Help To Buy Problem

Mrs_pbradley936

mickflynn39 wrote: »

He wants his money back. £7500. He also wants money back for all the furniture bought for the property. We are looking to reimburse him around £10,000 (from the bank of mum and dad).

Do not be so keen to do that! Make him see that there are consequences to his irresponsibility. Plus I am sure you would rather you daughter benefit from the £10,000 than him! Drag you feet a bit let him know that he faces losing any deposit he put in if the deal fails to complete.


I know that as a parent you want the sod out of her life but do everything for her benefit not his.

mickflynn39

Mrs_pbradley936 wrote: »

Do not be so keen to do that! Make him see that there are consequences to his irresponsibility. Plus I am sure you would rather you daughter benefit from the £10,000 than him! Drag you feet a bit let him know that he faces losing any deposit he put in if the deal fails to complete.


I know that as a parent you want the sod out of her life but do everything for her benefit not his.

He's getting nothing until we have a watertight deal that suits my daughter.

ACG

I can see your daughter (and her ex) losing a fair bit of money here.

You can not usually withdraw from a purchase after exchanging without it costing an arm and a leg. The ex is an idiot, he should have done this before exchanging or pulled out of the purchase if there were any doubts (but im sure you have these thoughts/conversations/arguments yourself so I wont add to it).

I would suggest you try and get hold of a broker asap to see if you can proceed on a guarantor mortgage - Personally I wouldnt hold my breath but its worth a try - I think you also need to speak to the solicitor to try and get your daughter out of this with it costing as little as possible.

I feel for your daughter and you here so I wish you all the best but I think its going to be a long weekend.

mickflynn39

ACG wrote: »

I can see your daughter (and her ex) losing a fair bit of money here.

You can not usually withdraw from a purchase after exchanging without it costing an arm and a leg. The ex is an idiot, he should have done this before exchanging or pulled out of the purchase if there were any doubts (but im sure you have these thoughts/conversations/arguments yourself so I wont add to it).

I would suggest you try and get hold of a broker asap to see if you can proceed on a guarantor mortgage - Personally I wouldnt hold my breath but its worth a try - I think you also need to speak to the solicitor to try and get your daughter out of this with it costing as little as possible.

I feel for your daughter and you here so I wish you all the best but I think its going to be a long weekend.

My daughter is heart broken at the end of the relationship that came completely out of the blue and I have nothing but contempt for her ex at his timing. You are right he has shown himself to be a complete idiot.

Luckily for my daughter I am in a position to help her financially. In an ideal world I would want the Nationwide to extend the mortgage to 35 years and allow me to be a guarantor on the existing mortgage so as to minimise any costs. It would be tight, but my daughter could manage the mortgage on her own and she is doing well at work and hopefully will earn more as time goes on to make the burden of the mortgage less onerous.

If they won't let her have the existing mortgage on her own I would hope they would let me pay a sum to reduce the mortgage to a level they are happy with.

pinkshoes

I think it's highly unlikely that your daughter will get even a guarantor mortgage for the salary she is on. Is her bonus guaranteed?

You will probably need to put your £10k in as deposit (and some more!!) then pay the ex off in installments. Don't forget second hand furniture has very little value, so don't pay him half the new cost!

how many bedrooms does the property have? Could she get a lodger?

How many bedrooms does it have? could

mickflynn39

pinkshoes wrote: »

I think it's highly unlikely that your daughter will get even a guarantor mortgage for the salary she is on. Is her bonus guaranteed?

You will probably need to put your £10k in as deposit (and some more!!) then pay the ex off in installments. Don't forget second hand furniture has very little value, so don't pay him half the new cost!

how many bedrooms does the property have? Could she get a lodger?

How many bedrooms does it have? could

Her bonus is not guaranteed. She is a lettings agent and commission depends on how many tenants she moves in each month. £6000 is a very realistic figure and she can demonstrate a track record of achieving this amount over previous months. She also gets a car allowance for using her own car which covers all the running costs including all her petrol.

Good point on the furniture. I need to make an accurate calculation as to how all the costs of the house add up before deciding on a figure to pay him off with. She can get a lodger as it is a 2 bedroom house. If she did this she could cover 75% of the mortgage this way.

Would the Nationwide and Help To Buy agent be happy for her to take in a lodger? Is it best not to tell them about this?

Worst case scenario I could remortgage my house and get whatever funds are needed to reduce the Nationwide mortgage for my daughter to a level they are happy with and pay the ex off (maybe in installments). Ideally we'd want to stick with the current 5 year fixed interest rate as it is lower than what is currently available.

pinkshoes

mickflynn39 wrote: »

She can get a lodger as it is a 2 bedroom house. If she did this she could cover 75% of the mortgage this way.

Would the Nationwide and Help To Buy agent be happy for her to take in a lodger? Is it best not to tell them about this?

You are allowed a lodger under the help to buy scheme as the owner lives in the property. It is subletting that is not allowed (so no renting it out!).

Go speak to a broker asap, but i would image you need to start looking for a large sum of cash to boost the deposit so she can take the mortgage on her own.

Pixie5740

Nationwide don't do guarantor mortgages so if your daughter wants a mortgage with them you're going to have to gift her a lot of money for the deposit.

I also wouldn't be quick to give the ex his money back. There are consequences of pulling out of a purchase after exchange so I don't think he should get off scot free.

[Deleted User]

Just to be absolutely clear:

1. Your daughter and her boyfriend made an offer on a property that was accepted
2. Your daughter and her boyfriend made an application for a mortgage
3. Your daughter and her boyfriend were approved for a mortgage
4. Your daughter and her boyfriend exchanged contracts on the property with a completion date
5. Your daughter and her boyfriend ended their relationship
6. Your daughters now ex-boyfriend refuses to complete on the purchase and has walked away

Does that reflect the situation accurately? If so, what date is completion set for?

If this is correct I don't think you're understanding the severity of the situation here, your daughter is legally required to complete on this purchase on the agreed date, and if she does not there are serious financial consequences. Unless completion is set for many weeks/months in the future you're going to have a huge uphill struggle to get a mortgage approved before completion, especially given the need for a non-standard mortgage.

Here is a relevant quote regarding the consequences of not completing, on time or not at all:

You should immediately tell your conveyancers - they can ask the buyers to agree to amend the completion date – if they agree then problem solved , if not then you have a major problem – how serious it is depends on how delayed the completion date is. If its by a day or so then, as long as you have told everyone, there shouldn’t be too many problems. Sellers will serve a Notice to Complete (legal notice served under the terms of the contract – requires other party to complete immediately – if completion doesn’t take place then allows the other party to claim compensation – usually a fee demanded for this (approx £150 plus VAT).) You will need to pay interest on the total outstanding sum for each day completion is delayed at a rate of around 4% above base rate, plus any costs incurred by the rest of the chain. Total will usually be around a few hundred pounds, though it can be a lot more depending on the purchase price. If you are unable to complete within ten days of the Notice to Complete being served then the sellers have the option of rescinding the contract – if they do this you will forfeit your deposit of 10% of the purchase price as well as all the other costs listed above – will usually be tens of thousands of pounds.

http://www.actlegal.co.uk/faq/buying-house-faqs/24/

Pidge_jen

Feel awful for your daughter, but she is very lucky to have parents like you. I would echo the advice of going to see a broker ASAP, and do not hand any money to the ex until you find out whether she can have the mortgage and keep the property, as there may be hefty financial consequences that will leave her out of pocket. Does your daughter have a friend who would be willing to commit to lodging with her as it may give her more of a chance with the mortgage company if she can show she is going to have guaranteed income?

If the ex comes crawling, I hope your daughter tells him where to stick it!