Need some advice please, i'm at a loss!

CLAPTON

When you say the bank has suggested you offer £40,000 is that because that is the most that they will lend to you or is it their negotiating position?

presumably your ex girl friend is also keen to resolve the matter and to regain the full entitlement to the house?

If 40k is the absolute maximum they will lend you, then why not discuss this with your ex to see what see says...you could still agree to pay her some regular amount in addition to the £40k for an agreed period. Presumably she would have to raise a £44,000 mortgage and could afford to do this?
At least this move things forward.

Bad_life_choices

She is not exactly the kind of person that listens to anything hence why she is my ex.

The bank suggest offer 40k and get her to get a mortgage for the rest, as I will have nothing from the house in years to come! Paying £700 a month for the next 22yrs is ridiculous to get nothing out of it! Thats the banks stance not mine, i just want it all over with so I can move on. I know what is morally right; but unfortunatley what is morally right and what the bank see's as financially right are 2 different things.

The bank cant even lend me 40k as they dont lend that much unless its secured! To get a secured loan I need to get a mortgage (another mortgage) but the problem is it would be a second mortgage! Which means that they wont give me as large a sum as they would if it was my only mortgage. With the current housing situation I couldnt even get enough to buy a house! So as you can see its ever decreasing circles and no way out! I only earn 26k, my new partner earns 18k. Thats not a lot of mortgage so leaves me somewhat stuck.............next?

freeclimber

There is a case for claiming a percentage of the house value according to the amount you have contributed to the mortgage - I was advised along these lines many moons ago by a property litigation hotshot having contributed to an ex's mortgage even though it was solely in her name (we were not married). It could be that the bank is suggesting 40k as a proportion both of monies paid to the mortgage, and the benefit of the equity increase over that time.

Not sure what the answer is, but I think claims on a proportion of the equity require more solid legal advice than certainly I can give.

tyllwyd

Am I right in thinking that you had a debt of £60K, she raised the money as a secured debt against her house by increasing her mortgage and then lent the money to you so that you could pay off your debt?

Have you thought about just making this into a formal arrangement - forget about banks and mortgages, just go to a solicitor and get a formal agreement drawn up showing how much she has lent you as an unsecured loan, how much you are going to repay her each month, how much interest you will pay and when your last payment will be. If the mortgage is in her name, then she wouldn't have to change that. It isn't ideal because it isn't a clean break, and I don't suppose any solicitor would advise her to make you such a large loan but it is done already so you are both stuck with that decision.

Edited to say - whoops, I just realised that your name is on the current mortgage so my idea won't work. Sorry!