Husband left, shared ownership property and I have to start again :(

Mumolulu

Thank you for those helpful replies and also the compassion showed.

I am wanting to buy the other 50% share so as to secure a future for me and my children. Yes its my choice, but I feel I need to do that to leave them something when I'm gone particularly now I'm on my own.

The bank is giving me the mortgage, I don't need a deposit, it has all been agreed and I am having to start again because I can only afford it for 25 years. I do feel as though the last 8 years have been wasted yes in terms of paying the mortgage, regardless of what chapter I am in my life now.

I am purchasing the other 50% share that the HA own yes, so it will now be a full mortgage not just 50% and 50% rent. I was told by the mortgage advisor that there is no equity.

I owe £36k on the mortgage for the 50% currently.

I understand from the bank that they are lending me the whole 90+k to rebuy the house with the other 50% share included in that. I don't need a deposit, I asked numerous times to double check and be absolutely certain and I have it confirmed in writing over an email.

macarena123

First up, my sympathies for what you've been going through.

I am still a bit confused though - you said above : "I was told by the mortgage advisor that there is no equity."

How is that possible if you have had a mortgage for 8 years - have you had an interest only mortgage? Otherwise, if it's a repayment, there must be some equity in there -who it belongs to may be another matter

Fire_Fox

Mumolulu wrote: »

Hi all,

My Husband has walked out on me and my children. We had only 17 years left on our mortgage. He has agreed to sign the house over to me.

However, it was on a shared ownership scheme, we bought 50% and rented the other 50%. I am currently applying to remove his name from the housing tennancy bit, then I am buying the other 50% share. In order for me to do this, the house has to be revalued and I have to start again a new mortgage which I am very sad about considering how long was left to pay.

Is there absolutely anything I can do to avoid starting again? There is no equity in it as far as I'm aware, I'm waiting for the valuation to come back. I have very limited knowledge about mortgages, I just like to pay it every month and not worry about the ins and outs so to speak but the whole 8 years now has been completely wasted and if there is anything at all I can do with regards to this, I will....or is this normal in the world of buying a home?!

Please be nice and pardon my naivety (and use simple words....)

Why are you buying out the other 50% of a property you have made no money on, then complaining you will have to pay more or for longer?? I don't understand this leaving your children something concept, it's totally illogical. Your children will be middle aged before you pass on, they may even be grandparents themselves! I am sure you are raising them to work hard at school/ college/ university, work hard in their career.

If they do this they should have earned their own money by middle age, they should want their mother to spend her own money on being comfortable in her twilight years not divvying things up before the funeral (yes that does happen ). In any case there is no guarantee you will leave anything, the way things are at present your property can be sold if you needed a long term care home place.

Why don't you just start saving for their university education, or putting spare money into your own pension, or saving so you can help them get on the property ladder themselves? They will most need your help when they are just starting out in adult life not middle age.

You've had a roof over your head for eight years for the money you have paid out. Of course it's normal not to make a profit in the middle of a recession, haven't you seen the press how many people are in negative equity (house value gone down, so debt is larger than value)? Property is an investment in the longer term, it's a gamble in the shorter term, you are intending on resetting the clock to short term by extending the term of your mortgage. Given we are still in a recession you could end up worse off, the value of your home could fall further and leave you in negative equity.

£36K is not half (50%) of £90K, something is very wrong with the maths here. Are you paying your husband off? If so why, have you had a session with a solicitior regarding your and your children's rights?

Chris72

Mumolulu

The numbers show what I was trying to tell you earlier, that you must have 20% equity in the initial share ie. 10% of the full house price.

I take it the 'mortgage advisor' is not independent but works for the bank ? If so, I hope they're not trying to take advantage of the situation to sell you a new, bigger mortgage (perhaps with some nice insurance products to go with it).

Sorry to sound cynical but I've heard the "leave something behind / think about your kids" pitch from many a salesman. I've even been told once "you can leave it to your children and they can leave it to their children's children". Bank mortgage advisors are usually on a small salary and have to make their money from comission.

I'm not trying to suggest that you may be naive about this business but I know we can all have our vulnerable moments, especially when going through difficult situations like you are at the moment.

The bottom line is, whoever said you have no equity and they are giving you a 100% LTV mortgage is either talking through their back side or is mis-selling something. I personally would vote for Goldiegirl's advice.

Out of curiosity, what interest rate have they offered you ?

Mumolulu

This is all too much..... :eek: I don't understand any of it!

I have no idea what the hell I'm doing here, I could be taken for a complete mug....!

When my husband and I bought 50% of the house 8 -9 years ago, our mortgage was for 45k, I have 36k left.

Instead of 'buying' half (the rest of the 36k left) I want to be able to (eventually) own it outright instead of half, so the bank (halifax) is accomodating this by whichever means they said. Maybe they saw me coming, I don't know......perhaps I should go and see an independent mortgage advisor to signpost me in the right direction for my needs?

I have already instructed solicitors, my ex has signed the first mortgage paper to remove his name/sign it to me whatever. He doesn't want it, isn't bothered, so fighting with him re money isn't an issue. Its me, finance and the right way to go about doing this.

I have had a survey done on the house for the bank, I need to get one from the HA and I have already paid £300 to solicitor.

I think I've got myself into a bit of a mess, quite clearly due to my severe lack of knowledge and understanding about this whole damn thing.

Can't know and understand everything in life...oh dear...what to do

macarena123

At this stage I honestly would advise meeting with an independent financial advisor to help get your head clear on all this. I am not one, by the way, just a normal punter, but I have found them helpful.

As far as I can work out, your husband is making over the current mortgage , on which you have 9k equity and 36K still to pay.

If the house is still worth 90K then to get the other half you would be increasing your mortgage by 45K, so a total of 81K. If it's gone up, then obviously you would need to borrow more.

Possibly when the bank said you had no equity they were referring to the other share of the house?

Anyway, an advisor should be able to walk you through the cost/affordability of taking on the other part of the house so you can determine if it's the best decision for you.

I can't answer that, obviously, but what is clear is that you've been through the mill with your personal circumstances and you should not let yourself get railroaded into a decision if you are not sure.

Could you maybe deal with the transfer of the current mortgage now, give yourself a breather and then explore buying the other half later?

pineapple123

Agree get independent financial advice some banks and B S do not know what is involved with 'staircasing' infact even some solicitors.

You could as suggested take on the exisiting morgage now of £39,000 and then purchase further amount 50% in the future. You can have the two morgages running alongside together.

patanne

Firstly, you are not in a mess. You, like so many of us, are accustomed to having a person in our lives we can discuss all this stuff with. Then the decisions for ourselves and our families become our sole responsibility and it becomes much harder to make those decisions because no-one else has our (and our families) best interests at heart in quite the same way. I know that, like so many women in our position, our first aim is keeping a secure roof over our children's heads so that that at least doesn't change, whilst all around us is either collapsing or taking off into outer space. It sounds to me like you have started to get the independence ball rolling. So stop second guessing yourself (I'm still trying to take my own advice on that after 20 years) and breathe. You are doing fine. You must be very strong to have got so far already. So enjoy your future and I look forward to seeing you on the MFW forum shortly!! All the best with your journey

Mumolulu

Thank you for your support guys, much appreciated :beer:

*runs off to google financial advisors*

Trying_to_be_good

Mumolulu

I think the things you need to know are:

1. The current value of your house
2. The current proportion you are already buying: 50%
3. The amount owed on the current mortgage: £36,000

So, to keep buying the first [50%] of your house, you're taking over the current mortgage [£36,000] over either the current remaining term, or a different time that you and the mortgage lender chooses.

If you choose to buy more of the house, e.g. the other [50%], that's in addition to the [£36,000] for buying the first half.

So, if your house is worth £100,000, you'll need to have the current mortgage [£36,000] and borrow more money for the rest of the house [now £50,000, half of the current value], so that's [£86,000] mortgage in total.

In order to repay that higher amount, you might need to pay it back over longer (extend the term of the current mortgage whilst adding more borrowing) - it doesn't mean that any of the past 7-8 years have been wasted, as you've managed to pay back [£45,000 - £36,000 = £9,000] in that time.

Keep smiling, you're doing really well and we're all learning this stuff all the time! :j