House advice - dispute with ex

JUL80

Hi, have turned to advice on here as there seems to be a lot of useful help. Been to a solicitor but not really getting anywhere...

Bought house with ex girlfriend, her parents gave us a 'gift' towards the deposit which they confirmed in writing (required by mortgage co). 3 years later we split up and I (naively) signed an agreement to say the money was a loan and I would pay it back. (I did start to pay £100 per mth x 12 so have been told in effect that was my acceptance of the loan) I stayed in the house and took in a lodger but paid all the mortgage and the bills myself.

I've now moved out and want to get out of the situation ASAP. Mortgage outstanding is about £165k, I 'owe' them £9k which they have agreed can come out of the equity before any share of proceeds. House is on sale for £178k, no interest since March because price is too high although she is unwilling to accept less than £172k which I don't feel is low enough to achieve a sale anytime soon.

I tried to compromise and wrote to her solicitor via mine, saying I would pay the debt out of the equity but only if A) she paid half the mortgage, the debt is wiped if it exceeded the equity after a sale C) if she paid back a nominal £600 that she owes me.

They did not agree and said they will take me to court for the debt if need be. She also said the £600 can come out of the equity although after all costs there is likely to be none. She agreed to pay half the mortgage but only after proving household bills, lodgers rent etc etc so I am going to give the lodger notice to leave as its getting messy and I want to get my furniture out of the house. This will then mean, in theory that all remaining costs need to be covered e.g. Mortgage, 100% council tax, ins etc.

I am tempted to walk away and stop paying all bills and mortgage after her unwillingness to compromise forcing her to take over all finances, maintenance, marketing etc. I know the impact is my credit rating would be affected if i don't pay but I know that my ex would not let that happen as she made the full payment on the last day of June for the mortgage to stop it going into arrears whilst we were disputing. I know she also wants to get a mortgage with her new partner. I just feel that why should I keep paying for a house where I don't live there and will not benefit from, and could actually walk away still owing the money.

Apologies for the lengthy text but would welcome any thoughts, whatever your views and would be good to get a wide range so please take the time to comment if you can, thanks in advance!

poppysarah

JUL80 wrote: »

I know she also wants to get a mortgage with her new partner. I just feel that why should I keep paying for a house where I don't live there and will not benefit from, and could actually walk away still owing the money. !

Well you hold the cards then ...

If you have a copy of the letter saying it was a gift then you don't owe them anything.

zzzLazyDaisy

I am not at all convinced that you have been given the correct advice regarding the gifted deposit.

A gift, is a gift, is a gift. That's it, done. The giver can't later ask for the money back. It doesn't turn into a loan if the parties later fall out.

In my view, just because the recipient (you) mistakenly believes that they are obligated to repay the gift after the parties fall out, does not alter the legal position.

Her parents signed a legal document confirming this was a gift. Are you saying that this was a false declaration? If so, they - and you, and their daughter - are parties to mortgage fraud. Somehow I doubt that they'd want to take you to court on the basis that they illegally signed a document fraudulently declaring the money to be a gift when actually it was a loan which you (and their daughter) have failed to pay back.

I am assuming from what you say, that the house was purchased in joint names without a deed of trust, or charge over the house, protecting the deposit? If that is the case any net equity must be split 50/50.

If she continues to refuse to accept a realistic offer for the house, you can go to court for an order giving you sole authority to deal with the sale. It won't be cheap, but it will be cheaper than being saddled with monthly mortgage repayments for an open-ended period while she refuses to cooperate.

As PoppySarah says - you hold all the cards.

JUL80

Hi thanks for advice. Solicitors have said because I paid the £100 x 12 and signed the agreement I accepted it was a loan. They have also sent letters on my behalf stating that I owe the money. I don't think I can get out of that now??

I'm also rather fed up with the whole thing and just want out, I'm also paying out for a solicitor who I don't feel is doing anything more that what I could do myself.

Do I just write back myself and say accept what I said previously or I will just walk away and hand them the keys??

zzzLazyDaisy

JUL80 wrote: »

Hi thanks for advice. Solicitors have said because I paid the £100 x 12 and signed the agreement I accepted it was a loan. They have also sent letters on my behalf stating that I owe the money.

Ouch!

What on earth did they do that for?

Okay, yes, that does change things, because if they decided to go to court they would rely on the solicitor's letter as proof of the debt - which puts the boot on the other foot, leaving you to produce the document that they signed saying it was a gift and explaining to the court that you all knowingly entered into a mortgage fraud.