Loan in wife's name only

beachhuggy

Afternoon all, wondering if anyone can help me here... My wife and I got married 2 months after buying our house together in October 2008 in joint names. I put the full deposit of £18000 on this purchase, she put nothing. Last September we decided to take out a loan to consolidate all our existing debts into one monthly payment, which totalled £12000, this loan was solely in her name tho it was joint debts. In December she walked out of the marriage as she was, and still is, having an affair. There is no way of getting back together and house is up for sale. My question is this.... she says that the the deposit I paid is lost as house prices have decreased and any equity above paying off the mortgage is to be used to pay solicitors, estate agents and early redemption fee as it was a 5year fixed rate mortgage, but the loan I am jointly responsible for as it paid joint debts, even tho its in her name alone... Where do I stand?, any advice gratefully received...

KingElvis

When my ex and I broke up, the equity form the house was used to pay off all debts regardless of who was on the signature. I think you'll find you'll have to do the same.

talana

The £12000 loan is in her name, then it's her debt regardless of what she tells you.
Guess it depends if she wants to play fair or not. If not, then you tell her its her problem.

AMILLIONDOLLARS

Stop paying the loan as its soley in her name, in a roundabout way you'll be getting your £18k back!

(Yeah shot me down people, LOL!!!)

AMD

CLAPTON

It woulbe be 'fair' to split the losses on the house and the loan.
But otherwise her loan is in her name and you are no legally responsible.


So if the net proceeds of the house sale are zero then she should owe you half the 18k but you should owe her half the loan

beachhuggy

KingElvis, We have had an offer which would leave the equity on the house at £5500 which will not cover all the charges related to selling. She is telling me that I need to get a loan to pay the rest and give her £6000 towards the loan taken out in her name in September last year!

Tixy

You cannot be held legally liable for any of her debt to the bank for the loan.

You say she says you have lost your deposit - well that may be the case, it depends on how much you sell the house for. Has it been valued for less than you bought it at? Presumably you are involved in the house sale, choosing the agent, agreeing the estate agents fees etc?
Is there a chance that you won't sell the house for as much as the outstanding mortgage and early settlement fees? have you discussed between you who will pay if there is a shortfall?

As you are married if you divorce then it would be usual for the finances to be settled at that point, in terms of who will pay for what, who will get any equity left over after the house sale.

beachhuggy

I am happy to be "fair" about it, but her lack of fairness in the deposit is really winding me up!, all I get is "well you will know better next time and its tough s##t as legally I don't owe you anything for deposit"

Tixy

beachhuggy wrote: »

KingElvis, We have had an offer which would leave the equity on the house at £5500 which will not cover all the charges related to selling. She is telling me that I need to get a loan to pay the rest and give her £6000 towards the loan taken out in her name in September last year!

You will both be jointly responsible for these costs. Good if you can reach an amicable arrangement, if you can't then chances are your creditors will chase you both to start but focus on the one they think is either most likely to pay up.

beachhuggy

Tixy, The offer on the house is £168000, original mortgage advance was £162500, but with all fees included it comes to roughly £170500 total to sell, so a £2500 shortfall...

Apples2

Tell her to go jump. It's in her sole name, end of story.

Look after your own interests. Personally, I would take the hit with the house and get shot of it, as for her loan, there is nothing to discuss.