Keeping a house after a breakup

cha1n

Hi,

It's looking like my partner and I are being up and I'm wondering where I stand with our house. If I were to rent out a few of the rooms I could easily afford the mortgage payment (I could even cover it on my own if needs be) but I wouldn't get a mortgage on it on my own.

What are my options here too keep the house? My partner isn't particularly interested in keeping it, but I'd have to eventually get her deposit contribution back to her.

(P.S. I'm not being cold regarding is breaking up but this is something that's troubling us both)

Thanks for any advice.

moneyistooshorttomention

Best to look at this practically - and at least you don't both wish to keep the house.

Not just the deposit to consider though. Did she pay a share of all the other expenses involved in getting the house? (eg solicitor fees/removal fees/etc)?

cha1n

Yes, well it's not the first time we've broken up so at some point you've got to be grown up about it.

There were other fees, the most significant being stamp duty. I could pay her back but it'd have to be over the course of a year or two. My main concern is if I'm able to get some sort of mortgage that allows me to keep the house.

Could I apply for a buy to let mortgage or can you not do so if you'll be living there? I don't mind renting elsewhere if needs be, I just don't want to lose the house. We got it at a good price and I've grown attached to it.

teddysmum

I imagine a btl mortgage would be harder to get then a regular one and would not be appropriate if you are living there.

Pixie5740

The SDLT, solicitor's fees, surveys and other costs of buying are gone. You don't need to reimburse her for those.

No you can't get a BTL mortgage if you're going to live in the property yourself. You will need a residential mortgage so is it likely in the next year or so that you will be able to qualify for a residential mortgage in your name only? If the answer is no then you need to accept you can't afford to continue living there, get the place sold and sever financial ties with your soon-to-be-ex.

If you want to let the whole property out whilst you live elsewhere then you will need a BTL mortgage. That means a 25% deposit plus the rent will need to cover at least 125% of the mortgage payments, possibly even 145%. Since you will own no other properties there will be a minimum income requirement of circa £25k.

moneyistooshorttomention

I'd disagree about "not needing" to reimburse girlfriend for solicitors fees etc. It wouldnt have been possible to get the house without paying out for them. The only way they would be "gone" is if the house was sold and neither of them were able to get them back.

If OP keeps the benefit of having the house - then, of course, he is due to cover her share of that in the event of a break-up. Otherwise - she would have literally given him money towards buying an asset that turned out to be only for him - and that wouldnt be fair.

Voyager2002

Presumably it is currently jointly owned and mortgaged...

So long as your income is adequate, the current mortgage can continue with her name being removed both from the mortgage and the title deeds. This means that you become the owner of her share of the house, so you will need to agree a sum of money that represents the value of her share.

So long as she agrees, there is no need to do anything until you do have sufficient income to satisfy the mortgage lender. Up to that point she continues to be a joint owner of the property and to be liable for the debt owed to the mortgage lender.

PasturesNew

In short, owning the house yourself and cutting the ex out of it means YOU remortgaging and taking on the whole mortgage yourself, from your income.

Feeling you can afford it, by taking in lodgers, doesn't mean any lender will agree with you.

Can you start by giving an idea of how much the house is worth and how much you earn/year? You might be SO way off the mark that it's going to be impossible, or maybe you can see a way forward.... the answer's in black and white in the actual figures.

silvercar

I'd disagree about "not needing" to reimburse girlfriend for solicitors fees etc. It wouldnt have been possible to get the house without paying out for them. The only way they would be "gone" is if the house was sold and neither of them were able to get them back.

I disagree, they are spent. Both parties took ownership and spent the money on the purchase. The purchase was made so the money is gone.

If OP keeps the benefit of having the house - then, of course, he is due to cover her share of that in the event of a break-up. Otherwise - she would have literally given him money towards buying an asset that turned out to be only for him - and that wouldnt be fair.
The

It was a joint benefit, that both parties enjoyed. There is nowhere that says if you split up and one continues they reimburse the other.

However the legal costs of transferring the mortgage to one name or the remortgaging costs to move the mortgage would be born solely by the person making that transfer.

silvercar

Voyager2002 wrote: »

Presumably it is currently jointly owned and mortgaged...

So long as your income is adequate, the current mortgage can continue with her name being removed both from the mortgage and the title deeds. This means that you become the owner of her share of the house, so you will need to agree a sum of money that represents the value of her share.

So long as she agrees, there is no need to do anything until you do have sufficient income to satisfy the mortgage lender. Up to that point she continues to be a joint owner of the property and to be liable for the debt owed to the mortgage lender.

Agreed. Easiest is to ask the current lender for transfer of equity.

davidmcn

cha1n wrote: »

I wouldn't get a mortgage on it on my own.

Then (unless you can persuade someone else to replace her as owner or guarantor) you can't afford to keep it.