Mortgage mental health

Scooopster

My partner bought a house with her friend some 5 years ago. Subsequent to us getting together and having a child the joint owner stayed in the house and my partner moved in with me whilst continuiung to pay her half to the mortgage on the house she no longer lived in.

Over the past year or so the joint owner has begun to suffer from sever mental health issues and been hospitalised.

As the other joint owner has moved out and in the interim we have placed a tenant in the property under an AST.

My question is really when the tenancy comes to an end my partner and I as well as the other joint party (as she will not be working) will not be in a position to cover the mortgage payments. Any advice you can offer would be greatly received.

holly_hobby

Can you not renew the tenancy ? Or seek a new tenant ?

Failing that, you shall have to sell it - the problem is the MH issue of current jnt holder in signing any legal forms etc (if she is deemed at a level preventing her from responsible handling of her own affairs).

If that is the case, has anyone been appointed as a attorney for her under an LPA arrangement (or did things get too bad before this could occur) ?

If not, the court of protection shall need to be involved in appointing a representative to act in her interests.

Hope this helps

Holly

Scooopster

Hi Holly and thanks fro your reply. In essence the best thing would be to keep the tenant as long as possible and that would be the plan, however at some point in the next 12 months my partner and I would like tol move from my small 2 bed house to somewhere bigger to grow our family and with her name being on another mortgage this would mean just getting a house on my salary.
Regarding selling it I would love to just get rid of the damn thing, unfortunately this means all parties need to agree to this.
I am unsure regarding the LPA if her parents were appointed but things have progressively become far worse over the past few weeks.
Again thanks for all your advice

holly_hobby

Oh my gosh ... I am so sorry for your ptnrs friend & her family, I wish her a speedy recovery (if its possible).

Should the property progress to be sold - the court of protection will probably appoint her parents to act in her interests ie be able to sign legal docs as her rep etc...

With regards to your partner going onto a new mge with you - well things may not be as black as you think.

There are mortgages termed "let to buy" - these are mges whereby he applicants have a property that will be rented out, and are seeking a mge on their own new residential mge.

In that case as long as there is a rental agreement/tenant in place, the LTB lender effectively ignores the os mge commitment on the rented property. (of course applicants need to meet the LTB lenders own status and criteria assessment)

Alternatively, you may find a lender who although officially does not offer "let to buy" mortgages, will consider a mge on the applicants new residential property (ignoring prop no 1 rented out), as long as of course the applicants meet all criteria and income assessments. (I did this myself some yrs ago)

Could this be a solution to consider ?

A whole of market broker should know the market well enough to know who does what (based on the financial assessment he makes of your situtation).

Hope this helps

Hollly

Scooopster

I was unaware of that even existing and it soes help. I shall commence my research immediately!!

Thanks, you're a star

holly_hobby

Tis my pleasure .... I wish all involved good luck !!

Holly x

Wobblydeb

It may be that you and your partner can get a mortgage together anyway. I'm in a similar position, in that OH has a flat that he cannot sell, and is currently not rented out.

We've been accepted in principal by both First Direct and YBS, who (I assume) simply reduced the amount we could borrow. I have a suspicion that the mortgage in question might be smaller than your partners though.