Divorce/Separation & Mortgages

Scruffy1971

Bear with me and I will try to explain my situation as best I can:
I got divorced back in 2004 from the mother of my 2 children (now 12 & 10 years old). As part of the settlement I agreed to sign over the deeds of the property on the condition that she must try and release my name from the mortgage and any mortgage arears would be met by the sale of the property.....nearly 10 years on I'm still on it.
Approx 8 years ago I met the mother of my thrid child (now 8 years old) and we bought a house using the same mortgage company as my first as no one else was willing to give me one. We split approx 3 years ago and I entered into the same agreement with my share of the property going to my ex partner and child. I am now faced with the same problem.
Both ex's are claiming that they can not release me from either mortgage as the C&G will not loan them the money in their own names. Both properties are in positive equity and I would like to be released as I have no finacial interest in either and may have the opportunity to purchase the rented home I share with my new wife at a heavily discounted rate. What are my options?

tBagpuss_2

Both ex's are claiming that they can not release me from either mortgage as the C&G will not loan them the money in their own names.

It is reasonable to ask them to provide details of what other enquiries they have made - there are other lenders out there. However, having equity is not the only criteria for getting someone released from a mortgage - if may be that they cannot pass affordability checks.

Assuming that you had Court Orders in each case seting out the terms agreed, then check the order. Most have a provision saying 'liberty to apply as to the implementation and timing of the terms of the order' - tis means that if you think someone is refusing to carry out the agreement (rather than able to) you can apply back to the court that made the order to try to enforce it. However, you would have to be able to satisfy the court that you ex had *not* used her best efforts to release you - i.e. you'd have to satisfy the court that she was unwilling, rather than unable, to get a new mortgage. Unless you know the details of her financial position it will be hard to do this.

As a first step, you could consider asking her to provide details of all enquiries she has made with not only C&G but other lenders and brokers, about remortgaging in order to release you from the mortgage.

Dave_Ham

Dependent upon the details, you could potentially still achieve a 3rd property. You may well need to get this manually underwritten and worth speaking with a broker.

With children under 16, I think it would be an expensive waste of time trying to force either sale if they cannot take on their own name.

SantaKlaus

looks like you are in a vicious loop/circle, get divorced now to your 3rd wife, then you wont have this problem... again... in the near future, Third time lucky haha. :rotfl:

Scruffy1971

Ho, ho, ho!

honeybean

The same happened to me when I got divorced ( not married 3 times he he). The only way I was released from my mortgage was for my ex to sell the house otherwise I would still be tied to it until the youngest reaches 18yrs as I would not be able to force the issue until then.This was because the mortgage company said that my ex did not earn enough to take on the mortgage . I would assume that would be the case for you as they would assume that they then would have you to chase you for the payments if they were not paid.

Thrugelmir

Until the children have left full time education. Your options are very limited.

Scruffy1971

Many thanks to every one for their input although I will be ignoring the personal advise to get divorced.

I have obtained legal advice and until my son goes to secondary school I am unable to argue the point that my ex wife should be able to work full time thereby inproving her chances of taking on the mortgage. For now, at least, it looks like she will be able to work a minimum of 16 hours a week and live quite well on benefits and maintenance!

Would bankruptcy force the issue form the mortgage companies stand point? I realise that this would prevent me from obtaining future credit or mortgages etc but how long will the "black listing" last against my children hitting 18.

Dave_Ham

Not sure where that has come from. Looking at the information provided, I assumed you wanted to be released to buy another property that you have an offer on, rather than just to be released.

How bankruptcy comes into play, I am unsure although cannot believe it will play any part in your removal or you coming off the mortgage.

Be useful to clarify exactly what you are trying to achieve and why again, in case I missed.

Scruffy1971

The bankruptcy question is, of course, a last resport.
Before I respond let me make it clear that I am not looking to "shirk" my responsibilities. I already pay over and above the CSA maintenance guidlelines, the children stay with us every other weekend and I travel over 300 miles every other Monday & Friday to see them for a couple of hours, oh and I gave up both houses to the respective mothers (despite paying the deposits on houses). It would appear that they would like jam on it as well.
When I took out my second mortage the best rate available, although considerably higher, was via the C&G (same as the first). I fear that having two mortgages (with no financial interest to myself) puts me in an even worse position and the proposition of buying the current familly home with my new wife a less affordable and less attractive one despite the right to but/acquire discount.

Dave_Ham

Get a decent broker and I suspect this may be achievable, but as always will come down to the detail of the case.

You have the truth and facts on your side and just need a lender to review this and understand that in fact you are doing the right thing.

Bankruptcy is unlikely to bring you anything but stress and grief and does not sound feasible to your situation.