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  1. #1
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    Default Need to borrow money, but HOW?!

    My sister and I co-own a house with my ex partner. I am currently living in the house with my two kids but can't really afford to be as it's a big house and I'm struggling to pay the full mortgage amount with my very limited income. I had the idea that a renovation to effectively cut our house in half would be a worthwhile investment, for which we'd need to borrow more money for, but once we got a tenant for the self-contained flat this would probably be paid off within five years, thereby reducing our total mortgage from 30 to about 15 years.

    My sister is also a sole mama and has recently had to stop working due to not having any available Childcare. So the only one of us three with a good, stable income is my ex, but he has refused to sign anything that will enable us to get more money, after which, once the reno is done, we can use the rental income to refinance our home loan without him on the title. But he won't do it and we were told by our current lender that without him we can't borrow any more money.

    We need about $25K, which we will be paying back with a good rental return in a majorly sought-after and very expensive area of the country.
    Does anybody have any experience or advice on getting a small "top-up" loan of $25K with quite a limited combined income? I'm sure it can be done, just not sure where to start with it all... TIA

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    Even if you got the money could you make the changes if he didn't agree to it?

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    Hi there, how would you ex not be on the refinanced loan? Would you pay him out? It sounds tricky. Would you consider selling, paying out your ex's share, then you and your sister can start afresh with a new property. Also, incorporating a granny flat could involve council approval.

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    Yes, we will go through council but I have a friend who does all that professionally, so he will be able to help us out there.

    We would probably also need to get a valuation before we refinance. Our house has increased a lot in value since we bought it. We can get him off the loan, but only once we do the renos to use it as income... Bit of a catch-22 sitchy here see. He claims to not want any money from the house, although he is entitled to it.

    Also, we can't sell as my sister is still in the process of separating with/divorcing her ex and there is a certain timeframe before which he is legally entitled to half her money unless it is tied up in property. So she doesn't want to sell now.

    I just want to do this reno, so we can pay off our mortgage faster and be free. I need about $25K and am looking for a bank or company that basically lends money regardless of your income status.

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    @Wise Enough, good point but I doubt he will fight it once we've got the cash. I've been through this before with him. He's a major scaredy cat and I'm a little gutsy (a big reason why we split), so last time it was about a landscaping project which he wanted no part of. He left the house - I got the funds together, interviewed millions of landscapers and oversaw the whole thing myself. When he came and saw the makeover he quietly admitted that it looked good. He knows any changes I make will be awesome - he's just someone who is terrified of any change, particularly if it involves money and investments!

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    If your sister is still on the title with her divorce her ex can still go after that as part of her assets. If you do renovations with your ex still on the title then sell it with him still on there he is legally entitled to his share split between the 3 of you.

    It sounds like one big mess with both you of having ex's that are involved in the situation even though your sister isn't on the title. No bank or financial institutions will loan you anymore money without another source of income besides Centrelink.

    If eventually your sisters divorce is settled and her ex does not go after the property it would be best to them buy your ex out to get him off the title 100%.

    With neither of you working it's going to be very hard to do anything and what you want to do will cost more then $25k.

    Also why are you the only one paying the full mortgage and not your sister and your ex, does he live there still or not, if he doesn't and pays child support then technically he doesn't have to contribute to a mortgage.

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    Default Need to borrow money, but HOW?!

    .

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    That sounds like a disaster to be honest :/ I would just sell and buy a smaller home with your sister

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    Default Need to borrow money, but HOW?!

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  10. #10
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    Maybe your ex doesn't want to be up for the full debt if things go pear shaped and it takes a while for the additional $25,000 to be paid back?

    Can't you just move out into a smaller place and rent the house out? (Negatively gear while you can)?


 

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