Just one thing...

brightonbelle wrote: »

Yep, you are right @silvercar I have to raise the mortgage otherwise the only other option is to agree to a sale and have to hope it raises a decent amount of money, not enough to buy anywhere else though sadly so will have to move the kids into a rented house, never being on the property ladder again wasting all of my money on paying someone elses mortgage. Let's just hope there is a huge crash in the property market after hey :-)

Any chance that any of his family or yours could help raise the money? Trying to think out of the box here.

Also wonder if a divorce solicitor may help. A separation agreement that he only is entitled to X% of the equity may have an influence on an OR.

As I think I said before, I do have a concern that every £ you pay to reduce the arrears actually increases the equity in the property, so at least some of that £ goes to the OR. Finding out the score on whether you can raise a mortgage will let you know whether it is better you save your money for yourself and your children or use it on the current mortgage.

I know you said that the lender is keen for you to reduce the arrears before they can make a decision on whether they will allow you to increase the mortgage, but they would say that wouldn't they? The function of the arrears department is to get pay back on arrears.

Had valuation and letter from the trustees solicitors - they want £91K as his share of the equity...

What do you think the equity is?

And how does that compare to the amount you could raise?

If you want to negotiate then you need to know that it is worth the effort. If you were hoping for 40k, then clearly it is going to be a struggle to convince the OR not to force a sale. On the other hand, if 80k is possible then it is worth the struggle.

You could also pursue the idea of the OR putting a charge on the property for a portion of his share, at least then you have some breathing space until the kids are adult.

I know I have said this before, but every pound you pay off the mortgage (arrears payments or a monthly repayment) is money you are sharing with the OR. I would find out the chances of the lender giving you the increased mortgage as speedily as you can. At least then if the answer is no you can stop paying the mortgage and save up for a move.

You make your own moral judgments and good for you in holding your values high. It's difficult to hold onto your moral compass when swimming with the crocodiles. The only comment I would make is that the lender's arrear department may not have had the same morals when persuading you to clear arrears without promising you the mortgage in return.

If you need to move and get a new mortgage elsewhere, then the bigger deposit you have the better.

His income may help the lender agree to a larger mortgage, but his recent bankruptcy status will mean his credit rating is poor, so a joint mortgage elsewhere is less likely.

If he stayed on the mortgage and you bought out the Beneficial Interest from the OR, you effectively do own all the equity. Him signing the house to you wouldn't be possible while on the mortgage unless it was as a result of a court order. If following this route, you need to sort the mortgage out first or his income won't be considered.

So the order would be sort out a joint mortgage high enough to buy his equity off the OR, then have a separate legal document drawn up transferring the property to you. I'm not sure if you can get his name removed from the deeds while still having a joint mortgage, but it may not be necessary.

Of course, him being on your mortgage will impact on him getting his own mortgage in a few years time. So that's another moral consideration.

One more thing, if you have any joint finances, your credit rating will be affected by his bankruptcy. So sticking with a joint mortgage will effect your rating.

I don't know whether his actions make a reconciliation possible, he would need to regain the trust you placed in him. That will take time and work.

Good luck!