced sale and the house would probably sell for much less than its current (hoped for) value.

This could ultimately result in your ex's bankruptcy too.

As Rob says...... it won't be pretty.......

You are absolutely right and that was quite a serious error on my part because I hadn't even realised that at the time of posting. :eek:

Option 2 of mine then a definite no-no because no-one deserves to forced into a corner like that through no fault of their own.

In that case the OP is pretty much left with the lodger/renting it out option, which she will need to have a serious think about a long chat with the ex over to discuss the options.

Rob

franklee

tamsworld wrote: »

I bought a house with my boyfriend 18months ago for £230k. The mortgage was £218k. We borrowed £5k from his parents and £10k from mine for the deposit. The house is now worth approximately £200k.

tamsworld wrote: »

We have paid off £22k of the mortgage since we've lived there. We still owe £196k.

So £22k over 18 months is a payment of 1,222 per month. This equates to a 25 year repayment mortgage on £218k at an interest rate of 4.6%. An interest only mortgage for the same conditions being £835 per month.

So you have not paid off £22k of the mortgage as most of those payments would have been interest. I reckon you've paid off something more like 7K if on a repayment mortgage, but the only way to tell is to read your statements! If you have paid off 7K and the house is now worth 200K then you owe 11K more than the house is worth (218 mortgage - 200 current value - 7 guessed paid off = 11 negative equity).

Of course if you had an interest only mortgage and not a repayment one then you will have paid off nothing.

You won't be giving your house away to your bf you will be handing him your debts and a depreciating asset I doubt he'll take it.

franklee

If the house is really worth 200K, that is would really sell at 200K, (which I doubt) then the debts are:

10K owed to your parents
5K owed to his parents
11K approx. negative equity (you need to look at your statements to get the real figure)
redemption fees
estate agent/solicitors and other selling fees

Of which you owe half each.

But house prices are falling, so your true negative equity could be much more! Put it on the market and see what offers you get. On what basis do you value it at 200K? Prices fell by 18% or so last year which puts yours ballpark 188K and falling if you had an average fall, which you may not depending on area. Have you had it valued? What makes you think bf wants to take on your share of future falls? How the heck did you manage to borrow 218K, you must both be high earners. What could either of you borrow now?

It seems to me you either bite the bullet and sell or live together as a house share or get in lodgers.

pinkshoes

How many bedrooms does this house have?

If it has more than one, then why can't your OH get a lodger, then the lodger's rent would cover some of your share of the mortgage, which would mean you could afford to rent elsewhere, and he could split the bills.

This would work if you and your ex are still good friends, and would give you time to work out other options.

franklee

I think the OP has gone. Don't know why some OPs bother asking for advice and then don't come back, it's just a waste of time :rolleyes:

tamsworld

Hello all,
I would just like to say thank you to all of you for your responses, and they threw up some information that I hadnt considered or even knew about! Its made things quite a bit clearer and after a long discussion with ex we are at least not so "in the dark" as we were before.

I am just about to meet with ex in about 5minutes time to go through all the options again with the updated info we both have after seeking financial advise, and hopefully come to a resolution that will help us both out.

franklee wrote: »

I think the OP has gone. Don't know why some OPs bother asking for advice and then don't come back, it's just a waste of time :rolleyes:

Thanks Franklee for your post, however I am not one of those people who ask for advice and then ignore the kind people who have spent their time trying to help. I have not had access to the internet as I no longer live in a house with internet access, so its fairly difficult for me to get online to read responses and reply.

So I thank you all again (yes even you Franklee)!!!

Tams