In a hole

Stuspillz

Need some advice, any appreciated.

A few years ago I brought a flat with a ex. We paid £128k for it.
We took additional borrowing and got a car.

A few years later we split, she came off the mortgage and my sister came on. The valuation of the flat at this point was £140k

As it stand today I owe £122k. SVB of 4% for 28years and 9months.
Repayments are £613pm - I earn about £1,400 I have a lodger who pays £300pm all in. I pay £200pm to a DMP. Est Debt is £13,500

The property is valued at £151k on Zoopla, I find this extremely unlikley and would gauge it around £125k based on similar sales in the area in recent times.

My predicament is my sister has got to a stage in her life whereas she wants to get her own place, she wants off my mortgage. She has never paid a penny nor does she want any equity. She purely came on to help me keep the place on 'affordability' in the lenders eyes.
Upon talking to the lender, I was told 'You need either £50k to go solo' or to get someone else on to replace her.
Originally I tried my father but that failed as he has his own mortgage that is fairly high in comparison to his income.

I was wondering/hoping for some advice on what my options are. Realistically I can't get my hands on £50k.

If I sell im back to square one, breaking even, loosing out after selling fees.

Is it possible to have three/four/five names on a mortgage. Would the lender accept a grandparent who has no debt but no income besides a pension? With their own house mortgage free?

I have offered particular friends the option to come on for equal profit when I do decide to sell but all are weary of the liability if it goes wrong and the complications if one wants to sell and one doesn't.

On that note can my sister force me to sell?

Really going round and round here and running out of ideas or confusing myself.....

Thanks in advance

dimbo61

You borrowed extra money for a car !
You have owned the property for How ? many years but have only paid off £6,000
Did you put down any deposit ? Did you borrow more than the value of the flat IE together mortgage from Northern Rock.
Your sister really helped you out when you split up with your EX and she now wants a home of her own.
Sell up and house share or rent somewhere cheap ( your lodger is paying £300 allinclusive )
Repay your debts and use Martin's website to save money

Westminster

I would say it is irrelevant whether your sister 'can' force a sale - she stepped in to help you out and now you need to release her from her liabilities on your mortgage.

somethingcorporate

Westminster wrote: »

I would say it is irrelevant whether your sister 'can' force a sale - she stepped in to help you out and now you need to release her from her liabilities on your mortgage.

Easier said than done - being on a mortgage is not something you can just whip your name off on a whim.

If it means forcing them to sell up this is going to be very expensive and likely to cause a lot of animosity.

No easy answers here OP.

Westminster

Easier said than done - being on a mortgage is not something you can just whip your name off on a whim.

Yes I understand the difficulties. However, if person A steps in to help person B lose their home. Then when it comes to a time that person A now wants to get their own house, then if I were person B, I would feel morally obliged to do whatever it takes - including taking a financial hit on a the sale of a property (including incurring a debt if their was a shortfall in redeeming the mortgage through the sale) to allow person A to get their home.

There is no case for animosity in my opinion, person B was helped out of a tight spot and will have had a time life-line to sort something more permanent out and person A gets to have their home.

andyfromotley

Stuspillz wrote: »

On that note can my sister force me to sell?


Thanks in advance

Please tell me that you wouldn't consider making her.........

Stuspillz

Dimbo - Yes we had about 7k to put down at the start, 2007, and not very wisely took the extra borrowing at that point thinking our life's would be spent together so didnt ever imagine being in this situation. The main bulk of the mortgage itself is down to £115k now, with the extra borrowing at 7k remaining.

Believe me I don't want it to come to that, I'm trying all I can to find other solutions to keep the flat as I have invested a ton into it and it kills me to think Id loose it now after so long.

Does anyone know about having more than one name on the mortgage?

And with being in a DMP will that affect the likelyhood of even being accepted with the stricter rules now in place?

Thanks

andyfromotley

You can check on the DMP support thread about your chances of a mortgage, although i'd imagine they are low.

It doesn't sound to me like you even have anyone willing to come on the mortgage. Would they declare that they have no intention of living there? If they don't they are committing mortgage fraud, as are you. I think what you are suggesting is highly unlikely to be acceptable to any borrower. Including grandparent with no income. Just think, why would they??

Why don't you ask your current lender about what they will and won't allow? Failing that see a mortgage broker?? (although as your in a DMP- unlikely!)

Tbh, on what you have said so far you need to sell this flat. Morally you need to release your sister from her obligation. Its hardly been the investment you hoped for, You spent 'tons' on it, paid the mortgage for ages and its still worth less than you paid for it. All in all it sound like you would be well shot.

Foxy-Stoat_3

Stuspillz wrote: »

And with being in a DMP will that affect the likelyhood of even being accepted with the stricter rules now in place?

Most likely yes.

Very tough situation as your Sister stepped in so you would not lose possession of your flat that you could not afford on your own.....you still cannot afford it on your own and finding someone to tie their financial life with yours will not be very easy as their credit will be severely effected as you are on a DMP and they will be effectively tied into a property with no equity until you sell it or find another person to take on the responsibility.

When do you think you can afford it on your own? If the answer is 5 + years then I would bit the bullet and sell it now, while you are able to come away with your secured debt paid off.

Good lucks

Stuspillz

Andy - Thanks, I have two more people who I am yet to put this too, I didnt even realise about mortgage fraud.... that puts the nail in the coffin with a handful of options. My remaining two options would be the lodger who is currently living with me so that's not a problem the other is my brother who has just turned 18, not a option I want to consider after whats happening with my sister now.

With my DMP that is unsecured debt, does that make things a little better?

Foxy - Very tough yes, and I can afford it, I have been for the last two years on my own but in the eyes of the lender no I can't.
Realistically I don't even think that in 5years time the lender will let me go solo.

Booked in a few valuations, hoping Zoopla is right.....

Foxy-Stoat_3

You could ask your current lender for their index linked valuation and see if your LTV is better than you think but if your Sister wants to be free from your mortgage then you should really be putting all your effort to make this happen as without her help then you would of sold the flat a few years ago.