Settlement fee. Ex husband is buying me out of the mortgage

Sarahn

Hi , I'm new to the forum and would really appreciate any advice.
I separated from my husband last year and our house has been on the market for 6 months, we have dropped the asking price but are struggling to attract prospective buyers.
Husband wants to buy me out, we have agreed on a £7k settlement fee. The problem is that he cannot provide this sum until the house sells. I want out tbh and am ok with this but wonder if it's something that can be drawn up with a solicitor.

jackomdj

Have the mortgage company agreed to this? It is ultimately their choice. If so can he not add the £7k to the new mortgage? (It will be a new mortgage in just his name not the old one with your name taken off)

Sarahn

Hi , thanks for the reply.
He has interviews with skipton next week. We have done the maths and it is likely that he can do the mortgage transfer.
He is not making this easy tbh and won't add onto mortgage.
I'm ok with the payout on sale but want to protect myself. Would a letter off a solicitor suffice?
Thanks so much

jackomdj

Just my opinion as I don't know him/you.

But if he is going through the effort of changing the mortgage and I assume putting the house in his name, what is to stop him from deciding not to sell it. If your agreement is that you don't get the money until the house sells, this could be in ten years time! (Or more).

TBagpuss

If you are divorcing then you should have a formal financial order (which can be done by agreement)
If not, then you should have a separation agreement and, if the house is no being sold immediately, you should have a formal legal charge over the property (if it is to transferred into his sole name) or a declaration of trust (if it is staying in joint names)

If he is not selling straight away then it would be more usual to have an agreement for a fixed % of the house value, not for a specific cash amount which may well fall in real terms er the period before the hosue is sold.

Sarahn

Thanks so much for your help.!
At this stage I need to get a formal legal charge over the property. Do I obtain this through a solicitor ? Is it a good safeguard ?

Thanks so
Much,

Sarah