Breaking up before finishing unpacking

Radiskull

Hi all,

Just signed up as I'm looking for some advice. I have just purchased a first home with my fiancee, we have a joint mortgage which I was happy to enter into as we've lived together for 4 years prior and we were looking forward to our next chapter. Or so I thought.

Its fixed rate for 5 years and we paid a 5% deposit. We haven't even been in there a month and she's dropped the bombshell of wanting to completely separate. She would like to keep the house (which I'm happy to let her do as I have no desire to stay there alone) but I really don't know if that's possible. She's going to go to our mortgage provider for more information next week but in the meantime I'm at a bit of a loose end.

Does anyone have any suggestions on what my options are? As it's barely been a month would it be better to just try and re-sell the property? Is that even a possibility so early?

Sorry if I've rambled, my mind is all over the place at the moment! Thanks for any help!

teddysmum

She would only be offered a mortgage if her sole income can cover it.

ACG

I agree with the above. IF her income is not enough to support the Mortgage she is not going to get it transferred to her name without someone else going on it in your place.

If you sell up, chances are you are going to have early repayment charges, which could be as much as 5% - basically your deposit is gone. You would also struggle to sell it until you have owned it for 5 months also due to Mortgage lenders 6 month rule.

Crashy_Time

ACG wrote: »

I agree with the above. IF her income is not enough to support the Mortgage she is not going to get it transferred to her name without someone else going on it in your place.

If you sell up, chances are you are going to have early repayment charges, which could be as much as 5% - basically your deposit is gone. You would also struggle to sell it until you have owned it for 5 months also due to Mortgage lenders 6 month rule.

Tell her you are keeping the house, and as she wants to break up she can move out. (I am assuming you can pay the mortgage?)

kinger101

Radiskull wrote: »

Hi all,
Its fixed rate for 5 years and we paid a 5% deposit.

As it's barely been a month would it be better to just try and re-sell the property?

A 5 year fix is likely to have substantial redemption penalties. Probably 5% of the mortgage balance. It would be better if one of you bought the other out, remaining with the same lender (assuming you'd still meet their lending criteria AND this prevents the redemption fee).

Selling a property that's been owned for six months is also problematic.

Radiskull

Thank you for the advice so far! It seems as if her buying me out is the best option - what would that entail on her end? Would it just be a case of paying me back my share of the deposit and then taking me off the mortgage?

streetlovin

Shouldn't there be something like an 'exit plan' when you buy a property together?

HampshireH

All seems a bit odd. Why would anyone go through the stress of house buying only to suddenly separate 4 weeks later.

Did she just want the house at any expense?

Hopefully you are both still talking and can resolve this amicably & hopefully she can afford to buy you out. However you will no longer be a first time buyer when you do eventually want to buy again so unable to get any h2b assistance.

Did you go in 50/50 from the start?

Ulfar

streetlovin wrote: »

Shouldn't there be something like an 'exit plan' when you buy a property together?

This is going to sound pessimistic but it sounds like she had an exit plan.

If one of you can buy the other out and take over the mortgage in sole name then that is the way to go. That however is a big if.

I would suggest seeking the advicce of a solicitor.

streetlovin

Ulfar wrote: »

This is going to sound pessimistic but it sounds like she had an exit plan.

If one of you can buy the other out and take over the mortgage in sole name then that is the way to go. That however is a big if.

I would suggest seeking the advicce of a solicitor.

Took the words right out of my mouth. This happens way too often sadly.

kinger101

Another option (sometimes used when friends buy together then one leaves) would be to take on a lodger. If you make the rent exclude household bills, then it can all be used to cover one half of the mortgage. You might then put the rest into a fund to cover repairs etc.

You could then equally share whatever's left from the sale when the property is eventually sold (or bought out).

It's a trickier fix than just buying out now, but it might be an alternative if none of you are able to do that at this stage. It kind of depends how amicable and practical you can be now the relationship is over.

As for buying out this soon after purchase, I'm not sure exactly how the mechanics works, but I think that at least stamp duty would be payable on the amount transferred (including debt), but if that's under £125K, it's nil. At best, some of the due diligence (surveys, searches) can probably be omitted but this night need to be clarified by the lender.