Advice needed - splitting up with girlfriend

bobsyeruncle

Hello,

Just thought I would ask on here for some advice. Basically im only 21 and I bought a house with my girlfriend of 4 and a half years in December last year. We had been renting a flat before that and seen renting as dead money. She has now decided she would rather be with a guy at her work so we have the house to sort out before we can go our seprate ways.

The mortgage is for £110,000. It is 100% mortgage fixed rate for 5 years at 5.78%. The total term of the mortgage is 35 years. Basically we borrowed the maximum we could borrow, over 35 years to keep the payments down and fixed for 5 years so that we knew what we were paying each month. We got a bargain with the house it is now probably worth £125k - £140k judging by other properties on the street. The house was a dive but we have spent around £4k on it which included decorating, carpets, laminate and a new condensing combi boiler.

There is a £5.5k redemption fee if we sell the house now + estate agent fee's + solicitors fee's so really we will be lucky if we break even selling.

My ex is quite happy to sign all of the property over to me but I just do not earn enough. My salary is £19500 PA + an annual bonus (roughly 3 weeks of salary).

I want to keep the house as an investment and rent it out or live in it and get a lodger in under the rent a room scheme. There is a £5.5k redemption fee and if I rent out the house I will probably get £100 a month short of what my mortgage is. But £5500 redemption fee is 55 months of renting the house out at a £100 short fall. I have spoken to somebody who recommends doing the following so I can keep the same mortgage deal:

Get my ex to sign a letter at the solicitors to say that she has no interest in the property and does not want any profit from it.
She will still be on the deeds and the mortgage but basically I can pay the mortgage myself and let out the house or get a lodger in.
It will still be her house and if she wants to sell it then I would have to, but any shortfall she is still liable for as she is still on the deeds and mortgage.
In a few years time when I am earning more or have met someone else I can remortgage and take my ex off.

Does that make sense? I am not sure what other implications this could cause? I have spoken to my ex gf about it and she is happy to do this as it means she can stop paying for the mortgage sooner rather than waiting for the house to sell.

removed personal finance details

Sorry to blab on my head is so screwed up at the moment. But im on the property ladder and I would rather stay on it. If you need any more information let me know. I hope I have came to the right place

poppy10_2

bobsyeruncle wrote: »

Get my ex to sign a letter at the solicitors to say that she has no interest in the property and does not want any profit from it....

... but any shortfall she is still liable for.

I don't see any solicitor worth their salt allowing their client to accept such terms

Try posting on the DFW board to see if there is room fr any savings on your outgoings.

bobsyeruncle

She isnt going to sign that at the solicitors. I have been told she can sign to say she does not have any interest in any profit from the property.

The part about her still being liable for any shortfall is basically because she is still on the deeds and the mortgage. She would not actually sign to say that.

Can somebody just clarify that this is possible?

atrebor

My inclination is that if you two are splitting up then there is going to be no love lost and things could get really nasty if you try and keep the property together. At some point oneof you is going to start thinking that the other is getting one over. if you can't afford to buy her out then you need to sell and be shot of it. This is not the climate to try and over stretch yourself on a house and as nice as it is to be on the ladder you need to only do what you can afford which might mean a smaller house or renting for a while longer. As for renting - that is all well and good when you have a lodger but you can't guarentee getting a lodger for every month of the next 5 years, at some point the property or room will be empty and you will have to cover the costs yourself and I seroulsy doubt that your ex will trust you with her credit score (ie if you cannot afford it she will be affected) Sorry mate, you need to cut your losses and run and see where life takes you next- you never know you might end up renting a room off your wife to be. Cant be much fun for you. best wishes

CLAPTON

Pure madness to complemplate your course of action.

Just have a clean break.

Its just open to endless disputes.

What exactly are you asking... she makes nothing from the deal but accepts unlimited liability for anything that goes wrong?

So the roof falls in.. does she pay half?
You stop paying the mortgage .. she is totally responsible?
She unwisely gets into debts and defaults... you are financially linked via the mortgage so your credit rating is trashed too.

Its impossible to say whether its possible legally because its so blatantly unfair that you can't know whether a judge in the future will overturn a written document.

Who knows she may change her mind in a few years and sue you for money you dont have.

Dont be greedy.. get a life and have a clean break.

bobsyeruncle

Yeh I suppose you are right. Thanks for the advice

Dan_Collins_2

If you remortgage the house you need it to come in at 140k, then you may have a chance on a buy to let basis. Most lenders have pulled out of systems that allow you to use rental and your own income. However if you cannot get it in your sole name flog it! seen it make peoples lives hell!

bobsyeruncle

CLAPTON wrote: »

Dont be greedy.. get a life and have a clean break.

Sorry I have to say something about this. I know you are probably a respected person on this forum and judging by your post count you have gave alot of people advice. But please do not call me greedy or to get a life. I am far from greedy, I struggled to get on the property ladder, have invested alot of time and money into this house so I am prepared to do anything to keep hold of it. I don't quite get the "get a life" part? Is that meant in a funny way?

If you remortgage the house you need it to come in at 140k, then you may have a chance on a buy to let basis. Most lenders have pulled out of systems that allow you to use rental and your own income. However if you cannot get it in your sole name flog it! seen it make peoples lives hell!

Yeh I have thought about buy to let. The only problem is the fixed rate I will get will be alot higher than the rate im currently on but at least everything will be in my name and I will have no financial ties with her. I think it is probably the best option, I might see if a member of my family wants to buy it as an investment with me. I don't think I earn enough money to do it on my own.

Thanks

Chris

simonts

Chris,

I'n the same boat as you mate but with a ex who is getting far more bitter by the day.

Currently I am stuck with selling the house and loosing a fair whack of money or trying to get her name off the mortgage somehow.

I have a £8k redemption penalty until May 08 and she wants a £5k 'payoff' well at the moment anyway.

So make matters worse she wont move out until her names off the mortgage..again proving hard to do at the moment.

I'm resisting sale mainly because it was all my money in the deposit and 2/3rds of the mortgage payments..not that that seems to matter as even though I chose not to be married she still seems entitled to half of everything.

personally I wanna try and get her name off somehow and rent the place for a bit to free income while I get back on my feet and can move in...tennants is not too much of an issue as my family owns a lettings company and we also get a lot of people needing accomodation through work.