Complex Query (mortgage, childcare, life etc)

brendcam

Jowo wrote: »

The only way she will incurr 'losses' is by selling it when there is neg equity. You don't have 20% deposit because you'd have to repay the neg equity with some of it.

Be aware that lenders will not grant permission to let a property that's on a residential mortgage (as opposed to buy to let) when there is neg equity in it.

Your 2 property strategy when one is in neg equity and you are certain you will experience a loss of income and extra expenses is very risky. A non-paying tenant or long void will invariably lead you into repossession or bankruptcy as you would have to pay 2 mortgages on 1.5 incomes. Anyway, this is a non-starter - your GF won't be able to let out her flat in neg equity.

It's a 2 bedroom flat so I don't understand why it isn't big enough to raise a child there.

The issues/concerns your GF has about your potential interest in the flat should you have a relationship breakdown is something that should be easily sorted out with a quick trip to a solicitors to see if an agreement could be drawn up.

Stay in the flat, build up your deposit and perhaps when your child starts school and your GF returns to full time work, you will have a large nest egg and decent salaries to buy a bigger place.

Yeah very ture, after reading other comments about letting out the flat and LTV and BLT mortgage minefields etc i think it is probably best to like you say just stick where we are and in a few years buy something bigger.

Thanks so much for the replys, its so hard starting out sometimes it makes it hard to think clearly :eek:

Oldernotwiser

brendcam wrote: »

She is worried about me covering a arge proportion of running costs towards the flat, she thinks if things go wrong and we split up then i can take her court to re-coup these costs. i dont really think this is an issue though tbh

If the mortgage is in negative equity,then you both start on the same level. If property pricesrocket you would, presumably, split the profit, whether it's on the current flat or a house bought jointly.