Joint Mortgage Help - Relationship Over

ReeRee123_3

Hi All,

I needed legal advice on the following situatioN.

My partner and I bought a house together and have now parted ways and we are intending on putting the house up for sale.

We reserved the house in April 2013.

In January 2013 - I transferred a large sum of money (20% of the house deposit) to my ex partner who was going to use the money to pay of the loan to his car, and when we found a house - he was going to sell the car and put my money into the house we bought together. Note: when we did buy the house - he did not stick to his end of the bargin and did not sell the car.

So.. including the large amount that I transferred to him in January - I have put in a total of 80% deposit to the house and he has only put in 20% of the deposit to the house. We have a joint tenancy.

As I put in 80% of the deposit, I am refusing to pay the half of the monthly mortgage as I do not want to invest any more money into the house.

He is now threatening with the following:
- if I do not pay half the monthly mortgage, he will claim that the 20% I paid him in Jan 2013 was actually a gift and when we come to sell the house, I will only be liable to receive 50%
- if I do pay half the monthly mortgage, he will accept that I put in 80% of the deposit and when we come to sell the house, I will get my 80% back out

He has also stated that he is not going to sign any formal documentation which I send - specifying our house shares, so he will not sign a declaration of trust etc.

I do however, have a voice recording with him admitting that the 20% I transferred before reserving the house actually did go towards the house payment.

Where do I stand on this? and what can I do to ensure that I get the full 80% back out of the property? all help appreciated.

holly_hobby

Suggest you engage a solicitor.

If he doesn't pay the mge, then the lender will pursue both of you for arrears, which will be marked on your credit record - reagardless of it being a bargining tool for the 80%, you have a legal responsibility to maintain the mge (with or without each other ..... as does he)..

So him keeping up the mge payments is essential.

I would also advise the lender that you no longer live theere, and ask that a copy of all mortgage correspondence is sent to you at the address you provide - this will ensure that you are kept in the loop re arrears etc.

Selling and 80% recoup, unless you formally recorded this arrangement, ie the monies were a temp loan and not gift to buy the car, you may well struggle.

If you have recorded the coversation with the bargain being stuck re your 80% share of free equity on sale, then that should be admissible in court.

The fact he doesn't want to sign anything formal re this split, suggests to me he intends doing the dirty.

You need a solicitor pronto.

Hope this helps

Holly

ReeRee123_3

Thank you so much for your reply. I agree with you with regards to him wanting to do the dirty.

I have already informed the Mortgage company that there has been an unamicable split and should any payments fail/not paid, then keep me in the loop

Neither of us have ever lived in the property. A week after completion of the property - We split!

My fear about getting a solicitor on board is that - whatever documentation we draw up or send to the ex - he will not sign. Therefore, is there any point in paying the fees to draw any kind of formal documentation up? What kind of thing can a solicitor do in this situation?

holly_hobby

ReeRee123 wrote: »

Neither of us have ever lived in the property. A week after completion of the property - We split!

So the property has been rented out from day 1 ? Or just left empty ?

If rented isn't the rental income paying the mge ?

Did you get the lenders agreement for this ?

Setting that aside, you need advice on your and his legal position, you can send the forms, and if he doesn't respond, this is extra fuel for any court hearing if you want to force sale etc.

Additonally, this is not and has never acted as your primary residence, you need to be aware that your net share of any gain (which may be nil or negligible given you've only owned 5 mths since Apr 13), will be exposed to a CGT assessment (capital gains tax).

This is essentially selling price, less acquisition (purchase) price, less associated costings (ie purchase and sale) less any costs associated with property improvement (which I doubt you did if you have never lived there).

To which you can then apply your unused annual CGT exemption (£10,900 2013/14), and previously reported CGT losses.

Even though you may have purchased the unit as your main home, the fact that you have never resided in it, means that you have no primary residence relief, or lettings relief available to you.

Is the property on the market ?
If unoccupied, do you have unoccupied insurance on it ?

Hope this helps

Holly

ReeRee123_3

The house has been left unoccupied - not rented. The mortgage payments started on Sept 2013 therefore the 2nd payment is due in october.

I think you are right - any legal documentation that he doesnt respond to will be fuel in the matter of court.

I will be contacting a solicitor as soon as possible. Thank you again

holly_hobby

Why don't you move into it yourself ?

And have him taken off the mge (status permitting of coruse).

If not, regular visits, and robust security is reqd, plus unoccupied blds insurance - until sold.

H

ReeRee123_3

I would love to live in the house, but as we bought a new build it is entirely unfurnished and has no carpets.

I do have the option to buy him out and take him off the mortgage however, my income will not cover the value of the mortgage and the mortgage company will not grant me the mortgage on those terms.

I will look into the insurance - we already have buildings insurance on the property. I need to verify the terms. Thanks again for all the help. I feel a light relief that there may be light at the end of this dark tunnel.

holly_hobby

Good, you've explored removing him from the mge & deeds - which although not possible (have you tried alternative lenders whom may have a more generous income assessment ?), you've bottomed out your options.

If unoccupied in excess of 30 days, you'll find that your standard B&C insurance will be invalidated - so if thats your current provision, you need to get this amended (if you google unoccupied/vacant property insurance, there'll be a whole load of providers and comparison sites that promote this product).

Ensure that you also have elec, water & gas switched off, and perodically pay a visit, (esp in winter) to ensure there are no leaks or other structural issues that will affect the condition (ie lost roof tiles etc), or at least until sold.

Council tax is I think reduced for a temporary period (6 mths) on unoccupied property - speak to your local authority regarding this.

Given that there is no chain from your side, if you find a FTB or another no chain buyer, this should be a quick sale turnaround.

Have 3 estate agents round for market appraisal, see what they think and what a price for quick sale would equate to, and then get your butts in gear !

Hope this helps .....

Holly x