Joint mortgage - relationship breakdown

cherrybelle

Hi everyone,

Wonder if anyone of you could shed some light in this matter:

Me and my (now) ex partner got a joint mortgage, interest only, back in 2007. He put down all the deposit. I paid for all furniture.

We split up in 2009, I moved out, yet carried on paying my half each month...I was threatened that if I didn't do this and the bank (mortgage lender) found out, they could re-assess the mortgage based on only 1 persons earnings (his) and he (we) could risk losing the property if they thought he didn't earn enough.
Around this time, I also lost my job, so at one point found myself paying off the mortgage on my credit card - that obviously got me into big debts.

A year later, I stopped paying my half, and my ex is now paying the whole mortgage. Both of our names are still on the contract as joint owners.

When we come to sell the house - who gets what? Is it a 50/50 split on the profit? We never drew up a deed of trust.
Also, can he sell the house without my permission? And if so, how would I know I get my share?

Any help appreciated!

Thrugelmir

Is the house up for sale?

You'll need to come to an arrangement with your ex. If this isn't possible consult a solicitor to represent your interest.

The solicitor selling the property will be unable to distribute the net sale proceeeds until you formally agree.

Caz3121

cherrybelle wrote: »

He put down all the deposit. I paid for all furniture.

When we come to sell the house - who gets what? Is it a 50/50 split on the profit? We never drew up a deed of trust.

Unless it was a large deposit, as this was interest only and house prices have fallen you may also need to prepare yourself for "if it is in negative equity what is the % split of the outstanding debt"

cherrybelle

Thanks guys.

The house is not for sale at the moment- we aren't planning on selling it anytime soon. But when we do, and IF there is a profit - who gets what?
The deposit was around 30k

Also - I am obviously interested in making profit as it's my only life-line at the moment. Can he buy me out by re-mortgaging the house and changing it into his name only?

Thrugelmir

cherrybelle wrote: »

Thanks guys.

The house is not for sale at the moment- we aren't planning on selling it anytime soon. But when we do, and IF there is a profit - who gets what?
The deposit was around 30k

If there was no formal agreement when you bought the house. Then the deposit is open to discussion. Hopefully you'll both use commonsense to resolve this. Otherwise legal fees could eat away any gain.

The issue for you is that at some point you may wish to buy your property again. Being liable for another mortgage will bar you from doing so.

Also if your partner defaulted on the mortgage you are still liable.

Better to get matters resolved now, as this problem won't go away.

cherrybelle

Thank you.

I would be more than happy to be ''bought out'' so to speak.
And also - would agree for him to get his deposit back.

I am trying real hard to solve this but he is very bad at communicating and just leaves it. It worries me because if something would happen to him I would be responsible for the whole mortgage - I just want to get out of it.

cherrybelle

We haven't had anyone valuing the house this year - but we bought it for £152,000 in 2007.

CLAPTON

so the house was bought for 152,000
the deposit ws 30,000
so the mortgage was 122,000 on an interest only mortgage

how much does your ex earn?

do you have any idea what the house is worth... a little more or a little less or no change?

cherrybelle

Not sure how much he earns now...maybe around 15-16k per year.

When we had the house valued last year it hadn't changed. But in 2012 there will be a tube station opening around the corner, so the estate agent reckons it will go up in value then, if not before. Also had the bathroom newly renovated.

Annisele

Unfortunately your ex is absolutely not going to get a £122k mortgage on his own if he only earns £15k per year - that's 8 times salary! That means that the lender is not going to release you from the mortgage unless the debt is repaid - either by selling the house, or by your ex getting a new joint mortgage with somebody else.

If interest rates go up (as they likely will), then if nothing else changes he's going to have serious problems paying the mortgage as it stands - and that will kill both of your credit records.

You need to get some idea of what the house is worth - can you not look at sold prices/asking prices on Rightmove/ring a local estate agent?

peter_steele

HI Cherryb.
listen to me. solve this asap. you don't want to be financially tied down to your ex and not being able to move on with your life. Also, there is a serious chance that he will not be able to pay the mortgage soon, and this will affect you as well!
The easiest option is to sell the house. you pay the mortgage off, he gets his deposit back and if there is any money left you split it between the two of you based on what % of the monthly payment each of you had contributed to.
If he does not want to sell the house then he has to 'buy your part out'. these are the only feasible options.
good luck!