Joint Mortage & Splitting Up

MildredW

Just looking for some advice please....

Myself and my boyfriend bought out house in 2008, things havent really been going well for us in our relationship recently and i was wondering if anyone has been through the experience of owning a house with someone they have broken up with. obviously i will be seeking professional advice but just wanted to hear from anyone who had been through the process and how it worked out for them.

Like so many others in this country we are in negative equity and not in a position to sell without taking on a debt of 50k each. I would be able to afford the mortage on my own if he were to go but Im not sure the banks would agree to this with the current climate! I paid our deposit but we have split everything else 50/50 since we moved in. anyone else been through this....

Monife

Your story reads exactly like that of my friends. Her and her ex-boyfriend (it did not end well) would be in 50k debt each too if they sold because of negative equity so they chose to rent it. The mortgage is crazy and after €1,000 rental income, they still both have to put €400 each per month to it. If you choose to rent it you will lose your mortgage interest relief or I think they might call it TRS.

You could offer to buy him out, like pay him back the contributions he has already made? And then you continue to pay the mortgage, obviously only if the bank agrees with this.

Other than that, renting, or selling with the burden of debt, I don't see any other plausible solution. Definitely get legal advice.

Johnny Bitte

Bought out my girlfriend last year.

To go the route of buying him out you need to go to the bank and ask them if they will allow this. They'll want bank statemnts and other stuff. They also tried to get me to get my parents to gaurantee. Told them no and the said ok.

If the are ok with it then its of to the solcitors for a couple of months of getting this filled out and that.You will need to get the life insuurance policy changed and house insurance policy before they'll sign off. (Not major but when you'd rather slit your wrist than talk to the ex it is a pain)

You will loose your TRS if you rent it and the interest will go up because it becomes an investment property.

If you can get on with him jointly renting might be the best option, just throw it at a letting agent and that way neither of you is running it for the other.

Hope this helps.

jd

Monife wrote: »

You could offer to buy him out, like pay him back the contributions he has already made?

Nope - he should have to make up his share of the negative equity!

OKeeffer

jd wrote: »

Nope - he should have to make up his share of the negative equity!

Indeed....he stands to lose a lot if he doesn't co-operate.

He should have the good sense to just go, and let you take over the mortgage, particularly when he didn't contribute to the deposit.

A lucky escape for him. A massive mortgage for you though.

kennyb3

You really need to sit down with a calculator/accountant.Renting it out might work for one person but not for another depending on tax rates. Only getting 50% of the income after tax if your taxed at the marginal rate can alter calculations hugely. also there are NPPR fees and other such things down the line.

Also holding onto it your gambling on the market recovering. Some very good 'what if' analysis is required from a purely financial point of view

chris85

kennyb3 wrote: »

You really need to sit down with a calculator/accountant.Renting it out might work for one person but not for another depending on tax rates. Only getting 50% of the income after tax if your taxed at the marginal rate can alter calculations hugely. also there are NPPR fees and other such things down the line.

Also holding onto it your gambling on the market recovering. Some very good 'what if' analysis is required from a purely financial point of view

Holding onto it is not really a gamble as much as it is a requirement. The bank would most likely not allow the sale leaving €100k total of unsecured debt to be paid back.

Also the OP still needs a home.

OP you could rent a room out if you wanted when your ex moves out. As long as it is owner occupied and its your primary residence you will still get TRS and same rate you are on.

One more point. The bank will need to be strongly convinced you can afford this without him. Very strongly convinced with evidence showing you can absorb unexpected costs that may come along. A financial stress test if you will. Their risk is being increased by getting his name off it so you need to convince them its the best way.

MildredW

The_Goose135 wrote: »

Bought out my girlfriend last year.

To go the route of buying him out you need to go to the bank and ask them if they will allow this. They'll want bank statemnts and other stuff. They also tried to get me to get my parents to gaurantee. Told them no and the said ok.

If the are ok with it then its of to the solcitors for a couple of months of getting this filled out and that.You will need to get the life insuurance policy changed and house insurance policy before they'll sign off. (Not major but when you'd rather slit your wrist than talk to the ex it is a pain)

You will loose your TRS if you rent it and the interest will go up because it becomes an investment property.

If you can get on with him jointly renting might be the best option, just throw it at a letting agent and that way neither of you is running it for the other.

Hope this helps.

Thank you all for your replies.

@ The Goose
Thanks for the info, nice to know i'm not the only one going through this! When you got your house signed over to sole ownership did the rate you were paying stay the same as you were paying when your girlfriend lived there or did the bank give you a new payment plan?