Tricky Situation - help and advice appreciated

matthewbarber1984

I am hoping someone may be able to help and advise me on my current situation.

My ex girlfriend and I bought a flat in Ipswich in December 2007 for £128k. Within 6 months, and due to the financial crisis, the flat fell into negative equity and remains that way still. In December 2010 we split up, and have rented the flat out since, without either of us needing to put any money towards the costs of the flat.

I have moved on, and am now married with a child (age 2). I am aware that my ex girlfriend is now married and has 2 children. She has essentially been 'managing' the property since it has been rented as she lives in Ipswich and I now live elsewhere. There is still £122k left on the mortgage, and it is interest only. The current market values suggest that if it was sold it would only fetch around £105-£110k. I have never seen a penny of the 'profit' made on the flat each month after mortgage, maintenance and ground rent have been paid (around £150 to my understanding). We do not have any joint account together, and the mortgage payments are made out of her account.

My wife and I want to buy a house together, as we are currently renting, and want to build a future for us and our family.

I was just wondering if you can advise on me on either

1) the best way to get my name off the mortgage,
2) how can I go about getting a mortgage with my wife if I can't get my name taken off the mortgage for the Ipswich flat
3) should I just sell and speak to the lender about the shortfall?
4) any other options I may have?

Hopefully someone may be able to help.

Many Thanks

Matt Barber

TrickyDicky101

1) You could either sell the property (assuming the lender agreed) and then settle the remaining balance or you could effect a transfer of equity, assuming your ex could take on the mortgage in full. In the absence of substantial liquid savings to settle the negative equity, this is unlikely to be granted
2) Speak to a good mortgage broker as you will find it difficult
3) You cannot just sell. Lender would need to agree. Ex would need to agree

catieeb06

If it's truly self supporting i.e the rent is 125% of the mortgage payment or above then some lenders may ignore the other property.

Suggest you speak to a broker who can assist further.

Floxxie

Would the mortgage have to be a residential with consent to let for a lender to ignore it?