Young Couple Split - New House

stevexp

Hi,

I am trying to help a friend out. Basically a young couple have split, they have a young son. They bought a house about a year ago, for about 100k, they boy has moved out, and has not been paying his share of the mortgage for a couple of months.

The girl wants to buy him out basically, she put in the deposit and is due that back according to original agreement.


What is best way to go about it, does she have to try and get a new mortgage just in her name ? She is worried about doing this on her own income etc. There is not much equity in the house if any after fees etc. so would it be in both their interests for her to buy him out as the first option, if not just sell ?


Thanks

Browntoa

She needs a mortgage in her sole name

If her earnings won't allow that then selling is the only option

DUTR

stevexp wrote: »

Hi,

I am trying to help a friend out. Basically a young couple have split, they have a young son. They bought a house about a year ago, for about 100k, they boy has moved out, and has not been paying his share of the mortgage for a couple of months.

The girl wants to buy him out basically, she put in the deposit and is due that back according to original agreement.


What is best way to go about it, does she have to try and get a new mortgage just in her name ? She is worried about doing this on her own income etc. There is not much equity in the house if any after fees etc. so would it be in both their interests for her to buy him out as the first option, if not just sell ?


Thanks

She would have obtain a mortgage in her own name or certainly without her current named person and that is if a lender is willing to risk the loan to her , this will depend on various factors.

Caz3121

stevexp wrote: »

they boy has moved out, and has not been paying his share of the mortgage for a couple of months.

there is no 'share' in a joint mortgage, they are each 100% liable. Has she paid the full payment or are arrears building up? (note this will affect both their credit files)

need_an_answer

Has the relationship broken down without any possibility of reconciliation?

If the girl cant get a mortgage on her own then the property is best sold....and whilst she was the one who put in the deposit theres no guarantee that after costs and fees are paid on the sale that that money will be returned to her in full.

Is she still living at the property?
Would she be willing to look at the possibility of getting a lodger to help with the mortgage costs?

What does boy want out of this situation...a clean break or is he hoping for "his share of everything"....knowing what mindset the couple are in may help when deciding the onward options, and I appreciate that they could both have very differing views!

Stoke

I assume the boy has some equity in the house. You can work that out easily enough. Return it to him. Get a contract written up. Transfer of equity. Job done. She owns the house. He's out the picture.

I went through this with my ex.

swingaloo

Its not that simple, he will still be on the mortgage.

Stoke

swingaloo wrote: »

Its not that simple, he will still be on the mortgage.

A transfer of equity is the transfer of the properties equity into a different ownership structure. So your application would be transferring of equity from two parties, to just one party. In exchange, you would agree (as per your contract) a sum. Honestly, I went through this with someone who is more than likely a lot more vindictive than the young man you're dealing with.... She is not on my mortgage otherwise I'd probably be homeless and probably destitute right now.