Surprise

Pam1

Hi, our mortgage ends today, yeppee, only not really because our relationship broke down a few years ago and we now have to come to an arrangement. I was under the understanding that when the endowment policy came to an end, the lender would pay the building society, I did call them last year and this was confirmed to me. Only this morning came the cheque in the post, addressed to both of us. The problem is that we don't have a common bank account and we don't speak to each other anymore. I am planning to contact my solicitor but the cheque also does not cover the full amount to be repaid. What do I do with the cheque for a start and where do I go to get the extra money as really he should pay half too but he won't? Thanks for reading.

holly_hobby

You should have been already aware (and for some time), that the policy was unlikely to meet its target amount (to cut a long story short, the industry commenced issuing revised EMVs circa 10 yrs ago). You will have certainly recd red letters during this time, each advising you (if there was a predicted shortfall to target) that you needed to make additional arrangements if the policy was still be used as a mge repayment vehicle.

That being said, it appears from your post that you have made no provision - so this needs to be addressed urgently.

You need to speak to your lender and advise them of the situation, and hope that they provide you with an avenue to resolve the situation (i.e extend the mge term, with the shortfall on a repayment basis - status permitting of course).

If you are unable to come to a joint arrangement to repay the shortfall, and you can't repay it yourself (as you are both jointly and severally (singularly) liable for this), then there is really only one option to act upon, and that is to sell the property in order to fully redeem the mge, by repaying the shortfall. This of course may result in you having to go into rented, if you are unable to secure a mortgage due to age/income/credit history - or a combination of them all !

Regarding the cheque, you will need to again explain to your LCE provider of your relationship breakdown, and that you no longer hold a joint banking account. There should be no problem in them re-drafting 2 individual cheques of equal divided amounts i.e 50% each (upon return of the original cheque of course).

I really feel for you, and hope this helps, and can't stress highly enough that you must make this your priority tomorrow.

Good luck

Holly

Pam1

Thank you for your reply, we have been aware of the shortfall but have been unable to come to an agreement on how to resolve this 5 years ago. I would like to buy him out but have limited resources, however I am able to pay the shortfall but was surprised that the cheque was posted and not transferred to the building society. I dare not ask for two cheques as my ex will cash it in and not repay the mortgage but I will call them today as well as my solicitor. I just have to be very careful at not loosing the cheque now. This by the way is a great website, thank you, with regards, Pam1.

holly_hobby

Hi Pam,

Yes - its a great source of free comment, with knowledgeable and willing layman, and us industry professionals - who gladly help where we can.

Moving to your issue, how about ringing your LCE provider and telling them exactly what you have told me.

Explain why you would prefer the monies to be directly paid to your lender, OR ask for a cheque to be made payable for your lenders benefit (also noting your mge account number for cross reference purposes).

That way, you can deposit the cheque directly with them, for its direct application to your mge account.

It may be an idea to also have a chat with your lender before hand, and ask them what the best solution is in the circs (trust me you won't be the first or last person to have these issues). You may then make arrangements accordingly.

Hope this helps

Holly

getmore4less

The lender may take the cheque as a deposit to the joint mortgage account in it's current form

Wh05apk

When you split, it would appear that you did not come to a suitable arrangement about the house, mortgage and endowment, who has been paying the mortgage.endowment for this time?

I do not think you can ask for the sum to be paid direct to your lender, as your partner will have a claim over the proceeds, and may not wish it to be paid to the mortgage.

I think, like it or not, you will need to sit down and talk, and get this resolved properly.

Thrugelmir

Wh05apk wrote: »

When you split, it would appear that you did not come to a suitable arrangement about the house, mortgage and endowment, who has been paying the mortgage.endowment for this time?

I do not think you can ask for the sum to be paid direct to your lender, as your partner will have a claim over the proceeds, and may not wish it to be paid to the mortgage.

I had similar thoughts.

holly_hobby

Good point to raise.

Letter of authority (certified by Sol if reqd) from both LAs should satisfy the providers legal responsibilities.

OP will know more when she speaks to the relevant parties involved.

Holly

Pam1

Hi, thanks to all, the matter has now been resolved and we have gone our separate ways. I cashed the cheque myself and then negotiated with my ex on how much to buy him out, it was nail biting stuff but we finally agreed on a figure that allowed me to pay him, the shortfall and all the legal bills too. I would like to ask another question but can't find how to post again? Where do I find the button for posting, help? Thank you.

beecher2

Pam1 wrote: »

Hi, thanks to all, the matter has now been resolved and we have gone our separate ways. I cashed the cheque myself and then negotiated with my ex on how much to buy him out, it was nail biting stuff but we finally agreed on a figure that allowed me to pay him, the shortfall and all the legal bills too. I would like to ask another question but can't find how to post again? Where do I find the button for posting, help? Thank you.

Click on 'Mortages and Endowments' where it says Main Site > Pure Money > Mortages and Endowments above. A button marked 'new thread' will appear at the top left.