House valuation is less than needed to pay fees, no savings. What do I do?

Whalerain489

Me and my ex are needing to sell the house due to the separation. To cover the fees of selling the house would need to sell for 10k more than it has been valued. 

The house is a new build, only been here for 1.5 years. The developer is still building for another 2/3 years. Obviously, you buy new builds at a premium, and they don't make the money back for a while. 

If the house sold for what it has been valued at, it wouldn't even cover the cost of the early exit fee from the mortgage lender. Then the solicitors and estate agents would need paying as well. On top of any additional fees I've missed. 

For myself, I have no savings. I have a credit card in my name for around 5.5k. I am also trying to save to rent after the house sells and I would need first months rent, deposit and moving fees. My monthly outgoings are a lot due to taking over all the utilities in the house as I'm still living here and my ex doesnt want to pay them (thats fine). My ex has moved out and is still paying for their half of the mortgage and house insurance still. 

Personally, I don't think I could get a loan to pay for the fees as I got declined to increase my credit card allowance and a declined for £40 phone contract. So I highly doubt I will be accepted for a loan amount of around 5k maybe more to pay the fees. 

I dont earn enough to buy my ex out of this house. I'm unsure if my ex would be accepted either and to be honest they are not willing to do that. 

I know that it could take months to sell the house and go through but even 6+ months I couldn't save enough to cover fees and to save to move. I dont have any family or friends to move into once the house sells either. 

I feel financially stuck, I feel anxious and I honestly don't know what to do. I'm losing sleep over this. Because if I can't get the money together to cover the fees, what happens. Because everyone involved in selling will want paying on completion and if I dont have my share of the fees, what do I do? I can't just make the money appear or get a loan. I'm selling what I can but it's pennies compared to what I need. 

silvercar

As difficult as it is, you need a discussion with your ex. Together you need to find the money needed, it isn’t your sole responsibility. If they want their name off the mortgage, they need to share the costs of selling up.

The bottom line is that you can’t sell without enough money to pay all the fees.

monkey-fingers

I'm with Silvercar on this.

Could I suggest getting a lodger in?

Flugelhorn

agree with monkey-fingers - have a look at getting a lodger

Bigphil1474

Your house is pretty much worthless then, so no need to buy them out. Do you also mean you don't have the earnings to take them off the mortgage? They are being a bit short-sighted tbh. Have you suggested that you carry on living there and your ex sees it as an investment until the value goes above what you owe?

Have you checked your figures. You are right, new houses have a premium, but presumably you paid a deposit so it shouldn't be worth less than the price minus deposit. Have you actually worked out the fees? You could go down the route of something like Purple Bricks free service, with no fees. That will save you the 1% + VAT. I think they are pretty rubbish for selling anyway, so it might take a lot longer that your ex thinks. Solicitor fees should be no more than £2k, then you've just got your ERC on the mortgage.

Albermarle

monkey-fingers said:

I'm with Silvercar on this.

Could I suggest getting a lodger in?

Rent a room in your home: The Rent a Room Scheme - GOV.UK

zedonk

I've been in a similar situation where neither of us could afford to sell or buy the other out. We agreed that I would live in the flat and pay the mortgage, but my ex remained named on the mortgage and title deeds while renting elsewhere. It's not ideal but has worked well for us until we can get the funds together to move. It helps that we are amicable though. 

sheramber

zedonk said:

I've been in a similar situation where neither of us could afford to sell or buy the other out. We agreed that I would live in the flat and pay the mortgage, but my ex remained named on the mortgage and title deeds while renting elsewhere. It's not ideal but has worked well for us until we can get the funds together to move. It helps that we are amicable though. 

If you read the first post you would know the OP is living in the house and partner renting elsewhere. 

Partner is paying half the mortgage but OP cannot afford to pay utilities bills as well as half the mortgage. 

GDB2222

In some divorce cases the couple remain living together in the same house until things can be resolved financially. Obviously not ideal, but the situation described in the OP is not ideal either. 

Purplelady65

How long is your mortgage for? Could you increase the term so that your monthly payments could be reduced so that you can afford the payments in your own? Is there some way you could increase your income? Given the options available to you it sounds as if your best option would be to stay where you are if you can make the numbers work. As others have suggested could you take on a lodger?