Options when moving out and leaving friend behind

mattcoker

Hi, I have currently lived with my friend since the middle of 2019 and my fixed term on my mortgage ends at the end of February 2021 which is when I am planning to move out and buy a home with my girlfriend.
What would be the best route to go down as he wants to stay in the house so we won't be selling it? In an ideal situation I would like to get my deposit back (£5000, we did the H2B equity loan) but I am prepared to cut my losses and come out with nothing.
What options does he have? Could I transfer the mortgage and put his mum on it? Or even another friend? He'll struggle to afford it on his own so it's likely he'll need another person to go onto it to help out with payments.
Not sure if this makes much sense but I'm stuck on what options we have, and if we definitely have to wait until the end of the fixed term!!

cooltt

mattcoker said:

Hi, I have currently lived with my friend since the middle of 2019 and my fixed term on my mortgage ends at the end of February 2021 which is when I am planning to move out and buy a home with my girlfriend.
What would be the best route to go down as he wants to stay in the house so we won't be selling it? In an ideal situation I would like to get my deposit back (£5000, we did the H2B equity loan) but I am prepared to cut my losses and come out with nothing.
What options does he have? Could I transfer the mortgage and put his mum on it? Or even another friend? He'll struggle to afford it on his own so it's likely he'll need another person to go onto it to help out with payments.
Not sure if this makes much sense but I'm stuck on what options we have, and if we definitely have to wait until the end of the fixed term!!

If both names are on the mortgage and deeds then you are looking at a re-mortgage situation. You've said the other party can't afford it on their won so the re-mortgage application would be joint with another person.

First you need to check if the lender will allow this and secondly you need to check how this will effect the H2B situation. The conveyancing solicitor will most likely be able to help you with that.

To avoid early repayment charges it's often the case if you re-mortgage with the same lender, the charges are waved.

AnotherJoe

mattcoker said:

Hi, I have currently lived with my friend since the middle of 2019 and my fixed term on my mortgage ends at the end of February 2021 which is when I am planning to move out and buy a home with my girlfriend.
What would be the best route to go down as he wants to stay in the house so we won't be selling it? In an ideal situation I would like to get my deposit back (£5000, we did the H2B equity loan) but I am prepared to cut my losses and come out with nothing.
What options does he have? Could I transfer the mortgage and put his mum on it? Or even another friend? He'll struggle to afford it on his own so it's likely he'll need another person to go onto it to help out with payments.
Not sure if this makes much sense but I'm stuck on what options we have, and if we definitely have to wait until the end of the fixed term!!

It doesnt because you've left out some key information such as who owns this house (just you, or the two of you?) , what agreement there was between the two of you (if both own it) regards what happens when one want to sell, why you wish  apparently to keep it, because you say "we wont be selling it" but if your intention is that he buys your ?half?  from you, you will be selling your portion to him)

You cannot transfer a mortgage to soemone else and even if you could,  come end of Feb when the fixed period ends you'd go onto SVR so no one would want a new mortgage based on that anyway.

mattcoker

AnotherJoe said:

mattcoker said:

Hi, I have currently lived with my friend since the middle of 2019 and my fixed term on my mortgage ends at the end of February 2021 which is when I am planning to move out and buy a home with my girlfriend.
What would be the best route to go down as he wants to stay in the house so we won't be selling it? In an ideal situation I would like to get my deposit back (£5000, we did the H2B equity loan) but I am prepared to cut my losses and come out with nothing.
What options does he have? Could I transfer the mortgage and put his mum on it? Or even another friend? He'll struggle to afford it on his own so it's likely he'll need another person to go onto it to help out with payments.
Not sure if this makes much sense but I'm stuck on what options we have, and if we definitely have to wait until the end of the fixed term!!

It doesnt because you've left out some key information such as who owns this house (just you, or the two of you?) , what agreement there was between the two of you (if both own it) regards what happens when one want to sell, why you wish  apparently to keep it, because you say "we wont be selling it" but if your intention is that he buys your ?half?  from you, you will be selling your portion to him)

You cannot transfer a mortgage to soemone else and even if you could,  come end of Feb when the fixed period ends you'd go onto SVR so no one would want a new mortgage based on that anyway.

Hi, we are in Tennants in Common (50/50 split). Would the only way be to sell it then or to remortgage?

AnotherJoe

You could sell your half to the mother, and her and her son would need to get a new mortgage on it.

You'll have to pay off the H2B loan at the same i think because otherwise you'd have that still between you and your friend whilst rest of the house is him and his mother and it may not be possible anyway.

Best if the two of them go to see a mortgage broker now whilst there's plenty of time and if thats not tenable go to plan B, sell it. Usually you can get out of a mortgage without paying the early termination fee within a few months of the end but you shoudl make sure, you may need to run it right to the end otherwise.