Split up with BF

esthomizzy

Thank you for all your replies. The credit card money is not debt but the amount of spending I usually put on it in a month (actually this was 300 personal spending and 300 groceries/joint spending so it's cut back to 500 already (I pay it off each month). I think I can cut it back to 400 if I had to (which probably brings us back to 0 in terms of balancing the books). This includes all spending and probably is mostly on food and drink (well up until now groceries and eating and drinking out). The 200 is for money I take out in cash (40pw from 50pw) this goes on sandwiches and anything else I can't use the credit card for.

I have 3k in a cash ISA, 3k in an investment ISA and about 3k in Premium bonds. I have about 1.5k in cash but I think most of that will be eaten up by remortgage costs and legal fees etc.

The emergency money £50 is not savings exactly it's money I available in case I exhaust all my other spending money during the month. If I don't spend it I just use it again next month. In terms of cash to buy a washing machine etc that would probably have to come out of the ISA money.

In terms of spending money I haven't analysed what exact proportions I spend on what but I think I spend too much in Waitrose (so that can be swapped for the market) and on rounds in the pub (less to no pub going) and in restaurants (or that). I don't buy many clothes. If I went on holiday that would go out of my "spare" cash each month so I don't suppose I'll be holidaying much either.

I live right near a major hospital and tube station so I don't think it will be any problem getting a lodger if I needed one. I'm certain I could get £500pcm for the room possibly more but in order to utilise the rent a room scheme and maintain some privacy I might be tempted to look specifically for a Monday to Friday lodger and take less money.

I really want to stay in my flat if I sell I will still need somewhere to live and I would have to downscale a lot in size and area to make it worth not staying on where I do now. Also if I move I will almost certainly not get a 2 bed place and wont have the option of getting a lodger if things get tough. The reason there is a 100 shortfall is because I was anticipating my payments to be 1300pcm but my ex partner is being argumentative about valuations which is making organising my finances a little difficult.

The property is arguably worth between 330 and 385k depending on who you believe (he's had valuations and so have I, I asked for realistic likely sale prices he asked for the best they think they can get I assume). The current outstanding mortgage is £134k. The monthly payment figures I am talking about already assume a remortgage over 25years (sadly) I need all the extra money to buy him out.

The water is not metered so I guess that's the rateable value and the council tax figure is what I guestimate it will be with the single person discount (currently more). The electricity is from ecotricity because they support renwable energy sources (but yes if I can get it cheaper I probably have to let some green credentials go).

I figure I'm probably going to be unhappy anyway I might as well be unhappy in familiar surroundings. I don't think I'll be more unhappy in a place we shared in fact keeping the flat is now almost exclusively the only thing I care about. In terms of the 1400pcm payment that in itself is a guestimate because I don't get know what valuation he will accept. I had hoped nearer to 1300 which should help balance out my shortfall quite a bit. Apart from my habit of buying expensive food I'm actually quite thrifty so I think I'll probably find it easier than some people to cut back my expenditure.

I don't want to keep the place just to spite him I really genuinely want to live there rather than anywhere else.

Thank you for all your help.
Esthomizzy

esthomizzy

Hmm I see from my signature it's 2 odd k in premium bonds not 3.

bandraoi

Your mortgage payment is going to be over 50% of your income, will the bank give you a mortgage for that amount? Most banks won't I think.

Do a few sums to see what happens with a 1% and 3% rise in interest rates?
How does your budget look then?

hypno06

Hi there, if you are taking £200 cash out of the machine and still spending several hundred on the credit card, then I think you can probably make up all of your shortfall just by concentrating on the amount you spend on a daily basis.

Keep a spending diary for the next few weeks and see what you can cut out. It may seem harsh but it is the best thing to do, that way if a lodger suddenly leaves, you won't be left high and dry as far as the finances are concerned while you get another lodger in.

I think with that and a lodger, and if you are determined to keep the place, then that is what you should do. At the end of the day, as long as you keep on top of your situation, you can always sell later and reassess your options.

Good luck.

esthomizzy

Thanks both

The bank has agreed to lend me what I need. They are not doing it on the basis of income multiples they are happy enough because of the equity (I will be borrowing at the maximum level 240k against a property worth 400k). If I screw up they wont lose money. I'm only going to do this on the basis of a 5year fix (because rate rises would screw me definitely). I work public sector and get a payrise every year as well as cost of living rises so after 5 years the situation may well be different. I might also meet someone else in that time and want to rent the place out as a whole anyway.

The spending diary is a very good idea. I cycle to work so there is no cost there (some other journeys I do on a PAYG oyster card). I just realised I didn't answer the question about bike loan (it's not started yet I'm just about to get the paperwork back, it's an tax free cycle to work scheme loan, although I'm going to use the bike for competitions and use my regular bike for trips to work).

esthomizzy

oh and the payments are over a year (doh).

mr218

first of all it is not easy to sell the house. just because you get a valuation does not mean that you should have to pay that much. also, there are costs associated with selling a house, stampduty, agent commission , solicitors, moving costs etc

tell you bf he cannot expect the highest valuation. plus he has to pay half of all the potential costs.

if you dont mind being a bit sneaky, i would actually put your house on sale with the agent giving the top valuation. keep it to one agent. it will give you a better reflection of what the property is actually worth. if you get any offers at the top valuation, you could say then agree on that price and ask him to take the difference minus potential costs. if you get a fabulous offer, maybe you should take it.

on the other hand, with markets slowing down in some places, you will most likely not get the offer at the top valuation. that will provide you with a realistic figure of what your house is worth. use that to negotiate his share.

then pull the house off the market sayign you have changed your mind. as long as the buyer has not surveyed etc, it should be alright without feeling too much guilt.

i think it is ludicrous that you should have to pay him top whack without any consideration of costs i mentioned above at the very least.

Shineyhappy

Hiya,

I am in your situation although my property is not worth the same as yours I earn less than you do.

On an interest only mortgage my payment is 60% of my take home salary on top of that I also have another 80 pounds ground rent/maintence to find.

I am hopefully completing today on the transfer from my ex and myself to myself and my mum. I couldnt get a mortgage for 152k just in my name, but my mum has no financial interest in the property. It is a 2 bed flat and I currently rent out the second room.

Yes money is tight and will be for a while but hey I have my own place at 26 when the national average is something like 33! :T

If you are determined enough you will find a way to make it work. If I needed to I would get a second job.

I have been trying to make things easier by selling books on Amazon and Ebaying stuff to pay off a few debts.

When I got my valuations I got loads and gave him the three lowest ones, I made the flat messy and smelly and stressed how I didnt live there and wanted shot of it asap. Ok so its dishonest, but hey he deserved it!

esthomizzy

Thanks

He actually wants to put the property on the market because he thinks that he'll get a high offer that way. I don't because I think it's dishonest to the poor person who might want to buy the place but also he might be right.

Shineyhappy I'm sorry to hear you are in a similar position and I'm glad things are working out for you. I will definitely try and keep the flat no matter what happens as long as I can afford it. How long did it take to get to the point of transferring ownership to you?

Verbatim

Hi there,

Re realistic sale priceprices you can see what prices similar properties have sold for recently by looking on mouseprice.com for free. You only pay to get the full report.