Buying out my Ex..... amicable but I've one question.

illuminate

We've agreed a figure between us but I'm worried there might be a snag.

One of her credit card companies applied for and got, a charge on the property. The CCJ, associated debt and charge itself are all in her name alone.

My question is whether the credit card company are entitled to or will attenpt to influence the figure we have agreed ? The reason they might, is that on the face of it, this figure is considerably lower than the 50% of equity she would normally be entitled to. There are many perefectly acceptable reasons for this, the main one is that I am having to fund, in their entirety, considerable remedial work in-order to obtain a mortgage from my lender in order to buy her out.

I've had a nightmare with my lender agreeing a mortgage (taken 9 months to date) and we've worked hard to come to a mutually agreeable figure. If after this, a third party were to mess it up we'd both be gutted.

VIGILANT22

I trust the amount of the 2nd charge is being deducted from any equity owed to your ex......

illuminate

VIGILANT22 wrote: »

I trust the amount of the 2nd charge is being deducted from any equity owed to your ex......

aye.... thats how it works.

I deposit £X with her solicitor in return for her name being removed from the deeds and the credit card company get first grabs at all or part of that amount.

VIGILANT22

It's not "grab" it is a debt and if you don't have it removed at this point you will be liable for it when you come to sell the property as the charge has been placed on the property...

illuminate

VIGILANT22 wrote: »

It's not "grab" it is a debt and if you don't have it removed at this point you will be liable for it when you come to sell the property as the charge has been placed on the property...

Hell lighten up a bit ...... scuse me for being a little informal.

As I said, the debt and the subsequent charge against her share of our property are all entirely in her name.

What I'm trying to get to the bottom of is whether her creditor will be able to get involved in the value that has been placed on her share as I suspect its short of the amount she owes.

.... and before you come back with an answer/opinion Vigilant22, I'd be grateful if you'd take a deep breath, sit down, relax and try some dolphin music or whatever mechanism you prefer that stops you snappin peoples fingers off like some wayward terrier.

silvercar

Once her solicitor pays the money to the charge holder the charge gets removed from the property. The property can then be transferred solely into your name. (I presume this is what you have agreed with your lender). Effectively it will all happen at the same time as the lender is lending you the money against the house and your ex and her charge will no longer feature in the deeds or ownership.

The charge holder won't care how much money she gets provided the charge is repaid.

illuminate

silvercar wrote: »

The charge holder won't care how much money she gets provided the charge is repaid.

That's the nub of it. I don't think her share of the equity will cover the debt.

So what happens in that situation ?

silvercar

illuminate wrote: »

That's the nub of it. I don't think her share of the equity will cover the debt.

So what happens in that situation ?

The charge holder won't release their charge on the property. This has consequences, your solicitor will explain better but basically the charge stays on the property which means you have problems remortgaging in the future. Also means you can't sell without paying off the charge.

You may have to consider paying off the charge from your share if she doesn't have enough funds!

happybroker

silvercar wrote: »

The charge holder won't release their charge on the property. This has consequences, your solicitor will explain better but basically the charge stays on the property which means you have problems remortgaging in the future. Also means you can't sell without paying off the charge.

You may have to consider paying off the charge from your share if she doesn't have enough funds!

It would appear to me that the arrangement is that she will receive a certain amount of cash provided she uses some of that to repay the debt and have the charge removed and that all of this will be dealt with by her solicitor who will, no doubt, be holding the money to the order or OP's solicitor.

If this is what is happening then the OP has it spot on.

Thrugelmir

illuminate wrote: »

As I said, the debt and the subsequent charge against her share of our property are all entirely in her name.

What I'm trying to get to the bottom of is whether her creditor will be able to get involved in the value that has been placed on her share as I suspect its short of the amount she owes.

Then she's been very sharp.

Does she have other assets?

illuminate

I'm getting a little nervous now.

Just to answer the query, there will be NO cash being being exchanged. Basically because neither of us have any !! All payments will be going straight through solicitors. Neither of us will see any cash.

I've received a conditional offer of a mortgage from my current lender. The major condition, is that I have to complete certain works on the property before they will release any funds, inorder to secure the value of the property. I am able, JUST, to scrape together enough to complete this work.

The mortgage company will then release the funds. These funds (the maximum amount they will give me) equate to the outstanding mortgage plus the figure I have agreed with the Ex, and the figure we have agreed equals 50% of the equity minus 50% of the cost of the works.

She has no other assets of which I am aware and has a serious problem dealing with debt (one of the main reasons the relationaship collapsed). My fear is that she wont stand up to her creditor or attempt any kind of negotiation if they query the agreed figure or even argue the case that the figure has been arrived at by totally fair means. I've not even bothered trying to argue that she maybe shouldn't be entitled to 50%, following some of the financial shenanigans that embarked upon for several years.

I'm rapidly coming to the conclusion that I need to discuss this with a solicitor dont I. ...... and probably a good one at that.