Complicated property issue after divorce!

swingaloo

millymollie wrote: »

Hi
Think the house was probably worth about £120k when they split so probably about 30k equity.

The house is prob worth about 150k at the most and the outstanding mortgage is 100k roughly

Something is not right there, by your figures there was a mortgage of around 90k when they split in 2004 but now after paying for another 9 years there mortgage is bigger than it was then.

Perhaps the ex has been waiting till the children were older before claiming her share of the house but as others have said it should have been settled at the time of the divorce.

The mortgage provider are unlikely to take the exs name off the mortgage anyway unless your brother can show proof that he can afford the mortgage alone.

millymollie

Think I have made a mistake here..
Just guessing at the figures as a year before they split up they took a remortgage for an extra 45k for major home improvements.

My brother tried to get a new mortgage when he remarried but due to poor credit he was turned down flat.

I'm annoyed that all this wasn't sorted out when they split up tbh..

FBaby

Did your brother really think that he would be entitled to the house despite the growth in equity during the time they were together?

His ex is totally reasonable. If she had tried to get the house sold at the time to gain her entitlement to the equity, she would most likely have been told that you were entitled to stay in the house until the children reached the age of 18, not for HIS benefit, but that of their common children. The children are now gone and she doesn't owe to support him in any way.

She therefore clearly did the right thing, waited until the children turned 18 and asked for what would have been her share of the equity if the house had been sold when they separated. Totally reasonable.

If your brother didn't plan for this time, then unfortunately, the mistake is his. She is entitled to move back in, change the locks (as he is), or do whatever to make his life difficult if he doesn't agree to sale. If he remains there, she will have to take him to court, but it is hightly likely that the judge would rule in a favour as it is not her problem that he can't support his new family without her help.

FBaby

I'm annoyed that all this wasn't sorted out when they split up tbh..

How would it have been? Could he have bought her out then to her half of the equity? If so, why didn't he do it? Surely she would have had nothing to lose with that offer. If he couldn't then, how else could it have been sorted but by agreeing that he could remain in the property, pay for the mortgage and her being able to claim her half when the kids became adult, which is what she has done?

millymollie

Does it matter that he has been paying the mortgage himself since they split?
Also if he does have to sell which is looking more likely then would his ex have to pay towards the mortgage until it sells?

millymollie

Fair point FBaby..appreciate the honest advice.

millymollie

So..
his ex is entitled to half the equity which I totally understand.

is it half the equity at the time they split OR
half the equity now??

swingaloo

That's really down to an agreement between them. My sister has to sell the house when her kids are grown and her ex is getting a 50/50 split as she has paid the mortgage, but, has had use of the house since they split whilst her ex has had to rent.

My nephew, on the other hand, has agreed a split of whatever the house makes when the children are older and they sell of anything over and above the equity as it was when they split.

I left my ex living in the house on the agreement that we would split 50/50 if he remarried, moved out, or moved someone else in. He carried on paying the mortgage but I had to rent.

So both circumstances have been worked out differently

Spendless

millymollie wrote: »

So..
his ex is entitled to half the equity which I totally understand.

is it half the equity at the time they split OR
half the equity now??

It could be either, which is why your brother needs to see a solicitor.

When my friends have divorced and the parent with care has stayed in the mortgaged family home, they have been allowed to stay until the youngest child leaves Secondary education (ie A levels or equiv not Uni). A charge has been put on the house, saying at that point the absent ex partner is entitled to £x. I've known it be a monterary amount, I've known it be a %, I've known it include the equity the property has gained in the interim years. At this point the house needs to be sold to pay ex, or the other person needs to raise the money to pay them.

millymollie

Hi,
Thanks, I am going to see him tonight so at least I have some things for him to consider. His appt with a lawyer is Monday morning so he has time to think of all possible outcomes.

Thanks, if anyone has anything else to add I would appreciate it.