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UKfamsol
UKfamsol, Family Solicitor
Category: Family Law
Satisfied Customers: 560
Experience:  Very experienced specialist family law solicitor, qualifed in 1994
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I have a question about mortgages. I have been separated from

Resolved Question:

I have a question about mortgages. I have been separated from my partner for a year. She would like to continue to keep me on the mortgage so she can keep the same mortgage at the property we shared where she still lives with our children. She says that if I take myself off the mortgage she will not be able to keep the house as she does not have a regular income and I will therefore be making her and the children homeless. I have a full time job so am able to offer her the financial security to keep the house by remaining on the mortgage. I wonder if you could advise on how she might be able to buy me out or whether there is an issue with me being on a mortgage for a property where I do not live with an ex-partner. I would also like to be able to buy a new house in the next year as currently renting.
Submitted: 3 years ago.
Category: Family Law
Expert:  UKfamsol replied 3 years ago.
Hello and thanks for your question

I need a bit more information to be able to answer:
Are you married or were you married to your ex-partner?
What is the house worth and how much is the mrotgage outstanding on it?
What income do you each have from all sources?
How old are your children?
Customer: replied 3 years ago.

Hello


 


Not married but together for 8 years. Moved into house in 2008. House was worth £175000 on interest only mortgage payment plan since we moved. Approx £300 per month. Children aged 6 and 3. My income is 32,0000 plus freelance earnings of £10,000 approx. Her income is between £15-20,000. Hope that helps. Please advise if possible.


 


Thanks in advance


 


 

Expert:  UKfamsol replied 3 years ago.
Sorry - a bit more info needed - do you know what the house is worth NOW? And how much is the TOTAL mortgage outstanding on it (rather than the monthly payment)?

Also, as the mortgage is interest-only, what is there in place to pay the capital sum at the end of the mortgage term eg endowment policy? (it would be worth finding out what the surrender value of any such policy would be, if you were to surrender it now rather t than wait for it to mature.)
Customer: replied 3 years ago.

The house is worth approximately £135,000 now. Original cost was £157,000. The total mortgage is now over £160,000. That is all the information I know. Sorry it has taken so long to respond to you. Please could you confim if I only pay once or whether I pay per question to you?

Expert:  UKfamsol replied 3 years ago.

Hello again and thanks for the extra information.


re buying a new house


As your total annual income is £42,000, the maximum mortgage you are likely to be able to get is £168,000 (but it could be less as it's getting more dfficult to get a mortgage these days). As long as you are jointly and severally liable for the £160,000 mortgage on the house you own with your ex, you will not be able to get another mortgage, because that uses up all your mortgage capacity.


re: your ex buying you out


As there is no equity in property - in fact the property is in negative equity as the mortgage is higher than the house is worth - there is nothing for her to pay to you for your share.


The only way for you to be released from your liabilities under the terms of the mortgage deed are either for your ex to take over the mortgage into her sole name, or for the house to be sold.


To take over the mortgage, your ex will need the agreement of the buidkling society (or another building society) – but she will not get it as her income is too low. Her mortgage capacity is at most £80,000 – far too low for a mortgage of £160,000.


If the house is sold, there is no equity, so neither of you will recieve anythign from the net sale proceeds – instead, there will remain an outstanding debt of £160,000 - £137,000 = £23,000, which you will both be jointly and severally liable for.


You MIGHT then be able to get a mortgage of £168,000 - £23,000 = £45,000. But your ex would have to rent with the kids.


Another option would be to agree to continue paying the mortgage until the your youngest child reaches 18, at which point you agree with your ex that the house be sold, and the net sale proceeds divided between you. This would mean that you would have to rent until then – but at least your children would not have to leave their home.


You do need to check out what arrangements if any were put in place to pay the capital sum at the end of the mortgage term, such as an endowment policy – because that might give you both a bit more leeway if whatever it is has a surrender value now.


If you and your ex can reach agreement, a solicitor can put that in writing for you and advise on whether or not a court order by consent can be obtained to make your agreement legally binding. Anyway, I think you would benefit from some face-to-face legal advice. Here's where to find a specialist family law solicitor:-


http://www.resolution.org.uk/findamember/


I know you were hoping for a more positive answer, but it would be wrong of me not to be honest with you.

I hope this helps anyway and I wish you the best of luck.


Thanks and best wishes...

PS With regards ***** ***** you pay once you accept my answer - which I hope you will do!

Customer: replied 3 years ago.

Thank you. That's very helpful.


 


M

Expert:  UKfamsol replied 3 years ago.
You're very welcome!

I would be grateful if you would now kindly rate and accept my answer so that I can be credited for my time - thanks...
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