Mortgage / divorce

validemailaddress

Hello,

I am getting divorced and have an appointment soon to get some legal advice about my situation. But in advance, I thought I would see if anyone on this forum had any thoughts / advice, even good ideas for questions I should ask the solicitor.

I bought a house on an NRAM Together mortgage. When we moved in together, the mortgage was ported to a new property and put into joint names so we are now jointly liable.

For the sake of argument, lets say that the secured component was £207k, and the unsecured was £30k, a total of £243k.

We bought the property for £215k. If we then sell the house for £223k, which of the following scenarios is correct?

A: With the £223k cash from the sale, we pay off the secured mortgage, leaving £16k of surplus against the secured, which should be shared between us. The unsecured would then remain.

B: With the £223k cash from the sale, NRAM are paid back £223k leaving £20k of unsecured left, and no secured component. Nothing is shared between us apart from the outstanding debt.

C: Since the sale price was £8k more than the purchase price, this is the profit made on the property so that should be shared out between us.

The approach I have been advised is that since the total secured mortgage & unsecured (i.e. deposit) is more than the sale value of the home, then the scenario B is correct and the money goes back to NRAM.

Can anyone shed any light or share relevant experiences? What questions would you advise I ask the solicitor?

Thanks in advance.