Tricky Situation

Mr_T_7

Hi i'm just after some advice??

I'm twelve months into a 2 year fixed rate mortgage on a flat i purchased with a friend of mine on a "tennants in common" basis. Since i've purchased this flat i have moved out and i'm living elsewhere. I currently rent my half of the flat out which pays my half of the mortgage. I've not informed the lender and i know i'm in breach of my contract! The problem is, is i put the deposit down on this flat so most of the equity in this flat is mine as it stands. I'm wanting to maybe purchase another property this year of my own but i know this is not really possible because according to lenders i'm still supposed to be living in this flat. My friend who i live with can't afford to buy me out and to be honest if i could keep this flat on it may become worthwhile in the future for me. I just wondered if anyone had any information as to where i stand on the possibility of getting e new mortgage or what i could do to let the lender know i'm no longer living there without it affecting the chance of a new mortgage?

Any comments would be appreciated

Old_No.7

Hi there, we got a Consent to let from our mortgage provider (A&L) for £125, valid for 3 years. That way you're legal, and you can get a new mortgage for another property. Not sure if that would work if your co-owner still lives in the flat though.
If your friend can't buy you out, can you buy him out? Or arrange for him to live elsewhere (so you can get the consent to let for the whole flat) and both keep a stake in the flat?

Unless you've moved out because you two didn't get on, I feel that owning a flat with a friend has been a very good move for me and my friend. It's given us a lot of flexibility if we need to put work into it (sharing the work and the costs) or find new tenants etc: one of us will be available normally, even when the other goes off to travel for 6 months etc. Haven't needed a managing agent so far, which is a major cost saving.

Mr_T_7

Hi thanks for the information. I'm gonna give the lender a ring and ask if i was to move out( not let them know i already have!), could a get a consent to let on just my half and see what they suggest.

As to buying my friend out, it's not something he wants as he cannot afford to live elsewhere as he would need a deposit and somebody to share the costs with again.

homer_j_3

could you provide more details of the existing property?

whats outstanding mortgage?
whats the current value?
how much would you need for your share?
how much would the other occupant need if you were to buy out them?
whats your income/employment status?
what do you need for your new property?