Split with Partner - what to do about house?

M

MsConfused

Guest
Hello,

I have recently decided to split with my partner. We bought a house 6 months ago and have a 2 year fixed mortgage. I understand that there will be a penalty for breaking the term. However, in the meantime, should we both stay in the house or one move out or what? Things are not good between us so it wouldn't be my first choice to stay in the house together. At the moment I'm staying with friends but obviously it's not a long term solution. Hope you guys can help me on where to go from here?

MsConfused...
 
All depends whether you can afford to pay the mortgage and rent. If you stop paying 1/2 the mortgage, you are reducing your investment in the property. Probably the best thing to do is have a chat with your mortgage provider and find out what the penalties would be - weigh up the implications of selling up, buying out or sticking it out - and then decide whats right for you.
Bear in mind that other things may be in joint names, (or maybe just your name) too, ESB, gas/oil, phone - if things are really bad between you and your partner - are they the type of person who'd run up big bills with your name on??
 
Hi MsConfused.

I went through a similar situation almost ten years ago. I moved out because it was unbearable to live with him. Trouble was he wouldn't agree to let me buy him out so we had to sell, after the sale had gone through and it was time to clear o/s mortgage it turned out he had not paid anything off of the mortgage in the 9months between my leaving and sale agreed, house was nearly repossessed but I knew nothing of it. Def let your Mortgage Institution have a forwarding address for you for all such correspondence. Also if you fixed your mortgage for a rate that is less than the current variable rate it is my understanding that you would not be hit with any penalties, also check with your provider as I know that some providers allow a "once out clause" from fixed mortgages I used it myself 3 years ago and no penalties whatsoever.

Good luck!
 
You have three main options;

1. Sell the house, split the profits after all costs have been deducted.
2. You buy him out.
3. He buys you out.

If it is at all possible do try to meet and decide a plan of action (preferably with someone there to take notes of what you agree) before relations deteriorate and you have to get solicitors involved. If you have a joint account it would be very adviseable to close it. Do make sure your partner (and you!) realises that not keeping up with the mortgage payments and other bills will impact on your credit ratings long after you have gone your seperate ways......

Sarah

www.rea.ie
 
Best advice is to try to sort it out yourselves. A friend of mine was in a similar situation and ended up paying almost 25k in legal fees after 2 years of wrangling.
 
Hi everyone, thank you for your replies so far, sorry to take so long to get back on.. I'm now back in the house in spare room and spending as little time as possible there, he has insisted he's not moving out and we are still paying the mortgage as before. He said he will buy me out but not till next year (which I don't think he'll have the cash to do so), can I force him to sell otherwise?
 
You should consider switching the mortgage to interest only repayments until you get this sorted out. This will minimise the repayments you have to make to the bank.

There's probably little point in paying off the capital if you are going to sell next year and by the sounds of it, it could get messy.

My only advice is to not miss any payments otherwise your credit rating will be affected and seek proper legal advice over ownership issues.

Best of luck

B
 
you could always stay with your friends and get tenant for house, who will continue to pay your share of mortgage. Your rent with your friends may even be less than your share of mortgage?

whoever takes their name off the deeds will no longer be a first time buyer - just be aware of that.

what if you let him buy you out at market price now, then when house prices fall next year, and/or the forthcoming budget makes it easier to get on property ladder, you may be able to afford sthg on your own?
 
Triplex, if she's only lived there for 6 months and then moves out and puts in a tenant, will the Revenue not say it's not her PPR but an investment property and get her for Capital Gains Tax when its sold for 20% of whatever she gets for her half.
 
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