Options for buying out soon to be ex

N

nanor76

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I have a €310k mortgage on a 2-bed apt with my GF. We look as if we might be splitting and I really want to keep the apt. I don't think she does at the moment and just wants her 50% share which is fine.

I currently earn about €2100 net a month and have savings of about €7k....is there any possibility of me keeping on this mortgage? The repayments would be €1200 -> €1400 per month.

What other options do I have in terms of owning my own place?

If I lose this and go back renting it will feel like I've lost everything.

Many thanks
 
Re: Should I stay or should I go now

You could rent a room, depending on the rental in the area you could charge a decent amount and split the bills. Can you talk to your bank and look at the options of maybe extending the term of the mortgage to reduce the monthly payments for now? How much will you have to re-mortgage by to buy out your girlfriend?
 
Re: Should I stay or should I go now

Yes, I meant to add it's worth about €350k now.
 
Re: Should I stay or should I go now

nanor76 said:
I have a €310k mortgage on a 2-bed apt with my GF. We look as if we might be splitting and I really want to keep the apt. I don't think she does at the moment and just wants her 50% share which is fine.
Click to expand...
You mean 50% of the market value or 50% of the market value less 50% of the outstanding mortgage or what?
 
Re: Should I stay or should I go now

50% of the market value less 50% of the outstanding mortgage

we're only there six months unfortunately

it lasted as you can see
 
Re: Should I stay or should I go now

so you have to pay her 20 grand? next step talk to bank so about getting the mortgage upto 330,000.
 
Or €323K since the original poster has €7K in savings that could be used to reduce borrowing requirements?

€323K at 5% would be c. €1,700 p.m. over 30 years or c. €1,600 over 35 years (ignoring interest relief, mortgage protection life assurance etc.)

On a net of €2,100 that sounds tight. A net of €2,100 suggests a gross of c. €30K p.a. so an income multiple of almost 11x also sounds dodgy.

What combined gross/net income was the mortgage originally based on?
 
if you sold and split the profits you might be able to afford a cheaper place/mortgage
 
If I cancelled saving schemes, holiday fund, etc. my net would be up to over €2,400 per month.

That would be more realistic, but the mortgage would still be very high. How flexible would the mortgage provider be with regards to changing amount and term? They wouldn't be too keen I would say, with these figures in mind.

I think I might be fighting a losing battle with this one.....
 
best thing is to make an apointment to see them, look at daft for renting a room in your area. Write down the costs of what it will cost to keep it, then write down what is involved in selling it and buying something cheaper. I'm sure its really hard to think straight with all that is going on but the figures wont lie and there is no point giving up life to keep something you cannot afford. Also being single you will probably go out more and that's more expense. Hope it all works out for you.
 
Any possibility of a relative, family member or friend helping out with a loan for a few years until you can remortgage and pay them off (hopefully) or one of them sharing the place with you..?
 
Yes there is a possibility of that.

The €7k savings comes with a share option which matures in Oct-08. This could add up to over €12k.

Obviously I'd rather not take it out before time, but I may have to.

I hope the property market takes a huge dive in the next few months! ;-)
 
Take it from somone who has been in the exact same situation, although roles reveresed. I was the one who sold my half. Do everything you can to keep the place. Remember that if you sell and buy another place you are going to be hit with stamp duty. If you fall of the proprty ladder getting back on is ten times more difficult, even if you do make some extra cash from any equity in the property. I am only in the process of house hunting now and it has taken me 2 years to get back to the stage where I can buy. If stamp duty wasn't an issue I could have gotten a new place straight away and not wasted 2 years on rent.
 
A few other options

1) Find a friend who will buy out your girlfriend's interest in the house.

2) Stay on good terms with your girlfriend after you split up. She faces the same problem as you. If she is not ready to buy a house, she might be content to continue to own half of the house so she stays on the housing ladder. If this lasts a year or two, maybe your salary will increase to a level where you can buy her out.

Brendan
 
I would recommend seeing if you can either get a family member to act as a guarantor or to co-sign the mortgage.

If your potential net income is €2400pm , you need to take into account that the Lenders stress-test the motgage - which will impact further on your affordability.

Its not what the repayments are today, the Lender have to assess it on whether you could afford the repayments if rates went up.

it is extraordinarily tight at the moment, so i would advise approaching a broker or a Lender and offering them the additional comfort of a guarantor and/or parent on the mortgage.
 
ClubMan said:
Not necessarily - e.g. non FTBs of new builds under 125sqm are exempt from SD.
Click to expand...

Yes thats a good point Clubman. Although at the time I would of had to buy off plans and given the way the market has gone I'm really glad I didn't do that.

nanor76, whatever you do try to keep it curtious between both of you and believe me it makes it a lot easier. Good luck and hope it works out
 
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