Joint mortgage whilst selling - what are my rights?

Redgirl_04

Hi there, was wondering if anyone could offer some advice.

I bought a house with my ex-partner in December 2006. We split up in August 2008, and after a few awkward months, we came to some agreement to enable me to move out and house share with a friend, me paying a small contribution towards the mortgage (around 15% of the monthly cost - the repayments were quite high as it was a mortgage over 15 years only). We both agreed to sell, once the 5 year fixed rate was up on the mortgage (as if we came out of this early it there would be a £4k penalty fee), which would mean the house would go up for sale around December 2011.

In May 2010 I was forced to move into my own accommodation as my friend moved away. This meant I had to pay full rent on a flat and could no longer contribute to the mortgage, I informed my ex and, to be fair, he did not argue.

The house has now been up for sale since September 2011, with no luck in getting an offer. I really want my name to come off the mortgage, but my ex has been informed (so he tells me), that he is unable to remortgage in his own name as he does not meet the eligibility criteria.

Its been nearly 4 years since we split, and, as you can imagine, I want to move on and look for my own place with my new partner, however I am aware that having my name on a mortgage already will make it difficult or impossible. The house has been reduced by £5000 about 6 weeks ago, but still, hardly any viewings.

What are my rights now in getting my name removed from the mortgage, and getting a financial settlement out of this? We have agreed (sort of) to a figure I will receive when it sells, which will not be half (although people tell me I am entitled to half), but I am conscious that I have not contributed towards the mortgage for the past 2 years, and I did not pay towards the initial deposit on the house. What I don't want though, is for my ex to offer a paltry sum once it does sell - does he have any rights given I have not paid anything towards it for the last two years? Whilst we lived together, we split everything 50/50, bills etc.

Thanks

Annisele

Cazza_L wrote: »

The house has now been up for sale since September 2011, with no luck in getting an offer. I really want my name to come off the mortgage, but my ex has been informed (so he tells me), that he is unable to remortgage in his own name as he does not meet the eligibility criteria.

There's a very good chance your ex is telling the truth about that. I appreciate he's your ex so you might not know - but do you have any idea how much he earns compared to the outstanding mortgage amount? And how much equity is in the property?

bigadaj

How much equity is there in the property currently if it sells for the asking price, and how desperately do you what to be rid of it.

If you are both on the mortgage then you are both liable, if you want rid of it you might have to agree with your ex that you are prepared to take less out if the price is dropped again.

At the end of the day it is down to what you can agree and currently sounds like you are more desperate to sell than he is.

Redgirl_04

Annisele wrote: »

There's a very good chance your ex is telling the truth about that. I appreciate he's your ex so you might not know - but do you have any idea how much he earns compared to the outstanding mortgage amount? And how much equity is in the property?

The outstanding mortgage amount is around £108,000 and I would guess he earns in the region of £28,000 (thats a guess though). I think his age might go against him though as he is in his early 50's. If the property sold around the asking price there would be around £30-35k equity

Redgirl_04

bigadaj wrote: »

How much equity is there in the property currently if it sells for the asking price, and how desperately do you what to be rid of it.

If you are both on the mortgage then you are both liable, if you want rid of it you might have to agree with your ex that you are prepared to take less out if the price is dropped again.

At the end of the day it is down to what you can agree and currently sounds like you are more desperate to sell than he is.

If it sells for the asking price, then there would be around £35k equity. I am prepared to take a drop in settlement if it was reduced further, as I appreciate he would have to aswell. He has told me he wants it sorted asap but he is not giving me that impression!

bigadaj

Cazza_L wrote: »

If it sells for the asking price, then there would be around £35k equity. I am prepared to take a drop in settlement if it was reduced further, as I appreciate he would have to aswell. He has told me he wants it sorted asap but he is not giving me that impression!

I think you've missed my point or I've not been clear, to get rid of this from your prospective you might have to accept that you get significantly less of the equity than you assume, as it seems he's happy to sit there and you can see his point.

antrobus

Cazza_L wrote: »

...
What are my rights now in getting my name removed from the mortgage, ....

None, essentially. As far as I'm aware anyway.

Cazza_L wrote: »

...and getting a financial settlement out of this?

Governed by the principles of equitable accounting and the Trusts of Land and Appointment of Trustees Act 1996 aka TOLATA.

Cazza_L wrote: »

...We have agreed (sort of) to a figure I will receive when it sells...,

The best way of dealing with these things is to agree on something between the two of you, even if it is only sort of. Otherwise lawyers get involved and they normally want paying.

Cazza_L wrote: »

....
which will not be half (although people tell me I am entitled to half), but I am conscious that I have not contributed towards the mortgage for the past 2 years, and I did not pay towards the initial deposit on the house....

Which are the kind of things that the law takes into account, so you might be legally entitled to less than half.

Cazza_L wrote: »

....
What I don't want though, is for my ex to offer a paltry sum once it does sell - does he have any rights given I have not paid anything towards it for the last two years? Whilst we lived together, we split everything 50/50, bills etc.

He has the same rights to equitable accounting as you do. The best thing to do is to toughen up that 'sort of' agreement into an actual agreement.

Redgirl_04

He has the same rights to equitable accounting as you do. The best thing to do is to toughen up that 'sort of' agreement into an actual agreement.[/QUOTE]

Yes, I am beginning to think this needs to be firmed up more and we agree now on an actual percentage each of us will get