We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
split from partner house now in negative equity
porter0954
Posts: 3 Newbie
My partner and I bought a house together in 2007 when the house prices were high. We split up 4 months ago. She stayed in the house and has been paying the mortgage and I moved back into my parent.( paying them rent)
The house is in negative equity of about 20k and she is now saying she cannot afford to stay in the house.
I cant afford the mortgage and have a bad credit rating so will not get a mortgage.
Can someone here help with advise,
what happens if she sell, who is liable to buy the negative equity to the lender
what happens if I cant afford to pay
The house is in negative equity of about 20k and she is now saying she cannot afford to stay in the house.
I cant afford the mortgage and have a bad credit rating so will not get a mortgage.
Can someone here help with advise,
what happens if she sell, who is liable to buy the negative equity to the lender
what happens if I cant afford to pay
0
Comments
-
Best case senario is that the lender will convert the negative equity into an unsecured loan and let you pay it off at an affordable rate0
-
You moved out and stopped contributing to the mortgage payments? If so, I'm not surprised that she can't afford to make the payment on her own.
If the property definitely has to be sold, then the two of you are going to have to come up with the negative equity somehow. You might be able to convert the neg equity into an unsecured loan but don't forget that you'll also need to come up with money to pay the agent's fee and the conveyancing as well if you sell. If you can't convert the neg equity into an unsecured loan the lender will come after you for the money and will do so for the next 12 years. They are very, very patient but persistent.
Any chance that the property could be rented or your ex maybe take in a lodger to make up the mortgage shortfall?0 -
BitterAndTwisted wrote: »You moved out and stopped contributing to the mortgage payments? If so, I'm not surprised that she can't afford to make the payment on her own.
If the property definitely has to be sold, then the two of you are going to have to come up with the negative equity somehow. You might be able to convert the neg equity into an unsecured loan but don't forget that you'll also need to come up with money to pay the agent's fee and the conveyancing as well if you sell. If you can't convert the neg equity into an unsecured loan the lender will come after you for the money and will do so for the next 12 years. They are very, very patient but persistent.
Any chance that the property could be rented or your ex maybe take in a lodger to make up the mortgage shortfall?
The agreement was i moved out with nothing but my clothes and she paid the mortgage.
not sure about renting it out would the lender allow this. I am sure she would not get a lodger as she has a child from a previous partner.0 -
What happens if I pay up my share of the negative equity and she does not. Am I liable for that to. We live in Scotland0
-
You can agree anything you like between the two of you but if you're on a joint-mortgage you are both equally liable for all of the mortgage payments, just as you are both equally liable for the negative equity.
If she defaults on the mortgage payments and the property is repossessed the lender will come after both of you and take the money from whichever one has any. She is likely to be able to make a better case for not being able to afford that than you can as you're not supporting any children.0 -
porter0954 wrote: »What happens if I pay up my share of the negative equity and she does not. Am I liable for that too? We live in Scotland
There is no such thing as a "share" of the negative equity if you have a joint-mortgage. As my brother-in-law found out the hard way.0 -
The technical term is "jointly and severally" liable.
i.e. together and individually...Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Can she not get a lodger to cover half the rent?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.3K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards