PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.How can ex buy me out of house?
Comments
-
You haven't knocked £12k off the mortgage though (most probably) - you've paid £12k in mortgage payments, the majority of which (£11,500) might be the interest.
You're pretty much up the creek without a paddle over this one as there are all sorts of unseen problems with trying to shift a 2nd hand house while there are new ones for sale (new ones FTBs can buy with a HTB loan), so your buyers would be "everybody else"...
Can't you just get back together? It'll be easier than to come out of this with both of you happy.0 -
Check what is the outstanding balance on your mortgage.Deleted User wrote: »No we have knocked 12k off the mortgage. I!!!8217;m not sure I totally follow all the above, unless the house is in negative equity we should have 30k equity regardless of the house price - or is that not how it works?
Ha, it would be easier financially but we aren!!!8217;t getting back together! Accepted we just have to take the hit and put it down to life experience but wanting to try and do the best here and not make any stupid moves.
Then when you have a sell price, you first subtract 20% for the HTB, then the outstanding mortgage balance. What is left is your equity.
The caveat here is the you will have to repay 20% of a RICS valuation to cover the HTB equity loan. In your circumstances this valuation might be higher than the sell price.0 -
It helps if we nail actual figures to the situation.Deleted User wrote: »No we have knocked 12k off the mortgage. I!!!8217;m not sure I totally follow all the above, unless the house is in negative equity we should have 30k equity regardless of the house price - or is that not how it works?.
With actual figures you can get actual calculations.
This is the back of my fag packet:
If you bought it for, say, £250k, with £200k being "your deposit and mortgage (£20k deposit; £180k mortgage)" and £50k being HTB loan - and if you paid an extra £1000 per month off the mortgage, then you'd now owe £168k of the £180k you originally borrowed.
If the house is now worth £280k and you sold it, it'd go like this:
20% of £280k = £56k. That goes to the HTB people as they own a 20% stake in the house, not £50k.
£280k - £56k = £224k is "yours".
£12k knocked off the £180k mortgage = £168k mortgage.
£224k - £168k = £56k is "yours".
£56k = your original £20k deposit back + £36k "profit", minus estate agent fees+VAT and solicitors... so about £5k there. There MIGHT be other fees to pay (e.g. early mortgage redemption) or there might not.
You'd walk with your £20k deposit and about £31k.
But you'd lose your FTB status and access to another HTB if you meet Mr Right next year. (Update: Apparently I'm wrong about this, see a response on next page).
E&OE0 -
Not the HTB, you don't have to be FTB to be eligible, as long as your sale completes at the same time as the purchase of the new build (like in any normal chain) you are consideret to not own the property at the time or purchase and can use HTB equity loanPasturesNew wrote: »But you'd lose your FTB status and access to another HTB if you meet Mr Right next year.
https://www.helptobuy.gov.uk/equity-loan/eligibility/
The RICS valuation will show the value of the home, not for how much it sells. Because you are looking for a quick sale and the timing is poor you will likely take a hit and sell under value, but you might still owe the HTB agency 20% of the valuation. Check with them to be sure. The guide only mentions that if you sell over valuation you owe % of the sale price. Unfortunately it doesn't mention what happens if you sell under. But I suspect you will owe % of the valuation, otherwise its open for abuse.Deleted User wrote: »Understood, that!!!8217;s helpful thank you. I hadn!!!8217;t considered the RICS valuation might be higher than the sale price. Could you help me understand why that might be? I had assumed they would be the same (or at least very close).You can sell your home at any time and an independent valuer must decide
what it is worth. Your property should be sold on the open market at the
prevailing market valuation. If you do sell your property for more than the
prevailing market value then the amount due to Homes England under the
equity loan will be their percentage value of the actual sale price.0 -
what are the mortgage amount, rate, term, and payment?
any ovr payments?0 -
But it's a secondhand house and no longer eligible for HTB.Deleted User wrote: »How does that affect my equity?
The point is that the house may not have Increased in value over the last year, and in fact it may possibly have gone down in value. This is because people pay more for new houses than for the same one that has been lived in for a year or two.
Also, you were able to afford the house only because of the HTB scheme. Somebody buying from you cannot get the HTB assistance, so they probably won't pay as much.
What this means is that you will probably have to undercut the current sales price for the equivalent new house.
Your equity is the difference between the eventual sale price and your mortgage at the time. Even with your deposit and the money paid off the mortgage, you may get nothing back. You could even have to pay more to redeem the mortgage than the house sells for.No reliance should be placed on the above! Absolutely none, do you hear?0 -
Would you be prepared to post a link to your property and we could maybe offer ways to improve it (cheaply) to get it to sell.Thrifty Till 50 Then Spend Till the End
You can please some of the people some of the time, all of the people some of the time, some of the people all of the time but you can never please all of the people all of the time0 -
Ms_Chocaholic wrote: »Would you be prepared to post a link to your property and we could maybe offer ways to improve it (cheaply) to get it to sell.
That's been done on the OPs other thread. There's nothing to be done, it's fine.
The house is just priced too high. It's as simple as that.0 -
The truth is if you only put in 5% (roughly £18k) to a new build barely 12m ago, your real life equity after fees, mortgage penalty, new build premium and the price you need to sell at to get yours away in a competitive location could well be nil or minus. Your figure of £30k certainly sounds optimistic. Its hard to see you walking away with much of a deposit towards your planned next purchase.
It also seems a bit wrong for him to buy you out based on £30k - you seem to be working equity out on what you've paid in not what this house would actually net if you sold now. He could pay you some for not incurring some of the fees but if he had to sell for other reasons short term all the above would be a real life loss for him which you would have escaped.
If he has family help on offer it may be better directed to help him personally get over the losses on this one and start again.
You might have to be more cautious on what you think you will have as a deposit for your next purchase.0 -
getmore4less wrote: »Is that the payment or the capital part of the payment?
18k deposit 5%, 20% HTB £72k mortgage £270k
£270k over 25 years at 3% £1280pm capital paid off in Year 1 £7.5kgetmore4less wrote: »what are the mortgage amount, rate, term, and payment?
any over payments?
you said on the other thread you bought for £358 so the number 270 for the mortgage above is about right.
Still trying to see how you paid £12k off the mortgage in a year unless you did overpayments?
These are sample numbers
rate payment years
0% £1000 22.5 years
2% £1441 18.75years
higher the rate the shorter the term needs to be to pay off £12k in 1year.
your mortgage details would help make sure you have this right.0
This discussion has been closed.
Categories
- All Categories
- 343.1K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.2K Work, Benefits & Business
- 607.9K Mortgages, Homes & Bills
- 173K Life & Family
- 247.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards