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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34263
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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I have separated from my wife but continue to pay the joint

Resolved Question:

Hi, I have separated from my wife but continue to pay the joint mortgage on the property in which she dwells with the children. She doesn't work and receives Child Tax credits. I currently rent a property. I have several questions. Firstly, can I remortgage the property without affecting her Child Tax credits as she would not be the beneficiary of any additional funds? Secondly, would I be able to draw down additional equity from the property (£245k outstanding on £300k+ valuation) so that I can provide myself a deposit on a property. I don't wish to rent the rest of my life.
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Hi
Thank you for your question.
My name is Clare
I will do my best to help you but I need some further information first.
What other assets are there and what income do you each have?
How old are the children?
Clare
Customer: replied 2 years ago.

Hi Clare,

there are no other assets in question. I have 1 property I own and I rent another. We each own our own car. My children are aged 15 (16 in December), 13, 11 and 8.

I currently contract with an investment bank earning £650 a day. There is no other income and Michelle, my wife, gets £2000 a month from me for the children whilst I also cover the mortgage, TV, Broadband and half of the girls monthly dance expenses. All of this combined equates to over £2000 a month.

The girls stay with me on average 1-2 days at the weekend as I work during the week.

Regards,

Iain

Expert:  Clare replied 2 years ago.
Hi
For clarity - there is equity of £55,000 is that correct?
What was your gross income last year?
What work skills does your wife have?
Clare
Customer: replied 2 years ago.

Hi,

there is equity of at least £55k. My wife has no work skills as she hasn't worked since she was 19. She is currently at University studying to become a clinical dietician.

My gross income was around £160k.

Iain

Expert:  Clare replied 2 years ago.
Hi
When will she qualify and what will she then be able to earn?
Clare
Customer: replied 2 years ago.

Hi,

she should be qualified in 2 years and according to http://www.prospects.ac.uk/dietitian_salary.htm she can earn £21k if with the NHS but I believe she wants to go freelance.

Iain

Expert:  Clare replied 2 years ago.
Hi
Has your wife agreed to your releasing capital from the house?
Clare
Customer: replied 2 years ago.

She is worried as to whether it will impact her ability to claim her child tax. Due to it being in joint names we need to know whether it has a detrimental impact to this before we look to progress further.

Expert:  Clare replied 2 years ago.
Hi
If your wife seeks her own legal advice she will be told NOT to agree this as the family court would certainly NOT order is since is severely diminishes the only asset that is available for division.
In addition if she agrees and at any point has to apply to the DWP for assistance with the mortgage payments she would no longer be eligible for such help
However it will not have any impact on her eligibility for Tax Credits.
I hope that this is of assistance - please ask if you need further details
Clare
Customer: replied 2 years ago.

What if I was also using the additional equity to fund building improvements? Part of what I want to do is help use the funds to put towards a conservatory and kitchen extension. Would this not be viewed as increasing the value of the property rather than diminishing it?

Iain

Expert:  Clare replied 2 years ago.
Hi
It would not change the position for your ex
Clare
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