AIBU to want to sell our flat? (Long, sorry!)

[Anglepoise]

A friend and I bought a flat together in SW London a few years ago (as neither of us could afford to buy individually!). I paid the deposit and then we split all other costs equally. The value peaked probably around six months ago but it is still valued at quite a bit more than we paid for it.

When we bought, we did briefly discuss what we were going to do about selling up etc, but decided that there was no way of telling what the future would hold so couldn't really make firm plans and would see what happened.

About a year after we bought the flat, she entered into an IVA. My understanding is that whenever we sell, she has to pay 75% of her share of the equity (at the time she entered into the IVA), plus half her remaining share of the equity if we sell while the IVA is still current (ie within the next three years).

Fast forwarding to the present, I am now married (DH lives with us and contributes towards bills and mortgage), pregnant, and due to relocate 200 miles north within the next few months. I am therefore anxious to sell up and realise my equity. We had agreed that my friend's brother would buy my share of the property, thus letting her stay here, but our current mortgagee is now saying that they are not willing to do this. We have spoken to a financial advisor, who has said that they should be able to get a mortgage despite her IVA, but, in order to avoid a charge for ending our current mortgage early and because there aren't any good deals around at the moment, we should wait until the current mortgage expires in November.

My friend has previously suggested to me waiting until November to do anything. She has a friend who is willing to take my room, so she thinks that I won't be out of pocket.

However, I feel very strongly that I want to sell now (ideally to her brother, because I don't particularly want to make her homeless, or otherwise by putting it on the market) for the following reasons:

• I am worried about continuing to be liable for all outgoings on the house, particularly as I am obviously about to have a huge cut in salary and DH currently does not have a job lined up when we move
• if my room is empty for any reason then obviously I will have to pay the mortgage on it; I am also concerned because my friend is quite extravagant (eg turning the heating on all the time) and I'm worried about being liable for those costs
• I believe I will have to pay tax on any rent I receive (and assume this would also have an effect on my maternity payments)
• DH and I were planning to use part of the equity I receive to live on
• I am worried that the financial market will change or her brother will decide not to buy after all and we'll be stuck with the house for years
• I will have to continue to worry about the upkeep of the house despite living a long way away (friend does absolutely no gardening whatsoever and very little cleaning, and all bills are in my name)

All this stress on top of being pregnant is doing me no good! - sorry it's so long but it's helped to write it down.

AIBU to want to sell now? I am sorry she can't get a good mortgage deal at the moment but my feeling is she could get one for a year and then try to get a better one next year. If I'm honest, I am slightly resentful that her IVA is causing so many problems (it has already meant that we didn't get a particularly good deal when we remortgaged). I am wondering whether I should offer to pay the penalty charge for ending our current mortgage early - but then we wouldn't have to change mortgagees if it wasn't for her IVA.

WWYD?

yanbu to want to move on . Could you exchnage on the sale now with a delayed completion date of November to avoid the penalty? if you sold openly now relaistically it could be November before you could realsie the equity anyway. There might still be a penalty in the meantime had the same company agreed to a new mortgage as the policy would change.

At least he couldn't then back out but nor do you have the money short term and you continue to be liable for bills (she could claim sole occupancy discount for Council Tax though, @ 25%). The IVA isn't really your concern , it is hers, she must have known the implications. As far as renting is concerned the tax isn't likely to be a lot on whatever income you gain, and you can offset some costs against it such as mortgage interest, although how it would work out as not being sole owner I'm not sure. It should have no bearing in Maternity Pay. Your mortgage company and freeholder would have to agree too,so probably more trouble than it is worth.

None of her problems prevent this from taking place it just makes it a bit more difficult.

Her IVA is not your problem, her ability to get a mortgage is also not your problem. There are a few things you can do though.

First what ever you do get all the bills in her name - there is no way you should be liable for these if you aren't living there. Ask her to take them on first. If she doesnt do it just tell all your providers that you are moving and are no longer liable for the gas/electricty/water/phone etc. If she is difficult about this then give them her name and tell her to take the acounts on or you will tell them to disconnect the supplies.

Tell her you cant afford to keep the mortgage on with your change in financial circumstances and uncertainties. That is the truth isn't it.

Ask her what her suggestions are if the renting arrangement with the friend falls through? or she skips on the rent.

You can do without the stress and being far away you won't be able to easily sort the problems out.

Perhaps you need to consider laying it on the line (nicely). Tell her that if you cant afford it then you wont be able to pay the mortgage . That won't benefit either of you.

I would tell her that if her brother doesnt buy you out then you have to put the flat on the market as you need to realise your equity to live on until yr dh gets a job.

Thanks for the replies I feel really bad that my good fortune (getting married, getting pregnant, relocating) is in danger of making her homeless, so it's good to know that people don't think I'm a witch!

I am going to check how much our mortgagee will fine us (and yes, get the bills put in her name!) and tell her that I need to sell, one way or another. Obviously if they can't get a decent deal then her brother might not be interested any more, but I guess that's for them to work out.

You need to sell now. It's tough on your friend but for your sake and that of your family, you need to get out now. The market will probably be in a worse state by November than it is now so you'll probably sell for less then.
Put it on the market asap. Your friend may hate you for it but your family comes first now.