Case study is it worth buying her out?

[mch2013]

i bought a house in 2005 with a joint mortgage with my partner. the relationship finished in 2010
the purchase price was 270,000
we borrowed 200,000
i own another house on my own.
in 2008 i took half the money from the joint mortgage over into my own house.
since we broke up we have rented out the house. but the rent doesn't cover the mortgage.
i am paying my mortgage in my house which now includes half the money from the new house.

joint mortgage; 88,000 including arrears of 4,000.
single mortgage now 33,000 as i paid a lump sum into it.

i am collecting the rent and putting it into the joint mortgage. but she was topping it up to meet the amount required
she has stopped topping it up now for almost 2 years with the result that the mortgage has gone into arrears.
the house is now worth approx 130,000

i don't know what to do with this?
the bank will let me buy her out but i'll loose the tracker morgage of now 1.1%. and be put on a buy to let rate of about 5%
she wants half the furniture also.

i don't know if it makes financial sense to buy her out of a house worth only 130,000 when i will have to pay another 88k to pay off the mortgage and i will have paid 135,000 in total when i have paid off the mortgage that's now on my own house.

should i pay the property tax as well?
she says she will not pay it.
i am paying for everything while she is getting off scott free by just ignoring everything to do with the house.
any advice would be greatly appreciated.

 

[newirishman]

I guess a major question is: do you want to keep the house that is currently rented out or not?

Mortgage left: 88,000
House value: 130,000

If you sell at the price, you are left with a plus of 40,000 euro.
This might need to get split 50/50 between you and your ex, so maybe leaves you with 20 K.

So my advise probably is: cut your potential losses, and take the 20K.

EDIT: this allows you to draw a clear line under the relationship, which is IMO always preferrable.

 

[PadKiss]

Hi MCH2013, there may be an opportunity to porting the tracker rate on this to the 'new' loan but it depends on the lender and their willingness to do it would need more info to develop further along a number of lines namely the willingness of the otherside to agree which will be important also you need to be mindful of the capital gains issue that may arise when doing the sums on the best course of action and there may well be merits in winding up the situation as it stands, if i can help let me know hope this helps some bit Padraic