Need some urgent advice

paulr23

Basically me and ex partner split up, had a house for 6 months and we are either selling this or her idea is to get a trust document sorted where she will give me back 100% of what I have invested minus a couple of mortgage payments (as in her words 'I will lose this money if we sell the house'), however I will stay on the mortgage and she will own 100% of the house through the trust document and be 'liable for all mortgage payments' as it apparently will say on this document.

I'm not sure if this is an insanely stupid idea or not. But i have no intention buying another house anytime soon (living back at parents), and I thought it would be a good idea as I do not want to get a shot credit rating (owned a house for 6 months then sold it doesnt look great in terms of responsibility). However, in this scenario, she could just take me from the mortgage whenever she wants to anyway? Or no.

I have a few questions. Whats your opinion on this idea?

If we were to sell the house, would this have to be split 50/50?

And what kind of solicitor do I need to get for advice on this?

Comms69

How do you own the house presently? That will generally dictate the pay.


I'd sell. If she defaults on the mortgage, it will still affect you.


In essence all she's agreeing is to be liable to you, should there be any issues. But if there are such issues, there's a good chance she's broke....

hazyjo

Never a good idea to have joint anything with an ex. I've split with three and had to sell joint properties. Never nice, never easy, but so much easier. I would hate to still have ties to any of them! I would definitely sell.

If 50/50 is fair, split it like that. If one put more in, split it differently (ask for advice if that's the case).

Don't see why it would affect your credit rating.

You will more than likely incur mortgage penalties.

paulr23

Comms69 wrote: »

How do you own the house presently? That will generally dictate the pay.


I'd sell. If she defaults on the mortgage, it will still affect you.


In essence all she's agreeing is to be liable to you, should there be any issues. But if there are such issues, there's a good chance she's broke....

We own this as joint tenants

hazyjo wrote: »

Never a good idea to have joint anything with an ex. I've split with three and had to sell joint properties. Never nice, never easy, but so much easier. I would hate to still have ties to any of them! I would definitely sell.

If 50/50 is fair, split it like that. If one put more in, split it differently (ask for advice if that's the case).

Don't see why it would affect your credit rating.

You will more than likely incur mortgage penalties.

Completely agree, just there is emotional ties etc there which i wish i could shove but just hard to.

Could you elaborate on the mortgage penalties part? How does that generally work?

Comms69

paulr23 wrote: »

We own this as joint tenants



Completely agree, just there is emotional ties etc there which i wish i could shove but just hard to.

Could you elaborate on the mortgage penalties part? How does that generally work?

In essence the penalty is an amount of money due to the lender as a charge for early termination. You'll need to check your paperwork.


As joint tenants the default split would be 50:50.

caprikid1

Sounds like a disaster of no benefit to you.


You made a mistake, take the hit move on.

hazyjo

paulr23 wrote: »

We own this as joint tenants

Completely agree, just there is emotional ties etc there which i wish i could shove but just hard to.

Could you elaborate on the mortgage penalties part? How does that generally work?

Emotional ties will get worse as time goes on. Trust me, you won't want to be dealing with her 5 years down the line. Not sure exactly what you're wanting to do either. What is in it for you?

What if the house doubles in value in 5-10 years - are you only meant to get back what you put in? What if it halves? You may find you're hit with higher 3% tax when you do buy again as you own another house. Can't see the lender letting you stay on the mortgage if you're not 50% liable. Either she can afford it on her own or she can't. Sounds like the latter. Why would they agree to take your responsibility off if that's the case?

As Comms says, depends what you signed up for re mortgage. Fixed term for X years? It will decrease as that period declines - but you're only 6 months in. If you signed up for a 5 year deal, there will be hefty penalties. So yes, you more than likely will be out of pocket in the short term, but I think it's the better option.

paulr23

Problem is with this that I know that I will probably never own another house in the near future, if at all, so giving someone my house is not an easy task especially to the person that I hate (but still love).

paulr23

hazyjo wrote: »

Emotional ties will get worse as time goes on. Trust me, you won't want to be dealing with her 5 years down the line. Not sure exactly what you're wanting to do either. What is in it for you?

What if the house doubles in value in 5-10 years - are you only meant to get back what you put in? What if it halves? You may find you're hit with higher 3% tax when you do buy again as you own another house. Can't see the lender letting you stay on the mortgage if you're not 50% liable. Either she can afford it on her own or she can't. Sounds like the latter. Why would they agree to take your responsibility off if that's the case?

As Comms says, depends what you signed up for re mortgage. Fixed term for X years? It will decrease as that period declines - but you're only 6 months in. If you signed up for a 5 year deal, there will be hefty penalties. So yes, you more than likely will be out of pocket in the short term, but I think it's the better option.

Well there is the scenario of if I sell the house I will basically lose everything I invested as the house would have lost value (was a new build) so expected to sell for around £200-205k according to others on the market. Bought for 215k

And yes its fixed term for 5 years.

caprikid1

paulr23 wrote: »

Problem is with this that I know that I will probably never own another house in the near future, if at all, so giving someone my house is not an easy task especially to the person that I hate (but still love).

But if you agree to this, you probably will not be able to get another house. You are not keeping a house, you are losing the ability to get another.

Comms69

paulr23 wrote: »

Problem is with this that I know that I will probably never own another house in the near future, if at all, so giving someone my house is not an easy task especially to the person that I hate (but still love).

How much worse will it be when someone else has moved in, when there's kids involved?