What to do first?!

Trapdoor567

Hi all I am new here and in need of advice regarding my debt and how to manage it.

My partner has just left me - we have a house together which needs a lot of work before I would happy with selling it. We will lose money if it is sold in current state (bare walls, no central heating etc)

Financial context:

Salary- £46k - pick up c. £2700 pcm
PCP - £315 pcm (over 5 years)
Credit card - £5k (0% runs out in July)
Argos card - £600 (also 0% until July)

Joint personal loan - £290 pcm (another 4.5 years left)
Joint mortgage -£632 pcm (balance is £167k)

Other household bills come to around £300pcm.

I think the house needs another £8k spending on it to get it to a selling standard.

My credit score has gone down recently (PCP I think which i took out but was a household car) so I feel in a quandary about what to do - main questions:

1. Can ex force me to sell house as is - we will both lose money but can see him doing this to spite me

2. Should I pay £1750 savings off credit card/Argos card? Will this help my credit score?

3. Have I any hope of buying partner out? We are joint tenants.

Any advice gratefully received

Happier_Me

I take it there are no children involved?

How much is the property currently worth? How much did you both contribute to the deposit?

Trapdoor567

No, no children.

Deposit situation is complex. Technically it came from sale of partners house but I contributed significantly to that property for c. 3 years but wasn’t on the mortgage...

Equity is £40k.

Trapdoor567

Property is worth c. £220k (maybe?) would need to get it valued in current state. If done up I would expect £260k.

datlex

Is your joint mortgage figure, your share or the total?

Trapdoor567

Thank you for replying. It’s the joint figure.

sourcrates

Trapdoor567 wrote: »

1. Can ex force me to sell house as is - we will both lose money but can see him doing this to spite me

2. Should I pay £1750 savings off credit card/Argos card? Will this help my credit score?

3. Have I any hope of buying partner out? We are joint tenants.

Any advice gratefully received

Hi,


You need legal advice from a good property/divorce solicitor on points 1 and 3.


As for point 2, keep your savings, you may need them, credit scores fluctuate at the slightest change in circumstance, they are not a good indicator of your credit worthiness, if you have money in any joint account, move it to one in your own name ASAP, as spiteful ex`s have a tendency to empty such accounts at the first opportunity.


Get advice before you commit to anything, I can almost guarantee your ex will be doing the same thing.

Unicorn_cottage

Are you married/civil partnership?

Happier_Me

I am absolutely no expert on this but I've attempted to put your details into a mortgage affordability calculator and I think you will struggle to get a mortgage for the £167k given your outgoings. You know your circumstances better than me obviously so it might be worth doing yourself. But on the figures you've given I can't see how you would get a mortgage for the amount outstanding AND raise the money needed to pay your ex his share of the equity (approx £25k on a sale value of £220k). You could maybe take on the joint loan to cover part of his equity but unless you have a good chunk of savings you've not mentioned, I don't think you could afford to raise the money to do it all.


I'm a planner so I'd be researching every option available to rule them in or out if I was in your shoes. Get some honest house valuations in its current state. Contact a mortgage advisor to see if there is anything you could do to remortgage in your name? Do you need the car? Could this be returned and what would you owe if you did this?

enthusiasticsaver

I think it sounds complicated to hang on to the house and on your outgoings you may struggle to put the mortgage just in your name let alone add anything to it to buy your partner out or borrow extra to do it up. By the same token I would not want to do anything to the house to increase the value until you have sorted out the finances with your ex. It is not just the mortgage but also the joint loan and presumably the credit card is joint debt (regardless of whose name it is in). Is he going to be paying half the mortgage, loan repayments and credit card repayments in the meantime as he is jointly liable for these?


If the current valuation is £220 that will pay off the mortgage and the loan presumably and maybe the credit card? Anything else would be split 50/50. Yes you may not make much on it but it gives you the chance of a clean break and you start again without the debt or the ex.

Travel123

Hi TrapDoor,

Sorry to hear this has happened to you. I have been there myself and know how scary and difficult it can be to face this on your own.

As others have suggested, I would absolutely find yourself a solicitor who can help you navigate through this. There are some who offer a free 1 hour which may help you to clarify a few things.

With regards to your questions:

1. Unfortunately, if you are unable to buy your ex out, he can force you to sell the house.

2. Is the £1,750 savings all you have? If so, I would keep that as a buffer.

3. As you are joint tenants, you both own 50% of the house, regardless of what you both put in. The starting position for any negotiations is that you have 50% of the equity and your ex-partner also has 50% of the equity. If I were you, I would look online at mortgage calculators, or pop into your bank and see what they say regarding a mortgage for yourself. I would try to do this before contacting a solicitor as then at least you will know if buying your ex-partner out is possible.

You are both responsible for paying any joint debts, but the bank won't care if this is you or you ex-partner. Have you discussed with you ex-partner as to who will be paying for the joint loan? Do you have any joint bank accounts or does this loan come out of a separate account?

Completely agree with the above poster about not doing anything to the house. There is an argument to be had when negotiating if you have made home improvements which you have paid for and have increased the value of the house, however, nothing is guaranteed.

Do let me know if you would like any further help, and the best of luck in sorting this out.