Escape From My Mortgage

WhatAAMess

Hi there,

I've been searching for help around the web and MSE seems to be the most knowledgeable!

So.. I have a mortgage with my ex on a property which was originally 121K which has decreased in value by around 20K.
I left the property roughly 4 years ago and it is currently being privately rented through an agency.
We have no children or other commitments however we both have liability on this property & mortgage.
The mortgage we pay is interest only.
We cannot sell the property now due to the value dropping and we would walk away with 10K debt each.
The question I'm asking is, I don't want to be involved with my ex/property any longer, do I have any options/are there any goverment schemes which will take control of the property for a number of years?
Thanks for your time :beer:

foreversummer

Have you looked at the possibility of renting it out? Obviously, it is preferable if you can be amicable and treat it as a business arrangement. You could get a letting agent to handle things for you.

holly_hobby

No, there are no Gov schemes to help people in negative equity.

There are no quick routes to escaping the ex - the only way to cut all ties would be you both agree to sell (albeit I am aware this is your partners primary residence), and take on the chin whatever residual neg equity occurs.

Your ex agrees to move out, and you let (as suggested until the market improves), albeit you are still financially tied to her and the mortgaged property.

Your ex stays where they are, and you just sit it out ... hoping for some upturn in the market to mitigate the current neg equity exposure you have.

Keeping things amicable between you, will obviously be of benefit whilst you are on the mge and legally responsible for its servicing and any shortfall (pursuable for a period of upto 12 yrs by the lender).

Hope this helps

Holly

WhatAAMess

Sorry forever summer, it is being rented privately at the moment.
The issue is, I want to get out of the joint commitment.

holly_hobby

Ah its already rented - hopefully you already have consent to let or a BTL on the property. If no, you're in breach of your mge T&Cs and the lender upon discovery, can demand full repayment, whilst you will be further in breach by your residential blds insurance being invalidated by the let.

Further to which, no chance of being taken off the mortgage until the LTV (and thereby the neg equity) is reduced.

Holly