Newbie with tricky situation

Pmd_2

Hi,
I am in debt £16k. I am about to sell my house and use all my equity to buy a property with my bf. I will be paying half, he will be paying a quarter and he will obtain a mortgage for the final quarter. The house will be in his name only.

I am getting calls day and night and have defaulted on many payments. Should I try to start a DMP? Please advise. I have a mental health condition which makes this even more stressful.
Thanks.

Ilona

Can't advise on DMP's, but something jumped out at me in your post. You are handing over a great chunk of money to buy a house with your BF, and your name will not be on the deeds. Not a good idea I think. I suggest paying off all of your debts with the proceeds of your house sale, and putting what's left into the new house. If it's not enough let him find the rest. That's what I would do anyway.
Ilona

Tixy

What is the current position with your debts? are you in arrears? are you making any payments at all?

What is your financial position? are you employed/earning? how much can you afford to put towards your debt repayments a month?
Have you spoken to one of the debt advice charities at all?

How much equity do you have? have you considered using some of that towards your debts instead of sinking it all in to bfs new property?

In terms of the property - hopefully you have take legal advice on the planned purchase and the gift to him of all your equity? And regarding a declaration of trust to attempt to retain your right to the money you have put in to the house.

tallyhoh

Why will the house be in his name only?

John1993_2

Pmd wrote: »

Hi,
I am in debt £16k. I am about to sell my house and use all my equity to buy a property with my bf. I will be paying half, he will be paying a quarter and he will obtain a mortgage for the final quarter. The house will be in his name only.

I am getting calls day and night and have defaulted on many payments. Should I try to start a DMP? Please advise. I have a mental health condition which makes this even more stressful.
Thanks.

You are paying for 50% of the house, and he is paying for 50% of it. It's very hard to see why you would not be joint owners, with 50% of it each.

Please, speak to someone who is qualified to help you with this, as from the offset it looks very wrong.

Yes, your boyfriied is taking out a mortgage to find part of his share, but if anything this should reduce the percentage that he owns, not increase it, as he's the one responsible for someone having a charge over it.

Was it he who suggested that it goes in his name?

oldhand

My advice for what its worth do not allow the house to be purchased with your money but in his name only otherwise I fear you will return to these boards at a later date with a thread going something like "My partner and I have split up but the house I paid 50% for is in his name only and he denies I paid anything toward it"HELP.....

Pmd_2

I am going to get a declaration of trust before the purchase. I will be getting approx 100k and putting 96k towards house purchase.

However, when it called payplan this week, they said they can't advise and that I would need to start a self managed dmp until I move. When I've moved, they advised me to call back and they will assess the situation then.


What do I do in the meantime? I'm behind on everything and am being phoned morning, noon and night but don't seem to be able to get on top of things.

Any advice?

Tixy

The logical thing would be to pay off the unsecured debts and for you to invest less in to partners property.

He could then get a slightly larger mortgage of £60k rather than £48k, and the declaration of trust could reflect these slightly different contributions.

In the meantime you could write to your creditors to say that you are selling your property and will pay in full at that point, but that you can only afford token payments until the sale completes.

Once your debts are paid off you won't then have any more stress from your overdue creditors.

flipperOSN

Does your bf know of these debts? It seems very wrong he is wanting to take all your money in a house in his name, and leave you with nothing to help pay them off.

whiffyleaks

Are you doing this to avoid paying debts? I suggest you use your money to pay your debts.

sourcrates

Seriously you cant go into this house purchase with 16k of debt hanging around your neck, doesn't make any sense, and the fact that your not going to be on the deeds should start alarm bells ringing also, my advice, DONT DO IT !!!!! RUN A MILE..........you will have no comeback on the cash you put into it, take a step back and look at this again, pay off your debts first, then take stock, don't rush into a decision you may well regret.