Ideas needed to make situation work

xlinephil

My situation is as follows, my ex-wife is currently living in a house which both mine and her names are on the deeds and the mortgage, and also a secured loan against the house. The house is probaby worth as much as is borrowed against it, if not with a small amount of negative equity. I want my name removed from the house now after a year and half of being seperated and she also wants this. She lives with her new partner in this house with our three children (although I see them every day and access is not an issue), and we would both prefer her to stay in the house for the sake of the children but as she got into arrears with the secured loan (now cleared and gone), I'm desperate for my name to be removed and my credit score repaired so that I can get my own mortgage and move on with my life. I cant think of a way of her getting me off the mortgage and secure loan without selling up. The house is worth around £115,000, she only works part time for min wage, her partner doesnt seem to be that well off at all but I need some ideas to put to her at our nest mediation session in a few weeks time. Any ideas would be greatly accepted!

Dave_Ham

I recall your earlier post, the situation clearly not getting any better.

Any financial support from her parents/grandparents?

Given that you have always wanted to put the children first (and rightly so) I cannot see another solution aside from outside financial support.

Good luck

xlinephil

I have managed to get her to attend mediation, which is progress so we can discuss how best to move this situation forward but other than sell I cant think of another way other than me staying on the mortgage. I need to present my ideas to her at our next session, so I'm gathering all the facts and figures together.
I'm not in contact with her family, but I know her father earns good money working on the rigs.

silvercar

Do her and her partner earn enough between them to take on the mortgage? Would her father be prepared to act as guarantor? Would the lender consider a transfer of equity from you to new partner?

Dave_Ham

You may need to call her bluff, which may make the access you get to the kids harder (possibly)

You need to suggest you will have to force the sale of the property unless someone suitable will go on the mortgage instead of you.

You can cite her non payment of the secured loan as unacceptable and leading to this situation.

All the best

xlinephil

In our initial mediation session, I mentioned the arrears and the problems it lead to for me finacially, unfortunately she got very upset and burst into tears stating that she tried to sort it but stuck - i guess she has her own hardships too which i must consider. I like the sound of the transfer of equity but would that work with a secure loan? Or would the loan become invalid once I got removed from the mortgage? If so, how would she reply the money to them? Is transfer of equtiy a given or is there a process of approvals to follow? Sorry for so many quesions!

Dave_Ham

Situation is that a transfer of equity can only take place if the circumstances are right. It is like a new application and therefore new fella will have to have a decent credit score, income etc.

You need to check with the mortgage company and the secured loan company what their process is..

From what you have said, I think this will be unlikely but definitely the best option.

Good luck

xlinephil

So after a good couple of phone calls, nationwide will consider transfer of equity to my ex and her fella but freedom finance wont. FF will consider a sola name application but based on affordabilty this is unlikey to be approved. She would need to make a new application for a new loan and close off this one. The LTV on the mortgage did not take into account an extension on the house, which may have hindered the ex's mortgage application.
But, if we sell, nationwide will allow me to pay the interst only while the house is for sale, and freedom finance will make a shirtfall application against any negative equity left over. Also Nationwide said the freedom finance have not registered an interest against the property???