Separation Entitlement, pls help !

kitten7

I brought my home in Jan 2004 as a single person and put down a 35k deposit myself. I then entered a relationship and when my mortgage deal expired in Jan 2006 I added my partner to the mortgage remortgaged and borrowed another 20k, however 10mths into this relationship we split and he left the home stating that he would not and did not wish to continue paying the mortgage.... and he didnt. Fortunately for me after 2 months of struggling I decided to take a payment holiday for up to 12 months.
He then wrote to me advising me that he wanted his name taken off of the mortgage asap so he could buy another property, if I was unable to do this he threatened to get his Solicitor invloved to make me sell. I am now in the process of remortgaging and taking his name off but now he is also demanding a settlement and this is the question I would like answered.

There is very little, if any, equity in the house since house prices dropped so there is nothing to give and I can only borrow a certain amount on my salary to remove his name ! Plus surely the fact that WE borrowed 20k between us makes a difference as I am left to pay his half over the next 23yrs. What are your views and what would the Solicitors fight for.

Many Thanks

MumOf2

Poor Kitten. He doesn't sound a very nice person :-(

Unfortunately you are jointly and severally liable for the mortgage, so if he won't pay you'll have to. Otherwise the debt will be referred and it will adversely affect your credit record.

But, as far as I'm aware, he won't have any rights to a financial settlement unless you're registered as joint owners of the house on the title deeds. You're not married so he doesn't enjoy the same rights as a married person, you put the deposit down and hopefully you're the sole owner on the title deeds. He's just posturing by threatening Solicitor involvement - ignore silly threats like this and don't get drawn into playground games.

If he is on the title deeds, then perhaps a free half hour with a solicitor may be a good idea. Would at least give you some idea where you stand legally.

If not, concentrate on sorting the mortgage out - the bank has to agree to take his name off, and then work out how you're going to pay it on your own. Maybe look at taking a lodger - you can receive just over £4,000 a year before paying income tax on the rent.

If you feel it would be honourable to reimburse him the amount he contributed to the mortgage over the few months (although you may well feel that he would have to have paid rent somewhere so any mortgage contributions are in lieu), then maybe work out how much he paid and offer him that as a full and final settlement. I wouldn't though - he can't have expected to be living somewhere for nothing!

Best of luck, Kitten.

MumOf2

kitten7

Hi, thanks for that. My remortgage has been accepted as this is what he wanted and this was the only way I could take his name off so I will be going on to interest only making it afforable for me. However now I have informed him of this he now wants a settlement so could stall this taking place as he will have to sign a form to agree to do so. He is on the title deeds !

MumOf2

Are you tenants in common or joint tenants on the title deeds? If tenants in common, what proportion do you own and what proportion does he own?

MumOf2

kitten7

Joint tenants since Jan 2006, I bought and owned the property for 2 yrs previous.

MumOf2

It may be best to try to get a free half hour consultation with a solicitor, then. S/he will be able to advise whether you need to make a financial settlement and how much this should be. As there's very little equity in the property, this probably won't be much. Or could there be no equity at all - a free realistic valuation from an estate agent would answer this one.

Let's just hope he doesn't start stamping his feet and being very foolish by wasting lots of money on legal advice - the fees will quickly stack up and lining solicitors' pockets is just denying you both the fees that will be involved.

Have you asked him how much he thinks he's entitled to?

MumOf2

kitten7

No, but if there is no money to give surely there is nothing he can do, the valuation states there is no equity, it appears he is trying to get blood out of a stone ! 1/ if i sell there is no equity to split 2/ i cannot borrow extra to give him 3/ name off or he waits a few years until house prices go up.

I'll take your advice and maybe consult a solictor.
Thanks x

MumOf2

Make sure the first half is free, write down all the figures, dates and facts involved and don't let the solicitor get sidelined into non-relevant discussions. Be concise and make notes of the solicitor's advice.

My daughter is a trainee solicitor and it's very interesting seeing dvd recordings of her conducting half-hour mock interviews. The key to getting the most out of it is for you to be fully prepared prior to the interview. Present a bullet point summary of all relevant facts, ask specific questions and, whatever you do, don't whaffle or get sidetracked into the emotional side of it.

Best of luck.

MumOf2

dimbo61

Good Luck on this
You bought the house before you meet him
You then borrowed an extra £20,000 in 2006
no equity in the house
He owes you £10,000 not the other way round
The mortgage company or judge if it went to court would not force you to sell the property and make yourself and kids homeless
Tell him to go to hell.