Relationship breakdown - joint mortgage

1st_time_buyer_5

Ex Other Half and I have recently split - having bought a house on a 2 year fixed rate mortgage with the Chelsea in December.

I am hoping to buy him out (with help from my parents) - as selling up completely and forfeiting the mortgage now will incurr large penalties, probably lose us money - and I do want to stay in the house.

I am hoping that either one or both of my parents may be able to buy out his share of the equity - and I could then cover the whole mortgage IF I got a lodger in - but would mortgage company be ok with this? Or would it be possible to have a parent as guarantor, but whole mortgage in my name, with parents then owning smaller share in house from money they put in for his equity?

My mother has suggested that she buy his half of house and pay his half of mortgage - thus owning 50% of house - but she would want me to get lodger to cover her share of mortgage. I am feeling that if I am getting in a lodger, I'd rather they were 'buying' the house for me.... especially as my mother and I rarely see eye to eye and I can see massive disagreements occurring!

What are my options - and where do I start?!

1st_time_buyer_5

Eh?!

Why on earth does it say 'Stay lucky! Steve.' at the end of my post?! I didn't add that - and I'm not Steve!

rchddap1

When the site moved over to the new boards all the sigs got messed up. If you look through the User CP section you will be able to remove it. Can't help with your situation though, and I do hope that you are able to sort it all out.

Pal

While I am sure that you might have disagreements with your mother, you are far more likely to fall out with a new lodger, even if they are a personal friend. If the lodger is a stranger then they are unlikely to want to buy half a house with a stranger themselves.

I would take up your mother's option then look for a lodger. There are tax breaks available for renting a room out in your house, so it is well worth looking into. It also means that you can evict the lodger if necessary.

Then you just need to work out a way of buying your mother's half back from her, preferably by saving the money, using your own income and by charging lots of money to the lodger.

1st_time_buyer_5

Pal wrote:

While I am sure that you might have disagreements with your mother, you are far more likely to fall out with a new lodger, even if they are a personal friend. If the lodger is a stranger then they are unlikely to want to buy half a house with a stranger themselves.

I would take up your mother's option then look for a lodger. There are tax breaks available for renting a room out in your house, so it is well worth looking into. It also means that you can evict the lodger if necessary.

Then you just need to work out a way of buying your mother's half back from her, preferably by saving the money, using your own income and by charging lots of money to the lodger.

Sorry - badly explained - I didn't mean buying a house with the lodger! I meant I would take responsibility for the whole mortgage (If this is possible? Maybe with a parent as guarantor?) and would then get a lodger in whose rent would help cover the cost of it/provide extra general income.

What my mother wants is to own half the house, and be responsible for half of the mortgage, but rent out 'her' half of the house to a lodger to cover 'her' half of the mortgage.

So I'm thinking that if I am going to have to share the house with a lodger anyway, I'd rather that the rent came to ME and I used it to contribute to mortgage and had main share in house rather than it going to her and covering her mortgage costs thus enabling her to effectively own half of the house whilst only actually forking out for initial deposit amount?

Hope thats clearer?!

Just wondering if such a thing is possible?

meanmachine_2

What's the mortgage?

What's the property value?

What does your ex want?

What is your salary?

Can you not switch to interest only - in the shorter term at least.

If you can cover the mortgage yourself then the power is in your hands.

1st_time_buyer_5

Mortgage was £67,500 when we started paying it at end of Dec

Property cost £107k - have probably spent another £5k on it. I doubt it has really increased in value, and improvements will not have added much yet as not quite finished.

Ex wants his share of deposit/purchase costs back, and his share of contributions to DIY stuff - He paid slightly more of purchase and improvements costs than me (About £16.5k + 3.5k roughly - not worked out exact sums yet - but will be around £20k).

My salary is £13,150

Don't think I can switch mortgage - think I am tied in completely for 2 years, but will confirm situation with lender.

I could only realisitcally cover mortgage myself if I took in a lodger.

meanmachine_2

Ok, so your net take home pay is around £880, correct? By my calculations your monthy mortgage repayments are £399, does that sound right?

Giving you £480 a month to live on.

Is that not do-able?

If you change to interest only, you would be paying just £281 a month.

And if you switch from 25 years to 30 years int only, you pay even less.

Of course you also have to trhink about paying back your ex...

Pal

Sorry about that.

I suggest that buying yourself with your mum as a guarantor rather than part owner would probably be better, as you will avoid getting into trouble if your mum ever wants to sell up (e.g. if she goes into a home, dies, etc etc). Yes it should be possible if your mum is willing to do it.

Part ownership sounds like a pain to me. Your mum gets the potential profit from the rent and any house price increases, while you have to do the landlords job for her?

1st_time_buyer_5

Problem is, whilst I could cover mortgage on my own (with lodger) I need parental help to buy out ex's equity. My Dad cannot afford to lend the full amount (could/would lend some though as 'interest free loan') - My mother however will only contribute if there is something in it for her - it would have to be an investment for her. She can afford to contribute a lot more as owns her own house outright - so I will probably need her to buy out equity - for which she will probably want to own a certain percentage of the house (But I'd rather it was a small percentage instead of half). Although we could possibly agree that I would 'legally' own whole house with her as guarantor, but in event of sale/me buying her share later, I would let her have that percentage + that percentage of any value increase back....

dprovan

at the risk of sounding really rude, from what you have decribed I would not want your mother owning 50% of the house, as she sounds quite ruthless, so could you hand on heart know she wouldn't want bought out or similar when it didn't necessairly suit you.

For that reason your second option sounds much the better obviously assuming she agrees.

good luck whatever you decide