Relationship breakdown

diggerproud

My partner has left with my son & moved into her parents. I offered to sell the house & half any profit but she said she was happy for me to keep the house if I could afford it. I have a daughter from an earlier relationship who stays every weekend so ideally keeping the house on would be great if I can afford it. As I already pay child maintenance its going to increase considerably & I also have to pay an £8k loan back to family who borrowed us our house deposit. As its my ex' mother I'd like to pay her off quickly so I'm not paying £200 a month off for years to come. I have considered moving into a caravan on a friends farm for a year to save over £1000 a month & renting my house out. My mortgage is £355pm & it should rent for £600pm. The house is my childrens future inheritance but I really don't know what to do or where to seek guidance on my options. I don't mind roughing it for a year or longer if necessary to put me in a better position financially. If I stay I'll be skint all the time & if overtime is cut at work then I'll really be hit. Any opinions appreciated, thanks

TBagpuss

Whose name is the house in?
How much is the house worth, and how much is outstanding on the mortgage (including any early redemption penalties)?
How recently did you separate?
Have you made enquiries about getting a mortgage in your sole name, if so, how much could you borrow?
What are the terms of the loan to your partner's mum - is there a written loan agreement of any kind? Is she willing to lend that to you, now your are no longer with her daughter?

You would need your mortgage lenders consent if you wanted to let the property out, you would also have to declare, and pay tax on, the rental income, and would have legal liabilities as a landlord, so the £245 difference between your mortgage and potential rent is not all going to be available to pay down the loan. Also, your ex would be entitled to her share of the rent and you might well find that while she was willing for you to continue to live in the property, she would not be willing for you to make a profit from it.

If you only bought the property recently and selling it now would leave you out of pocket once early redemption fees etc were paid, then it may be worth you looking at getting a lodger in to help you cover the costs, and perhaps to pay off the debt to your ex's mum earlier.

If you are not able to get her name off the property and the mortgage immediately it would be wise to get a separation agreement drawn up by a solicitor to set out clearly what the agreement is, including when and how either of you can force a sale, and who gets what (and who is liable for what) if and when the property is sold.

diggerproud

The mortgage is in my name only as my partner had to go bankrupt. The house would possibly be marketed for £120k, I owe £85k on my mortgage & only remortgaged to have the windows replaced several months ago. There is no written agreement for the £8k but I agreed to pay the £200pm as its her savings & she was good enough to lend us the deposit. We only recently separated but theres no going back, it was a mutual decision & we are still friends.