Trying to sell but don't know if I can last it out....

tombooth

In May 2006 Me and my Ex-Fiance bought a house for £119,000. We got a 100% mortgage for £125,000 in order to pay off some debts between us.
A couple of months back me and the GF split and she has moved back to live with her parents, leaving me in a house that I can't afford to live in.
Although she is well aware of the situation and that it will affect her just as badly as it does me, she is not willing to get a job and help me pay the mortgage.
Obviously the house is on the market - fortunately for £132,500, so I will hopefully get enough to pay everything off. My problem is that when we originally arranged our mortgage we took a 2yr fixed rate mortgage, this is due to end at the beginning of March and my monthly payments will go up by over £200.
I have spoken to a mortgage advisor through my estate agent who has advised me that their mortgage products available which will lower my payments and not tie me in. However, with my ex not working I do not have enough income to take out a new mortgage.

Can anyone give any suggestions as I'm really worried that I'm gonna end up having to default on the mortgage because I can't sell it in time..

Thanks

OLS

Just a quickie cause Im a bit confused....

So you purchased for £119000.....You got a 100% mortgage for £125000? If your only purchasing for £119000 does that not make it more than 100% mortgage, somewhere in the region of 105% mortgage?

Was your mortgage interest only or Capital & interest....I ask because obviously if it was C&I your balance will be a bit less than the £125k you borrowed, perhaps somewhere around £120k (I use this figure as we just had our mortgage stat and paid off about 5.5k in just over 2 years but its an estimate). If you cant get a mortgage because of your income multiples, then really your only option is to sell (or default which you dont want to do) so if you find out your mortgage balance you will be best of pricing the property to sell rather than to make a profit....i.e they valued it at £132500, its a slow market, if you only owe £120k, put it up for £125k, you should get more interest because its a better deal, at least then you can pay your mortgage off and not be in debt! If however you still owe the £125k maybe just lower it a little to £130k but take offers for £125k if someone offers you it!

If im right in my thinking, if you owe more than the house is worth - or what they can sell it for at auction, I think you may still be liable for the difference i.e if they can only get what you paid for it £119k, you are still then liable for the £6k difference....Im sure someone will correct me if I am wrong.

If your GF is not taking responsibility for half the debt, perhaps you could get a Transfer of Equity to your sole name so that IF you manage to make a profit (even if only 1k) she can not claim half of it!

Good luck!

Debt_Free_Chick

OLS wrote: »

If your GF is not taking responsibility for half the debt, perhaps you could get a Transfer of Equity to your sole name so that IF you manage to make a profit (even if only 1k) she can not claim half of it!

She would have to agree to this plan. Unfortunately, she is entitled to half of any profit just because her name is on the deeds. She would still be entitled to half if she hadn't contributed a penny! :eek:

OLS

Debt_Free_Chick wrote: »

She would have to agree to this plan. Unfortunately, she is entitled to half of any profit just because her name is on the deeds. She would still be entitled to half if she hadn't contributed a penny! :eek:

mm thought it might be something like this....I take it then this means she is liable for half the debt if he goes down the repossesion route and there is a difference between the selling price and mortgage price?

SquatNow

correct! if the mortgage is in joint names you are both jointly and legally liable for the entire amount.

epz_2

if i were you i would look into offering it for 125k or whatever if covers your debt if they complete fast, it should shift it faster at a discount and has the benifit of screwing you ex out of any profit, for the sake of 3k i would be vindictive.

SquatNow

Find out how much you need to cover the mortgage.... say it's 123k

Fing out how much unsecured credit you can easily get.... say 3k

then sell for 120k

Your ex-gf then owes you 1.5k

Sue the b1tch.

loveandlight

Posted by Debt_Free_Chick
Unfortunately, she is entitled to half of any profit just because her name is on the deeds. She would still be entitled to half if she hadn't contributed a penny!

On the face of it yes but this can be changed by the court. The aggrieved party can always apply to the court for an order that they receive more than half share of the sale proceeds after the sale of the property once the mortgage and sale expenses have been paid.

Nenen

Could you take in a lodger until you sell? At least then you wouldn't have to default on the mortgage. You are allowed to make around £4,000 per year from a lodger without paying any extra tax and the notice you have to give to a lodger living in your own home is much shorter than if you are a landlord renting a whole house/flat (useful if you are fortunate enough to sell quickly).
Good luck

To all the posters who suggest vindictive strategies towards the ex-gf it would seem a bit hasty and unfair to make suggestions like this when the OP doesn't give any info re why they split or other relevant circumstances (e.g. she could have come home to find him in bed with her best friend and walked out or she might just have had a baby and be suffering from PND so unwilling/unable to work).

barnaby-bear

tombooth wrote: »

In May 2006 Me and my Ex-Fiance bought a house for £119,000. We got a 100% mortgage for £125,000 in order to pay off some debts between us.
A couple of months back me and the GF split and she has moved back to live with her parents, leaving me in a house that I can't afford to live in.
Although she is well aware of the situation and that it will affect her just as badly as it does me, she is not willing to get a job and help me pay the mortgage.
Obviously the house is on the market - fortunately for £132,500, so I will hopefully get enough to pay everything off. My problem is that when we originally arranged our mortgage we took a 2yr fixed rate mortgage, this is due to end at the beginning of March and my monthly payments will go up by over £200.
I have spoken to a mortgage advisor through my estate agent who has advised me that their mortgage products available which will lower my payments and not tie me in. However, with my ex not working I do not have enough income to take out a new mortgage.

Can anyone give any suggestions as I'm really worried that I'm gonna end up having to default on the mortgage because I can't sell it in time..

Thanks

Can you get a lodger £3-4k tax free might help persuade a mortgage company

Nenen

barnaby-bear wrote: »

Can you get a lodger £3-4k tax free might help persuade a mortgage company

You were exactly an hour after this post from me Barnaby!:D

"Could you take in a lodger until you sell? At least then you wouldn't have to default on the mortgage. You are allowed to make around £4,000 per year from a lodger without paying any extra tax"