Daughter's dilema

ginpin

Can't find the answer to this anywhere but don't want to employ a solicitor at this stage. Hope this is the right forum. Daughter's huband walked out 1 yr ago. They had been married 9 months. He has a boyfriend. He does not communicate, never really did as he lived and worked away from home returning at weekends. Daughter desperately wants to keep the house and wants to buy him out of the house at same time as, hopefully, a mutual consent divorce after 2 yrs separation. She will have funds to do this. The trouble is, even IF all that goes smoothly, the mortgage company would not let her retain the mortgage on her own, we have been told that we are too old at 59 to go on the mortgage with her and it seems that we would not fit affordability even to become guarantors. She would want to pay off some of the mortgage capital so that the affordability would be okay. With our help she could do that. We have always been very careful with money and these affodability calculations seem so alien to us. However, she would have to pay off before the consent order/ clean break otherwise the mortgage company will say no to her almost ex husband being bought out of the house. So, does this mean he would benefit from half of the money that she pays to the mortgage company if she pays off some money to reduce the overall mortgage before the decree absolute? They will have been separated for 2 yrs by then. This is a real dilema, she has about a year before filing for divorce but needs to know how it can all work He was the one who was too tired on their wedding night, the one to walk out, the one to have a boyfriend and the one to not communicate. I know that these factors play no part but it would be so unfair for him to benefit. Is there some way this could all work? Thank you for any help.

davidmcn

ginpin wrote: »

she would have to pay off before the consent order/ clean break otherwise the mortgage company will say no to her almost ex husband being bought out of the house.

I would expect it to be done simultaneously, unless you've been told otherwise?

MortgageMamma

Whether he would be entitled to any of the funds she pays of the mortgage is more of a legal question - is your daughter being represented by a solicitor?

Who did the affordability calculations - I'm just asking because there is more than one way to skin a cat - some mortgage lenders will lend a new mortgage up to age 74

Trying_to_be_good

Her income will need to support a mortgage in only her name. And for her to live, too, without the house taking up all her cash. Sometimes a move can be the best option.

His entitlement to equity from the house can be sorted out separately - it starts on an assumption of 50:50 but is varied if there are different inputs. The divorce board on here will be able to offer more advice. He could stay on the deeds/mortgage but with a legal agreement that he waives his right to increases in price. A clean break is much easier to get on with life.

I'm sure you're aware she could apply for the divorce now on the grounds of adultery or unreasonable behaviour, rather than wait two years. Very little stigma to these nowadays. All divorce paperwork can be done without solicitors if it's amicable, the house conveyancing will need legal work.

ginpin

Thank you David mcn I have read everything I can find and it would appear that the Solicitor/ Court check with the mortgage company if you want to buy the ex out of the house, to check that they are happy with the arrangement. When the ex first left, my daughter rang the mortgage company and they said "No way!" to her taking the mortgage on.

ginpin

Thank you MortgageMamma, when my daughter's husband first left her she spoke to the mortgage company about a 'What if' situation over the phone. They said that as a 58 year old teacher my salary could possibly only exist for another 7 years and they would not take me on, on that basis. To change mortgage companies both parties have to meet and the ex son in law is not proactive. He would not bother to go to a meeting.

davidmcn

ginpin wrote: »

When the ex first left, my daughter rang the mortgage company and they said "No way!" to her taking the mortgage on.

Presumably that was on the basis of the current balance, rather than what would be left once your contribution was paid?

ginpin

Thank you Trying to be Good. I have read so much that yes I do know and understand all you have said, thank you. However, I was really interested in what you wrote about the son in law staying on the deeds/ mortgage but signing a no claim about future equity. It is definitely a clean break order that my daughter would want to go for but I thought his name would have to come off everything for a clean break order. He has never consumated the marriage so it could have been anulled but he would never have gone to court which is what is required for an anulment. Also, my daughter is concentrating on exams and coursework at the moment- this will improve her salary, and in the meantime more money can be saved up too if he has to be bought out. Thanks again.

ginpin

Yes that's right. However, I have worked everything out and she would be able to afford the mortgage, as far as affordability is concerned, by paying some of it off. She will be on a higher earnings by then, in a year, as well. They are now out of the 2 yr period where a penalty would be payable . The extra year will give more time for savings to grow too. It is just a case of how to work it, and we want to plan ahead but not pay a solicitor yet not until she really needs one.

Thrugelmir

ginpin wrote: »

However, I have worked everything out and she would be able to afford the mortgage, as far as affordability is concerned, by paying some of it off.

Are using a lenders basis of affordability or your own? As not just a question of budgeting at current levels of interest rates.

amnblog

Your daughter does not have to stick with the current lender and may have more generous options elsewhere.

A good broker will most likely identify a workable solution.