Divorce and Mortgage

Sue11

Hi
I am in the process of getting divorced and want to take over the family home that my husband has already moved out of. The divorce is complicated as I have found out, to my devastation, that my husband has added money to the mortgage unbeknown to me. Anyway I have a mortgage in place to purchase the family home BUT need £11,000 extra to put down on it. This my brother has agreed to pay on the condition that he, when and if the house is sold, has a 7percent return on the sale cost or that I pay him say £5 per week so as it is a sort of loan.

Can anyone let me know if my ex husband to be can claim on this and if in fact it is legal.

Jackie

holly_hobby

Are you staying with the same lender ?

Are you moving to a new lender ?

Simple answer is, if the lender asks where the capital injection has come from, you are legally bound to disclose that it is a family loan.

The lender will duly consider this against the LTV, and your status issues - and my very well decline as it is not a gifted deposit, and their concern being in relation to future possessionary rights arising form the 11k, if it is a gift in exchange for consideration (ie requires repayment).

If they don't ask where the 11k has orginated from ... well it may be better not to give info to questions not asked of you (although ordinarilly I would not condone concealment).

Re your ex - if he has been removed from the deeds, with no claim on any future equity realised upon sale of the property, then he has no access to the 11k being discussed or indeed anything to do with the property post TOE.


Hope this helps

Holly

Sue11

Hi Holly

Yes I am with the same lender and they have agreed and actually offered me the mortgage.

The only thing I am worried about is the fact that my due to be ex husband could claim on this £11,000 loan.

Sue

Sue11

Sorry Holly

I forgot to say my husband at the moment is still on the mortgage and is desperate for me not to have the house in spite. So he keeps telling the court I cannot afford it.

Jackie

holly_hobby

Speak to your family law solicitor ...post divorce definately not, but as you are in the middle of it this may alter things.

My gut feeling is no, as the financal arrangement is neither in joint names, nor does he have any legal responsbility to repay it (your brother making the loan soley in your name).

However .... I am not a quailified family law practitioner (FS being my area) - so the above must be taken as comment, and naturally verified with your Sol (as should all further comment unless from a qualified FL Practitioner.

As for him telling the court you cannot afford it, THAT is for the lender to decide, not him, and will be based on your finanical circs. His removal under a TOE, and apparently under duress, will be instructed by the Judge, whom will be guided by the lenders evaluation of your personal status for mge purposes.

Hope this helps

Holly

The_J

At the same time as getting the loan you will be the sole owner of the property so he will have no say in it if it is all agreed as part of the divorce.

The bold part is particularly important.