Joint mortgage separation help

paco_3

Hi i'm pretty new to this so here goes.

Me and my Girlfriend have decided to split up and move on with our lives but we are struggling to sort out the house and mortgage. We have had our house and mortgage for 4 years and we have both always payed 50% of everything. We have had 3 estate agents value our home and we have about £50k equity, so £25k each.

So the problem..... We both want the house and we can both afford to buy each other out.

Also we both know we are currently on a great mortgage deal (about 2.25% on £100K). Whoever moves out will lose that mortgage deal and it will cost them about £150 extra a month on a new mortgage.

We both still get on great and everything is very amicable at the minute but we don't know what to do???

We have also offered each other more than the £25k but neither of us are prepared to give up the house.

Can i/her be forced out?

Many thanks,
Paco

CloudCuckooLand

Have you confirmed with your Lender that you can each take over the mortgage, on a single basis?

Not much point debating too and fro and offering buy outs, if its just your assumption, rather than the Lenders viewpoint, which is what will matter.

Eric1

Select a trusted person to run an auction between two bidders. The winning bidder gets the house.
Or toss a coin

paco_3

Yes we have both been to our lender and either of us can take over the mortgage and just complete a transfer of equity for around £250.

We just need to decide who leaves and for what price.

I just worry that we are getting along fine now but it might not carry on being like that. Could she force me to accept an offer? Legally i mean.

Think i'll go on eBay for a double sided coin like on Only Fools and Horses!

Fire_Fox

Why do you both want this house so badly - can you honestly see yourselves living there with a new partner? Is the mortgage a fixed rate or variable? If variable will you still want the house if interest rates rise? Are you sure you have got £50K equity, have you looked at land registry sold prices for your street?

The only way either party can 'force' the other out is to start bringing one-night-stands home, but it is not the most mature way to behave!

Cat695

I think you are going to have to be very careful about this

My cousin and her ex were in the exact same boat when they split....he ended up walking away owning nothing but 20k of debt and she walked away with the house (he just gave up)

I would give yourself's 6 months/1 year(however long) and whoever comes up with half the houses worth by whatever date they keep the house(and give the cash to the other and they must leave). If by the date set (agreed by both of you) neither of you have come up with half the cash....the house must be sold and each of you take half(after the mortgage is paid off and you start again.

If you don't set something like this then you will just end up hating each other and losing everything.......

SusieT

You do need to be careful, but to throw the fox into the chicken run and find out which of you REALLY wants the house, how about the person who gets the house has to pay the other person something like £10k to compensate for losing the house, the lower interest percentage and the fact that they will not have to pay stamp duty/solicitors fees etc to buy another property......