Halifax turned me down but i know i can afford it

p1987

I could but i live 200miles away from friends and family so im abit stuck. unless i advertise for a lodger.

At the end id rather leave the house and move on; live somewhere else and pay half of my debt to her while she pays hers and she stays in the house.
i would like to have at least some profit on the house in the future. my ex has agreed to this and thinks this is a good idea. Its the only option we really have besides from selling up and be in a heap load of debt.

My work collegues think i should just face the debt and move on but i just dont think thats right.

Would it be worth me moving out paying half my debt to her and she pays hers while she stays in the house?

Mrs_Bumble

If you are both happy to continue paying half the debt that you are both jointly and severally liable for I think that is the most responsible thing I have heard for sometime and well done!

It sounds like you and your ex are being very sensible about things but as these things tend to have a habit of changing a bit further down the line I would say for both of you to seek legal advice to see what can formally be drawn up between you to protect you both later on down the line and I would also suggest that you subscribe to your credit file on a regular basis to make sure that everything remains ok there and that is just because I am old and cynical ;-)

Jacka87

So you are thinking, let your ex stay in the property whilst you live else where and you both pay half the mortgage? That means you will be paying rent and mortgage.

You say you want to wait until there is a small profit and then sell. Well consider this, if you rent for a year at £200pcm like you mentioned then thats £2400 rent as well as the mortgage. Assuming that the property values in a years time are the same then you are at a net loss of £2400from rent and £2000 split 2 ways on negative equity so thats £3400 total loss in one years time. What if it property prices do fall like some people think? Thats more lost in negative equity.

How long will it take for property prices to rise until you have no negative equity? If it was 10 yrs then you would pay a total of £24000 in rent as well as your mortgage only for you to make zero profit and thats assuming you stay somewhere with a very reasonable rent IMHO.

I think if you sell now and start afresh it costs you both £1000, ok I know I would rather have 1k than not but its better than hanging onto a property for years to end up losing more. The other thing is if it turns sour between you and ex or either of you find a new partner then you are both still tied together and financially cripled by a mortgage that you are just covering.

IMOH I would sell or if possible one of you buys the other out so that whch ever person has the property can live there for the next 10 year only paying the mortgage (no rent) and can then sell at a profit. It also gives the option of a lodger etc to help pay the mortgage.

SandC

I think it is worth considering selling now and taking the negative equity debt. As has been said, paying rent and mortgage would be stifling. Then there is still the issue of maintenance, will your ex be wanting you to pay half for that as well? One or both of you may meet someone else and want to move in together - if she moves a bloke into your house do you continue to pay the half of the mortgage then?

So you have something else to consider - I bought my house in 1995. It didn't increase in value at all for 5 years. This is the sort of situation you may well be looking at. Have you thought about what your circumstances might be further down the line than what I suspect you are looking at now? I really can't see house prices rising again like they did in the near future, if ever.

Mrs_Bumble

The OP states that the negative equity is only £2,000 at present so it doesn't need to increase much for them both to make a property.

As someone that has been watching my own house price value on Zoopla this year it has increased by £11,000 in 6 months, which is definitely positive.

luckyfool

is the property 2 bed ... or is there scope for a paying lodger?

How about you move out, your ex gets someone in as a flatmate who pays whatever the market will bear . . . lets say £250 per month or £200. You cover your half of the mortgage until there is a lodger in, but once there is one then your half of the mortgage comes out of the rent.

The rent could go by standing order into a joint account, and the mortgage direct debit could go out of that same account as well. Your ex pays her half of the mortgage into that account monthly before the direct debit leaves. this allows you to keep an eye on the mortgage to make sure it keeps getting paid as well.

Jacka87

I think that expecting a profit any time soon is just silly. Yes there will be some people who can get a profit in there properties, but I dont expect it to rise by 11k anytime soon.

Yes 2k is only a small loss and thats why I suggested that one buys the other out, if possible and that way they can wait until a profit is available. But if they continue together and things get really sour between them and then they are trying to wait until a profit is reached. I think selling now or buy/sell half form the partner. That way one of you has a property and the "long" term potential for profit, whilst the other gets a clean slate and can buy a cheap property right now or in near future at the more reasonable prices. To me thats win win for everybody, but does depend on being able to afford the mortgage.

p1987

Even if i seel i have the added cost of the £1,000 debt against my name + all the solicitor fees, motrgage advisor fees and all the furnature removals etc etc. But ye start a clean slate, i see what you mean.

Ye i suppose paying half the mortgage and renting does seem like a daunting option but i dont really know what to do. paying half the mortgage until someone moves in with her does seem like a decent idea

We dont have the option to buy eachother out because we both cant afford the mortgage on our own "according to Halifax's credit scoring".

I mean i would take the house on myself but i would struggle for a while i guess. i do need to make a decission soon.

I'll have a chat with her tonight to see what we can do.

thanks for all your help guys... lol i shoudlnt be going through all this at 21! :eek: