Relationship split with joint owned property

A

AliDesign

Registered User
Messages
38
My partner and I have just split up. We bought our house in Sept 2006 using Start Mortgages (he had a bad credit history) and remortgaged it with Haven Mortgages (Broker part of EBS) in I am looking for advice on what steps to take. The house was valued at €350k when we bought and it was valued for €340k last year when we remortgaged. The mortgage is for €323k and my full time wages have been cut from €31k to around €27k. I know a lot of numbers but I'm not sure which are important.

I need to know what my options are. He has moved out and my sister is going to rent the spare room to help me with the mortgage. I don't know if the bank will even let me take on the full mortgage. I am only back from a reduced working week (started in Feb) so my payslips were low those months but I have been transfering the same amount of money to the mortgage account since we got our joint account.

I'm also wondering if I have to pay stamp duty if he just signs the house over to me and what happens if the house is in negative equity? If I take on the mortgage am I'm the one left with a full mortgage for a house in negative equity and he just wipes his hands clean of the responsibility. That doesn't seem fair?
 
AliDesign said:
I'm also wondering if I have to pay stamp duty if he just signs the house over to me and what happens if the house is in negative equity? If I take on the mortgage am I'm the one left with a full mortgage for a house in negative equity and he just wipes his hands clean of the responsibility. That doesn't seem fair?
Click to expand...

Apologies to hear of your situation. Is the mortgage in your joint names? If that is the case then he is liable for his half of the debt. In those circumstances, why would you want him to sign the house over to you and you take all the mortgage? Also, I presume you are in negative equity at this point, would you consider selling the house and getting what you can. If the sale proceeds dont meet the mortgage then the bank will pursue you both, not just you, for the balance.
 
Everyone seems to be telling me I should get his name off the deeds as soon as possible before things get messy. I have nowhere else to go as my parents house is too small for me to move into and I couldn't afford a deposit for another place. I was thinking I could live there and rent the spare room until the prices go up. I don't expect to make much on the house but if I made enough to have part of a deposit I would be happy.
 
What are your monthly mortgage repayments? What interest rate are you paying. Will your ex allow you to take over the mortgage. The value you got last year is meaningless. You need to get an uptodate valuation, you could start by looking at similar property on daft in your area.

That said I don't see any bank allowing you to take the full mortgage in your name based on your salary. It will get messier if you do not sort it out so if you cannot buy him out than you must sell, especially as he is liable for the mortgage and has a bad credit history and you have already remortgaged once.

By the way you are making a big assumption that property prices will rise.
 
AliDesign said:
Everyone seems to be telling me I should get his name off the deeds as soon as possible before things get messy. I have nowhere else to go as my parents house is too small for me to move into and I couldn't afford a deposit for another place. I was thinking I could live there and rent the spare room until the prices go up. I don't expect to make much on the house but if I made enough to have part of a deposit I would be happy.
Click to expand...

Ali, I have been through a similar experience so I know something of these situations. I understand that people are telling you to get his names of the deeds but I fail to see how this would help you? Why absolve him of all financial responsibility and put it all on yourself? Property prices are dropping and will continue to do so for another two years. They are not going to return to the price you bought at. If I were you I would sell up and rent for at least 18 months until property price are much lower and then think about buying again. If you do not get what you paid for the property then you are only looking at making up 50% of the deficit and not 100%.

If you want to know about property prices check out the website below and feel free to pm me if you like...

http://www.thepropertypin.com
 
Bronte said:
What are your monthly mortgage repayments? What interest rate are you paying. Will your ex allow you to take over the mortgage.
Click to expand...

I'm lucky enough to be on a tracker mortgage so my interest rate is 2.1% at the mo with repayments working out at €897 per month. My ex has said I can have the house as he just wants to walk away and understands that I have put more money into the house than he has recently. If I can show the bank that I have 2 lodgers (my sister & her boyfriend) willing to pay €600 p/m between them to rent the spare room would that help? Will I lose my tracker and my interest releif (TRS) if he gets taken off the mortgage? Also any suggestions for a valuer?
 
It would be like taking out a new mortgage and you will not get a Tracker Mortgage, you will have to go through the entire process again with Solicitors fees etc. I do not think you are earning enough to get that size of a Mortgage. When couples split up a few years ago, things were alot easier as most of them put property on the market and the owners just split the profits (those were the days!) unfortunately that is not the case now and couples are splitting up the shortfall as that is the only way it can be sorted if one person can not get the entire mortgage in their name.
 
I don't think you will get a loan based on your salary. I believe the banks are not going to give you a loan based on projected rental income anymore.

Also you are at or close to negative equity. Might be time to sell up and move on. What is the benefit to you of staying where you are?
 
You must log in or register to reply here.
Back
Top