Joint mortgage woes - Can i remove my half of the mortgage?

GeeJay86

Call me a mortgage n00b, but I'm not entirely sure of what I can do. I'll give the background and then the questions...The figures are made up for ease of calculations...

My brother and I have a joint mortgage of £200k on a property that is currently worth about £200k and we have fallen out. Basically I want out of the house as he has moved his partner in against my will (not officially, but she is staying 6 nights a week)

I don't have much money in the house, or much to lose by pulling out, but I was wondering my options.

I obviously could (if he agrees) remove my name from the mortgage (with the agreement of the mortgage company) and thus have no mortgage in my name. Net gain - I'm not living there, paying bills. But then I'll have no money for a deposit on another house of my own.

Is there any way that I can 'remove' half of the mortgage and use it on another £100k house, leaving him having to get another £100k mortgage (but same net effect for my brother as removing my name; him having a £200k mortgage)

Obviously given the CEC, I'd not get a mortgage with decent rates for under a 20% deposit.

Are there any other options. Sorry if I've not been too clear, but I really am not terribly clued up on what I can do.

Many thanks in advance

silvercar

To remove your name your brother would have to agree to take on the responsibility for all the mortgage. The lender would also need to be satisfied that your brother can afford the mortgage alone.

flea72

if your brother cant afford to take over the mortgage on his own, and you want out, then as long as you bought the house as tenants in common, then you can take him to court to force a sale. But this will cost you more money, so you may come out of the deal alot worse off than you expected

Flea

Caz3121

you would be looking it a new mortgage for your new home and would need both a deposit and the ability to cover the loan on your own salary.
There is also a chance that since the house is currently worth 100% of the mortgage (or less) your brother may have to find a deposit for his new mortgage as they are unlikely to be offering 100% loans.

Robert_Sterling_3

You and your brother are on the mortgage.
When you took on the mortgage you should have had an "Exit strategy" agreed. Did you not forsee the possibilty that one or other ( or both ) might want a partner to move in.

I wish you luck with getting your name off the mortgage.
I am not optimistic that it will be easy.

Could your brother's friend "buy you out" and have their name on the mortgage and deeds.

GeeJay86

Robert_Sterling wrote: »

You and your brother are on the mortgage.
When you took on the mortgage you should have had an "Exit strategy" agreed. Did you not forsee the possibilty that one or other ( or both ) might want a partner to move in.

I wish you luck with getting your name off the mortgage.
I am not optimistic that it will be easy.

Could your brother's friend "buy you out" and have their name on the mortgage and deeds.

Hi Robert,

Thanks for your input. We did have an agreement that NO GF's move in, if we wanted to live with GF's, we would sell at the end of the fixed term when one wants to (not written down) She owns her own property but wants to rent it out in order to save money for travelling, hence him moving her in. I have not agreed to this (they did say they'd pay me measly rent, which again, i declined) .

There is an option of her selling her place to buy me out, but that wouldn't save any money for them, so I doubt a feasable option in their eyes. I can but ask.

Would the fixed term matter in this situation at all? Sale or change of deeds?

flea72

GeeJay86 wrote: »

Hi Robert,Would the fixed term matter in this situation at all? Sale or change of deeds?

so its a fixed rate mortgage? if thats the case, then you would also have to pay any redemption fees on top of all the other associated legal costs

taking your name off the deeds wouldnt be a wise thing to do, as that way you have no hold on the property, but would still be liable for the mortgage payments.

the only way forward in this situation would be to sell the property, but you are gonna take a big financial hit., ie loss of capital, estate agent fees, legal fees for sale of property, possible legal fees for forced sale, redemption penalty, etc.

Is it worth it, just because a gf has moved in. Shes offered to pay rent. perhaps its time to sit down and sort the details out of how you can all live amicably, rather than try and walk away at great financial loss to you and your brother, and perhaps the loss of your brotherly relationship too

Flea

getmore4less

The GF wants to travel, won't they both be off then or is this a temporary thing.

What happens if he goes with her, how will he be paying his 1/2 then?

Will he want to rent his bit out? what say will you have.

GeeJay86

getmore4less wrote: »

The GF wants to travel, won't they both be off then or is this a temporary thing.

What happens if he goes with her, how will he be paying his 1/2 then?

Will he want to rent his bit out? what say will you have.

He'll also be going with her. It's all a very selfish act on both of their behalves. they both have other options, such as selling their cars for lesser ones, of taknig out a (pretty small) loan each and paying it back on their return. He's "said" he'll continue paying his half of the mortgage when he goes (although all bills will land upon me, understandable, but could cripple me financially)

GeeJay86

flea72 wrote: »

so its a fixed rate mortgage? if thats the case, then you would also have to pay any redemption fees on top of all the other associated legal costs

taking your name off the deeds wouldnt be a wise thing to do, as that way you have no hold on the property, but would still be liable for the mortgage payments.

the only way forward in this situation would be to sell the property, but you are gonna take a big financial hit., ie loss of capital, estate agent fees, legal fees for sale of property, possible legal fees for forced sale, redemption penalty, etc.

Is it worth it, just because a gf has moved in. Shes offered to pay rent. perhaps its time to sit down and sort the details out of how you can all live amicably, rather than try and walk away at great financial loss to you and your brother, and perhaps the loss of your brotherly relationship too

Flea

Yeah, it's a fixed rate. If i were to take my name off both the deeds and mortgage (provided the mortgage company allow) and square up all bills, this would lead to the most convenient arrangement with the least financial loss to myself in terms of fees, am I correct?

I understand entirely what you are saying with regard to walking away at financial loss etc. My principal is that they are attempting to save for an unnecessary luxury when there are other alternatives (see above), yet I'll be sacrificing my own personal space (at the moment they're 50/50 here and at hers, giving me lots of space) that I work hard for, and struggle to pay.

The rental offer was totally unreasonable (so as to maximise their saving) of £100 inc. bills, so naturally I told them where to go.

My other concern is the legal implications of if their relationship turned sour and she decided to claim an equitable interest/common law partners etc. So even before she would be to move in (had I have agreed to her paying 'rent') surely legal agreements would have to be drawn up beforehand?

GeeJay86

Hey guys, Are there any more recommendations at all?