A
Alder
Guest
Hi,
I need some advice. I have two joint mortgages with a friend of mine. Both are in negative equity and both are investment properties. My friend also has a mortgage on his own home. I have planning permission to build but am not even considering a mortgage due to the financial mess with these two properties.
One property is rented to students (so only rented for 9 months of the year), mortgage repayment is 1100 per month.
Other property is rented for 800 per month, interest only repayments 895.
My friend is just about managing his share of the current outgoings and repayments but if the second mortgage goes back to full monthly repayments, he says he can't afford it. He is willing to let the house go into arrears, be repossessed whatever. I on the other hand, am very reluctant to let this happen as I want to, at some stage in the next few years, apply for a mortgage to build my own house. (Wishful thinking perhaps!)
He is single and I am married and my financial situation is better off than his. Therefore being jointly and severally liable for the mortgages, I have repayment capacity, he doesn't. We are both in employment (Public sector) and earn about 70k. There is repayment capacity when jointly assessed but that is due to me having no personal loans.
What, if any, are my options? Two years ago we looked into gifting each others share of the houses, so that we would only have one mortgage each. That didn't work out as one bank was looking for a capital reduction of 50k, which was not feasible at the time.
Should I re-visit this again and pay the 50k (with a loan) and take sole responsibility for the other mortgage? Therefore if he can’t repay he is only affecting his credit rating.
I appreciate that a forum may not have all the answers, so would speaking about the details of the situation with a financial advisor be the best thing or who would be able to give me sound advice on this issue?
Any help greatly appreciated and apologies if this post is a little all over the place.
|Property 1|Property 2
Annual rent|9,600{br}but vacant|10,500
Annual interest|10,600|7,500
Value |170,000|160,000
Mortgage|254,000|195,000
Name of lender|kbc|ICS|
Interest rate and type|4.16% svr|4.49%
repayment now|€895|€1,131
repayment from Jan|€1,450|€1,131
I need some advice. I have two joint mortgages with a friend of mine. Both are in negative equity and both are investment properties. My friend also has a mortgage on his own home. I have planning permission to build but am not even considering a mortgage due to the financial mess with these two properties.
One property is rented to students (so only rented for 9 months of the year), mortgage repayment is 1100 per month.
Other property is rented for 800 per month, interest only repayments 895.
My friend is just about managing his share of the current outgoings and repayments but if the second mortgage goes back to full monthly repayments, he says he can't afford it. He is willing to let the house go into arrears, be repossessed whatever. I on the other hand, am very reluctant to let this happen as I want to, at some stage in the next few years, apply for a mortgage to build my own house. (Wishful thinking perhaps!)
He is single and I am married and my financial situation is better off than his. Therefore being jointly and severally liable for the mortgages, I have repayment capacity, he doesn't. We are both in employment (Public sector) and earn about 70k. There is repayment capacity when jointly assessed but that is due to me having no personal loans.
What, if any, are my options? Two years ago we looked into gifting each others share of the houses, so that we would only have one mortgage each. That didn't work out as one bank was looking for a capital reduction of 50k, which was not feasible at the time.
Should I re-visit this again and pay the 50k (with a loan) and take sole responsibility for the other mortgage? Therefore if he can’t repay he is only affecting his credit rating.
I appreciate that a forum may not have all the answers, so would speaking about the details of the situation with a financial advisor be the best thing or who would be able to give me sound advice on this issue?
Any help greatly appreciated and apologies if this post is a little all over the place.
Annual rent|9,600{br}but vacant|10,500
Annual interest|10,600|7,500
Value |170,000|160,000
Mortgage|254,000|195,000
Name of lender|kbc|ICS|
Interest rate and type|4.16% svr|4.49%
repayment now|€895|€1,131
repayment from Jan|€1,450|€1,131