Ex going bankrupt, but mortgage In joint names

Tags

Hi, this is my first post so please be gentle ! My ex is in debt and wants to go bankrupt. But the mortgage is still in joint names.
A few basics, we were never married but have two children aged 3 and 5, I sold my previous house and used all the money in this house ( in 2006 ) by paying £12,000 deposit and obtaining a £106,000 mortgage on property bought for £118,000. Thing is when we took out the mortgage we done it in joint names, mortgage and deeds, he paid the mortgage for the first 18 months ( the only thing that he ever put money towards in the house ) and then never bothered, we split up then. I have paid the mortgage since either while working or by claiming income support, which I'm doing now. The thing is he wants to go bankrupt, but what does that mean to me and the house. Will I have to sell etc. the mortgage is currently in about £2,000 credit, yes credit ! Which I have done. The mortgage company knows we are not together and that he is in debt, they said they will not remove his name as I am on income support. I cannot lose the house I put £35,000 cash into it in total minus mortgage payments with deposit and repairs etc..... Please advise what the hell can I do ? People have said sell but this is my dream house, a home for my kids

PippaGirl_2

I think you need to take legal advice. Your ex will have a financial interest in the property because he paid into it and contributed not only to the mortgage but for bills etc while living there. So the OR will want access to that interest, but it may be possible to pay that money to the OR instead of selling the property so take advice. Is any of your ex's debt secured on the property too?

I really feel for you, what a nightmare. I know it's too late but I've known so many unmarrieds have this problem, I think very often property purchases if joint are only fully protected within marriage as divorce sorts out who paid what and who is entitled to what.

fermi

How much equity is there in the property now?

Tags

Thanks for the advice. None of his debt is secured on the house, he wants his name off the mortgage and deeds to protect me and the kids, he is being very amicable about it all and is very apologetic. I want to strangle him but I know he is genuinely sorry.

Tags

There is no equity in the property. Had it valued at £110,000 bought it for £118,000 and there is £106,000 owing on mortgage but the mortgage account is in credit of roughly £2,000
Bought the property as a repossession in 2006 and there is still work that needs doing. He left property about 2008 after our second son was born. I had PND and he could not deal with it so we split up. I have paid all the bills since including the mortgage. He gives me £2-300 per month for maintenance but that's if he can afford it, most times he can't. But I know he is trying, he got himself into debt through gambling addiction, scratch cards..... Always trying to find the BIG WIN !

fermi

If there is no equity in it, then his OR/trustee will not be wanting to have it sold now.

If he can be said to have a beneficial interest of any possible future equity, then you may be offered the chance to buy him out of that for a small sum.

Most likely event would be the OR/trustee sitting on things for 2-3 years to see if property prices go up, then decide. If not bought out or otherwise acted on, his interest would revert to him after 3 years. So it wouldn't hang over your heads indefinitely.

fermi

Ah. Read those figures around the wrong way.

£4K in equity? Not a lot. Especially as valuations can vary a lot.

Tags

Thank you so much, when my youngest is in full time school, in 15 months, then I can go back to work. Hopefully then being in a position to buy his interest.
Sorry going to be really dull here but, if say he owed £20,000 and he went bankrupt. And then in two years time the equity in the house was say £10,000 then that would be £5,000 equity each ? So therefore would I only have to pay him his part of the equity say the £5,000 ? Sorry to be dull but I can't seem to think in a straight line these days, he he. But then what about the bankrupt order ?

debtinfo

yes that is correct, bu instead of paying him the £5,000 you would be paying it to the bankruptcy as his half of the house would be part of the bankruptcy and you would be paying to buy it out of the bankruptcy, one thing for you to look for, were you married, if not then there is a better chance that you could argue that more of the house belongs to you if you have put in a lot of money for the deposit and repairs