tricky decision

wilt_2

I posted a couple of months ago but my situation has changed so I hope I can get some updated advice.

My husband left me and our 3 boys last year and we are in the process of a divorce. He is renting a flat and I am in our 3 bed semi. We only bought it 18 months ago for 210K and our mortgage is 197k. Unfortunately it is now only worth about 175-180k.

My husband has converted the mortgage to interest only and I am paying 550 a month at the moment. It was a lot more.

I am thinking of moving to Devon. My eldest son is going to secondary school in September so if I am going to do it now is a good time. However financially it is obviously a bad time.

Given the negative equity I am considering moving out and letting my husband move back in and take over the debt. I only have part time job at the moment and am existing with a mix of wages,maintenance and benefits. However even if I got a full time job as a teacher on say 25k I cant see my lender, intelligent finance, letting me take over the mortgage in my name only.

My husband is not particularly keen but he said that he would give me £2500 max to help me move down there if i came off the house completely. Is this a good or terrble idea.

I could rent for a couple of years and then hopefully get a shared ownership property then.

Please help

wilt_2

Please can I have some advice as I really have bto make a decision. Thanks.

Wickedkitten

Is his income high enough to take on the mortgage on his own? If you come off it, he will have to apply for it again on just his salary.

wilt_2

He is on about 50k. I wasnt working when we took out the mortgage so he got it on his own originally.

barnaby-bear

wilt wrote: »

I posted a couple of months ago but my situation has changed so I hope I can get some updated advice.

My husband left me and our 3 boys last year and we are in the process of a divorce. He is renting a flat and I am in our 3 bed semi. We only bought it 18 months ago for 210K and our mortgage is 197k. Unfortunately it is now only worth about 175-180k.

My husband has converted the mortgage to interest only and I am paying 550 a month at the moment. It was a lot more.

I am thinking of moving to Devon. My eldest son is going to secondary school in September so if I am going to do it now is a good time. However financially it is obviously a bad time.

Given the negative equity I am considering moving out and letting my husband move back in and take over the debt. I only have part time job at the moment and am existing with a mix of wages,maintenance and benefits. However even if I got a full time job as a teacher on say 25k I cant see my lender, intelligent finance, letting me take over the mortgage in my name only.

My husband is not particularly keen but he said that he would give me £2500 max to help me move down there if i came off the house completely. Is this a good or terrble idea.

I could rent for a couple of years and then hopefully get a shared ownership property then.

Please help

If you were single I'd say jump at it - what is a joint debt of £20k could be a £2.5k bonus... however mothers with children can have rights to stay in a jointly owned family home until the youngest leaves full time education so if you wanted to stay on this basis it's possible it could be possible.

However if you want a fresh start and it's an area with job prospects for you to build your own life and a support network and the kids can still see family and dad easily etc... it could be far better than staying for a house and would let your ex get on with it as well; it's possible you could force him to wait nearly 2 decades to get on with his life which may cause tensions.

Perhaps see a solicitor about your divorce/maintenance and what rights are to stay in a jointly owned home. You could possibly have a claim on his pensions too.

Robert_Sterling_3

At first sight there is £20,000 negative equity.
In some circumstances getting your name off the mortgage would be like having a £10,000 debt lifted.

In your case no doubt there will be negotiations in relation to support for your sons and yourself.

wilt_2

My solicitor says that I can stay in the house and he is paying suitable maintenance. However he cant be forced to stay on the mortgage and I will have to try and get a mortgage on my own. However I do think he will not be allowed to come off it until the house is out of negative equity. The thing is everyone is telling me to sit it out because I will eventually make money on the house and have security for the children. But I am frightened by the burden of such a big debt. He plans to come off the mortgage and buy a flat as soon as he is allowed. Alternatively he will give me 2500 to move out. He cant afford any more but I dont think it will be enough for a deposit and removal fees etc.

silvercar

Where do you want to live?

If you want to stay put, can you afford the mortgage long term with maintenance payments, benefits and your earnings? He may want to come off the mortgage, but if the lender won't allow it then he is stuck. He will have to get a mortgage on a flat and declare that he is tied to this mortgage as well. Or he could rent.

On the face of it a cash bonus to get rid of a debt looks good, but only if it leaves you enough to start again.

barnaby-bear

wilt wrote: »

My solicitor says that I can stay in the house and he is paying suitable maintenance. However he cant be forced to stay on the mortgage and I will have to try and get a mortgage on my own. However I do think he will not be allowed to come off it until the house is out of negative equity. The thing is everyone is telling me to sit it out because I will eventually make money on the house and have security for the children. But I am frightened by the burden of such a big debt. He plans to come off the mortgage and buy a flat as soon as he is allowed. Alternatively he will give me 2500 to move out. He cant afford any more but I dont think it will be enough for a deposit and removal fees etc.

Removals probably £800, Rent 1month up front, one month to 6 weeks rent as deposit and fees probably £2-300 so tight but possible especially if you have a bit of credit.... if the property market picks up everywhere else will also go up too so the making money argument is probably a bit of a red herring. The stability issue a whole different ball game - can you build a life for yourself there waiting for a property investment to pay up - how much return per year for the wait do you expect.... or is it a home you'd like to keep and can build a life in?

shamac

If it was me, and i feel for you as i have young kids and would be all over the place if it was, think you are very strong......anyway ...if it was me i would move and rent for a while and make a fresh start. Rent somewhere smallish that leaves you scope to save whilst you look for a job and get yourself sorted. A house is not worth staying for-it might be many years before you are back in positive equity and if that is the only thing keeping you there then go. Good luck x

wilt_2

Thankyou. Yes I am all over the place. I would have to get a job but my youngest starts school in September so its possible. Just seems very scary financially. I could end up with a very big mess and loads of overdraught. I know I am in negative equity but it doesnt feel like a real debt in the same way. I know it is. I am worried that I will never get back on the property ladder. Its nice to have a bit of encouragement though. All of my friends are telling me to stay here and not let him have house.