mortgage advice after separation

getmore4less

Who has the most to lose if you stop paying?

If you take it on he should be paying you not you paying him.

You could try the OK its yours you live there and pay the mortgage/bills.

CloudCuckooLand

Although you paying it all might seem unfair, he could reasonably ask for a rent for his half of the house he no longer lives in. If rent for half a house is approx the same as half the mortgage, they would offset each other, effectively leaving you paying the whole mortgage...and he still keeps an interest.

In which case, if you get past him hassling for a chunk of money, by pointing out the £17k he will owe if a sale is forced, then you can sit it out, wait for the market, then sell around breakeven and neither of you get anything - but at least you've had a roof in the meantime.

If a half-rent is not equivalent to half the mortgage, he should be paying something towards the mortgage - if he refuses, a solicitor can draw up a document to protect your interests. Either he signs it to avoid having to pay towards the mortgage, or you sell and he faces half the shortfall...

blueberrypie

Wh05apk wrote: »

He effectively curently owns half the property and half the mortgage, the value at the moment is £30k (on your figures) so add on solictors estate agents etc you could be looking at say a £35k shortfall? or £17,500 each

Options are:

Sell and take 1/2 the debt

If the mortgage is in joint names (not tenants-in-common), he does not own half the mortgage - they both own it in its entirety. And she can't sell and take half the debt unless he's willing to take the other half. The lender won't remove their charge over the property until the loan is paid. Somehow the full amount of negative equity would have to be found.

blueberrypie

tess1981 wrote: »

thanks for your message - few options. can you tell me he's agreed to sign off if i can prove i can get mortgage, and give him cash - forgetting the cash, i'd have to change flat to renting standards but that means investing - what protection can i get to stop him changing mind

You won't be able to get a mortgage without a deposit - I believe there are a couple of lenders who will lend 100% right now, but you won't get 100% plus £30k.

If by "change flat to renting standards", you mean switching to a buy-to-let mortgage, you'd need a larger deposit - usually at least 25% of the property value.

It doesn't sound like getting a mortgage on your own is a realistic option - sorry.

I would strongly advise that you see a solicitor - you aren't going to come out of this unscathed, but a bit of money spent on good legal advice and representation now could save you many thousands in the future.

tess1981

i understand he's paying rent and i'm paying mortgage but he also makes me pay 120p/m in debts he ran up. i know i should be grateful to still be in flat, but at what expense?

i can't give it him, there are restrictions on where he can live now so can't hand it back. was meant to be investment for future not albatross

tess1981

my previous mortgage advisor told me i can get a first time landlord mortgage, can raise bit of deposit but not huge. any idea about first time landlord mortgages please?

blueberrypie

tess1981 wrote: »

my previous mortgage advisor told me i can get a first time landlord mortgage, can raise bit of deposit but not huge. any idea about first time landlord mortgages please?

I'm not a mortgage advisor but as far as I'm aware, the maximum loan you'd get, even as a first-time landlord, is 75%. That means you'd still have to find 25% of the property value plus the £30 to pay off the negative equity.

Editing to add: I'd agree with what Thrugelmir says in the post below this one.

Thrugelmir

Consult a solicitor and speak to your lender to explain the situation.

There's little point attempting to hang on to the property in your current circumstances.

Wh05apk

blueberrypie wrote: »

If the mortgage is in joint names (not tenants-in-common), he does not own half the mortgage - they both own it in its entirety. And she can't sell and take half the debt unless he's willing to take the other half. The lender won't remove their charge over the property until the loan is paid. Somehow the full amount of negative equity would have to be found.

Don't be anal and petty.

I missed "each" off of my options.

I was trying to put the options over in simple terms without overcomplicating things, off course all the debt has to be repaid, which normally a starting point would be half each.

tess1981

so basically i have to sell up and take a loss? any advice on how i approach it all?