can anyone give me some advice..please?

lrmuk

Hi everyone,
I need some advice please, sorry for the large post – I just wanted to explain the full situation.

I have a joint mortgage with A+L since first buying the house in sept 2009. At the time and there were literally no options other than the A+L for us and we got it on a 4 year fixed rate at 5.99% (not the best rate) there is a £3,9000 early redemption fee on the mortgage.

Now literally everything in my life has changed. I was self employed, but in oct 2010 I got a full time job. Me and my girlfriend have now split up and I am currently living in our house alone trying to figure out how I can keep the house (selling the house is my very last option).
My ex-girlfriend wants her half of the equity left in the house, before she is willing to sign the house over to me. What makes things worse is that the house is half finished, new electrics and central heating have been put in but not 100% finished. The hall is stripped but we never finished it so it is bare plaster walls, channels for wires are in the walls downstairs.

My problem is I do not have the money to pay her out and she wants the house finished and then valuing so she obviously gets more money out of it then. Whereas I don’t feel that is right and think the house should be valued in its current un-finished state.
Here are the figures.

Bought the house sept 2009 for £108,000
Current mortgage value £91,000 (we paid a deposit)
Current house value approx £110,000 to £115,00 (£120,000 to £125,000 if finished)
fees if sold the house approx £6,500 (with redemption fee + solicitor + 1.5% estate agent fee)
mortgage per month £597.31
other bills, elec, gas, c tax, food, insurance £444
TOTAL spend per month £1,041.31

My wage before tax £25,636
my monthly take home (after taxes) £1,634.49


What can I do to keep the house?

How much do I owe her? I was thinking 10k as that would value the house at 117.5k (after deducting 6.5k for fees and 91k for paying the mortgage = 20k left to split 50 / 50) she wants more though!

1. I was thinking of getting a loan of £10,000 to pay her – but I am worried that if I get a loan, pay her, then try transfer the mortgage they might not give me it (due to the extra loan I would have).

2. Transfer the mortgage into my name, then get a loan afterwards to pay her off. But she won’t agree to sign over the house before getting the money (I have every intention to pay her – but she will not rust me and is bothered I might get refused a loan).

3. Look for a new mortgage and add the redemption fee plus 10k onto the mortgage. Giving a mortgage of £105,000. (the house would need to be valued by the new mortgage company and be worth at least £120,000 to get a 90% LTV deal – but I worry they won’t value it at that as mortgage companies are being cautious on valuations now – so I don’t think I would get a new mortgage so easy).

I would appreciate any comments / advice as I really am stuck,

I realise the obvious answer would be to finish the house and sell it, then move on. Surely thats not my only option? I can't face loosing my home, its just what I always wanted, has potential, and is in a nice area.

Sorry to be so long winded,

Lee

silvercar

She wants her half of the equity, she wants the house finishing....

Life ain't that simple. She needs to contribute to the costs of getting it finished if she wants it valued at the higher price. Otherwise she will have to wait. If your income isn't sufficient to justify the mortgage on your income alone she is stuck.

lrmuk

thaks for your reply,

you say she is stuck? She wants to sell the house unless i pay her out. So either way she will get money, how is she stuck?


she is willing to help fund finishing the house, as she wants to the get more money from it. we already bought carpet for the hall and livingroom, but they never got fitted as we did not finish the work decorating first. I am willing to pay her, but I just don't have the funds without a loan or getting more mortgage.

I dont want to pay her over the odds either - as the house is not finished and i am limited on what funds i can realistically get.

I have never had a loan before

dimbo61

On your current income you would be mad to borrow £10K to pay for the work to be done or pay out your EX even if you could find a lender!!!!!
Now WONGA or others might lend you the money at 39% APR but " DONT DO IT" just explain that you cant afford it and she will have to pay if she wants it sold.
Draw up a list of what has to be done and if neccessary get quotes from electricians and pass them on to your EX.
Put the house on the market and see if you can sell and she can have half the equity after all the bills are paid
Once she understands that she will be lucky to get £3/5K for her half she may back off.
She would have to take you to court to force a sale