Mortgage takeover - need advice urgently.

D

Dellgirl

Guest
Heres a sticky one.
My fiancee and I have just split up. We bought a house togeather a year and a half ago and took out a second mortgage to extend the house. Everything came to about €380,000. The house has appreciated in value and would now sell for €485 - €490,000. to buy him out I would need at least €60g. I am gettting 2 tennents in and that will bring in €800 a month in rent. I earn 36-40g myself. I have to apply to the bank for a top up on the mortgage to buy him out and Im not sure how the whole thing works. Can anyone advise me on where or how to go about the next steps that have to be taken or has somebody been in any similar sort of situation? All halp and advice appreciated.
Thanks.
 
I'm afraid even with two lodgers* in no lender will approve a mortgage of circa 10 times your income unless you have a guarantor (has to be a family member) with sufficient INCOME (not equity/assets) to sustain their own living costs and your mortgage.

Have you considered selling and splitting the proceeds? On your own income (with no debts and room rental) you could borrow €210,000 in your own name.

Sarah

www.rea.ie

* do be aware that if you receive more than €635 a month from renting rooms in your own home that you are liable for income tax, minus deductions for expenses, on the full amount.
 
If the original mortgage was taken out in joint names, then you're looking at a new mortgage in your own name rather than a top-up. My experience was a marriage break-up where my ex-hubby bought me out of the family home (agreeably, I might add!). The joint mortgage was redeemed and he took out a new mortgage in his own name only. By doing this, he naturally became the sole registered owner of the property. In effect it's like a house sale, requiring the legal transfer of property from 2 persons to one person.
 
Thanks guys. I know its a long shot but I have to work my way around this. Im not selling hte house if I can help it at all. THey'll have to drag me out kicking and screaming!
 
you require a mortgage of €420,000 to buy your ex partner out. Your income allowing for room rental will qualify you for €250,000, which does'nt even cover the joint mortgage of €380,000 never mind the extra €60,000 for buy out.

Would you have a suitable guarantor as Sarah suggested
 
Would I need the gaurentor for the whole lot or just the ammount Im lacking? Thanks.
 
With such a large gap between what you qualify for and what you want you'd need a guarantor for the full amount.

On €420,000 over 35 years at 4.5% your gross repayments are going to be over €2000 per month, how on earth would you manage? (even with room rental). Is a pile of bricks and mortar really worth it??

Sarah

www.rea.ie
 
Try a broker/bank and see what they offer you. My brother is getting a mortgage (not a straight forward mortgage) at the moment and the broker he is using has been great, says what will work and what will not. That broker is based in Dublin and we have found him great so far. My advice is go and check out a couple of them and see what they say. Optimistic
 
You must log in or register to reply here.
Back
Top