S
Sandstone
Guest
As a newbie to this site, and given what an excellent source of information that it is. I thought I would ask about the new situation that I find myself in to get any thoughts. I and my partner bought our house in June 2 years ago costs of 302k and today has 295k left on the mortgage that we took out with First Active. My now ex then broke us up to see someone new at the start of May and we are both still living in the house albeit in difficult circumstances.
The actual value of the house may well now not even 240k given the prices in the area that we are in and in any event there is practically no movement in the ones that are on the market. It is compounded now by my health service job having effectively taken a hit by 240 gross per month so I have actually earn less than I did when we got the mortgage 2 years ago.
I appreciate that the value of the house isn't really relevant unless it was to be sold. My ex is self employed and in a vulnerable position given the economic situation and has had to cut hours some of the people employed in the business.
My ex wants to continue to live there. I understand that the practicalities of us both living there as house mates make this undoable but from a mortgage point of view for us to sell would involve a very large shortfall. I can't imagine that the mortgage company would permit either one of us to take on the mortgage as an individual where one of us would live there and rent out the other 3 bedrooms to help make the payments. This would mean that one of us would then have to be taken off the deeds and move on elsewhere and losing our FTB status.
I don't think that it would be as clear as one person moving on and thereby freeing themselves of the 'paper debt' of the drop in prices would it? It would seem unrealistic that either of us would have to buy the other out when there is such a loss in value. The other option of renting it out as a 4 bedroom in the area we are in, next to a college and a hospital it has potential as a place to rent out but from talking to neighbours that are renting I can't see us getting more than 900 a month for the house, our mortgage payment is (without both of our TRS) 1550 each month.
Aside from the shock of the relationship break-up (8 years) which is extremely difficult for me to deal with I am very conscious that mentally I shouldn't make any decisions too quickly on this. We are for the moment pretty amicable which is a lot more difficult for me as the dumped rather than the dumper however I am determined to not descend into unpleasantness, similarly I have to now safeguard whatever future I have and not let the circumstances I am in at the moment dictate negatively what is going to happen in the future.
I would be grateful for anyone's opinions on the situation, complicated as it is. I understand that I will have to speak to the mortgage company and probably a solicitor at some stage but I would be interested to hear of anyone's experiences or ideas before I do.
The actual value of the house may well now not even 240k given the prices in the area that we are in and in any event there is practically no movement in the ones that are on the market. It is compounded now by my health service job having effectively taken a hit by 240 gross per month so I have actually earn less than I did when we got the mortgage 2 years ago.
I appreciate that the value of the house isn't really relevant unless it was to be sold. My ex is self employed and in a vulnerable position given the economic situation and has had to cut hours some of the people employed in the business.
My ex wants to continue to live there. I understand that the practicalities of us both living there as house mates make this undoable but from a mortgage point of view for us to sell would involve a very large shortfall. I can't imagine that the mortgage company would permit either one of us to take on the mortgage as an individual where one of us would live there and rent out the other 3 bedrooms to help make the payments. This would mean that one of us would then have to be taken off the deeds and move on elsewhere and losing our FTB status.
I don't think that it would be as clear as one person moving on and thereby freeing themselves of the 'paper debt' of the drop in prices would it? It would seem unrealistic that either of us would have to buy the other out when there is such a loss in value. The other option of renting it out as a 4 bedroom in the area we are in, next to a college and a hospital it has potential as a place to rent out but from talking to neighbours that are renting I can't see us getting more than 900 a month for the house, our mortgage payment is (without both of our TRS) 1550 each month.
Aside from the shock of the relationship break-up (8 years) which is extremely difficult for me to deal with I am very conscious that mentally I shouldn't make any decisions too quickly on this. We are for the moment pretty amicable which is a lot more difficult for me as the dumped rather than the dumper however I am determined to not descend into unpleasantness, similarly I have to now safeguard whatever future I have and not let the circumstances I am in at the moment dictate negatively what is going to happen in the future.
I would be grateful for anyone's opinions on the situation, complicated as it is. I understand that I will have to speak to the mortgage company and probably a solicitor at some stage but I would be interested to hear of anyone's experiences or ideas before I do.