Owning a house and splitting up?

benc90

My girlfriend and I are in the process of splitting up. We own a house together. The deposit and all legal fee's were paid for by my family. I want to keep the house and she wants buying out. We have only had the house just under 3 years. We have a 5 year fixed mortgage. I can only just afford the bills on my own.

Where do I stand and where do I start?

Pixie5740

Did you have a declaration of trust drawn up when you bought the property documenting what would happen in the case of a split? If so, that's your starting point. If not then a 50/50 split is the starting point for negotiations.

What are the early repayment charges on the mortgage? Do you earn enough to get a mortgage for the property solely in your own name? That will be the difference between being able to buy her out and having to sell.

benc90

It's split 50/50 I believe but we are trying to be amicable, she know we would never have got the house if it wasn't for my family and she acknowledges that. I doubt I earn enough solely on my own. Not sure about early repayment charges. We are nearly 3 years into a 5 year fixed. Could I get a mortgage with a guarantor?

Pixie5740

You might be able to get a mortgage with a guarantor. You'd really need to go and speak with a mortgage broker who can go through your options with you.

benc90

Thank you, I work 2 jobs and can pay all bills and mortgage from one wage. The other would cover living expenses but it is tutoring and can be hit and miss with hours. I'll probably never get a holiday again but I don't want to lose the house I love.

AnotherJoe

Could you get a lodger in for the first few years?

benc90

A lodger could be an option, I don't really feel like sharing with a stranger but if it means I get to keep my house.

hazyjo

Pretty sure a lender won't take a lodger into account when it comes to affordability.

Do you have much in the way of debt? Credit cards? Loans?

Play around with a mortgage calculator to get an idea on what sort of money you would be able to borrow alone (YBS have some good/easy ones) to see if there is any chance of keeping your property.

Is there any equity?

Good luck.

Jx

breaking_free

A lodger could actually be a very good option, depending on who you choose. For example, you could specify a Monday-Friday only let so that you have the place to yourself on the weekends.

I've had many lodgers over the years and I always choose the same type:
- Young
- Male
- Good job

Without exception, every one of my lodgers has spent almost no time at home because they're out having fun. It's even better when they get a girlfriend because they will often stay over at her place (never the other way round).

Find a lodger that will treat your place as a drop in pad, rather than a home. Incidentally, I've always ended up decreasing the rent by a few quid as the lads always use minimal electricity and hot water (they shower at the gym and barely do more than switch on a light bulb for a few minutes when they're home).

AnotherJoe

hazyjo wrote: »

Pretty sure a lender won't take a lodger into account when it comes to affordability.

Agreed. I was thinking more along the lines that if OP could just scrape a mortgage without a lodger, then that would help make the difference between managing and comfortable (and they could start paying down the mortgage quicker to give more options.

Cassandra1194

Echoing earlier advice, the house was bought 50/50. Legally, that's where you stand. It means nothing that your girlfriend knows that she wouldn't have the house without your family's input but given that you are stating you couldn't afford a mortgage on your own, then I would ask - could you have ever gotten the mortgage for the house without her salary input? Doesn't sound like it.

Around three years have gone by? I imagine she loves the house as much as you do and I assume she's been paying her half of the mortgage as you've not said otherwise.

My advice to you is start at a 50/50 point. Get three valuations done by estate agents you agree on the. You go and find out if you can afford to buy her out with a guarantor at 50/50. If this isn't possible then get the house on the market and split the proceeds.

Your family putting the money in makes no difference legally and with property and break ups the quickest, legally correct option is normally best.

I know this is a horrible situation for both of you but try very hard not to get too entrenched. It will only damage you bothe financially and emotionally. We all hate to lose houses/pets/other assets in break ups but that's life. Good luck.