Ex wants half the house but hasn't paid anything towards mortgage

clumsymumsy_2

Spirit wrote: »

How did you change the mortgage and keep her on it?

Halifax just allowed us to, she didn't sign it, just my husband did.

Tigsteroonie

clumsymumsy wrote: »

we only changed the mortgage to re-payments 2 years ago.

Spirit wrote: »

How did you change the mortgage and keep her on it?

clumsymumsy wrote: »

Halifax just allowed us to, she didn't sign it, just my husband did.

Sounds familiar. Halifax changed my joint mortgage from repayment to interest-only and permitted payment holidays on the sole instruction of my Ex. It surprised me too when I found out a couple of years later.

CLAPTON

if you pay her off for whatever sum, how will that help to get her off the deeds and the mortgage if Halifax won't agree?

clumsymumsy_2

CLAPTON wrote: »

if you pay her off for whatever sum, how will that help to get her off the deeds and the mortgage if Halifax won't agree?

The courts can take her name off the deeds once a payment has been made apparently, but she will still be on the mortgage, but not on the deeds. I don't understand it myself.

clumsymumsy_2

Tigsteroonie wrote: »

Sounds familiar. Halifax changed my joint mortgage from repayment to interest-only and permitted payment holidays on the sole instruction of my Ex. It surprised me too when I found out a couple of years later.

Oh dear, I'm so sorry for you. Halifax have been horendous with us, when she agreed to be taken off the mortgage we went there with a guarantor proving an account of £250k and they still said no. I am now quite worried as apparently if we settle a payment with her the courts can take her name of the deeds but she will not be removed from the mortgage. That means she could go in at any time and change it just like your ex did. Would never recommend Halifax to anyone.

CLAPTON

clumsymumsy wrote: »

The courts can take her name off the deeds once a payment has been made apparently, but she will still be on the mortgage, but not on the deeds. I don't understand it myself.

who going to court and who is paying?

Annisele

clumsymumsy wrote: »

Thank you for your response. Her sudden interest is due to her children becoming adults and no longer being able to claim for them. We have tried on a number of occasions with her consenting letter to be removed from the mortgage, but the Halifax were not willing to and as my credit rating isn't at it's best, I cannot go on instead. I think what you're offering seems fair, but would have to factor in what has already been paid and what is left to pay on the mortgage, as the original mortgage was an endowment and no account has ever run along side it. This means we have paid £40k towards the mortgage and still owe just under £50k as we only changed the mortgage to re-payments 2 years ago. That would make £90k between what we have paid and what is still owed. On a property of £100k value.

I don't understand what you mean by "factor in what has already been paid and what is left to pay on the mortgage".

You could take the view that she should have been paying half the mortgage payments for the last 12 years. On the other hand, you could take the view your OH has been living in her half of the house for the last 12 years, and so should have been paying her rent for that time. My own view is that it's fair to offset those two things against each other and call them quits.

What exactly did "her consenting letter" say? If it said she relinquishes all claim on the house, then she might not be entitled to anything now (though I think if your OH hasn't already repaid her deposit, fairness says she should get something).

I don't see the point of going to court. As between your OH and the ex, I don't think the court could order anything that you couldn't just agree yourselves.

As for the mortgage, how much does your OH earn? If he bought 12 years ago, then he might well now earn enough to be able to take on the whole mortgage in his sole name (not necessarily with Halifax), regardless of your credit history.

silvercar

This means we have paid £40k towards the mortgage and still owe just under £50k as we only changed the mortgage to re-payments 2 years ago.

While your partner was paying the mortgage and living in the house, the ex had accommodation costs elsewhere. Given that for most of this time he was paying interest only on the mortgage, this is akin to renting from the lender. How does the rental value of the property stack up against the mortgage costs? Look at it as he was renting her half of the property from her and using the rent money he kept to pay her share of the mortgage. her being named on the mortgage for this property prevented her from easily getting a mortgage elsewhere, so she has also lost out.

I see the growth in value of the property that is due to housing price inflation being her entitlement as well as his.

The courts can take her name off the deeds once a payment has been made apparently, but she will still be on the mortgage, but not on the deeds. I don't understand it myself.

This should be part of the negotiation. If she is accepting a payment of X, her being removed from liability for the mortgage should be part of it. Otherwise she could be chased if your partner doesn't pay the mortgage.

silvercar

Start by looking at your mortgage. It has been repayment for 2 yrs. 2yrs of 25 on a repayment at 5% of a 50k mortgage is about 2.5k.

What would the property be worth if you hadn't improved it? If that is say 80k, then without your work there would have been 80-50=30k.

Without your capital repayments there would have been 27.5k equity as the mortgage would have been larger.

So the starting point is half of 27.5k= 13.75k.

Removing her liability for the mortgage, should have a cash value - in practical terms it allows her to get a mortgage on her own property if she wishes. SO that is another chunk you can negotiate off the 13.75k.

Start talking, it will be cheaper in the long run.

Thrugelmir

clumsymumsy wrote: »

Oh dear, I'm so sorry for you. Halifax have been horendous with us, when she agreed to be taken off the mortgage we went there with a guarantor proving an account of £250k and they still said no.

Having an account with £250k in it at a point in time. Means nothing. Certainly provides no form of guarantee.