i have a joint mortgage and waiting to be bought out of my half?

Question

the other person is draging it out, can i get another mortgage while my name is still on half of the other property?. i have been told i can only buy to rent, so can i do that and say move my girlfriend in or a mate

Answer 1

You can have more than one mortgage if you can qualify for them. Your current mortgage is still considered a debt and you are still responsible to make sure the payments are made. If your partner who is going to buy you out doesn't make the payments then the whole debt is payable by you. Although the property is an asset and the mortgage a liability. The bank will use the mortgage payments when considering how much they will lend you, even if you are no longer living in the house and the other party is making the payments. They will still consider the monthly payment in your finances. So if you make enough money that both payments are within the qualifying ratios, you can get a mortgage. You may also inquire about a demand loan. It lets you borrow money but you only pay the interest each month and repay the amount borrowed when you receive your buyout settlement. That will allow you to provide a down payment.
I would also retain a lawyer and have him force the sale of the property if you are not paid your buyout money before a specified date. If you don't want the property anymore, and you are a joint owner you can apply to have the property sold and the assets divided.

Answer 2

Property prices are still rising in many areas.

I suggest you ask you Solicitor to hint that if they don't get a move on you will have to renegotiate the price.

NB. Yes you can get another Mortgage - often people have to do this when their House fails to sell and they want to move anyway. In the old days this was known as a 'Bridging Loan' and was VERY expensive.

These days 2nd loans are usually given for 'buy to rent', however that's just the 'common' name = there is nothing to stop you living in the second property (so long as you keep the first as your 'main residence' until it sells and then declare the 2nd property as your main you should not be subject to Capital Gains Tax).