My husband wants to keep our house now that we are separated - where do I stand?

fedup30

My husband and I separated after only a year of marriage in june, he moved out and I have been living in our jointly owned house since then. I want to move things on and he is saying he wants to keep the house and I just dont know where I stand. There is about £90k left on the mortgage but the house is valued at £110k. We borrowed £3500 from my mother to complete an extention and that has not been repayed yet either. Any advice would be gratefully received as I am just totally clueless about what to do.
Thanks

Thrugelmir

Have you consulted a solicitor?

If not, you should.

Cannon_Fodder

Do either of you have an adequate income to take on the mortgage alone - not just in your own opinion, but in the eyes of the lender - say around 4x salary?

If not, you have to sell one day, might as well get on with it - use the new year increase in activity to try and sell it?

If one of you can afford to take it on, speak to your lender to arrange it.

Subject to any pre-existing legal agreements on the ownership - if other than joint - or the loan.

And in concert with the wider discussion of how to financially settle the divorce.

Gorgeous_George

If you don't want it, ask how much he will pay for your equity. £10K sounds about right and the unsecured loan is irrelevant. Legal costs should be shared.

If you want it as well, make an offer for his equity. If you cannot decide (who keeps it), a simple equity auction would sort it out - you both compete by offering to buy the other party's share of the house.

This, of course, assumes that you can both get a mortgage in your own name - or with any new partner who may be on the scene.

I'd avoid solicitors until you have decided how the situation will be resolved. Otherwise, you will spend more than the equity is worth.

A whole year of marriage. There's nowt like working at it is there?

Good luck.

GG

Thrugelmir

Gorgeous_George wrote: »

I'd avoid solicitors until you have decided how the situation will be resolved. Otherwise, you will spend more than the equity is worth.

A good solicitor would advise their client to use mediation services to attempt to negotiate a mutually agreeable financial settlement in the first instance.

fedup30

I haven't spoken to anyone yet as didn't know where to start - he only told me today that he was thinking of keeping the house. I just assumed we would sell it and split the profit.

HappyMJ

I'm assuming you don't want it. Well if he wants and you don't want it he'll have to sort you out with some cash so you rent somewhere or buy something else. Would £10,000 be enough? It is half the equity. Don't move out until you have somewhere to live sorted at his expense even if that is from the profit.

fedup30

I couldn't afford the house on my own and would be happy with that amount if he offered it. I just assumed we would sell as it would be simpler and my head is still so confused over everything that changed that getting my head round this idea is not easy

thank you

Gorgeous_George

If you sell, there will be costs of selling such as...

£1.5K or thereabouts for the Estate Agent
£700 for a solicitor

The house may NOT sell for £110K. Maybe £100K is more likely especially at this time of year. Has it been valued by three EAs?

In the end, he needs to make you an offer. It may be £10K but it may be nothing (or worse). If you don't like the offer, suggest it is sold on the open market but you run the risk that you could end up with even less than he offered. There is also a chance that you will do better from selling. That is your choice. Selling incurs the EA/solicitor fees for you to share whereas transfer of equity and mortgage costs could reasonably be expected to be paid by the ex.

Is he still paying the mortgage despite having moved out?

GG