Living together conundrum... mortgages, figures ETC ETC

insectkibbles79

This is quite a confusing situation and i'm not sure where the best place to post this. But i've been turning ideas in my head for a while and would appreciate some help. The objective is to find the best way for me my partner and her daughter and mine to live together. I'm currently on my own with my daughter in a flat i own, worth 115K with a 78K mortgage on it. She lives in her marital home with her daughter but cannot afford to stay there as her mortgage payments are too high, once sold and split with her soon to be ex husband she will receive in the region of 45K. I've thought about renting my flat out which would cover the mortgage and no more and moving in to her house which dose have 3 bedrooms, however its an extra 15 minutes from both our jobs on top of the already 30 minute commute and in the country and i don't like living out of town, i worked out the fuel alone over a year to get into town for schools and the kids swimming lessons etc and extra travel to work to be in region of £1500 a year so just doesn't seem to make that much sense. Other option i thought of was selling both our properties and buying something together, but i thoink we would end up with about a 140k mortgage
for a 3 bedroom house. She plans on going to uni in about 18 months time and i don't think i could support that sort of mortgage if i was the only one working. So i would rather wait until she finished her education (a sensible one that will guarantee a job) and we've been together longer to buy a big house together. The best idea i can think of is her selling her house, putting that capital in my flat which we would then jointly own. Leaving a mortgage on "our" flat of 30000k. Then renting this out for £500 a month, a great deal more than the mortgage payments would be on a mortgage that small. Then renting a 3 bed for around £750 per month.
Between the two of us including child benefit and maintenance (yes I'm aware we would loose all out tax credits if we lived together, about 700 a month!) we NET just less than 3000 per month. I'm thinking this would be enough to rent the 3 bed house and have a sensible standard of living, we are both careful and have no debt aside from mortgages. With that in mind it would leave the excess of rent from "our" flat to help clear the capital on the 30K mortgage. Then in 4 years if it worked out and we were both working in professional jobs we could sell "our" flat which would then have hopefully a less than 20k mortgage and buy a nice house together with our joint incomes. If it didn't work out i could buy her out of the flat or my income should be such by then that i could sell it and buy a small house for me and my daughter, but that's a worse case type thing . If you have read all this I am very grateful and would appreciate your opinion.

mountainofdebt

insectkibbles79 wrote: »

This is quite a confusing situation and i'm not sure where the best place to post this. But i've been turning ideas in my head for a while and would appreciate some help. The objective is to find the best way for me my partner and her daughter and mine to live together.

I'm currently on my own with my daughter in a flat i own, worth 115K with a 78K mortgage on it. She lives in her marital home with her daughter but cannot afford to stay there as her mortgage payments are too high, once sold and split with her soon to be ex husband she will receive in the region of 45K.

I've thought about renting my flat out which would cover the mortgage and no more and moving in to her house which dose have 3 bedrooms, however its an extra 15 minutes from both our jobs on top of the already 30 minute commute and in the country and i don't like living out of town, i worked out the fuel alone over a year to get into town for schools and the kids swimming lessons etc and extra travel to work to be in region of £1500 a year so just doesn't seem to make that much sense.

Other option i thought of was selling both our properties and buying something together, but i thoink we would end up with about a 140k mortgage for a 3 bedroom house.

She plans on going to uni in about 18 months time and i don't think i could support that sort of mortgage if i was the only one working. So i would rather wait until she finished her education (a sensible one that will guarantee a job) and we've been together longer to buy a big house together.

The best idea i can think of is her selling her house, putting that capital in my flat which we would then jointly own. Leaving a mortgage on "our" flat of 30000k. Then renting this out for £500 a month, a great deal more than the mortgage payments would be on a mortgage that small. Then renting a 3 bed for around £750 per month.

Between the two of us including child benefit and maintenance (yes I'm aware we would loose all out tax credits if we lived together, about 700 a month!) we NET just less than 3000 per month. I'm thinking this would be enough to rent the 3 bed house and have a sensible standard of living, we are both careful and have no debt aside from mortgages.

With that in mind it would leave the excess of rent from "our" flat to help clear the capital on the 30K mortgage. Then in 4 years if it worked out and we were both working in professional jobs we could sell "our" flat which would then have hopefully a less than 20k mortgage and buy a nice house together with our joint incomes.

If it didn't work out i could buy her out of the flat or my income should be such by then that i could sell it and buy a small house for me and my daughter, but that's a worse case type thing . If you have read all this I am very grateful and would appreciate your opinion.

For ease of reading

Gillyx

In her shoes I wouldn't be putting every penny I had into someone else's mortgage in all honesty.

I don't really know what you both could do but that doesn't seem like a good idea.

Dunroamin

insectkibbles79 wrote: »

This is quite a confusing situation and i'm not sure where the best place to post this. But i've been turning ideas in my head for a while and would appreciate some help. The objective is to find the best way for me my partner and her daughter and mine to live together. I'm currently on my own with my daughter in a flat i own, worth 115K with a 78K mortgage on it. She lives in her marital home with her daughter but cannot afford to stay there as her mortgage payments are too high, once sold and split with her soon to be ex husband she will receive in the region of 45K. I've thought about renting my flat out which would cover the mortgage and no more and moving in to her house which dose have 3 bedrooms, however its an extra 15 minutes from both our jobs on top of the already 30 minute commute and in the country and i don't like living out of town, i worked out the fuel alone over a year to get into town for schools and the kids swimming lessons etc and extra travel to work to be in region of £1500 a year so just doesn't seem to make that much sense. Other option i thought of was selling both our properties and buying something together, but i thoink we would end up with about a 140k mortgage
for a 3 bedroom house. She plans on going to uni in about 18 months time and i don't think i could support that sort of mortgage if i was the only one working. So i would rather wait until she finished her education (a sensible one that will guarantee a job) and we've been together longer to buy a big house together. The best idea i can think of is her selling her house, putting that capital in my flat which we would then jointly own. Leaving a mortgage on "our" flat of 30000k. Then renting this out for £500 a month, a great deal more than the mortgage payments would be on a mortgage that small. Then renting a 3 bed for around £750 per month.
Between the two of us including child benefit and maintenance (yes I'm aware we would loose all out tax credits if we lived together, about 700 a month!) we NET just less than 3000 per month. I'm thinking this would be enough to rent the 3 bed house and have a sensible standard of living, we are both careful and have no debt aside from mortgages. With that in mind it would leave the excess of rent from "our" flat to help clear the capital on the 30K mortgage. Then in 4 years if it worked out and we were both working in professional jobs we could sell "our" flat which would then have hopefully a less than 20k mortgage and buy a nice house together with our joint incomes. If it didn't work out i could buy her out of the flat or my income should be such by then that i could sell it and buy a small house for me and my daughter, but that's a worse case type thing . If you have read all this I am very grateful and would appreciate your opinion.

You've left the income she'll receive from student loans and grants out of your calculation.

Couldn't you sell your flat and buy her ex out of the marital home - presumably she likes living in the country, even if you don't.

Savemesomemoneyplease

insectkibbles79 wrote: »

This is quite a confusing situation and i'm not sure where the best place to post this. But i've been turning ideas in my head for a while and would appreciate some help. The objective is to find the best way for me my partner and her daughter and mine to live together. I'm currently on my own with my daughter in a flat i own, worth 115K with a 78K mortgage on it. She lives in her marital home with her daughter but cannot afford to stay there as her mortgage payments are too high, once sold and split with her soon to be ex husband she will receive in the region of 45K. I've thought about renting my flat out which would cover the mortgage and no more and moving in to her house which dose have 3 bedrooms, however its an extra 15 minutes from both our jobs on top of the already 30 minute commute and in the country and i don't like living out of town, i worked out the fuel alone over a year to get into town for schools and the kids swimming lessons etc and extra travel to work to be in region of £1500 a year so just doesn't seem to make that much sense. Other option i thought of was selling both our properties and buying something together, but i thoink we would end up with about a 140k mortgage
for a 3 bedroom house. She plans on going to uni in about 18 months time and i don't think i could support that sort of mortgage if i was the only one working. So i would rather wait until she finished her education (a sensible one that will guarantee a job) and we've been together longer to buy a big house together. The best idea i can think of is her selling her house, putting that capital in my flat which we would then jointly own. Leaving a mortgage on "our" flat of 30000k. Then renting this out for £500 a month, a great deal more than the mortgage payments would be on a mortgage that small. Then renting a 3 bed for around £750 per month.
Between the two of us including child benefit and maintenance (yes I'm aware we would loose all out tax credits if we lived together, about 700 a month!) we NET just less than 3000 per month. I'm thinking this would be enough to rent the 3 bed house and have a sensible standard of living, we are both careful and have no debt aside from mortgages. With that in mind it would leave the excess of rent from "our" flat to help clear the capital on the 30K mortgage. Then in 4 years if it worked out and we were both working in professional jobs we could sell "our" flat which would then have hopefully a less than 20k mortgage and buy a nice house together with our joint incomes. If it didn't work out i could buy her out of the flat or my income should be such by then that i could sell it and buy a small house for me and my daughter, but that's a worse case type thing . If you have read all this I am very grateful and would appreciate your opinion.

How long have you been together? I get the impression not long from your comment. I'd probably sell up and buy somewhere new together (in the long term) but her move in with you and pay rent for the time being.

SuzieSue

Gillyx wrote: »

In her shoes I wouldn't be putting every penny I had into someone else's mortgage in all honesty.

I don't really know what you both could do but that doesn't seem like a good idea.

I assume that the OP would put his gf's names on the deeds and do a declaration of trust so that she owned a percentage of it.

Errata

Whilst the opinion of random strangers on the internet is always interesting, your accommodation decisions need to be made by you and your partner. Only you and she are in full possession of the facts, only you and she can honestly understand why your previous relationships have crashed and burned, only you and she can look into the future and identify all the 'what ifs'.

silvercar

She plans on going to uni in about 18 months time and i don't think i could support that sort of mortgage if i was the only one working. So i would rather wait until she finished her education (a sensible one that will guarantee a job) and we've been together longer to buy a big house together.

If you stayed apart whilst she is at uni, she would get far more grants and loans and other benefits.

FBaby

SuzieSue wrote: »

I assume that the OP would put his gf's names on the deeds and do a declaration of trust so that she owned a percentage of it.

That's how I read it and that seems a sensible way to do it. Her investment is protected this way and easier to rent together than buy something bigger and more expensive if they were to separate later.

Dunroamin

silvercar wrote: »

If you stayed apart whilst she is at uni, she would get far more grants and loans and other benefits.

You could well be right but it does depend what he earns.

19lottie82

silvercar wrote: »

If you stayed apart whilst she is at uni, she would get far more grants and loans and other benefits.

Bearing in mind that this was in Scotland, and 10 years ago, but when I went to uni, your loan and grant amounts, were only based on your parents income (and only your resident parents income, if your parents were seperated), not the household income. Step Parents income did not count, unless they had adopted you......