Morgage with Ex - Advice needed!

magowiee

Hi all,

I'm hoping some of you folks may have had a similar situation to me, so may be able to offer some advice on the following.

Around 2007 I bought a house with my ex parter, with the mortgage being in both our names. We separated (pretty amicably) in 2012 and I move into a rented place, though I continued to contribute to the mortgage and some other household bits (the garden fence blew down!) until the start of 2014.

At that point we decided to get a bit more formal so we got solicitors (1 for her and 1 for me) to draw up a deed of trust - for a settlement figure of about 10k, I gave up all rights to the house (including any 'profits' on the future sale) and she agreed I was indemnified from any further costs (mortgage or upkeep) relating to the house, with a clause saying that if she defaulted on the mortgage repayments then I would be able to sell the house, and also one saying that after 4 years she would either take on the mortgage herself, or sell the property.

We did this because at the time she tried to get it all moved across to her name, but wasn't earning enough on her own for the mortgage company to allow her to do this (even though - I have made no contribution to the mortgage for a few years now, she has been covering it all by herself)

Anyway, now I would like to get my own house, but the above is counting against me. I mean - I have this legally binding document, but when I called my bank they said I was buying a second home, so need a 20% deposit, or (with just the 10% that I have) a letter from the mortgage provider saying I was no longer responsible for the mortgage on the property with my ex (which the guy on the phone at the bank said was really hard to get usually).

I guess my questions are:

1. Shouldn't the deed of trust count for more than this?

2. Are there any lenders who would look at lending to me with 10% deposit? - I pay rent of £1200 (ex bills) in london, and found a place to buy (outside of london) which would cost about £950 - so affordability is no problem. (

Anyway - It seems like I'm stuck in limbo at the moment, and the system doesn't take personal circumstances into account - so any help or thoughts you could help with would be massively appreciated!

Thanks!

AnotherJoe

Bottom line you are on the mortgage and the deeds, so no, the trust counts for diddly squat since you cant just unilaterally get yourslef off the mortgage.
Seems to me that trust was a waste of money. A clean split would have been better.
Do it now, only then look to buy.

magowiee

I agree a clean split would have been better, but that would have involved forcing her to sell the house, which I wasn't cool with doing at that point

It would have been nice of either one of the solicitors to point out they were creating a totally pointless document rather than take our £500 (each!) and stay quiet - even though I explicitly pointed out I was doing it with a view to purchase at some point.

Guess that's solicitors though...

Thrugelmir

Unless you are very specific with your requirements. Solicitors will be be generic and draft what you are ask. Otherwise your legal bill will run into thousands as hours of time will be spent in dealing with the detail.

Was your choice at the time. Your ex appears to have out thought you would be my observation. Kept the house etc.

I agree a clean split would have been better, but that would have involved forcing her to sell the house, which I wasn't cool with doing at that point

Like many people you've changed your tune subsequently. For fully understandable reasons I should add. You should honour the agreement you entered as to fight it now would be bordering on pointless. Chalk it up to a life experience. Think through very carefully any legal document in the future.

AnotherJoe

magowiee wrote: »

I agree a clean split would have been better, but that would have involved forcing her to sell the house, which I wasn't cool with doing at that point

It would have been nice of either one of the solicitors to point out they were creating a totally pointless document rather than take our £500 (each!) and stay quiet - even though I explicitly pointed out I was doing it with a view to purchase at some point.

Guess that's solicitors though...

I wouldn't blame the solicitors, they created what you wanted, which is in essence an agreement that your ex can stay in the house until 2018 (as a minimum) and presumably they thought that would be the point of purchase. Also, there is nothing stopping you getting a mortgage now legally, its finance, but that's not their lookout is it?

You are now trying to do something 2 years earlier than you arranged for and only 2 years after the trust was created. So, yep the trust isn't working for you in 2016, but it wasn't designed to.

The document wasn't pointless but its not conducive to you getting a mortgage prior to 2018 because you didn't ask for it to be (and likely that would probably have been impossible anyway. To do that you'd have had to kick ex out back in 2014.

You know that phrase that starts "you've made your bed.." ?

magowiee

Thanks for the replies both!

As I said - I did mention to the solicitors at the time that the purpose of the deed was to enable to free me to be able to look for a mortgage should the opportunity appeared. Neither one said - "that would still be tricky, even with this document"

And also Thrugelmir, I have't changed my tune - I still wouldn't want my ex to leave the property if she didn't want(it was an amicable split). I was just hoping the deed of trust would let me buy a house!

Thanks for replies though!

Cheers

AnotherJoe

magowiee wrote: »

Thanks for the replies both!

As I said - I did mention to the solicitors at the time that the purpose of the deed was to enable to free me to be able to look for a mortgage should the opportunity appeared. Neither one said - "that would still be tricky, even with this document"

You are free to look for a mortgage. Its a matter of finances you cant get one, not the agreement.

magowiee wrote: »

And also Thrugelmir, I have't changed my tune - I still wouldn't want my ex to leave the property if she didn't want(it was an amicable split). I was just hoping the deed of trust would let me buy a house!

The DoT will let you buy another house. Its lenders who wont lend because you arent rich enough to run two thats the issue.

I think you are wanting to have your cake and eat it. You dont have the finances to be on two mortgages but you arent willing to come off the existing one because it means your ex will have to leave and in any case that cant happen until 2018.

Debtslayer

You say your split was amicable, if you're still on friendly terms with your ex have you spoken to her about your predicament? Would she be able to get mortgage & house in her own name now? Or would she agree to selling now instead of waiting another 2 years?
If neither are possible then unfortunately you are going to have to wait.

TBagpuss

Solicitors are not financial or mortgage advisers, in fact, most will specifically state in their terms of business that they cannot and do not give financial advice.

The DoT regulates the position between you and your ex, not between you and third parties.

It sounds as though the solicitors did what you asked them to. Did you talk to a mortgage adviser before you agreed to the terms with your ex?

Have you spoken to her? Has she made any enquiries to see whether she is able to remortgage now, rather than in two years time, in order to get you released from the mortgage?

antrobus

magowiee wrote: »

...At that point we decided to get a bit more formal so we got solicitors (1 for her and 1 for me) to draw up a deed of trust - for a settlement figure of about 10k, I gave up all rights to the house (including any 'profits' on the future sale) and she agreed I was indemnified from any further costs (mortgage or upkeep) relating to the house,....

Had you been married, that's the kind of deal you would have got in the consent order.

magowiee wrote: »

.. with a clause saying that if she defaulted on the mortgage repayments then I would be able to sell the house, and also one saying that after 4 years she would either take on the mortgage herself, or sell the property. .....

That's different. Normally consent orders only require the other party to make their best endeavours to remortgage in their name only. You have a deadline. Sometime in early 2018, you can at least get an order for sale from a court.

magowiee wrote: »

.....Anyway, now I would like to get my own house, but the above is counting against me. I mean - I have this legally binding document, but when I called my bank they said I was buying a second home, ....

If you are buying a second home, you are going to get hit with the extra 3% stamp duty anyway.

magowiee

Thanks for all the input everyone, I appreciate the replies!

I guess this is one to file under life lesson and move on!