Anyone pay ~60% of their income on their mortgage?

dowie · 28 May 2011 at 20:52

It is doable and some people rent to that extent tbh.. but if you're only doing it because you feel forced to then that isn't fair.

If the house is in both your names then why should you be left in negative equity with this mortgage to pay off. I'm presuming this is what you mean by not being able to afford to sell?

What if the situation was reversed, supposing a booming property market had left you with a house worth 40% more than you paid for it - would she still be walking away in that scenario or do you think she might want half?

dowie · 28 May 2011 at 20:54

Robbie G said:
What I'm saying is if the capital she put in offsets op's loss to date on the value of the house, then it's good. In either case the op is in a better position than he would have been if they'd sold as a pair and split the loss.

Well if that was the case he wouldn't be in negative equity and could sell the place.

Deadbeat · 28 May 2011 at 20:58

You're worried that £1200 a month after tax & mortgage isn't going to be enough? People live within their means, it'll take a while to adjust if you're that much better off right now but I'm sure you'll be able to scrape by.

Bigsy · 28 May 2011 at 20:59

While I appreciate your comments about landing me into etc, I'm just trying to be pragmatic.

We are both still very good friends we've been together for 14 years and both just want to get on with our lifes now. I don't want to create a ugly stalemate, and I can look after myself if I thought I was being taken advantage off.

[TW]Fox · 28 May 2011 at 20:59

Many people live on 1200 quid a month and have to pay rent out of that. You'll be fine.

shine · 28 May 2011 at 21:04

Bigsy said:
Don't have many commitments at all, thikn Ctax is about £1800 at the moment (guess its a bit less on my own?) I'm sure their are quite a few things I can cut back on too. And yes I guess a lodger is possible if it all starts getting too much don't know why I didn't think of that.

Thanks guys.

You'll be entitled to a 25% single persons discount if you are the sole occupier of the house.

dowie · 28 May 2011 at 21:06

Bigsy said:
We are both still very good friends we've been together for 14 years and both just want to get on with our lifes now. I don't want to create a ugly stalemate, and I can look after myself if I thought I was being taken advantage off.

You are being taken advantage of IMO - unless you really really want to keep the house or have some other reason for staying there then you're being screwed.

nas · 28 May 2011 at 21:07

Foxxy said:
Council tax is based on the area and value of house. If you can afford to live there you should be able to afford to pay the tax. So no, its not expensive. If it is then move to an area more in you're budget.

Bills, review them, turn stuff off. It's your choice to make them high and what you sign up to etc etc

A firm beliver of budgeting for things based on a 'worst case'. Live within your means, think outside the box. What if we split, I lose job for 3 months etc etc

His circumstances have changed, hence the thread.

Bigsy · 28 May 2011 at 21:10

dowie said:
You are being taken advantage of IMO - unless you really really want to keep the house or have some other reason for staying there then you're being screwed.

Whats the alternative? I put well over 20k of my own hard earned money into the deposit, if I sold I'd lose that and then some.

My (ex)partner doesn't earn enough to take it on.

So that would just leave us stuck in the house together until the market picks up... I just want to get on with my life.

dowie · 28 May 2011 at 21:16

Would you buy the place now as a single person? If not then I'd investigating ways of getting rid of it - she's presumably jointly liable for the mortgage etc... I'd go and speak to a solicitor if I were you.

Regardless of the technicalities it isn't fair that one party is stuck being solely responsible for something you were originally jointly responsible simply because the investment has gone bad. You know full well that if the market had gone the other way and the property represented a significant asset for the pair of you that you'd be either selling/splitting or having to buy her share off her.

semi-pro waster · 28 May 2011 at 21:19

dowie said:
You are being taken advantage of IMO - unless you really really want to keep the house or have some other reason for staying there then you're being screwed.

How is he being screwed? While he gets the amount of current negative equity it also sounds like she is giving up any claim to the house at all so whatever further equity comes from the house if/when it is sold later will all go to the Bigsy (excluding mortgage commitments etc if any remain). If he can afford to take it on and wait for a while then potentially it could work out quite well for him.

Bigsy: it will no doubt be a bit of a struggle initially and require some adjustment but it should be perfectly possible with a bit of careful budgeting.

dowie · 28 May 2011 at 21:27

He's getting screwed because he's accepting liability for a debt he was previously jointly liable for.

Squid · 28 May 2011 at 21:27

Take it on , rent out a room if you can (cash in hand) till you get back on you feet with a new bird , do council tax a single occupier, count the benefit in15 years when house is worth something again, your be surprised how far you can make little money go, your just have to turn into a tight wad bargain hunter

semi-pro waster · 28 May 2011 at 21:30

dowie said:
He's getting screwed because he's accepting liability for a debt he was previously jointly liable for.

But equally there's potential to make a decent return on the debt so I think to call it being screwed is somewhat melodramatic.

[TW]Fox · 28 May 2011 at 21:36

How have you managed to get into negative equity with a deposit of at least £20k if not more if she put some in? Have prices in your area really dropped that much?

dowie · 28 May 2011 at 21:38

semi-pro waster said:
But equally there's potential to make a decent return on the debt so I think to call it being screwed is somewhat melodramatic.

If I sold you a house worth £450k for £500k then there is similar potential to make a return. Yet you're still being screwed DUCY....

Participant · 28 May 2011 at 21:49

dowie said:
Well if that was the case he wouldn't be in negative equity and could sell the place.

Not necessarily, it's possible that her contributions mitigated his loss but still left op in neg equity. Anyway my one and only point is that if she walks away without claiming her equity share, so much the better. Simple.

Dabbles · 28 May 2011 at 21:53

She's being ruthless. You need to return the favour. Land her in it as much as she's doing to you. Women seemingly ALWAYS do this.

weringo · 28 May 2011 at 21:55

dowie said:
He's getting screwed because he's accepting liability for a debt he was previously jointly liable for.

Yes but he also jointly owned the property, which he will now solely own.

Bigsy · 28 May 2011 at 21:57

[TW]Fox;19246011 said:
How have you managed to get into negative equity with a deposit of at least £20k if not more if she put some in? Have prices in your area really dropped that much?

She put in 8k, well her parents did but I will pay them back at some point, they have been very good to me over the years and I want to do this.

Judging on an identical house which was sold accross the close I would probably end up with just losing my 20k, which for me would still be a bit hard to take, I saved every penny myself.

I feel in time there is a decent profit to be made on this house. 3 bed, detached, garage etc in a nice area... Doesn't really suit a single 30yo but I think its probably the best course of action for me.