Remortgage or sell up?

scottydawgy

Me and my partner recently purchased a repossessed property, which still needs some work carrying out (a complete kitchen being the largest piece of work). My partner supplied 25% deposit (£21k), and we had an agreement wrote up so that in the event of us separating, she could have her money back (but not until at least 12 months have expired)

We have had a big fall out, and it looks like I might have to live in the prpoerty. As it stands, it has a manageable motgage, but come November, she may want her money. I doubt that I'll be able to borrow the extra £21k (although I've not yet looked into it). The current mortgage is with HSBC on a tracker at 2.45% above base. The value will have hopefully increased by then due to new kitchen and boiler for central heating.

Any suggestions?

Cannon_Fodder

Unlikely to get a remortgage that increases the value by 25%, imo, solely on the kitchen and boiler being replaced - presumably they valued it as having working kitchen and boiler otherwise they would not have lent at all...

If no other sources of £21k, then I think you need to sell.

While its tempting to wait 6 months and hope for a bit of profit from the work you have already done and/or the market moving up, there is still the potential for drops in the market, which could leave you short of what you owe.

Counting fees etc, its likely you will be borderline, anyway. Any early repayment charge to worry about?

Might be best to spend a month getting it good as you can, cheaply, then sell in the spring busy period.

scottydawgy

Luckily the mortgage is very flexible with no fees for early repayment, and no limit to overpayments. Although me and the Mrs have sort of made up, she still wants her money in November, although I'd like to try and keep the house.