Selling a % of a house
Discussion
Hey all, brief outline - i own 38% of my family home, and my sister owns the remainder. i'm not living there any more, but she is (with my mum)
My circumstances have changed where i need out of the mortgage, but i don't think she can afford to buy me out as there is a big chunk of equity in the house (even if i reduce the amount i want with family rates..)
We are close and completely ok with each other, this isn't a family dispute or anything.(yet....)
i've heard that you can sell a percentage of your house to some companies/banks - anyone had any dealings with these?
any other words of wisdom ?
My circumstances have changed where i need out of the mortgage, but i don't think she can afford to buy me out as there is a big chunk of equity in the house (even if i reduce the amount i want with family rates..)
We are close and completely ok with each other, this isn't a family dispute or anything.(yet....)
i've heard that you can sell a percentage of your house to some companies/banks - anyone had any dealings with these?
any other words of wisdom ?
Edited by PixelpeepZ4 on Wednesday 27th January 09:34
PixelpeepZ4 said:
Sarnie said:
Not if there is a mortgage on the property.....
ah crap.it might come to me just coming off the mortgage and getting some kind of agreement for the remaining share of equity to be paid over time then.
If you are still on the mortgage you will be able to get a BTL mortgage (assuming you have a 25% to 33% deposit rent dependent), but getting a mortgage on another residential mortgage is pretty much impossible (unless you earn a powerfully built directors salary)
A similar situation to the one the majority of divorced men find themselves in.
Smurfsarepeopletoo said:
As there is a big chunk of equity, could your sister not either remortgage to pay you off, add a second mortgage, or take out a secured loan?
she could, and the LTV would still be below 60%, this is an option, but I'm trying to put a number of proposals together for our discussion on Saturday.PixelpeepZ4 said:
Smurfsarepeopletoo said:
As there is a big chunk of equity, could your sister not either remortgage to pay you off, add a second mortgage, or take out a secured loan?
she could, and the LTV would still be below 60%, this is an option, but I'm trying to put a number of proposals together for our discussion on Saturday.Sebo said:
What's the ultimate goal ?
Stop paying your share of the mortgage so you have more cash month to month or remove that debt from your file so you can go and take on a mortgage / other debt elsewhere?
great question. It was ideally both - my share isn't breaking the bank, but it's £300 a month i could do with freeing up, but the absolute must have is me being able to go on another mortgage.Stop paying your share of the mortgage so you have more cash month to month or remove that debt from your file so you can go and take on a mortgage / other debt elsewhere?
A friend who divorced let his ex stay in the 50/50 home for an agreed period of 5 years, providing she makes the mortgage payments and he is bought out or they sell the property after 5 years , or before 5 years whatever it was.
I presume a similar agreement would be what you're after unless you need a faster solution.
I presume a similar agreement would be what you're after unless you need a faster solution.
joropug said:
A friend who divorced let his ex stay in the 50/50 home for an agreed period of 5 years, providing she makes the mortgage payments and he is bought out or they sell the property after 5 years , or before 5 years whatever it was.
I presume a similar agreement would be what you're after unless you need a faster solution.
That wouldn't remove the mortgage from his credit file and allow him to buy another property.......even if he's not paying the monthly payment, the payment on his credit file will remain and lenders will deduct the WHOLE payment as an ongoing commitment.I presume a similar agreement would be what you're after unless you need a faster solution.
This can still be ok if the person income is sufficient but in a lot of cases it's not.
Sarnie said:
joropug said:
A friend who divorced let his ex stay in the 50/50 home for an agreed period of 5 years, providing she makes the mortgage payments and he is bought out or they sell the property after 5 years , or before 5 years whatever it was.
I presume a similar agreement would be what you're after unless you need a faster solution.
That wouldn't remove the mortgage from his credit file and allow him to buy another property.......even if he's not paying the monthly payment, the payment on his credit file will remain and lenders will deduct the WHOLE payment as an ongoing commitment.I presume a similar agreement would be what you're after unless you need a faster solution.
This can still be ok if the person income is sufficient but in a lot of cases it's not.
Lender)How much is the house you wish to buy?
Me)£XXX,000
Lender)Great, and you have a deposit?
Me)Yes £150K
Lender)Great, and how much do you earn
Me)£XX,000
Lender)I can't see there there will be a problem at all, any other financial commitments?
Me)I am still on the mortgage at my marital home but I don't pay anything towards the mortgage.
Lender)Oh, we can't help you I am afraid.
Very frustrating when you can easily afford the mortgage but cannot move on with your life because you are stuck on another mortgage. It was a fantastic day when her new husband took over the mortgage and I was free.
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