Help..what are my options?

[emmur]

oK BASICALLY.

I am 19 i brought a house with my boyfriend (yes i know im silly)
We brought it for 80 thousand because it was a dump.. its not valued at aout 125 as we have done it up
Boyfriends mum put in a 20 grand deposit so we have a 60 grand mortgage which i pay 252pounds a month

well now my boyfriend wants out..
i need to know what i would have to do to buy him out?
would the bank let me keep the mortgage on my own?
would the mortgage payments go up?
when i brought the house we put it as 60% his 40% mine as the solicitor made us say the 20grand off his mum and dad was a gift

i really need advice.. how much money i will need to buy him out.. or would i be eligable to put a deposit down on another house on my own?

please help i cant talk to my parents they will worry

[Bel Bel]

You need to talk to the mortgage provider
Whether you can keep the mortgage on your own will depend on your income
Also they deal may change if you wnat to do it on your own so the mortgage could go up but it is unlikely to be much more than you are paying now (i.e the total mortgage payment not hte share you pay)
Remember you could rent out a room so that you have more income if you decide to stay there
As for the £20 grand deposit you need to think about that seperately, if you intend to take on a bigger mortgage to pay back his mum then yes your mortgage will go up
You could ask her to wait until you are in a better position with money to start paying her back or agree to give her £20k when you do sell the house, she may not want to wait of course which means you will have to sell or get another mortgage to0 buy her out
If you sell you will have to first give her the £20K back and then you will split any remaining profit between you 60% to him and 40% to you bearing in mind you need to pay any solicitors, eastate agents fees and there may be a fee for getting out of your mortgage early too, in other words you may not be left with much

[ILoveChristmas]

Your mortgage payments would be guaranteed to go up unless you could arrange the mortgage over a long period of time.

If you want to buy him out you'd need to raise 60% of the current valuation, plus you'd still owe the remainder of the original £60k. On top of that, depending on his parents, you'll still need to cover repayment of all or some of the £20k they lent you.

In short, you could end up owing roughly £140k on a house that's worth £125k.

I would be tempted to speak to a solicitor and ask if you are in any way entitled to pay back only 40% of the £20k because of the equity split to ease the situation, but you'd still be in negative equity.

I'd be tempted to cut my losses and run, i.e. sell the house, split everything and start again.

[Ticktock]

Looking at your problem legally...

The 60-40 split is set on the equity on the house, so essentially if you sold the house now and paid off the mortgage how much would be left. This is complicated by his parents gift of £20,000 which would also be split 60-40 as it was treated as a gift by the original solicitor (not good advice but that is their problem!) So the cost of buying him out would be £12,000 plus a 60-40 split of whatever you have paid off the mortgage which unless it has been five years is probably not much at all.

Your mortgage is a fairly low one with a survivable multiple but you will need to contact your lender to see if they are happy for you to continue as sole borrower, with new lending criteria some aren't so that may make up your mind for you.

He may object to this but you always have the nuclear option of going for repossession and his parents will likely lose every penny of the £20,000 and you will walk away free to move on.

Go see a solicitor...