Remortgaging - My story, advice sought

kelie

He's 25. Very immature for his age - travelled the world working as a club rep etc. I've never given him a key but he did phone me last night and say he was coming down later today.

I stayed up all night worrying about everything so I look and feel pretty rough today.

My estate agent will hopefully be here any minute. I will keep you all posted.

kelie

Okay the estate agent said my house looked unlived in, unloved and shabby. It needs a few grand on it to sell it at a decent price.

To sell it as is, we'd be lucky to get 170k for it. If we do it up he'll market it at 184,995. I've decided i'm going to cut my losses and sell it. I don't want to end up losing all my deposit money. Only problem being I spoke with my ex and he can't afford to sell at the moment, so every additional month we're losing a grand each from our profit.

angelavdavis

kelie wrote: »

Only problem being I spoke with my ex and he can't afford to sell at the moment, so every additional month we're losing a grand each from our profit.

Why can't he afford to sell at the moment?

kelie

He is unemployed and in debt by around 6 to 10k I don't know the exact figure. He says he cant afford to rent anywhere else.

angelavdavis

On the upside Kelie, at least you stand to avoid having to pay the penalty for the mortgage tie in period.

I am a little puzzled about what that financial advisor said about removing your ex from the deeds however, because when I split with my ex-husband, I just had the mortgage switched to my name - which Virgin (my mortgage company at the time) had no problem with. I might be wrong but I don't remember paying any costs for deed changes - the deeds are after all in the name of the mortgage company until you pay off the mortgage.

Perhaps someone else can confirm?

kelie

I am a little puzzled about what that financial advisor said about removing your ex from the deeds however, because when I split with my ex-husband, I just had the mortgage switched to my name - which Virgin (my mortgage company at the time) had no problem with. I might be wrong but I don't remember paying any costs for deed changes - the deeds are after all in the name of the mortgage company until you pay off the mortgage.

I can't keep the existing mortgage as I don't earn enough I didn't realise the deeds were in the name of the mortgage company.

Still I'm kind of at stand still until he can sell. I just dont want to lose even more money than I already stand to lose. I am going to do up the house a little bit ready so it's nice to live in and nice when we sell. Make it more homely. We don't even have a sofa! Have spent 6 months sitting on the floor!

angelavdavis

Well, don't forget, instead of spending large sums, many people give away decent stuff on freecycle because they are moving to a smaller property or are just redecorating. See where your local freecycle is and post up a Wanted post to see if anyone can help you (or keep your eye open for giveaways but you have to be quick!)

Incisor

kelie wrote: »

I can't keep the existing mortgage as I don't earn enough I didn't realise the deeds were in the name of the mortgage company.

That is slightly misleading. The 'conveyance deed' is between buyer and seller and puts the property into the name of the buyer. The 'mortgage deed' is between the lender and the borrower and gives the lender the right to reclaim the property in the event of default and to reclaim any sums owing on sale of the property.

Still I'm kind of at stand still until he can sell. I just dont want to lose even more money than I already stand to lose. I am going to do up the house a little bit ready so it's nice to live in and nice when we sell. Make it more homely. We don't even have a sofa! Have spent 6 months sitting on the floor!

Can you afford the existing mortgage and a little more? If you like it there, then you might be able to have it for just that mortgage. To be ethical you need to explain to your co-owner the consequences of delaying a sale - that if the value goes down, the loss comes from your shares of the deposit. Draw the conclusion that he needs to cooperate with you in selling, but if he wants to drift, then fine.

So let the value drop, until it just exceeds the value of the mortgage. Put it on the market and top the best offer by £1000 say, take over the mortgage and offer him his share of the excess of your offer above the mortgage, which will be peanuts. Hard one to carry off, some details to be fleshed out, but not one to do unless you have explained the consequences first.

Don't waste your money on tarting the place up if you want to pull this stunt.

kelie

Thank you.

I've contacted the co owner (ex) and he has said that he wants 30 to 35k for me to buy him out. Now he only put in 30k and the value has gone down not up!

Incisor

kelie wrote: »

... I've contacted the co owner (ex) and he has said that he wants 30 to 35k for me to buy him out. Now he only put in 30k and the value has gone down not up!

Ugh, a deadly embrace. He looks like he will hold out if prices go down. Oh well, as long as he pays his share of the mortgage, you could try riding it out. You are as well, though to sell, if the agent can get you more than you paid, after expenses.