Got divorced, didn't sort out the house, not sure where i stand?

Mc7e

so i got divorced earlier this year, the house was not sorted out, but is now an issue...

We bought the house in 2003, initially in just my exes name, but we both lived there and contributed from the start, and were married in 2004.

In 2008 we remortgaged and i was added to the mortgage and the deeds.
We seperated in 2011 and i moved out, but carried on paying the mortgage and some bills rather than paying child support directly.

After about a year i stopped paying the mortgage and started paying child support.

My name is still on the mortgage and deeds, and now my ex wants me removed.
Ive said i would agree to this on the condition that i will receive an amount equal to half of the equity at the moment, if and when she sells the house. (There is currently approx £10-15k equity)

She has offered to give me £2500 if she sells, which she says she doesn't intend to do.
am i being reasonable requesting a higher amount? Or should i accept her offer?
I really don't want to go through court etc, but if i were to push it that way, what would i be likely to get?

Also am i being too generous saying that i will go without anything if she doesn't sell, as she has remarried and is living there with her new husband?

elsien

It's not just about the house, generally the financial picture as a whole is considered - assets, pension, child maintenance, the works.
Without that information no-one can tell you what's fair and what isn't.
Have you considered mediation to work out a settlement that's acceptable to both of you?

You need to get it sorted either way - if she defaults on the mortgage, they'll chase you whether you live there or not if it's still in your name.
Can she get a mortgage to buy you out if that's what you decide?

Mc7e

Yes i have thought of suggesting mediation, but tbh I don't know whats involved with it..
Do they look at it from a similar point of view to a court?
How do i start the process?

elsien

http://www.familymediationcouncil.org.uk

There is a cost, and your ex would have to agree. But it's a heck of a sight cheaper than going to court.

TBagpuss

OK, http://www.resolution.org.uk/mediation/ gives you some information about mediation. A mediator's role is to facilitate you and your wife in reaching an agreement, they are not there to provide legal advice so would normally not be suggesting specific proposals to you, just encouraging you to talk and to discuss your respective positions.

As Elsien says, if matters went to court, then they would look at the full picture, including the house, any other assets such as pensions and savings, your respective incomes and earning capacities, and your needs.

So, for example, if you are a higher earner than you ex wife, it may be fair for her to have a higher share of the total available assets.

Whether it is reasonable for you to accept £2,500 depends on all of the other factors.If you earn more than her, and if you have pensions or savings and she doesn't, then £2,500 may be a reasonable offer, as she might be entitled to claim a share of your pensions and savings.

On the other hand, if there are no other assets, and f you and she have similar incomes, then it may be more reasonable for there to be an order that you get x% of the value of the house when it is sold, or when the youngest child leaves school, with the % based on what the current equity is as a % of the current value of the house (so if current equity is £10K and the house is worth £200K, then you might be entitled to £5K or 2.5% - if the house is worth £300K when it is sold, you'd then get 2.5% of that - normally a % is a fairer way to deal with it than having a set lump sum, as a % will rise or fall with changes in house prices, so nether of you is disadvantaged.

All that said, £10-£15K is not a huge amount. Bear in mind that the equity should be worked out taking off not only the mortgage, but also what the likely costs of sale will be if the hosue were sold (a court would usually assume that costs of sale will be 2.5% to 3%of the value of the house.

So if your house is worth £200K and the Mortgage is £190K, the equity is not £10K, it's £200K - £190 - (200K x 0.025) =£5,000.
So on those figures, £2,500 would actually be half the equity.

You might find it useful to go to see a solicitor to get some advice. Many family solicitors offer an initial free r fixed price consultation. I f you go along with a very brief summary of the financial position (e.g. value of the house, balance on the mortgage, value of any savings or pensions you have, and whether you think she has any, and info about what you both earn, then the solicitor may be able to give you some advice.

Bear in mind, too, that if £2,500 is all she can raise, there is still a benefit for you in being released from the mortgage, as it protects you from risk if she were to default on the mortgage, and makes it easier for you to be able to mortgage if you want to in the future.

Has she actually talked to the lender about releasing you?

Mc7e

Thanks bagpuss.

The balance of the mortgage is around 55k and its worth 65-70k
No other assets or savings and i have around £800 in my pension fund, not sure if she does...

We both earn a similar amount, and she probably has potential to earn more than me in the future...

I don't think shes spoken to the mortgage company yet, but she has spoken to a solicitor, who suggested the £2.5k...

The cost of mediation puts me off slightly as i would struggle to afford it at the moment, and I'm also not keen on spending money on it when i might not actually receive anything from her if she never sells up...

I will try to get a free consultation with a solicitor, but I'm starting to think i might be as well to take her offer...

PeacefulWaters

Here's a suggestion (made knowing nothing of the wider picture).

Accept her offer on condition that:

1) she pays up front on issuance of a consent order, rather than waiting for house sale.
2) she pays all legal and court costs for the consent order.
3) she is responsible for any lender and legal costs relating to change of ownership of property and future sale of the property.

FBaby

From what you've said I would argue that you should be entitled to half the equity from 2011. After that you say that you paid it instead of maintenance so it doesn't count and then you stopped. Saying that the value might have been higher then!

What you need to take into consideration also is the cost of selling fees.

missile

I would not accept a promise to pay if and when she sells. I would try to reach a settlement figure that she will pay now.

Guest101

FBaby wrote: »

From what you've said I would argue that you should be entitled to half the equity from 2011. After that you say that you paid it instead of maintenance so it doesn't count and then you stopped. Saying that the value might have been higher then!

What you need to take into consideration also is the cost of selling fees.

But the OP is unable to get their own home due to already being on a mortgage.


He still has living costs.

FBaby

Guest101 wrote: »

But the OP is unable to get their own home due to already being on a mortgage.


He still has living costs.

How is that related to the value he is trying to get? He chose to move out!