Advice please -messy situation

jodiebabes

Hello,

Im after a bit of advice for a friend in need.

He has recently divorced his ex wife. They have been living seperately for over a year with her living in the house the both owned. During this time my friend has been paying half of the mortgage. The divorce has now been finalised and she has sent him a letter saying she has left the house (and the dog) and he can do what he wants with it.

He visited the house to find it in a right state and the dog left without food/water/heating. There was also a huge stack of unopened letter (bills he assumes) which havent been paid. He visited the house again yesterday with an estate agent to value it and there was a handwritted letter with 'URGENT' marked on it so he opened it and it was from a company demanding money for the mortgage arrears. His ex hasnt been paying it for quite a while it seems.

Where does he stand on this with regards to his financial situation and getting another mortgage in years to come?

He has been paying half of the mortgage so will this make a difference if the house is in both of their names?

He needs to find the money to pay the arrears off and plans to sell. Although the house was valued at 9k under what he bought it for.

And the poor dog had to be put down because when he took it to a rehousing place it bit the women (poor thing was probably petrified after being so badly treat) and because he has a newborn baby he didnt want to risk having the dog at his house so the dog was put down.

Any advice on this situation would be much appreciated!

Thanks

simpywimpy

The bank will go after both of them or one only, if the second hasn't any income for any money owed.

Did he pay his half of the mortgage direct to the building society or to her?

silvercar

He is jointly liable for all the mortgage, so if there are arrears they will be a blot on his credit rating and effect his chances of getting a mortgage in the future. Lenders are particularly difficult about recent mortgage arrears.

He either needs to sell and pay off the shortfall or to move in, pay off the arrears and live in the property.

GGGG

The term is "Jointly & Severally Liable". As Silvercar rightly says, they are BOTH likely to be pursued for the mortgage arrears, which will affect their future credit ratings & hence their ability to obtain a mortgage or other credit in the future. Your friend should contact his ex (through a solicitor if necessary), informing her of the consequences. They need to reach agreement on how this situation is resolved; she can't walk away & assume it's no longer her problem. Your friend should contact his lender (and all the other creditors) immediately to inform them of his current situation & proposals to rectify the situation. It may be that he can take on the mortgage on his own (subject to meeting the lender's affordability criteria) if he chooses, or sell the property with his ex's consent, but if there is negative equity the lender will again seek redress for their losses.
I'd strongly advise he takes legal advice ASAP.

jodiebabes

Thank you for all of your replies!

Yeah he was paying off his share directly to the building society. He is now seeking legal advice and is looking at renting the property out while he pays off the arrears.

Thanks all!

Ian_Griffiths_Halifax

He needs to speak to a Solicitor and QUICK.

I've got a similar situation going on with a client. Her partner left and, via the partners solicitor, sent a letter saying she is revoking her rights to the property under the 'Joint Tenancy' and is now expecting my client to pay them rent due to having full occupancy of the property. This rent is then to pay the mortgage!

I have spoken to my clients solicitor and apparently this is totally legal and right! It's the first time I've ever come across this in 20 years and I thought that my client wouldn't have to pay rent due to 'Jointly owning' the property 100%. How can you be expected to pay rent on your own property? But on speaking to the Solicitor there's not much she can do but either buy the partner out or sell up.

You learn something new every day.

Gorgeous_George

The ONLY satisfactory way forward when people split up is to sell and slplit any profits/losses. Everything else is messy and carries considerable risk.

The OP's friend needs to move into damage limitation mode. He must remember that the best form of revenge is his own happiness. Don't let the beach know just how wee'd off he is.

Ian_Griffiths_Halifax wrote: »

... there's not much she can do but either buy the partner out or sell up.

Quite right too.

GG

Ian_Griffiths_Halifax

Gorgeous_George wrote: »

Quite right too.

GG

While I absolutely agree that it is best to move on, sometimes it just isn't possible, such as when the house has dropped in value and there is negative equity.

I've told my client to sell up if she can, but any reduction from the asking price and it can't be done as the figures won't stack up.

Gorgeous_George

They only need to be able to sell. Find a buyer and sort out an unsecured loan each for the shortfall.

Not doing so will only amplify the pain when the house is eventually repossessed and/or sold. The market has some way to fall.

If she had been able to stay there rent free, how would her ex have managed?

GG

silvercar

Ian_Griffiths_Halifax wrote: »

He needs to speak to a Solicitor and QUICK.

I've got a similar situation going on with a client. Her partner left and, via the partners solicitor, sent a letter saying she is revoking her rights to the property under the 'Joint Tenancy' and is now expecting my client to pay them rent due to having full occupancy of the property. This rent is then to pay the mortgage!

I have spoken to my clients solicitor and apparently this is totally legal and right! It's the first time I've ever come across this in 20 years and I thought that my client wouldn't have to pay rent due to 'Jointly owning' the property 100%. How can you be expected to pay rent on your own property? But on speaking to the Solicitor there's not much she can do but either buy the partner out or sell up.

You learn something new every day.

I first heard this on a thread on the housing board recently. I too didn't believe it.

Apparently the joint owner that leaves the property is entitled to half the market rent of the property as the one that remains is occupying the whole property, even if this is not their choice. The half the market rent is then used to counterbalance the half mortgage payment due, with the remainder being paid / received by the other party.

So the one that remains suddenly has to find rent on half the property plus paying all the utility bills. They would be liable for 75% of the council tax by claiming the single person discount. I'm sure in a lot of cases it would be cheaper to leave the property empty.

silvercar

Reading between the lines, he left the house and his recently divorced wife....and has a newborn baby....

He left the home and the dog ...now the dog has to be put down.

Sounds like he left his home, his wife and his dog to start a new life elsewhere. Did the ex wife earn enough to pay all the household bills, care for the dog and pay half the mortgage?

Two sides to every story.