divorce & mortgages

popcorn123

I am currently going though a divorce and have been paying the mortgage for 2.5 years with no help from my hopefully soon to be ex. I would like to know if he is entitled to 50/50 of the equity even though I have had to keep up with re-payments if i should sell. Also in this current climate is it worth asking for a loan on my mortgage of around 17k or just get rid and go renting. The house is worth around 95K and I owe around 50k???

BitterAndTwisted

Yes, 50% is the starting-position but the rest is negotiation. How the other party's share of the equity is found is up to you. Remortgage or sell, you decide. No-one on here can tell you whether raising his share of the equity by remortgaging is a good idea as we don't know whether you will be able to afford the increased mortgage-payments. My own feeling is that if you can afford the larger mortgage you should sit tight.

The only thing I will tell you is that you MUST NOT go through with the divorce without coming to a formal agreement about the property. You don't want him coming back in ten years time wanting half then

DUTR

popcorn123 wrote: »

I am currently going though a divorce and have been paying the mortgage for 2.5 years with no help from my hopefully soon to be ex. I would like to know if he is entitled to 50/50 of the equity even though I have had to keep up with re-payments if i should sell. Also in this current climate is it worth asking for a loan on my mortgage of around 17k or just get rid and go renting. The house is worth around 95K and I owe around 50k???

Technically yes they are entitled to a share of the equity.
I don't understand what you mean about getting a loan for the mortgage? The loan rate is likely to be higher than the mortgage rate.
What did you agree (or try to agree ) with your ex partner regarding the mortgage payments?

popcorn123

DUTR wrote: »

Technically yes they are entitled to a share of the equity.
I don't understand what you mean about getting a loan for the mortgage? The loan rate is likely to be higher than the mortgage rate.
What did you agree (or try to agree ) with your ex partner regarding the mortgage payments?

I was thinking of upping my mortgage so I could use that to pay him off?

DUTR

popcorn123 wrote: »

I was thinking of upping my mortgage so I could use that to pay him off?

I get ya now, if there is a you suggest possibly £45k equity, then the settlement would be around £22.5k or slightly less, however there will be some legal fees to split and subject the current lender allowing you to take on an increased mortgage.

gizmo111

How long have you been married - whose name was the house in?

Is it a joint mortgage?

There is more to ne taken into account than just the equity

Check here for good advice . www.ondivorce.co.uk

swampduck

I think it may be worth getting a free half hour with a solicitor here. If you have been paying the mortgage on your own then technically he owes his 50% of the mortgage payments for the past 2+ years. But equally he could say that you owe for half of wherever he has been living i.e. rent
Also who put up the deposit for the house you, him, or both of you?
The value of the house is an factor important too - value of the house when he left or the value now?

Your quote - The house is worth around 95K and I owe around 50k??? No you don't you both owe 50k!!
As for buying him out - is it better to pay rent or a mortgage? Depends on a lot of things. Is renting likely to cost you more than an increased mortgage? Can you afford an increased mortgage payment? Given that you can fix payments for 5 years - this may be better for you for the short term. You could always sell in 5 years time. You may want somewhere smaller but you have to factor in moving expenses, solicitors fees, and so on which may make staying put a cheaper more viable option.
Loads of things to think about - ask people for advice and go with whatever is right for you. They are offering advice that is all!!
Most of all - as others have said - don't finalise the divorce until the financial stuff been sorted- no matter how much you want rid of him.

Swampy

popcorn123

Cheers Swampduck ...

Getting a call back from my mortgage provider to see what they have to say.

:money: