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Hi, thanks for the question. I’m Chris and I’m a Solicitor. I will be happy to assist you and hope to provide a full response as quickly as possible.
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I’m sorry to hear about the situation you find yourself in. I presume that this is a mortgage registered against the property? If so, you need to take out of the equation that it is a mortgage in your wife’s grandmother‘s name. It is treated as though it is a general mortgage as if by a bank or building society. Therefore, the equity will need to be dealt with as in any other divorce with a house with a mortgage by a bank. Just because it is in your wife’s grandmother‘s name does not mean that she has any more rights to repossess the property.
She can only start a repossession application if you stop paying the mortgage. Even then it’s not easy. Ultimately, the house is going to be part of the divorce process and will need to be considered a to what to do with it between you and your wife within a financial application.
Both you and your wife would have to stop paying the mortgage. It is only when it becomes three months in arrears that anything can happen with regards ***** ***** of repossession. She would need to send you a letter before action setting out the fact that you are in arrears and how much those arrears are. If it then is not paid, she will need to make a claim to the County Court seeking possession and the terms allowed in the mortgage. That would then bring with it a court hearing and they court would issue possession of the house to your wife’s grandmother. It is a relatively simple process for a lender. I am presuming that there is power under the terms of the mortgage for this to happen. It is a standard clause but it may be that it is not in here because it is a family agreement. However, it is advisable to always put the centre I presume that it would be.
This would of course mean and your wife would have to vacate because she is also a party to the loan. Then it would be your wife’s grandmother selling the property to obtain her when he money back. You and your wife are then have the remaining money as part of the finances for a new divorce settlement. However, whether you’re wife’s grandmother would kick her out is another thing but the whole point of a possession application is for someone to get their money back. Both you and your wife will get a CCJ against you for the monies and if your wife was not removed from the property and the property thereafter settled you May have a claim against your wife’s grandmother on the basis that she is abusing power and the terms of the mortgage because she’s doing it to favour one and not the other.
I was just following up to see if there is anything else I can assist you with? If so, just let me know. If not, then I am happy to have been able to assist you. I hope the matter gets resolved.