I have recently split from my partner and have decided to go ur seperate ways. This leaves the house to deal with and having to live together at present, I have a property with an index figure at the moment of 155,000 and a mortgage of 166,500, so in effect negative equity in the property, a partner that will not move out, a house that will not sell and not knowing what else to do.

I have looked at the option of taking on the mortage by myself with a parent standing as guarantor, but they will only offer me a 90% mortgage, but I have a 100% one at the moment, meaning I have to find 27,500 to bring the mortgage down. I have the means to pay this every month, but can't raise 27,500, maybe nearer 10,000.

Not sure which way to turn now, but this can't continue. Also my mortage is up for review in April so the same thing will happen then that I will probably have to find 10% as we won't be able to get a 100% mortage again. I can't invest in a house with somebody that I don't want to be with, who also has nothing to invest himself. What would happen when the mortage runs out and if the property has still not sold?

All advice welcome, is there such a thing as shared ownership or help for single mums in this situation?

Thanks

My wife to be was in exactly the same situation as this when we met. A house for sale and an ex that wouldnt move out. This is a situation which could drag on for months or even years. The way she managed to free herself was to bite the bullet and drop the price of the house. Could this be an option for you? OK so you would (both) loose about 5K each, but you would still have the rest of you savings to start fresh. Good luck!

You are so right on this theory, especially in out current climate. But my ex partner does not have anything to bring to the sale. I would love to drop the house by 10K or so, but that means that I would have to find the full amount, as he has more debt than savings. Not sure I could do that as would leave me skint and not really fair, especially as I have to start again and house my child and I. Thanks anyway for you help and I hope your partner and yourself are really happy now.

Hi. How cooperative (or not) is your ex likely to be in all of this? Hypothetically, if you were able to take on the mortgage alone (which you can't at the moment), would he willingly transfer the house and debt into your name and then just walk away? Or is he going to be difficult to shift no matter what?

You say your mortgage is up for review in April. If that just means that your deal comes to an end and you need to sign up for a new one, your lender will not be able to repossess as you have not defaulted on the payments. Would it be feasible to take in a lodger to meet any increased mortgage payments?

As a last resort, how would you feel about both moving out and getting your own places, letting your current property out so that the rental income covers your mortgage and using any surplus to defray the negative equity? I suppose it would depend on the rental market where you live, and you would have to become a tenant yourself I suppose while doing that. But if your ex would cooperate you could consider using a letting agent to handle things so that you didn't have to have any more contact with your ex than is unavoidable.

Sorry if this doesn't help, just trying to put up some ideas. Good luck with whatever you decide.

Cyprus,

I was in a similar situation not long ago! Is this mortgage 100% secured? or 95% secured and the rest personal loan? i.e. Northern Rock or coventry.

As mark touches on, I did a similar thing. I transferred a dying equity property into my sole name, but I let out 2 bedrooms within the property and stayed in one of the reception rooms. This meant that pretty much all my mortgage was being paid by the lodgers and meant that I was then in a situation to overpay and bring down the capital balance.

I was in the same situation that selling the property, would mean a huge financial loss + no home!

Best of luck, if you require any more info, just ask.

100% mortgage on the property, so bought at 166,500 and mortgage is for the same. The mortgage company who I am with will only do 90% mortgages now so that is too much money to find. I would be happy to take on a lodger, but have to be very careful as I have a small child and has to be someone I can really trust. I have also looked at 95% mortagaes, but this makes my repayments huge, but might be the only way.

Not sure which way to go now?

Any more advice and information is always a great help.

Nationwide do a 95% reasonable mortgage, with 4.25 x income (not inc benefits)

Royal bank of scotland will do 95% at 4.9 / 5 times income. However fees and rates are huge.

Are you sure its all mortgage? I did a similar thing with coventry B.soc, I had 95% mtg and the other 5% was personal loan, which you can split off if you needed to. I.e. give yourself 5% equity.

Failing the above...getting a lodger could be the only route. www.easyroommate.com is an easy way to get a lodger, and you can tailor your ad to what you want. Maybe a younger female / foreign student could be a safe bet...

Very difficult times for all of us in this similar situation, but get it through the next 12 months or so and hopefully the storm will pass.

Hi again

I'm curious as to the nature of your mortgage which runs out in April - does it have to be redeemed and a new loan advanced? If not, I don't see why you aren't able to stay on your 100% mortgage, just with a different rate of interest. It sounds like an odd mortgage that requires you to provide a deposit after a couple of years, but then there are all sorts of odd products around these days.

Mark

You are right the rate will go up unless we could find 5 or 10% to bring the mortgage down to a 95 or 90% deal. But that would mean jointly finding the money. Problem as he has none, but the mortgage will keep running at a higher rate.