Main Residience

CrispyLettuce

I have bought a house a couple of years back with a friend, and can see a situation in the near future where either one of us will be looking to move in with our respective partners.

Due to the slip in property prices we would be arguably better off keeping the property a little longer to hopefully get a better ROI.

Unfortunately we are in the situation that neither 'couple' would be able to buy out the other half of the mortgage, so would be in the situation that whilst we would both still own/pay the mortgage it is likely that one of us would move out.

I know on the mortgage you have to say it is your main residience, but as long as the mortgage is always paid on time (overpaid on time to be exact!) what could be the fall-out of this?!

:beer:

holly_hobby

Well if you are referring to stating this in any legal documents, loans, voters roll etc, and it is not your main residence - technically in the case of finance it would be fraudulent (non-disclosure at best) as you would be mis-representing your personal circumstances.

Hope this helps

Holly

handytips

CP What exactly are your intentions with the property ? Are you talking about renting it our ?

CrispyLettuce

Sorry - ill try and explain it better.

I own a property with 'Boris'. Unfortunately we bought high and we would be on the cusp of negative equity if we were to sell now - so we both would like to keep the property longer hoping to recoup some more money.

We both have GF's at the moment - and the point will come in the future where we would like to live seperately with our respective partners. Unfortunately neither Boris nor I would have the capital to buy the other half and take on the property by ourselves.

What we were wondering is that Boris would move out to live with Mrs Boris (some/most of the time), Boris and myself would continue to pay for the mortgage whilst I live there with Mrs CrispyLettuce. In otherwords, the property would not be rented out to anyone else.

CrispyLettuce

holly_hobby wrote: »

Well if you are referring to stating this in any legal documents, loans, voters roll etc, and it is not your main residence - technically in the case of finance it would be fraudulent (non-disclosure at best) as you would be mis-representing your personal circumstances.

Hope this helps

Holly

Thanks for replying Holly.

Do you know if its possible to declare to the mortgage company that one party of a Joint Mortgage is no longer living at the property but would be continuing to share the burden of the mortgage payments? Would this have any effect on the cost of the mortgage? Could they withdraw the mortgage?

CrispyLettuce

Managed to speak to HSBC over the weekend about this, and they didnt seem to be particularly bothered by such an arrangement - as the other name on the joint mortgage will continue to live there.

HSBC said that it is a common situation people find themselves in - particularly for couples going through divorces and so on.

Obviously, if i was planning to live elsewhere whilst renting the mortgaged property out - then that would be a different matter entirely....but luckily in my case this is not.

:T

dimbo61

What you need to be carefull of here is that Mr Boris will carry on paying his half of the mortgage!
Now Mr Boris may say how much is the "rent" your g/f is being charged!
If Mr and Mrs Boris are paying rent at another property would they be happy for your G/F to live rent free?
If you paid all the mortgage for the next 5 years and the market does increase by say 20% would you be happy to give 50% of the profit to someone who is no longer paying anything towards the mortgage OR costs to maintain/ improve the property.
If/when he moves out you should have the place valued and agree in writing what will happen re the property

dimbo61

While Mr Boris is on this mortgage he will have very little chance of getting another mortgage !!! Think very carefully about this now and not when Mrs Boris is 6 months pregnant and wants her own home!

CrispyLettuce

Thanks - these things need to be looked at, but i wanted peace of mind that there would be no imediate trouble with HSBC from this arrangement!

I need to try and work out (gamble!) whether we are better of taking a hit on the property value and selling now - or continue with the mortrgage for another year or two and hope prices go up....which for a flat in my area is far from guarenteed.