New Mortgage while named on another...

ndmc1974

Hi everyone, I'll try to be as brief as possible, and will answer follow-up questions as best I can.

My ex-partner and I bought a house for c.140,000 over six years ago. She paid the 7,500 deposit and put in approx 2,500 cash for improvements. I put in 10,000 cash for improvements - spent on new staircase, double glazing, heating etc.

The mortgage was taken out on a 50/50 basis.

Seven months ago we split, and for the first six months I continued to pay my half of the mortgage payments, on top of £360-ish in support for our two children (aged four and two).

This made it impossible for me to afford to rent or buy a place of my own (living in small spare room at parents' house now). So we looked at solutions.

She suggested that she'd get the mortgage transferred to her own name and take over the payments. However, she works only 18 1/2 hours per week (income about 1,200p/m from her job, £360p.m from me and then chlid/tax credits on top) and no provider would offer her a mortage.

So she suggested that I be removed from the deeds, and she make the mortgage payments from her personal account rather than the joint account. But she offered me no recompense at all for my investment (stating in fact, that she was doing me a favour by taking the 'debt' of the mortgage off my hands), I saw it quite differently.

Anyway, I then offered a compromise - remove me from the deeds, and remove my name from the mortgage in return for £5000. Far less than my investment over the years.

She says I can't be removed from the mortgage until she's in a position in 3-5 years to get one of her own. I presume, as she's not said, that this is when the boys will both be at school and she can work full time. She said that she will give me £5000 but in 3-5 years time and she wants me to sign a document of 'trust' that states she will be solely responsible for mortgage payments, and will give me 5000 if I make no other claim whatsover on ownership or any monies associated with the property.

I can't see any incentive to agree to this. The offer of 5000 was so I could pay a bond on a rental or hopefully a deposit on a mortgage and get in a place of my own so I can see the boys more and have them overnight a few times a week (something on which we both agree is a good thing).

If it's a case of waiting a few years, surely I should be entitled to at least the 10,000 invested (plus some of the equity??). The 5000 was a compromise for speeding things along, not a long term offer.

So my questions (eventually) are...
Her offer is a poor one, right? Because I'm entitled to more than that. My name would still be on the mortgage, but I'd be signing away the deeds and anything else for a bit of money in the future.

Is it possible that I could apply for a new mortgage, while still named on this one - if any document that I DID decide to sign stated that I would not be liable for any payments, arrears or anything connected with the previous home - she would have sole responsibility?

Wasn't brief at all, sorry.

ndmc1974

Oh, should say that since she said that I'm not going to get a return on my investment or my share of the house in any sale or remortaging - I've stopped making the 1/2 mortgage payments. Something a solicitor said I probably should have done as soon as I moved out.

monty-doggy

My OH is in a very similar situation, they've been split five years and she can't get the mortgage in her name, so therefore the lender won't take his name off as two people to chase are better than one.

She defaulted 9 times last year and this has crippled my OH credit rating to the point he cannot even get a mobile phone on credit.

The law says she can stay there until the children are 18 or leave Ft education, or she marries.

If she does either of the above, or continues to miss payments he can force a sale, but this can cost thousands so its a no go either.

Sadly she has the upper hand and there is nothing we can do.

Until your name is off the mortgage, you are equally responsible for the debt, so don't take your name off the deeds because you won't have a stake in the property, just the debt.

ndmc1974

I have no real worries about her missing payments. She has a healthy overall income, and parents that can help out too. She tried to get them as guarantors for a re-mortgage, but their age was too much of a factor. I also don't want her to move. It's a nice house for the boys, they like it there and it's near the school/nursery. My priority is them.

Having said that, I want a place of my own too, so I can accommodate them. I don't wish to be removed from the deeds without being off the mortgage too. Guess I just wait.

No chance getting another mortgage until off this one though??

steampowered

This is a joint mortgage - I guess the mortgage company won't consent to removing you from the mortgage unless it is satisfied that your ex can handle the payments herself.

Its fair enough to want a payment of £5000 for your deposit. In an ideal world you would calculate how much equity you each have in the house, and she would pay you off. But where is this money going to come from? There is no point asking for £5000 now if she cannot afford it.

monty-doggy

It all comes down to affordability and a squeaky clean credit file. On paper can you afford half that mortgage (even if you don't pay it) and a new one? Do you have a deposit?

Are all three credit files good?

Get copies then get to an independent broker. It's not impossible, but not straight forward. Let a broker do it for you.

yorkshire_terrier_owner

I went through a similar thing 12 years ago although no children involved (and things might be different now). My solicitor advised me NOT to stop paying my half of the mortgage as it could jeopardise my claim on any equity. Similar position in that my ex put in the deposit and then I funded some improvements. However, that didn't mean I was entitled to the money back that I had put in, only to a share in the equity. They took off his deposit from the equity, THEN split it 50/50. He then bought me out for the agreed amount. Minus a big chunk to pay the solicitor's fees for all the messing about trying to come to an agreement (and nearly having to take him to court) and I had just enough to put down a deposit on a house of my own.