Negative Equity & Separation

TMM_2

I wonder if anybody can give me some advice. I have a mortgage on a property with my ex partner and we split up in Dec 08 (we weren't married). I moved out in March 09 yet have continued to pay half the mortgage ever since. We have agreed I will do this until later this year when the fixed term is over and the repayments drop.
However, because I'm doing this I cannot afford to move on, I rent a room in a shared house and I'm getting into debt trying to make ends meet.
The flat is in negative equity so we cannot sell it.

Can he buy me out, and if so how does that work? Am I entitled to any money from it while it's in negative equity? Will I be entitled to any money from it when he sells it once it's in profit, if I stop paying in to it? My name will still remain on the mortgage as he cannot afford to remortgage on his own. Was I obliged to continue paying or can I ask for that money back at any point as I wasn't living there?
I feel I am getting nothing out of this deal, yet he gets everything - help!

opinions4u

First of all, whatever you see posted in response to this, you really shoud take legal advice to get the right answers for your specific situation. For what they're worth, I've highlighted my own thoughts below.

TMM wrote: »

I wonder if anybody can give me some advice. I have a mortgage on a property with my ex partner and we split up in Dec 08 (we weren't married). I moved out in March 09 yet have continued to pay half the mortgage ever since. We have agreed I will do this until later this year when the fixed term is over and the repayments drop.

Whatever private arrangements you may have with your ex, you are both individually liable for the whole debt. If your ex doesn't pay the lender can pursue you as an individual for the full amount.

However, because I'm doing this I cannot afford to move on, I rent a room in a shared house and I'm getting into debt trying to make ends meet. The flat is in negative equity so we cannot sell it.

If you were able to find a way to pay off the negative equity the flat would be easier to sell.

Can he buy me out, and if so how does that work?

You would have to agree a price and the lender would have to agree to your ex taking over the mortgage. Many lenders will not agree to release a borrower from the commitment while the negative equity remains.

Am I entitled to any money from it while it's in negative equity?

On the face of it, I would say you should be paying your ex half the amount of the negative equity to get out of it. But there may be a wider financial settlement that means this wouldn't be the case. But why should you get money for dumping the whole of the negative equity on your ex?

Will I be entitled to any money from it when he sells it once it's in profit, if I stop paying in to it? My name will still remain on the mortgage as he cannot afford to remortgage on his own. Was I obliged to continue paying or can I ask for that money back at any point as I wasn't living there?

All questions for legal advisers.

I feel I am getting nothing out of this deal, yet he gets everything - help!

What is there to get out of the deal? A mortgage is debt. A property is asset. The debt is bigger than the asset so you both have a problem. Not nice, but that's the reality.

TMM_2

Thanks opinions4u. I have no desire to just dump the negative equity on him, we are trying to keep things amicable, and I know at the moment we are jointly liable for any debt. However, I also want to make sure I am looking after my own future and dont want to be doing myself out of anything I may be entitled to in the future. So far I have paid nearly £9k since I haven't lived there, to ensure he can keep a roof over his head and not fall behind on the payments.
The property is rising in value, slowly. If I stop paying in July this year, but leave my name on the mortgage, am I entitled to anything when he sells in the future, assuming it is back in profit by then?
I realise all we have at the moment is a big debt, but he has the option to continue to live there as long as he wants and build up equity, whereas I have to start again with nothing. I just want to make sure I am being treated fairly.

ViolaLass

TMM wrote: »

I realise all we have at the moment is a big debt, but he has the option to continue to live there as long as he wants and build up equity, whereas I have to start again with nothing. I just want to make sure I am being treated fairly.

At the moment, neither of you has any equity in the property so you would both be starting again with nothing (overall). For the rest of your questions, the other poster is right, you should definitely consult a lawyer.