Mortgage advice needed - partner split with ex

RandN

Hoping someone can help.

Basically my partner bought a house with her ex about 6 years ago - for £165k - this was remortgages 5 years about for £235k. The house is now worth about £145k so obviously lots of negative equity!

The ex moved out about 3 years ago - he never contributed financially and my partner has being living there alone for 3 years since he moved out and has been paying the mortgage. He has come out the woodwork saying he wants his name removed from mortgage as he is trying to buy a place with his new girlfriend.

Basically where does my partner stand? She doesn't want to be solely responsible for all of the negative equity - and it seems silly to sell in the current climate. Although it would be nice to cut ties with the ex.

She is not particularly fond of the house - it is nearer to his parents so he might potentially want it although this has not been discussed. My partner is on a good salary but her credit is very poor. He is on a much lower salary - don't know anything about his credit and don't know anything about his partners salary/credit.

What are the options? Can he force a sale? Are they both stuck until the negative equity isn't as steep? Any thoughts would be greatly appreciated.

PS the house is in Northern Ireland - not sure if that changes things legally

The_J

Sorry, the mortgage is 235k and the property is valued at 145k?

This is not a good situation at all.

RandN

I was actually looking for something a little more constructive...

warwicktiger

So ignoring the partner living there and paying the mortgage for the last three years (trade off living in for paying mortgage) she and her ex jointly own an "asset" worth -£90,000.

Simples, ex gives your partner £45000 in cash to clear his potion of debt.

Or she moves out, either before or after repossession and defaults on mortgage, lender then chases them both for £90,000.

mmm, would be an interesting conversation to eavesdrop!

RandN

He also didn't pay anything when he did live there for 3 years and all renovations and decorating was done and paid for (with proof) by my partner.

To be honest she is happy to move out and let him move in and pay mortgage but as her name is still attached to property she doesn't actually trust him to not default on payments.

Alternatively she is happy to sell and come up with the 45k - but not come up with the 90k! So is there anyway of bank chasing them for 45k each and not just both for the 90k?

Basically we want to know what sort of rights she has?

warwicktiger

It would be a joint debt of £90000 in law, not 2 x £45000., sorry, not what you wanted to hear.

You (plural) need to get round a table and have a reasoned discussion about the whole issue. Does anyone want the house?, if so they settle with the other who moves out, the new(?) resident is then the sole owner and mortgagee (or joint with new partner) or both move out, sell and settle up the outstanding.

As to her rights, well same as her ex - the right of veto to any arrangement desired by the other.

RandN

He is more likely to want the house than us to be honest - he picked it! It is near to his parents house and where he grew up. She will be speaking with him later today to find out if this is the case. Also he is not going to get another mortgage with this hanging over him and by the sounds of things is in need of somewhere to live - him and his new partner have 2 kids.

If his new partner and him where to move in and take over the payments what happens if he was to default at any point in the future? Will this impact my partner? To be honest my partners credit isn't great and she would not be looking to get another mortgage anytime soon - she would be renting and when we are ready to buy - a mortgage could go in my name or our names some years down the line.

warwicktiger

Until the names on the deeds and mortgage are changed she is still jointly liable, so you must get the legal work done. Do a deal, then get the paperwork sorted. When the money is available sign on the dotted and make a clean break, otherwise she is still involved, like it or not.

RandN

Ok and one last thing - when the house was remortgaged it was to pay of his debts. Also my partner paid to renovate the house and has paid the mortgage/rates/bills for the entire 6 years - is it possible to get some sort of deal to reflect this? Such as my partner gives him 20k to have her name removed?

sterlingstash

The deal can be whatever they agree together I would say. Pragmatism might trump fairness though, depending on who is holding the most cards.

They might be able to persuade the lender to take a name of mortgage, but generally, I would say that the following probably need to apply:
a. They can come up with the £90k between them to clear the negative equity
b. The ex can find a further £10-£15k to increase the equity to 5% or 10% to allow a remortgage (unless the existing lender can be persuaded to remove name while property still at 100%ltv or more)
c. The ex and partner have sufficient income and credit rating to pass mortgage provider's criteria to get a new mortgage in their name

star4876

hate to be the bearer of bad news but in these situations your partner is limited for options

1] refinance the mortgage. to do this she would need someone else to reapply with her to get her ex's name off (i.e. you!) and you would need to hope that between you, you earn enough to get the bank to agree to it.
2] sell the house.
3] go legal and see where you get with him through solicitors - ultimately this will cost a lot of money, and if your partner refuses to sell up and he wants to push the issue it could wind up that her ex will apply to the Court to get an order for sale. Then she won't have a choice but to sell up.