Separation: Buy out or Sell?

J

jessie2

Registered User
Messages
19
Hi process of seperation. Not married. House in joint names.
If I can buy out I am looking at at mortage of €100K (Approx - nothing agreed on yet, currently 60:40) + €37K existing mortgage.
If we sell we may walk away with €125K approx each.
I currently have €37K in savings (which could be used to clear mortgage in buy out) & an SSIA due next May, full €20K. These savings were gifted to me. Of course family home issues etc. do not apply here I am aware of all this so no advice required re. my position in eyes of law please!

As the house is worth €290-300K it is finanancially more attractive etc. to stay here as I will be unable purchase anything locally. I paid for half the purchase value of house in 1st place but looks like I will have to forgo this as I went into joint tenancy without making arrangements for this. Not sure how a judge would treat this though if we cannot settle in mediation. I have one child, school-going locally.

Big Problem: Past 18months I have only been working part-time - €12,000
Do I even have a hope in hell of getting anything (€40-50K) from a mortgage company. I will of course have to work full-time if necessary. Apparently they do not take social welfare payments into consideration?

I know I can use a guarantor on mortgage - does this person have to show the mortgage company all their financial details or could they just put there own home, for example, in as collateral. I'm really confused as to what line I take. I shall be approaching my existing employer to consider me for full-time work should something come up.

Any genuine, practical, concrete money advise much appreciated.
 
On €12,000 plus room rental with no loan commitments you should be able to borrow €50,000 - the lenders will consider your full time income as and when you are actually working full time, not on the offer of a position. A guarantor's income is assessed rather than their assets (your home is more than enough security in itself for the mortgage) so yes, their full financial details would need to be declared and checked.

How come you only need €100k to buy out half a house worth €300k?!

Sarah

www.rea.ie
 
Sarah - I only need €100k as I said I have the monies to clear the outstanding mortgage (i.e. will take) €140K to buy out. This is a relationship buy out as in divorce & my partner will probably not be taking full 50% as I will remain in home with our son, though nothing has been agreed on yet - a difficult situation, & I'm not sure how best to approach it. I have to think of my son too who is now in local school, distance to work, so a buy out is most suitable. If we sell I would have to move out of area to get anything under €300K or I will end up throwing money away in rent. Do you know if social welfare payments, such as lone parents, are considered 'income' by mortgage lenders. Thanks
 
P.S. - do you mean renting a room out to secure mortgage? This is a family home & unless my back is totally to the wall, I do not intend to rent a room (might consider a student Mon-Fri though)
 
If you have 3 bedrooms lenders will add in room rental whether or not you actually take in a lodger. They won't take social welfare payments but they will add in maintenance that is confirmed by way of a court order - would there be any payable? I agree that it would be the best if you could stay in the house - how long would it take to agree an increase in your hours and what would that take your income up to?

Sarah

www.rea.ie
 
Hi Sarah
My boss is away as he travels a lot for business so I'll try & pin him down soon. I would be due a pay rise next Feb but salary depends on job & what available - I would probably have to go back to more demanding role, & I'd expect at least €26K+ for that so that would probably mean I would have no problems securing €100K, based on house value too?
It would not be in my interest to leave existing employer after 6 yrs, I have some security here.
I was under impression that maintenance was not considered as it tends to be unreliable sometimes? Ours would not be agreed by court order but would be at least €200+ a month. Didn't know that about room rental, interesting.
Thanks!
 
If maintenance isn't agreed by court order lenders will disregard it as, as you say, it can't be relied on. On a salary of €26,000 and no loans you could borrow up to €135,000.

Sarah

www.rea.ie
 
All parents are legally obliged to support their children, so once you have an amount agreed between you apply to the Family Court for a maintenance order - it's not a big deal you can do it yourself and it shouldn't be a problem for him as he has already agreed to pay it.

Once you have your court order you can use it as Sarah has suggested; though you need to be aware that even with a court order maintenance can't be guaranteed (but don't tell your lender that!)
 
You must log in or register to reply here.
Back
Top