Mortgage Question with added dancing girls and coke.
Discussion
Hi.
I have a good friend who is in a position of confusion regarding their mortgage.
They have an interest-only mortgage and they live in a house owned 50/50 with their ex partner, who also lives there still. The house is an unfinished project and as it stands is probably worth about £300,000, with a mortgage of £207,000.
If it were completed it would be worth substantially more.
The ex-partner is supposedly doing the work (as a tradesman) but has recently downed tools in favour of doing bugger all. Thus leaving my friend with a fairly annoying situation.
My friend would ideally like to get the house finished, sell up, split the cash, move on.
But as it stands - just getting out would probably be a good call.
This is the detail (some bits removed, obviously) of the mortgage as it stands:
My questions are:
1> Is there any reason why, with an interest only mortgage, they couldn't just sell up, pay off the mortgage company and split what's left. Right now?
2> Is there any way in law to force a sale if one owner doesn't want to sell? They are not married and there are no children. Or is there a way to force one owner to buy the other out?
The bottom line is, one person is happy to live in a building site and do nothing to release the potential or profit, the other wants out but without losing the potential return.
Tricky.
Oh, and here is what I promised in the thread title:
Ta..
I have a good friend who is in a position of confusion regarding their mortgage.
They have an interest-only mortgage and they live in a house owned 50/50 with their ex partner, who also lives there still. The house is an unfinished project and as it stands is probably worth about £300,000, with a mortgage of £207,000.
If it were completed it would be worth substantially more.
The ex-partner is supposedly doing the work (as a tradesman) but has recently downed tools in favour of doing bugger all. Thus leaving my friend with a fairly annoying situation.
My friend would ideally like to get the house finished, sell up, split the cash, move on.
But as it stands - just getting out would probably be a good call.
This is the detail (some bits removed, obviously) of the mortgage as it stands:
My questions are:
1> Is there any reason why, with an interest only mortgage, they couldn't just sell up, pay off the mortgage company and split what's left. Right now?
2> Is there any way in law to force a sale if one owner doesn't want to sell? They are not married and there are no children. Or is there a way to force one owner to buy the other out?
The bottom line is, one person is happy to live in a building site and do nothing to release the potential or profit, the other wants out but without losing the potential return.
Tricky.
Oh, and here is what I promised in the thread title:
Ta..
So your "friend" expects her ex partner to do all the work necessary to finish the house so she can increase her profit? And can't see why he's not overly keen to do so? If he does do it, I reckon he deserves to have the word mug tatooed on his forehead.
Why can your friend not just let him buy her out and let him do the work in his own time? Or v.v.?
Must admit if it were me the last thing I'd be keen on doing is making her more profit.
Why can your friend not just let him buy her out and let him do the work in his own time? Or v.v.?
Must admit if it were me the last thing I'd be keen on doing is making her more profit.
Edited by ColinM50 on Sunday 6th November 16:34
That's a very, very inaccurate take on the situation and you've made assumptions about gender.
I'd love to talk about it all day and point out how you've got the wrong end of the stick and how much more complicated the situation is, how insulting short-sighted and irrelevant accusatory guesswork could be for my friend (no need for inverted commas) - but I'm not going to.
Because it's not worth it.
Can you help with the questions?
No.
Next!
I'd love to talk about it all day and point out how you've got the wrong end of the stick and how much more complicated the situation is, how insulting short-sighted and irrelevant accusatory guesswork could be for my friend (no need for inverted commas) - but I'm not going to.
Because it's not worth it.
Can you help with the questions?
No.
Next!
The old question of joint and several liability comes up again.
I assume your friends are not millionaires (and thefore not on PH).
If you have unlimited money you can achieve a great deal with English Law. If costs matter then practical inexpensive solutions chop your options.
It is not practical to force another party to sell a house jointly owned.
Unless the are children from the relationship and then the Courts will oeve heaven and earth to protect the children.
You friends are both liable for the debt. If one stops paying the other becomes liable for the whole debt. Neither can escape responsibility but practically if one simply does nothing the other has no choice but to sort the problems out.
Not a good position.
In essence your friends need to resolve this together. I would recommend trying to get agreement on the best way forward. If this cannot be done then the house could just sit there. If the mortgage is paid nothing will happen. If not the lender will seek repossession.
The lender CAN force sale on both parties once a possession has been effected.
But in reality forcing someone to agree to sell a joint interest is a minefield and only for the very wealthy. Agreement, however difficult, is the answer.
I assume your friends are not millionaires (and thefore not on PH).
If you have unlimited money you can achieve a great deal with English Law. If costs matter then practical inexpensive solutions chop your options.
It is not practical to force another party to sell a house jointly owned.
Unless the are children from the relationship and then the Courts will oeve heaven and earth to protect the children.
You friends are both liable for the debt. If one stops paying the other becomes liable for the whole debt. Neither can escape responsibility but practically if one simply does nothing the other has no choice but to sort the problems out.
Not a good position.
In essence your friends need to resolve this together. I would recommend trying to get agreement on the best way forward. If this cannot be done then the house could just sit there. If the mortgage is paid nothing will happen. If not the lender will seek repossession.
The lender CAN force sale on both parties once a possession has been effected.
But in reality forcing someone to agree to sell a joint interest is a minefield and only for the very wealthy. Agreement, however difficult, is the answer.
Aha... SECTION.
I'm back in the room.
The main issue here is that the ex has basically told my friend there is NO WAY the house can be sold right not. Not possible... "due to the mortgage".
Now I'm no expert, by a long way, but I'm thinking with equity in the house there is nothing stopping any sale, so long as the mortgage company get their pennies first etc...
Not sure what the game is.
I'm back in the room.
The main issue here is that the ex has basically told my friend there is NO WAY the house can be sold right not. Not possible... "due to the mortgage".
Now I'm no expert, by a long way, but I'm thinking with equity in the house there is nothing stopping any sale, so long as the mortgage company get their pennies first etc...
Not sure what the game is.
Gorvid said:
That's a very, very inaccurate take on the situation and you've made assumptions about gender.
I'd love to talk about it all day and point out how you've got the wrong end of the stick and how much more complicated the situation is, how insulting short-sighted and irrelevant accusatory guesswork could be for my friend (no need for inverted commas) - but I'm not going to.
OK so either she's a SWT who wants to profit from the hard work of the ex-partner, or a gay bloke who wants to do the same. Either way, your friend is hacked off that the partner has downed tools, and does not want to complete the project?I'd love to talk about it all day and point out how you've got the wrong end of the stick and how much more complicated the situation is, how insulting short-sighted and irrelevant accusatory guesswork could be for my friend (no need for inverted commas) - but I'm not going to.
Does your friend fancy completing the work, or paying someone from the joint overpayment facility in order to finish the project?
Is the ex-partner refusing to sell? What's the current situation?
In answer to your first question - yes they can do that. Not sure on the second.
Steffan said:
But in reality forcing someone to agree to sell a joint interest is a minefield and only for the very wealthy. Agreement, however difficult, is the answer.
Bit of Googling suggests a couple of stages of court hearings and takes 6-12mths. But each side shares the costs (few £K), which may deter the other party from forcing this route.I would imagine it might make the house very hard to sell if potential buyers became aware of the situation. Indeed even if the other party apparently willingly agrees, they could still deter potential buyers. Perhaps auctioning it would be the only realistic prospect?
My questions are:
1> Is there any reason why, with an interest only mortgage, they couldn't just sell up, pay off the mortgage company and split what's left. Right now?
If they both want to and can fing a buyer
2> Is there any way in law to force a sale if one owner doesn't want to sell? They are not married and there are no children. Or is there a way to force one owner to buy the other out?
time consuming and potentially expensive, but possible in some circumstances
The bottom line is, one person is happy to live in a building site and do nothing to release the potential or profit, the other wants out but without losing the potential return.
Tricky.
Would be worth offering a 55/45 split of the profits to encourage the recalcitrant joint & several owner to consider agreeing to sell
1> Is there any reason why, with an interest only mortgage, they couldn't just sell up, pay off the mortgage company and split what's left. Right now?
If they both want to and can fing a buyer
2> Is there any way in law to force a sale if one owner doesn't want to sell? They are not married and there are no children. Or is there a way to force one owner to buy the other out?
time consuming and potentially expensive, but possible in some circumstances
The bottom line is, one person is happy to live in a building site and do nothing to release the potential or profit, the other wants out but without losing the potential return.
Tricky.
Would be worth offering a 55/45 split of the profits to encourage the recalcitrant joint & several owner to consider agreeing to sell
May be worth asking (a slight variation on the suggestion above) that they split existing equity down the middle, but if he finishes the work any increase in the equity as a result of this would be split in his favour.
This of course would require both of them to be very reasonable with each other and come to an agreement and stick to it.
This of course would require both of them to be very reasonable with each other and come to an agreement and stick to it.
hornetrider said:
OK so either she's a SWT who wants to profit from the hard work of the ex-partner, or a gay bloke who wants to do the same.
Or there is a whole lot you have no idea about that I'm not going to post up.Yes.
Imagine that! You might not have a full and insightful analysis of some people you will never meet from fifty words on the Internet asking about something else.
Imagine!
Apart from the very boring, uninformed, desperate-to-vilify old "SWT" nonsense, there's some good help on here. Thank you.
But one thing that arose from their latest discussion, is the exes insistence that this mortgage, because it is interest only, "can't just be paid off".
Is there anything that would make sense of this?
If the sale will pay off the mortgage principle sum... plus redemption... isn't that as simple as that?
PS: The situation is far more complex than just someone "trying to cash in" and I'm not even going to bother going any further than that. Suffice to say, there is a really very good individual being f
ked around cruelly here. But you'll have to take my word for that, because I'm not prepared to personalise this any more by adding the juicy details.
But one thing that arose from their latest discussion, is the exes insistence that this mortgage, because it is interest only, "can't just be paid off".
Is there anything that would make sense of this?
If the sale will pay off the mortgage principle sum... plus redemption... isn't that as simple as that?
PS: The situation is far more complex than just someone "trying to cash in" and I'm not even going to bother going any further than that. Suffice to say, there is a really very good individual being f
ked around cruelly here. But you'll have to take my word for that, because I'm not prepared to personalise this any more by adding the juicy details.Gassing Station | Finance | Top of Page | What's New | My Stuff