A lot of us are only able to buy a home with a partner propping up the other half of the finances.
Buying a house or flat is expensive, especially in London, and knowing you can split the cost and share the burden can make homeownership an actual possibility.
But what happens if you break up?
That’s something Van, a 29-year-old software developer working at a green energy company in London, had to learn firsthand.
Two years ago Van and her then-boyfriend put down a deposit on a two-bedroom house in Stratford. Then they split. What happened next?
The deposit. How much was it and how did you save it?
I moved into the house just under two years ago with an ex-partner. We were renting a one-bed flat in north London for a couple of years before that.
We offered £400k on the house, but it was declined as the seller already had an offer at that same price. In hindsight, we should have pushed further and capitalised on the fact that we were first-time buyers with no chain. In the end they accepted our offer for £405k, with a £40,500 deposit and a mortgage on the other 90%.
We both had Help To Buy ISAs, but the 25% government bonus on the balances could only be used on completion and couldn’t form part of the deposit. That said, it did help ease the solicitor bill at the end of the process.
The deposit was all from savings and the occasional Christmas/birthday gift. My ex and I had been saving ever since we got our first jobs out of uni. We didn’t have a particular number in mind, we just knew we wanted to buy in London, preferably near both of our parents.
We lived at home for a few years and contributed small amounts of board/rent whilst being able to squirrel the rest of our money away. We do recognise the privilege in having family homes in London!
When we rented, we saved a lot by cooking the majority of our meals and rationing expensive ingredients. We’d do big online shops so that we could budget our groceries for the month, and wouldn’t feel the need to impulse buy expensive lunches and dinners. We also made use of training budgets at work to subsidise trips away (eg. overseas conferences with travel and accommodation included).
How did you find the house?
Rightmove and Zoopla. We had email alerts set up for properties (houses in particular) up to five miles around the areas we grew up.
There was a mass exodus on this street for some reason and three similar houses were put up for sale. We looked at all three: one reeked of mould and had rising damp, one had a badly planned extension which cut into a bedroom, making it a single room instead of a double, and then this one! It had been vacant for years, looked dated, but otherwise was in pretty good nick.
What was the process of getting a mortgage like?
Some banks can provide an agreement in principle, which gives an indication of how much you can afford. We went through an online broker who matched us with lenders that they thought were suitable and explained a lot of the jargon to us in human terms.
The overwhelming part is how much information and paperwork you get bombarded with.
We were so overloaded with things to do that we fell victim to a survey scam when we absent-mindedly picked the first sponsored link on a Google search. The surveyor turned out to be a phony and never intended to do any work for us. We learned shortly afterward that you can check the credentials of a surveyor on the RICS website.
Why did you choose this area?
Stratford is where the 2012 Olympics were held which has left a lasting legacy in the area. The arenas and parks developed are still in use, and one of London’s biggest shopping centres is just a 15 minute walk away from the house.
It’s also really well connected. There’s the Jubilee line, Central line, DLR, various National Rail trains, the new Crossrail and most importantly, a direct overground train to my mum’s house.
So you and your now-ex moved in two years ago, then you broke up. What happened with the house?
We’re still working it out! Our mortgage has a fixed term of two years and a hefty early exit fee, so we’ve put off making any changes until now.
We agreed that he would stop contributing the day he moved out and that I would pay back the money he put into the deposit, fees, renovations, the existing mortgage contributions, as well as first-time buyer benefits like the Help To Buy ISA bonus and stamp duty discount.
As for any ‘profit’ in house value, there’s been lingering Brexit uncertainty for ages so the value hasn’t really changed.
It’s a painful process trying to remortgage whilst also removing a name from the deeds, and for a long time I was really stressed about being rejected on affordability as they only have one income to consider now.
I’ve been renting out the master bedroom, and thankfully my new lender has taken this extra income into account and approved my mortgage application. I need to read and sign a jillion forms, pay more solicitor fees, stamp duty, and potentially capital gains tax too. It’s a nightmare.
How much do you now need to pay per month for your mortgage?
It’s currently £1,580 for the mortgage, but when the new mortgage starts, payments will be about £1,200 since I extended the term from 25 years to 30 years. I think that helped me pass the affordability checks.
Bills are £26 monthly for water, about £60-70 for gas and electric, £115 council tax, and I’m being ripped off by BT for broadband at £40.
How have you made the house feel like home?
I got the world’s cosiest sofa and filled the house with as many plants as I can keep alive.
DIY makes me happy, so I put together most of the furniture, hung up artwork and mirrors, got soft furnishings and whipped out old books to make me look more intelligent.
I also ‘zoned’ the open plan living area so that it felt less like living in a giant corridor.
Have you had to spend much on decorating?
We had some builders in at the start to move a tiny internal wall near the entrance. When they moved it, they discovered pipes going right through the middle of where the new doorway was supposed to be, so we had to pay extra for some plumbers to move them.
We also had to shell out for a new oven and bathroom light fitting because they both kept shorting the electrics.
After breaking up with your partner, you now have a lodger – what’s that like?
If you live in the same property you rent out, then you have a lodger, not a tenant. Lodgers have less rights and are easier to evict, which is why some lenders are ok with lodgers but not tenants.
My current lodger is a student from Singapore who found the room via SpareRoom. She’s nice! It’s just like living in a normal houseshare, only I pay all the bills and do the house upkeep.
Does owning pose any problems you didn’t have when you were renting?
A couple of weeks ago, I woke up in the night to the sound of water streaming down my bedroom wall. There was a hole in the membrane under my roof tiles that cost £900 to patch. There are more holes up there, but I just can’t afford to fix them all right now. Renting gives you none of this pain!
I don’t have as much flexibility of moving or working abroad either. I had to have an awkward discussion with my new boyfriend quite early on about where we see each other in two years, in order for me to decide how to approach the remortgage. That’s how far in advance I have to be planning these days, at minimum.
The neighbours have to be considered too. I can’t play music too loudly because if I annoy the neighbours, I can’t just move away.
What are your housing plans for the future?
I don’t think this will be my forever-home, but I could comfortably live here for years if I needed to. The initial move was stressful enough, so I want to do it as little as possible.
How to get involved in What I Own
What I Own is a Metro.co.uk series that takes you inside people's properties, to take an honest look at what it's like to buy a home in the UK.
If you own your home and would be up for sharing your story, please email whatirent@metro.co.uk.
You'll need to have pictures taken of your kitchen, living room, bathroom, and bedroom, plus a few photos of you in your room. Make sure you get permission for your housemates! You'll also need to be okay with sharing how much you've paid to live there and how you afforded the deposit, as that's pretty important.
If you're renting, you can take part too! What I Own runs alongside What I Rent, which is the same series but all about renting. Again, if you'd like to get involved just email whatirent@metro.co.uk.
MORE: What I Own: Justin, who pays £1,500 a month towards a mortgage for a one-bedroom flat in Woolwich
MORE: What I Own: Bernadette, 45, who owns a five-bedroom house in Coggeshall, Essex
MORE: What I Own: Bernadette, 45, who owns a five-bedroom house in Coggeshall, Essex
source https://metro.co.uk/2019/12/21/van-put-40500-deposit-two-bedroom-house-london-partner-broke-11943843/
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