Applying for Divorce and Negative Equity

FuzzyLilMonkey

I have separated from my partner for 2 years... no children. However the house is in negative equity by £30,000. I currently remain in the house yet my ex-wife wants her name removed from the mortgage (158k) and it transferred into my sole name (which I am open to and can afford).

However the mortgage company (C&G) will only allow the transfer if we clear the neg equity and I raise a deposit of 10%.

What are our options... is this the only way? Thanks

daska

I think your only options would be to try to borrow the money elsewhere - in which case C&G might still refuse as you'd have an extra loan to service - or to sell up and buy somewhere cheaper. From C&G's point of view they want as many options to recoup their money as possible in case you default (whether that be deliberate or due to losing your job, illness, death, etc.) Taking her name off the mortgage won't make financial sense to them.

Gigglepig

You could also remain married and/or living together, but I doubt that is the sort of "solution" you are looking for.

FuzzyLilMonkey

Thanks. I have also offered overpay on the mortgage or also transfer to another product or property with no definitive answer from the bank. They seem to be happy to let me continue to pay the mortgage(which has always been paid by me on time).

I'm wondering what other options I have. I have also asked is it possible for someone else to come onto the mortgage to ease their risk but they still want a lump sum or deposit.

I'm really worried and seem stuck at the mercy of C&G. I just wish I could sort this out with minimal financial outlay :-S

FuzzyLilMonkey

Unfortunately Gigglepig that is not an option. She left me, the house and all financials In order to pursue her career abroad.

Gigglepig

FuzzyLilMonkey wrote: »

Unfortunately Gigglepig that is not an option. She left me, the house and all financials In order to pursue her career abroad.

Sorry to hear that. Sounds like a strange reason to divorce (unless there were other issues). Some people remain happily married living apart if one partner needs to work abroad and for some reason the other cannot follow.

Hope it works out and that you can get out of the negative equity soon.

FuzzyLilMonkey

Lol Gigglepig. Obviously we fell out of love too but during our 2 years apart she has moved abroad lol. My point was that I have always paid the mortgage etc and will continue to do so.

NAR

FuzzyLilMonkey wrote: »

I have separated from my partner for 2 years... no children. However the house is in negative equity by £30,000. I currently remain in the house yet my ex-wife wants her name removed from the mortgage (158k) and it transferred into my sole name (which I am open to and can afford).

Firstly she is not your ex wife yet. So my advice is to keep her on the mortgage and refuse her request. That way if the negative equity continues to get worse only half of the debt will be yours. Also that way when the market improves and the negative equity comes to say less than £10k (or whatever you can afford) you may be in a position to remove her from the mortgage and carry on solo on the mortgage.

DVardysShadow

Crossposted https://forums.moneysavingexpert.com/discussion/4064757

Please don't crosspost or if you really must and it is usually quite unnecessary, at least say that you have crossposted

FuzzyLilMonkey

Sorry didn't mean to cross post. Just thought it applied to both areas and need as much help as possible :-(

daska

NAR wrote: »

Firstly she is not your ex wife yet. So my advice is to keep her on the mortgage and refuse her request. That way if the negative equity continues to get worse only half of the debt will be yours. Also that way when the market improves and the negative equity comes to say less than £10k (or whatever you can afford) you may be in a position to remove her from the mortgage and carry on solo on the mortgage.

Chances are that each of them is liable for the full debt.

OP - the simple answer to your wife is "yes of course darling, anything you want, more than happy to oblige, let me know when you've paid C&G the lump sum they insist on to do this." She is asking you to take on a debt that would otherwise be in her name so you wouldn't be being unfair.