Mortgage & Separation

commandolad

Hi All,

I am at my witts end. My wife and I are getting divorced. We have a mortgage that is in joint names. She has a large personal debt and cannot afford any more outgoings. She wants to be removed from the mortgage.

I want to have the mortgage in my own name. However the lender has advised that I cannot afford the mortgage, despite the fact that I have been paying it myself for the last 3 years.

I cant afford to sell the house as I will make a loss, and dont want to pay the redemption penalty of £9,500. I would rather keep the mortgage and rent the house out. My wife has even stated that she will rent it from me.

Any advice would be great, as I am just going round in circles.

Thanks!

Niv

Well if your mortgage provider decides you cant afford it on your own you will find it difficult to get your wife removed from teh mortgage. This was discussed recently and I believe the conclusion of that thread was to seek further professional advice.

As for renting to your ex-wife. Is this a good idea? are you on good terms now? Do you think this will last as the fighting over finances ensues (personal experiance not insinuating you there)? Also do you think if you did rent it to her that she may treat you as a soft touch and default on the rent? I am not trying to make judgements on her personality at all merly trying to paint a worst case senario.

Cannon_Fodder

Why not live there yourself, to keep it simple? You know you can afford it.

She'll just have to stay on the paperwork until your income can handle the mortgage officially. A solicitor can draw up an appropriate document to protect your equity and absolve her from liability, as an interim measure.

I agree with Niv. Letting the Ex stay there has got to at least be a recipe for confusion, should a divorce judge think you don't mind her having the family home, and also risks acrimonious financial disagreements if she misses rent due dates.

Your financial position may well change when a divorce settlement is finalised, and really needs detailed financial advice.

commandolad

Thanks for the replies so far. It is a tricky one! We still get on to the point that I would be prepared for her to be a legal tennant, that way I could always serve notice if things ever did go bad.

I just dont want to continue paying a mortgage for the sake of it. Cannon fodder you suggest that "A solicitor can draw up an appropriate document to protect your equity and absolve her from liability, as an interim measure". Is this easy, and do you think it would do the trick?

I appreciate your help!

commandolad

Cannon Fodder,

I cant live in the house as I am in the Army and always work away. The point is, neither of us want to be in a mortgage together, it prevents both of us moving on.