advice please - relationship over but we own a house !

Old_iron_balls

Hi all,

after a bit of advice here please

Heres the situation...
Myself and my girlfriend of six years moved into our house 7 months ago.
Cut a long story short the relationship hasnt worked.
We have both agreed we have grown apart and no longer want to be with eachother. The is definate and we are both 100% certain off this.

We have a mortgage with Northern Rock. 6.7% :eek: over 30 years.
We got the house for £133,500 (two bed semi in Cheshire)

First thought was we were going to have to sell the house etc etc and move back in with our parents.
Looking at the t&c's of our mortgage its goin to cost around £5k to end the mortgage early :rolleyes:

BUT, were still on good terms and have been talking tonight about possible options.
We discussed renting it out thus keeping the house as an investment and then selling at hopefully a profit when the time is right.

I was wondering if anyone has had experiance in this or can offer any advice ?

many thanks in advance

B2B-2008

Hi,

I have just been through this but it only took three months of living together to realize that we just wanted different things. We also had a penalty charge and also lots of debt, and I didn't want to get into anymore. He moved out and stopped helping me pay the debts. I payed the mortgage, well everything by myself. He has just signed the flat over to me and I didn't give him a penny as he didn't put anything in. This was a flight but he came round in the end but I had to sit out the two years.

I think that if you can both stay friends and both move out this could work. But will your mortgage provider let you rent the house out. I felt that living together for the two years was out of the question. Have you made any profit form the house? Would the penalty be covered if you sold now?

Just remember to try to stay friends and keep talking.

Gook luck

Alan_M_2

Can one of you afford to buy out the other, with family help maybe?

thesaint

Ask your lender if this is a possibility first.

If it is, do the sums and work from there. Although it may be okay now, what would your payments be if interest rate were to rise 1%.

If one of you were to meet someone else and they were'nt happy with this continuing link with the ex, how would this effect the deal?

If the property price were to fall, could you afford to lose your equity?


It's not something that I would do given the pitfalls.

Old_iron_balls

The penalty to end the mortgage all inc is around £5k
The profit we would make from selling the house would cover that but then theres the solicitors fees etc so wed' be left with more or less nothing :rolleyes:

Im afraid one of us buying the other out is out of the question there is no way either of us could afford it.

We have a fixed rate 5 year mortgage so we know the future payments.

I think the main concern is will Norther Rock allow us to rent the house ?!
I better get on the phone tomorrow and find out before loking into it any further !

many thanks :beer:

wilburpig

Abbey charged us an "admin fee" of £750 to give us permission to rent it out

Morven

Another possible option would be for one of you to continue living there and to just rent out one room...... would that cover half the mortgage?
Then at least one of you would gain from the money already spent.

Old_iron_balls

Morven wrote:

Another possible option would be for one of you to continue living there and to just rent out one room...... would that cover half the mortgage?
Then at least one of you would gain from the money already spent.

Wish it was so easy lol:D Its an option but at the moment i think were going to go with renting out. Just booked a valuation so figers crossed it goes well so we can both move onto the next chaper of our lives ! :beer: