Stuck on a joint mortgage :(

Penny_Whize

Hello everyone, I am new to this and have read through posts regarding people stuck in joint mortgages but none seem to relate to the position I’m in and so any advice anyone can give me would be hugely appreciated and may I just say many thanks in advance for any information you can supply.

Let me begin by saying I am split from my ex-partner (we are not married and have no children) of whom I took out a 125K mortgage 3 years ago on a 90% LTV. We took it on a 3 year fixed rate which was due to end in August this year but we split back in February, I moved out but had paid a months worth of bills upfront and then stopped my standing order which he was happy for me to do because he was adamant he wanted my name off the mortgage and him take it over completely rather than sell. Had we come out of the mortgage early, we would have had a whopping 4k fee on our hands and so we agreed to wait until the 3 year fixed term had finished before transferring the deeds and him seeking an alternative mortgage lender to loan him on his own.

In the meantime he had his solicitors draw up a transfer of deeds contract on the basis that I would receive the original 5k deposit I put down on the house when we moved in - needless to say I’ve paid thousands into it but I agreed to walk away with this sum and I signed the papers with my solicitor.

Once our fixed term had ended, I gave it a week and spoke to the solicitor to see if the transfer had taken place, she explained nothing has come about and asked me if I would like her to write to his solicitors to see where they were upto though she couldn’t promise me any answers as they do not have to release any information. I text my ex twice in the hopes he would give me an idea of what was happening – unfortunately he hasn’t responded since and my solicitor mentioned that aside from forcing a sale which would be extremely costly in fees (5k minimum) then I am in a bit of a sticky pickle and it is basically just a waiting game.

I know there was 110k left to pay on the mortgage and I should imagine he’d want to take out 115k to pay me out, his credit rating is extremely good, neither of us has any debt outside the mortgage and I think he’s earning between 28-30k per annum. Also in the beginning, he’d told me he had the house valued by an estate agent (I could only take his word for this) and he stated the house was still only worth what we had paid for it.

I finally had my solicitor write to his in the hope that I could get some sort of an answer from somewhere and I got a letter in return stating their client would not be able to continue with the transfer of deeds until he has received a mortgage offer yet he had told me months previous his Mortgage advisor had one readily set up as soon as our fixed term with Nationwide had ended (unfortunately Nationwide wouldn’t lend him on his own and so he will have had to have sought an alternative lender).

I’m a little confused as to what could be holding him back from remortgaging on his own when he was so clear and certain he wanted me off it? He even paid for his solicitor to draw up a transfer of deeds (which I have signed and returned) ready for when he could. Will it just be a case that he is struggling to find a bank that will loan him solely or is there more to it than that?

Foxy-Stoat_3

Probably with a 90% mortgage based on his sole earnings and having to find £5K cash plus mortgage and solicitor fees it will be a struggle, maybe he didnt realise how much upfront cash he will require.

Penny_Whize

Thank you Foxy-Stoat - I spoke to somebody at work that also mentioned for a bank to loan him, it is the bank that would value the house at a lot less than it's worth for what they could get for it if they had to re-possess in which case they would (as an example) loan him 80k as opposed to the 110/115k and he would also have to pay 90% LTV on that sum - is this true do you know?

Foxy-Stoat_3

I dont understand why he would get the house undervalued or why the bank would undervalue....if they only agree to loan him £80,000 then you would have to sell and the shortfall would fall on the pair of you.

Was it a new house or overpriced?

Do you know if house prices in that area have taken a hit recently?

Going on experience, its not as simple as removing a name from a piece of paper even if both names agree...the lender needs to accept that the future payments are coming from 1 person rather than a couple and the likelihood of 2 people affording the mortgage is greater than 1 and that the house would need to have an up-to date valuation.

In 3 years you would of maybe chipped off £3,000 in capital depending on length and interest rate so as long as its worth roughly the same as when you bought it and your ex hasn't taken out any more credit in the last 3 years or done anything to effect his eligibility to apply for a mortgage, it should be ok.

StuC75

You would be very lucky to come out of this with the £5k you put towards deposit; afterall were you to push for sale then probably luck
to break even in the current climate.... What you have put in over time is irrelevent..

Ignore what your work friend is saying they are over dramatising it a touch..

Ive recently completed a Transfer of equity to get my ex off, fortunately the valuation came in at what we had bought at (just over 3 years ago).. soo keeping same valuation is easier to 'believe' then looking for an assumed increase..

90% LTV 'minimum' may affect the scope that the ex has to work within if he is looking to give you 5k, what with other fees to take into account. In my case it was best to leave it a length of time so that a bit more equity had build up by way of normal mortgage payments that I had been solely maintaining - so do consider how the ex willingly making these payments has helped you over the months since **.

** - is based upon the 'fact' of joint & several mortgage payment liability; and doesnt reflect any thing 'personal' to how this happened.. IYGWIM..

Penny_Whize

It was something someone told me at work which I couldn't understand myself but it bothered me nonetheless that this is possibly what a bank does when wanting to loan from them solely after a transfer of deeds...perhaps this was just chinese whispers

The house was a new build when we bought it in 2010, we were the first owners and it was a blank canvas that we've pumped thousands of pounds into since, I had the kitchen extended, floor boards in the attic and new timber ladders to access, tiled, carpeted, laminate flooring, decorated throughout, a 2k wardrobe from Sliderobes fitted, down the side of the house patioed, a shed built in the garden yet he seems to have had it valued at the same as what we paid for it in 2010 (I've just taken his word for it)...as far as I am aware the other properties on the estate that Barnfield Constructions have yet to sell (they are still building on the land) are selling for the same as what they were 3 years ago and it is a sought after area.

You are right, we did chip off 3k in capital, we were fixed on a 6.(something) yet it will have dropped to Variable rate now so he'll be paying a lot less monthly I should imagine.

I guess it is right what my solicitor has said, it is just a waiting game for me but I don't know what becomes of my rights if say he still hasn't transfered the deeds in a few years time, if I were to force a sale would I be liable to pay the fees and would I be entitled to half of the profit at that time or half of the profit at the time of me not paying into the mortgage.

Don't get me wrong, I genuinely do not wish for it to come to that, I want him to be happy and to keep the home but I also do not wish to remain on a mortgage for years to come affecting my chances to buy again, I am also at risk if for whatever reason he doesn't pay - they undoubtedly chase me and I cannot afford a £400 rent and whatever that mortgage is now on my piddly 15k a year!

Foxy-Stoat_3

Penny_Whize wrote: »

It was something someone told me at work which I couldn't understand myself but it bothered me nonetheless that this is possibly what a bank does when wanting to loan from them solely after a transfer of deeds...perhaps this was just chinese whispers

The house was a new build when we bought it in 2010, we were the first owners and it was a blank canvas that we've pumped thousands of pounds into since, I had the kitchen extended, floor boards in the attic and new timber ladders to access, tiled, carpeted, laminate flooring, decorated throughout, a 2k wardrobe from Sliderobes fitted, down the side of the house patioed, a shed built in the garden yet he seems to have had it valued at the same as what we paid for it in 2010 (I've just taken his word for it)...as far as I am aware the other properties on the estate that Barnfield Constructions have yet to sell (they are still building on the land) are selling for the same as what they were 3 years ago and it is a sought after area.

You are right, we did chip off 3k in capital, we were fixed on a 6.(something) yet it will have dropped to Variable rate now so he'll be paying a lot less monthly I should imagine.

I guess it is right what my solicitor has said, it is just a waiting game for me but I don't know what becomes of my rights if say he still hasn't transfered the deeds in a few years time, if I were to force a sale would I be liable to pay the fees and would I be entitled to half of the profit at that time or half of the profit at the time of me not paying into the mortgage.

Don't get me wrong, I genuinely do not wish for it to come to that, I want him to be happy and to keep the home but I also do not wish to remain on a mortgage for years to come affecting my chances to buy again, I am also at risk if for whatever reason he doesn't pay - they undoubtedly chase me and I cannot afford a £400 rent and whatever that mortgage is now on my piddly 15k a year!

Until your name is off the deeds, you both are jointly as liable. I would be gently nudging him directly every couple of weeks (not literally) as communicating through solicitors is costly. I would contact the lender though just for an update on outstanding amount and if the payments are upto date....as no lender will be forcing a sale if the payments are upto date. This will only become complicated if he stops paying the mortgage or gets into money troubles.

Dave_Ham

It is hard to determine exactly what place you are at and what has been signed.

I would be inclined to get your Solicitor to send a letter to their Sols and you communicate to him something along the lines of:

I signed a transfer form on the provision that this would be effected within a reasonable timescales. Unfortunately this is not the case and therefore you have until x to effect this.

Should you hear nothing, then take further legal advice. On the basis that you are named, effectively you will have 50% of any profit generated. With a repayment mortgage, your share will be increasing month on month.

You must be mindful that the mortgage payment is also a joint responsibility and therefore if he/she stops paying, it will hurt you also although they are living there and assume you are paying to live elsewhere.

Unfortunately we see this loads and it is really easy to say and less to manage, but keeping communication open and as amicable as possible helps loads with these situations.

Best of luck

Penny_Whize

May I just say many many thanks to you all again for helping me understand the situation in better detail, you've all been much more informative and supplied a clearer picture of the situation than my own solicitor has yet I'm paying for her knowledge! You've all been fabulous, understanding and neutral and I hope I can repay the favour one day

I'll keep you all informed of the outcome should I be lucky enough to be removed from the mortgage and all deeds transferred. Bless you all again for your time and patience with me x

StuC75

Good luck, it sounds like its heading the right way and being civil about matters - surprising just how things can get (from both sides of this scenario)..

The scenarios of what would happen over the longer term are harder to determine - since in basic terms 'to me' it would always come back to Joint & Several liability - or however things were determined up front (not that anyone really thinks of that at the start).

-- We all just 'hope for the best' - anyone saying different on here gets labelled Cold \ Callous \ unromantic.. How a future Gain (if entitled when not maintained payments) or Further 'loss' (when no longer wanted to keep the property) should be handled open to contention - and depends on how much you want to pay a solicitor to argue over..

keep in touch with the mortgage company so they can keep you in the loop regarding the ongoing conduct \ statements..

Maybe look for some kind of timescale to conclude or explanation as to why.. In my case I was just honest with the Ex and said when the time was that it was in my best interest to conclude (i.e. reduced ERC Fee, length of Mortgage offer & normal payment dates Natural 'equity' through payments being made & receipt of Bonus) Made for a sensible date to conclude which was in my 'best interests'..