Impossible situation? (relationship breakup)

Lionel_Thinkbag

Asking on behalf of a friend.

Bought a house jointly with her now Ex-partner. They still live together as neither one can afford to buy the other out. Recently she discovered that he had missed mortgage payments (choosing instead to pay business/personal debts)

He isn't violent, but he is controlling and obstructive and acts like an overgrown teenager. She has a young son from a previous relationship. They both work, but both are self employed and income is sporadic.

What are her options? She told me after she discovered that he'd missed mortgage payments that she'd got to the point where she no longer cares if the house is repossessed, but this is going to impact her credit rating - and in my experience most LL's carry out credit checks. This would make it almost impossible for her to rent?

zarf2007

Lionel_Thinkbag wrote: »

Asking on behalf of a friend.

Bought a house jointly with her now Ex-partner. They still live together as neither one can afford to buy the other out. Recently she discovered that he had missed mortgage payments (choosing instead to pay business/personal debts)

He isn't violent, but he is controlling and obstructive and acts like an overgrown teenager. She has a young son from a previous relationship. They both work, but both are self employed and income is sporadic.

What are her options? She told me after she discovered that he'd missed mortgage payments that she'd got to the point where she no longer cares if the house is repossessed, but this is going to impact her credit rating - and in my experience most LL's carry out credit checks. This would make it almost impossible for her to rent?

you are correct in that it will screw up her credit file and make it difficult to rent unless she has a guarantor/six months rent up front or goes to a landlord that doesnt check which would likely mean a property in a bad condition/area or both.

her options are to either get him to agree to rent it out in the meantime or to legally force a sale but the latter is expensive, time consuming and she should consult a solicitor asap if she wants to go down that road.

moneyistooshorttomention

How has he been able to miss making mortgage payments?

Are those payments set-up to come out of his salary on a direct debit each month automatically?

CLAPTON

is the mortgage joint?
do both parties pay half separately or what?
how much equity is in the property?

TBagpuss

I would suggest to your firned that she see a (family) solicitor (pick one who is a member of resolution) who will be able to talk her through her options.

Neither can afford to buy the other out - can either afford to live there alone? If so, then an short term agreement for one to move out, coupled with a declration of trust setting out how and when the property will be sold and how any proceeds will be split may be the way forward. IF the other party is already in financial difficulties however then pushing for a sale as soon as possible, before it is forced on them by creditors, may be the best bet.

Getting an order for sale is expensive but in many cases not necessary - a solicitors letter may jolt him it seeking advice and realizing that a sale is inevitable, for instance.

BigAunty

Get her to check the Womens Aid site to confirm whether or not she is in an abusive relationship as this charity offers massive support to those experiencing controlling and dominating relationships, including when they are financially and emotionally abused. Domestic abuse isn't just about violence, it also includes tactics like pressure, sulking, disrespect, undermining confidence, spending household money on themselves and so forth.

http://www.womensaid.org.uk/domestic-violence-articles.asp?section=00010001002200410001&itemid=1272&itemTitle=What+is+domestic+violence

The Shelter website has a section on relationship breakdown for her to understand her rights and obligations. It also has a section for homeowners (and an advice line) for those suffering from mortgage arrears and the risk of repossession, including the issues that come from simply giving up on mortgage payments and handing the keys back (for example, not just bad credit rating but huge debts - the lender will inevitably sell it off cheaply at auction which can result in negative equity, plus all the admin fees and so forth, which can mean the owners being chased for mortgage debts. simply handing back the keys is a last resort - the mortgage does not go away if the owner ceases to occupy the property!).

There is a debt free wanabee board on MSE. Get your friend to post a statement of affairs - there is info there on how to do an SOA and the members there will help her suggest a debt management strategy and how to reduce expenses.

The Direct Gov website has info on debt management, including outlining what are priority debts to pay because of their consequences (mortgage, council tax) versus other types of bills and debts. It has links to debt management charities that can help set up repayment strategies. These are experts at dealing with debt - never pay for debt management advice.