Seperating from partner. Need advice on options please.

A

At Wits End

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Hi all

I dont know what to do so I'd said I'd try here and see if I could get some help. Sorry if this is in the wrong forum :(

i've recently split up from my girlfriend and we have a mortgage together in both our names.. we have had the house for 5 years and never missed a repayment. The value of the property at this stage is around the 170K mark and the balance due on the mortgage is 250k

Things are dreadful in the house and im starting to fear both for our physical and mental health.. Neither can afford to take over the mortgage by ourselves and or move out while covering the cost of two places.

I need a couple of answers or suggestions on what to do.. I really am at my wits end..

1. if we rent out the property how do we even start about going about it. Is there many extra costs/tax/insurance issues? I need pretty step by step details as what to do cause i haven't a clue about how to go about this.

2. Would the bank let us sell and divide up the hit?

3. Is there any way of getting some of the debt written off so we could even take a smaller hit?

4. if it were possible for one of us to take it over would the bank even allow to remove ones name. I'd had enough hassle trying to do this with a car loan which is 80% paid and I'm coming up against so much resistance it's unbelievable.

5. IS anyone else in a similar situation and how did they resolve it/

Guys any detailed advice or suggestions would be so helpful. I just dont see how we can go on like this and I can't see any way out of it. It's a nightmare and I need help.

Sorry this is so long winded.
 
Whether one of you can afford it or not it is better than one of you leaves the house. As you've taken the time to ask for advice, maybe you could be strong enough to leave. Move back home or use a friends couch until you can sort out something more suitable.

In relation to your options, they are very limited. Would you be able to rent it out and cover the mortgage and other costs. Can you do the money makeover thread and also calculate what rent is possible and you will get better advice.
 
Bronte said:
Whether one of you can afford it or not it is better than one of you leaves the house. As you've taken the time to ask for advice, maybe you could be strong enough to leave. Move back home or use a friends couch until you can sort out something more suitable.

In relation to your options, they are very limited. Would you be able to rent it out and cover the mortgage and other costs. Can you do the money makeover thread and also calculate what rent is possible and you will get better advice.
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Thanks for the reply. Yes if we were to rent it out we could easily cover the difference on the mortgage plus rent our own seperate places. But how do you go about starting that process. Who do i need to inform or contact?/ What/s involved?/ I really haven't a bulls notion as what to do anbout getting the ball rolling on that..
 
My advice on this problem is to approach the Bank with a proposal. The property is your PPR so you could negotiate a payment with the Bank based on your ability to meet same. However, given that you are both anxious to start afresh and the property is in negative equity this will only postpone a problem that sooner or later will need to be addressed.
There are a significant number of people in a similar situation to yourselves. Do a search on AAM on this forum.
As long as you continue paying the mortgage this is your problem and not the Bank's.
Don't even consider dividing the property in 2 as this is unrealistic.
Approach the issue on the basis of one party temporarily staying in the property and the other leaving. Payments to the Bank can be tiered on the basis of the party staying in the property paying a higher element of the loan repayment as a notional rent. You will obviously need to decide how much you can actually afford to pay pending a sale of the property. This will involve going through the MARP process of the Bank. You can then negotiate some level of settlement with the Bank on the basis of providing full co-operation in selling the house.
Ideally, look for some experienced professional to assist you in the process.
 
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