Ex forcing sale of shared property with deliberate IVA

richy4 · 17 May 2017 at 9:28PM

Asking on behalf of a friend:

My friend lives in a property which she is on the mortgage with her ex. They bought several years ago. He contributed only towards furniture and solicitors fees on initial purchase. While he lived in the property, he paid half the mortgage payments.

Will this affect her credit rating in the future?

Thanks for any replies or advice in advance!

AnotherJoe · 17 May 2017 at 9:52PM

Yet another in the long line of "should have had a clean break at the time", posts

She needs to see a solicitor amd get it sorted properly. Unless there are children involved on her part in the house , it may be she needs to give up some of the equity, depends what the rules are.

TBagpuss · 17 May 2017 at 9:53PM

Unfortunately, because the property is in joint names she s almost certainly going to have to buy him out.

She may be able to negotiate to pay less than 50%, and if her ex is struggling financially then a lump sum offer may be attractive to him - money now, rather than money later after the property sells.

It's in her interests to buy him out and remortgage to clear the joint mortgage, as because they have a joint mortgage they will, I believe, be linked / connected people for credit checks .

She could see a solicitor (look for one who deals with ToLATA claims) to see what her chances of getting a split with more than 50% of the whole, but i they own a joint tenants and didn't put anything in place to protect her deposit at the outset it is not automatically protected.

Cakeguts · 17 May 2017 at 9:58PM

richy4 wrote: »

Asking on behalf of a friend:

My friend lives in a property which she is on the mortgage with her ex. They bought several years ago. He contributed only towards furniture and solicitors fees on initial purchase. While he lived in the property, he paid half the mortgage payments.

He moved out 3 years ago. She carried on living in the property and paying for everything, she also put in the deposit money on initial purchase. The mortgage has continued in joint names until now.

Her ex is now saying he is about to apply for an IVA because he is struggling with his bills as he has just got married and has had a baby. Also struggling to keep up on rent payments.

My friend is worried that this is a deliberate attempt for her ex to simply rack up a load of debt to deliberately require an IVA which in the process will mean their joint asset, the property, will be used to settle some of the money owed.

Can anyone outline what process the above situation follows?

Can my friend get her ex off the mortgage before he applies for his IVA and then its all down to him to deal with himself?

If the IVA is approved, what impact will this have on my friend as she wants to stay in the flat and she has been paying on time every month! She does not want to sell or give her ex 50% as he never contributed this in the first place!

Will this affect her credit rating in the future?

Thanks for any replies or advice in advance!

Only furniture and half the mortgage is something. Why should she be entitled to keep this? Only she will know how the joint ownership of the property was set up and what proportions the property was owned in.

richy4 · 17 May 2017 at 9:59PM

Thanks for the replies guys.

Would one option be to sell the property before her ex manages to apply for any of this IVA?

And then she can arrange a split amount between the two of them only, without any third party.

richy4 · 17 May 2017 at 10:00PM

Only furniture and half the mortgage is something. Why should she be entitled to keep this? Only she will know how the joint ownership of the property was set up and what proportions the property was owned in.

The property was bought by her and her ex jointly. Joint mortgage, joint owners. This remains the same today. Difference is she lives there and still pays for it all, he left ages ago and pays nothing and never really did but now it seems has lost patience waiting for her to sell it and is going down this route of IVA to get her back.

Red-Squirrel_2 · 17 May 2017 at 10:08PM

richy4 wrote: »

Thanks for the replies guys.

Would one option be to sell the property before her ex manages to apply for any of this IVA?

And then she can arrange a split amount between the two of them only, without any third party.

He would have to agree to the sale and sign the paperwork.

Depending on how much his debts are, if she offered to buy him out for that much to give him a clean slate might he go for that to avoid the credit issues that come with an IVA?

richy4 · 17 May 2017 at 10:19PM

I think it is a deliberate ploy for her ex to retrieve some of the equity of the property and a rather vindictive ploy at that!

My friend would rather sell the property and negotiate privately a split of the proceeds with her ex. Then at least there is no continuous third parties involved.

Not sure if he would agree to this, the major issue from her side is she wants to stay and I think he knows this and is playing on it. One way or the other, he will get cash from the property so he doesn't care!

If he applies for an IVA, will this affect her credit record? The mortgage is joint, but his outstanding debts are his own. I understand from some quick research via Google that her credit should be untouched as it is he who has issues.

Thrugelmir · 17 May 2017 at 10:26PM

richy4 wrote: »

I think it is a deliberate ploy for her ex to retrieve some of the equity of the property and a rather vindictive ploy at that!

If the ex contributed to the mortgage then quite rightly some of the equity is his. Nothing vindictive. Only herself to blame for leaving the situation as it was. The matter should have been dealt with when the relationship ended.

gycraig_2 · 17 May 2017 at 11:33PM

richy4 wrote: »

I think it is a deliberate ploy for her ex to retrieve some of the equity of the property and a rather vindictive ploy at that!

My friend would rather sell the property and negotiate privately a split of the proceeds with her ex. Then at least there is no continuous third parties involved.

Not sure if he would agree to this, the major issue from her side is she wants to stay and I think he knows this and is playing on it. One way or the other, he will get cash from the property so he doesn't care!

If he applies for an IVA, will this affect her credit record? The mortgage is joint, but his outstanding debts are his own. I understand from some quick research via Google that her credit should be untouched as it is he who has issues.

They broke up 3 years ago and she still hasn't sold the house of paid his equity ? Yet he's the vindictive one. Did she plan to just keep THERE house ?

gycraig_2 · 17 May 2017 at 11:35PM

richy4 wrote: »

I think it is a deliberate ploy for her ex to retrieve some of the equity of the property and a rather vindictive ploy at that!

My friend would rather sell the property and negotiate privately a split of the proceeds with her ex. Then at least there is no continuous third parties involved.

Not sure if he would agree to this, the major issue from her side is she wants to stay and I think he knows this and is playing on it. One way or the other, he will get cash from the property so he doesn't care!

If he applies for an IVA, will this affect her credit record? The mortgage is joint, but his outstanding debts are his own. I understand from some quick research via Google that her credit should be untouched as it is he who has issues.

They broke up 3 years ago and she still hasn't sold the house of paid his equity ? Yet he's the vindictive one. Did she plan to just keep THERE house ?.

I'd be pretty annoyed if my ex was chilling in my house which simultaneously stopped me moving on and buying my own property

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Ex forcing sale of shared property with deliberate IVA

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