Hi all,
Hoping for some advice on my current and short term future situation and the best way to approach it. Slightly long and complicated so bear with me.
I currently own an investment property with my ex husband. We originally lived there as our PPR and on separation we both moved out and it is currently rented. Rental income covers the interest payable plus some extra (same tenants for 3 years +). We are both still paying our full portion of the mortgage each month so the rental income is building up in a savings account and is used for unforseen expenses, insurance, income tax and/or as a lump sum payment at some point (not used yet as overpayments trigger a penalty). We both contribute equally to this (I could stop this and just pay my portion of the shortfall between rent and mortgage which would give me extra cash of 325 per month). I do our tax returns each year and we pay approx. 500/600euro each in tax per annum after deductible expenses and capital allowances etc. We have applied for a divorce and it is pending - we are amicable and expect it to come through within a year (conservative). We have no children. Numbers below;
Original cost of property (2006) - 300,000
Mortgage - 300,000
Balance outstanding on mortgage - 255,000
Value of property - 100,000 (conservative)
Term of mortgage - 39 years, tracker
Monthly repayments - 880 pm
Rental income pm - 650
Amount built up in joint savings (with ex) - 16,000
Everything with existing investment property is 50:50 with ex. He doesn't want to sell until such time as we can clear outstanding mortgage and ideally make a profit. He is happy to retain house indefinitely and has no plans to apply for another mortgage. (Just to note - amicable situation re divorce is partially reliant on this - if I tried to force a sale or in any way change the status quo, this could change)
Current situation
Me (33) - salary 89,000 (plus bonus generally 6,000-8,000 (not guaranteed) - private sector, permanent job, in job 4 years, no credit card debt or other debt of any sort
Fiance (31) - salary - 75,000 (plus bonus of c. 3,000-6,000), private sector, permanent job, in job 10 years, no credit card or other short term debt
Joint savings - 60,000
Currently renting together - 750 each per month
We are considering making a joint application for a mortgage and before we approach any banks or brokers we want to anticipate what reactions we might get and what obstacles we will face. The numbers below are estimates, we haven't chosen a particular house we want yet.
Want to buy - 4 bed family home
Value of property - 580,000 approx
Amount of mortgage - hopefully 500,000 (expect to save another 20k this year)
Term - 30-35 years
Savings - 60k
Lump sum from fiance's parents - 20k if needed
No children yet
Never any default on debts, never any late credit card payments, we both own our cars outright
Neither of us have an overdraft
My questions are -
1. Do we have any chance of getting a mortgage together or would my fiance have a better chance applying alone? Draft calcs online say we may get approx. 620k together (that's including my monthly mortgage debt of 440 but presumably the online calcs view this as short term debt and so this isn't accurate). They say fiance would only get approx. 350k alone. Would every bank automatically deduct the 255k on my current o/s mortgage from the 620k (or relevant figure) bringing us down to 365k even though I am only responsible for half of the 255k (realising that joint and several liability with ex means the full 255k gets taken as my debt) Should we save for another year before even considering applying and hopefully have 100k with our savings and gift from fiance's parents?
2. Is there any alternative for me in situation with ex other than retaining the IP and sticking with it until we can sell for the o/s mortgage balance? Given current value I expect this to take 10+ years. I also don't have the cash (approx. 75k) I would need to have ex "buy me out" - as I'd need to pay him 1/2 the neg. equity balance. I realise it is profitable in the sense that rent is covering interest costs but I don't want to be tied to ex indefinitely. Current savings I will need for deposit on new home.
Thank you!
Hoping for some advice on my current and short term future situation and the best way to approach it. Slightly long and complicated so bear with me.
I currently own an investment property with my ex husband. We originally lived there as our PPR and on separation we both moved out and it is currently rented. Rental income covers the interest payable plus some extra (same tenants for 3 years +). We are both still paying our full portion of the mortgage each month so the rental income is building up in a savings account and is used for unforseen expenses, insurance, income tax and/or as a lump sum payment at some point (not used yet as overpayments trigger a penalty). We both contribute equally to this (I could stop this and just pay my portion of the shortfall between rent and mortgage which would give me extra cash of 325 per month). I do our tax returns each year and we pay approx. 500/600euro each in tax per annum after deductible expenses and capital allowances etc. We have applied for a divorce and it is pending - we are amicable and expect it to come through within a year (conservative). We have no children. Numbers below;
Original cost of property (2006) - 300,000
Mortgage - 300,000
Balance outstanding on mortgage - 255,000
Value of property - 100,000 (conservative)
Term of mortgage - 39 years, tracker
Monthly repayments - 880 pm
Rental income pm - 650
Amount built up in joint savings (with ex) - 16,000
Everything with existing investment property is 50:50 with ex. He doesn't want to sell until such time as we can clear outstanding mortgage and ideally make a profit. He is happy to retain house indefinitely and has no plans to apply for another mortgage. (Just to note - amicable situation re divorce is partially reliant on this - if I tried to force a sale or in any way change the status quo, this could change)
Current situation
Me (33) - salary 89,000 (plus bonus generally 6,000-8,000 (not guaranteed) - private sector, permanent job, in job 4 years, no credit card debt or other debt of any sort
Fiance (31) - salary - 75,000 (plus bonus of c. 3,000-6,000), private sector, permanent job, in job 10 years, no credit card or other short term debt
Joint savings - 60,000
Currently renting together - 750 each per month
We are considering making a joint application for a mortgage and before we approach any banks or brokers we want to anticipate what reactions we might get and what obstacles we will face. The numbers below are estimates, we haven't chosen a particular house we want yet.
Want to buy - 4 bed family home
Value of property - 580,000 approx
Amount of mortgage - hopefully 500,000 (expect to save another 20k this year)
Term - 30-35 years
Savings - 60k
Lump sum from fiance's parents - 20k if needed
No children yet
Never any default on debts, never any late credit card payments, we both own our cars outright
Neither of us have an overdraft
My questions are -
1. Do we have any chance of getting a mortgage together or would my fiance have a better chance applying alone? Draft calcs online say we may get approx. 620k together (that's including my monthly mortgage debt of 440 but presumably the online calcs view this as short term debt and so this isn't accurate). They say fiance would only get approx. 350k alone. Would every bank automatically deduct the 255k on my current o/s mortgage from the 620k (or relevant figure) bringing us down to 365k even though I am only responsible for half of the 255k (realising that joint and several liability with ex means the full 255k gets taken as my debt) Should we save for another year before even considering applying and hopefully have 100k with our savings and gift from fiance's parents?
2. Is there any alternative for me in situation with ex other than retaining the IP and sticking with it until we can sell for the o/s mortgage balance? Given current value I expect this to take 10+ years. I also don't have the cash (approx. 75k) I would need to have ex "buy me out" - as I'd need to pay him 1/2 the neg. equity balance. I realise it is profitable in the sense that rent is covering interest costs but I don't want to be tied to ex indefinitely. Current savings I will need for deposit on new home.
Thank you!