Mortgage responsibility after separation

Lucy_B_2

My husband and I separated (not in law yet) last year and we have a joint mortgage on the house that we have continued to pay together because I cannot afford to buy him out. I am currently living in the house with the children and he is renting somewhere else. I think I understand that if he were to go bankrupt I would be liable for the full mortgage, is there anyway of changing the mortgage so we are each only liable for our half - this must be what happens when two friends (not partners) buy together so you have a safeguard.

withabix

Why would your mortgage lender want to allow you to do that?

GMS

Joint mortgage holders are both liable for the debt. There is no such thing as responsibility for half of a mortgage as the lender cannot repossess half a house.

You are both 'jointly and severally liable' for the debt.

If he were to go bankrupt it would not affect the mortgage. Bankruptcy covers unsecured debts only. The mortgage would need to be paid but any equity belonging to your ex would be at risk to repay the creditors.

maginot

The same happens when 2 friends buy a property. They are both liable. They don't get a mortgage for half a house.

There is no organisation that would be willing to give a mortgage for half a property. How would they get their money back? Who would buy half a property with you living there?

Unfortunately if your husband stops paying the mortgage you would be liable for the full payments and if he went bankrupt the house may have to be sold to meet his debts, as he has a financial interest (depending on equity). Although cleverer bankruptcy experts will know more about how this works than me.

Comyface

Lucy_B wrote: »

My husband and I separated (not in law yet) last year and we have a joint mortgage on the house that we have continued to pay together because I cannot afford to buy him out. I am currently living in the house with the children and he is renting somewhere else. I think I understand that if he were to go bankrupt I would be liable for the full mortgage, is there anyway of changing the mortgage so we are each only liable for our half - this must be what happens when two friends (not partners) buy together so you have a safeguard.

No, this is not what happens with any joint mortgage, regardless of the relationship between the owners. You are both jointly and severally liable for the debt.

If he were to go bankrupt, it might be more complicated than you being left with the debt, though. If there is equity in the house, the OR may want the house sold and his half of the profit to go towards his debts. I'm not sure, though. If he is going to go bankrupt, I'd pop over to the bankruptcy board for some help.

holly_hobby

Its already been said, but no matter what the % split (i.e if you effect a tenants in common deed), all parties reamain jointly and severally (singularly) liable for the total mge repayments.

Referring to poss bankruptcy of the partner, the individuals share in any property (inc matrimonial home) will vest to the Trustee in Bankruptcy (TIB). (although depending on the free equity, BO & family circs - the TIB may not always excise their right to instruct disposal).

This is further complicated by the fact that the OP has separated from her spouse, however OP states they have not had this separation legally acknowledged.

There have been recent changes Jan 2011 to BOs and property - it is a v complex and detailed area - and the OP needs to seek specalist legal advice, rather than opinion on a forum (however well meaning, and/or experienced we all may be - to get it wrong, only the OP & Ex-Partner will suffer the consequences).

I wish the OP well

Holly