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    • paulr23
    • By paulr23 16th Apr 19, 5:27 PM
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    paulr23
    Advice for pre sale of a house
    • #1
    • 16th Apr 19, 5:27 PM
    Advice for pre sale of a house 16th Apr 19 at 5:27 PM
    Following on from https://forums.moneysavingexpert.com/showthread.php?t=5984287 basically, part two..

    We broke up, she now wants to keep the house and give me my deposit back with help from her family. Problem is, she wants me to stay on the mortgage so that she can get the mortgage in the first place as without me she wouldnt be able to have the mortage as we both are on relatively low incomes, however she wants to own 100% of the property.

    I'm telling her this isnt possible, however im not entirely sure. Seems ludicrous to me that I can be on a mortgage and not technically own any of the house.. if anyone can shed some light whether this is possible/wise, would be good.
    Last edited by paulr23; 16-04-2019 at 5:30 PM.
Page 1
    • sammyjammy
    • By sammyjammy 16th Apr 19, 5:36 PM
    • 4,529 Posts
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    sammyjammy
    • #2
    • 16th Apr 19, 5:36 PM
    • #2
    • 16th Apr 19, 5:36 PM
    Even if it were possible its a REALLY bad idea, you would be jointly liable for the mortgage.
    "You've been reading SOS when it's just your clock reading 5:05 "
    • middleclassbutpoor
    • By middleclassbutpoor 16th Apr 19, 5:37 PM
    • 612 Posts
    • 550 Thanks
    middleclassbutpoor
    • #3
    • 16th Apr 19, 5:37 PM
    • #3
    • 16th Apr 19, 5:37 PM
    I would take the money back and recoup your finances.

    You are tied to the mortgage whether you like it or not. If she doesn't want to sell, then you can't force her too.

    Getting your deposit back would be very unusual in these circumstances.

    It sounds like the only way you will get off the mortgage is by selling the house from an affordability so you may need this money to force a sale at some point. I would just play nice and get your money back for now.
    • jlaw4
    • By jlaw4 16th Apr 19, 5:38 PM
    • 104 Posts
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    jlaw4
    • #4
    • 16th Apr 19, 5:38 PM
    • #4
    • 16th Apr 19, 5:38 PM
    Would you be looking to buy yourself? if so, it may be much harder to buy another property if your on this mortgage too as they would take this mortgage into account on affordability (whether your contributing or not)

    i'd seek legal advice, but honestly, i'd run a mile! what if she defaults? her family may be able to assist but you should either sell, buy her out or something but not stay financially linked.
    • middleclassbutpoor
    • By middleclassbutpoor 16th Apr 19, 5:41 PM
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    middleclassbutpoor
    • #5
    • 16th Apr 19, 5:41 PM
    • #5
    • 16th Apr 19, 5:41 PM
    Even if it were possible its a REALLY bad idea, you would be jointly liable for the mortgage.
    Originally posted by sammyjammy
    They will but that will not change. She wants to keep the house as she can't afford from a mortgage affordability point to do it on her own.

    If this is the case, he could get 'more assertive' with the situation which would likely mean he gives up his deposit in costs/disputes and the equity being shared equally in absence of a deed of trust of some kind.

    The way to play it is to get your money back, let them get on with their life and you with yours. If you don't feel comfortable being on a mortgage in say 6 months time after you have your money back, you can start discussing this with the knowledge they have nothing over you.

    If they are sensible, they will get a legal agreement in place which states that he won't be able to claim further equity from the property or force a sale within a period of time. If they are not clued up and will take people on their word. It is down to how the OP wants to play it but its best to get the money in the bank.
    • paulr23
    • By paulr23 16th Apr 19, 5:55 PM
    • 31 Posts
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    paulr23
    • #6
    • 16th Apr 19, 5:55 PM
    • #6
    • 16th Apr 19, 5:55 PM
    I would take the money back and recoup your finances.

    You are tied to the mortgage whether you like it or not. If she doesn't want to sell, then you can't force her too.

    Getting your deposit back would be very unusual in these circumstances.

    It sounds like the only way you will get off the mortgage is by selling the house from an affordability so you may need this money to force a sale at some point. I would just play nice and get your money back for now.
    Originally posted by middleclassbutpoor
    I'm in no way forcing a sale, I actually want to keep the house to boost my credit rating as we have only had this like 6 months or less. However I guess she wants it to be finished with and over and no financial ties which is fair enough.

    Kind of feel bad for her selling it as of course she will have no where to live afterwards and I can easily go back to my parents, and she just cannot.
    • middleclassbutpoor
    • By middleclassbutpoor 16th Apr 19, 6:04 PM
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    middleclassbutpoor
    • #7
    • 16th Apr 19, 6:04 PM
    • #7
    • 16th Apr 19, 6:04 PM
    Simple solution is that you then say - pay me X in a lump sum and I will waive all rights to any right to proceeds from the sale of the property at a later date.

    You will remain on the mortgage and therefore you will be liable for the mortgage debt should she fail to pay the mortgage.

    I would get a solicitor to get a legal agreement in place which accepts that she can't hold you indefinitely into the mortgage and maybe that you will agree not to force a sale for a period of time for example and that she has a responsibility to notify you should a payment not be made to the lender.

    You need to speak to a solicitor and regardless of what you do as part of your agreement, you will be named on the mortgage, liable for the debt and your credit rating could be trashed if she fails to make payments.
    • tom9980
    • By tom9980 16th Apr 19, 6:16 PM
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    tom9980
    • #8
    • 16th Apr 19, 6:16 PM
    • #8
    • 16th Apr 19, 6:16 PM
    Terrible idea for various reasons

    1. You wont be able to buy another house without paying 3% stamp duty

    2. Mortgage company will see you on another mortgage so cant meet affordability for a new property you may wish to buy.

    3. You will be liable as far as the mortgage company are concerned and likely wont find out about defaults until its too late to save your credit rating.
    In order to change, we must be sick and tired of being sick and tired.
    • middleclassbutpoor
    • By middleclassbutpoor 16th Apr 19, 6:23 PM
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    middleclassbutpoor
    • #9
    • 16th Apr 19, 6:23 PM
    • #9
    • 16th Apr 19, 6:23 PM
    The situation isn't perfect so there isn't a clean solution.

    Terrible idea for various reasons

    1. You wont be able to buy another house without paying 3% stamp duty

    OP has stated that they want to retain the house for now - no mention of buying another yet. It is also why I have suggested he put an agreement in which sets the expectation that he may at a future point want to be released from the debt so the money being paid shouldnt be seen as an indefinite period of time

    2. Mortgage company will see you on another mortgage so cant meet affordability for a new property you may wish to buy.He has stated he can go back to his mum's house. No mention of needing to go onto another mortgage. See above response for considerations around this happening in the future.

    3. You will be liable as far as the mortgage company are concerned and likely wont find out about defaults until its too late to save your credit rating.Absolutely but what other options are there for him - won't force sale. Has loads of money tied up in a property which he wont get back until house sells? Very rare in a split that you can get your money out like this. For me, its about minimising the risk- can't completely get rid of it but this is as far as I can see is the best outcome for them given what they want to do and don't want to do
    Originally posted by tom9980
    • paulr23
    • By paulr23 16th Apr 19, 8:12 PM
    • 31 Posts
    • 1 Thanks
    paulr23
    Terrible idea for various reasons

    1. You wont be able to buy another house without paying 3% stamp duty

    2. Mortgage company will see you on another mortgage so cant meet affordability for a new property you may wish to buy.

    3. You will be liable as far as the mortgage company are concerned and likely wont find out about defaults until its too late to save your credit rating.
    Originally posted by tom9980
    1. I thought I would have to pay stamp duty regardless on my next purchase on a house? As this is only waived for first time buyers?

    2. As below, not looking to buy for a long time yet and morally want to do the right thing and leave her with a roof over her head, maybe im being too nice and not thinking about myself ... not sure.

    The situation isn't perfect so there isn't a clean solution.
    Originally posted by middleclassbutpoor
    Yes, you are right. I think the best course of action is to take my money back and I agree to take no further equity thats being accrued from now till whenever this is finished completely... I'm skeptical at whether or not her parents can actually afford to give me 30k considering their circumstances but I guess we will see...
    • middleclassbutpoor
    • By middleclassbutpoor 16th Apr 19, 8:15 PM
    • 612 Posts
    • 550 Thanks
    middleclassbutpoor
    Good luck with everything...

    1. I thought I would have to pay stamp duty regardless on my next purchase on a house? As this is only waived for first time buyers? you will but if its deemed a 2nd home you pay it at an increased rate.

    2. As below, not looking to buy for a long time yet and morally want to do the right thing and leave her with a roof over her head, maybe im being too nice and not thinking about myself ... not sure.



    Yes, you are right. I think the best course of action is to take my money back and I agree to take no further equity thats being accrued from now till whenever this is finished completely... I'm skeptical at whether or not her parents can actually afford to give me 30k considering their circumstances but I guess we will see...
    Originally posted by paulr23
    • paulr23
    • By paulr23 16th Apr 19, 8:17 PM
    • 31 Posts
    • 1 Thanks
    paulr23
    Good luck with everything...
    Originally posted by middleclassbutpoor
    Thank you, means a lot.

    Definitely will need it.
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