Q:ADVICE NEEDED URGENTLY
After buying a flat with my then boyfriend in Dec 06 for ￡120000 we put down a ￡12000 deposit which was a loan from my Dad therefore have a mortgage for ￡108,000 on a fixed rate which ends Dec 08. My boyfriend split after living together for only 3 months I have remained in the flat paying all bills ( I have huge building factors) and half the mortgage which is currently ￡220 a month my ex still pays his share of ￡220 making my monthly mortgage ￡440. As I do not earn enough to only have the flat in my name as I cant get a mortgage for 108,000 and couldn?t afford the repayments either.
The flat has been on the market for a month with two offers of ￡15,000 less than I paid for it and I have been advised I will be lucky if I get what I paid for it back. If I do sell before Dec08 I need to pay the bank an early repayment charge of ￡2500.
Is there any way of getting my ￡12,000 deposit back ?? so I can give my Dad his money back and and then me and my boyfriend would be in dept to the bank if we don't make what we paid for on the flat.
My plan is to move home to try and repay some of my personal debt and what dept I end up with from the flat.
All advice would be greatly received !!
Also if the place is on the market then thats something.
But until we truly saee the figures -how can anyone know?
Another good suggestion is renting the prioperty out . i wonder whether , for example, local housing association or hounsing depts might take the property for 2 year, although, there is stil the mortgaging issue….
op need to give us more info then we can say more i think. OP, whatr rate are you on now, what is the svr with your lender NOW and how much will it cost you if you moved to the svr rate now? are you on IO too ?
Lynz, when you think about it August is next week, back to school stuff is in the shop windows, count down to Christmas is in a blink of an eye, Martin always say to forward think, what the worse case senario in this case? best she thinks about it now and prepare, lord knows what deals will be around then but its best she keeps her ears to the ground.
AMD
You've now had an offer of ￡105k, which means that you'd have to BORROW ￡3k from the bank/parents just to sell.
Your flat has dropped 12.5% in value, so that's a ￡1500 loss for your parents, and ￡6750 loss for both you and your ex-boyfriend.
I don't think this is right as the OP doesn't say that her dad has a 10% stake in the house, only that he gave the money to them, in which case it is all gone. Depends on what the flat ownership split and the terms of the loan/gift as to whether the bf has to stump up more than his half of the ￡3k Negative equity.
However, looking at the costs here, am I right in thinkiing Op that you are buying on interest only at the moment?
You've now had an offer of ￡105k, which means that you'd have to BORROW ￡3k from the bank/parents just to sell.
Your flat has dropped 12.5% in value, so that's a ￡1500 loss for your parents, and ￡6750 loss for both you and your ex-boyfriend.
Did you have some sort of contract with your boyfriend over what would happen to the deposit if you split up?
I guess if you choose to sell at ￡105k, then you'll both have to borrow an extra ￡1500 each to pay the mortgage company, then pay estate agent fees (￡1000?), solicitors fees (￡1000?), and then borrow ￡6k each to pay back your parents.
Is there any way of getting my ￡12,000 deposit back ??
Yes, sell it for ￡120k.
What would you get if you rented it out? The mortgage sounds pretty cheap! Is it interest only?
I dont wish to be too rude, but if you cannot afford 440pcm mortgage you would be struggling to find anything cheaper unless you go home to parents? Is tihs your thinking?
I would be inclined to ask on the DFW board, as it may be that the OTHER debts you have could have the interest frozen, or you could enter into a debt management package. It certianly seems a better option than losing 12k especially as you ghave debts, and further unsecured borrowing from neg equity is going to cause further pressures – ie you wont be able to pay thart either.
Is there any chance you can get second job, sell everything in sight, make extra money on the side? I dont think its unachievable to make 220 pcm extra.
As others have said can you get a lodger ?
The bank might extend you a loan to cover the difference, but it's likely to be at such a high rate that repaying your dad is not really the priority – I'm sure he would rather you don't get further into debt.
Selling is probably a good idea if you are struggling to meet your repayments.
2) you have an unsecured loan from your dad of £12,000.
3) you have an offer on the flat for £105,000
The bank loan is secured – so if you sell the property you MUST pay this back in full. The bank will not let you sell otherwise, as this would be effectively converting a secured loan into an unsecured loan. There is no extra money in the kitty to pay back your Dad.
As it stands, if you sold the property at £105k you will need to take out a £ 3k personal loan or borrow more money off your Dad.
What you haven't told us is the arrangement with your boyfriend – at the very least he is responsible for half of the 3k Negative Equity.
Did you have a Deed of trust or similar drawn up to decide on the arrangements upon selling the property and how the property was shared – e.g. was it understood that the 12k gave you greater share? Hopefully you had some arrangement in place so that your boyfriend needs to pay back a greater amount and hence there is some of the 12k left.
I might have missed it, but i cannot see the price your flat is on the market for? and in what area?
I don;t think there is anyway you can get your deposit back, otherwise i think everyone would be doing it.
Is it a 1 or 2 bed flat, can you not take in a lodger to help with the mortgage?
Friends of mine are in the same boat, they are still living together to deal with the situation, is this not an option either?
V.