How to buy my ex-husband's share of house?

s@sha

Apologies if this is in the wrong section- it involves benefits, an inheritance, a divorce and a mortgage so I really didn't know where to put it.

Basically, I am due to inherit some money from the sale of my late parent's house in the next few months. My current situation is that I'm a divorced parent and my income is made up of a variety of benefits because I have been unable to work for years due to illness and disability. I also receive maintenance for my child from his father.
When we married , we both worked full time and bought our house with a joint mortgage. We are still joint 'owners' but I live in the house with our child, my ex husband has married again.
When we divorced, because of my being on benefits, obviously I was not able to take on the mortgage in my sole name, or buy my husbands share of the house. The financial agreement is that if and when the house has to be sold, which will be triggered by our child leaving full time education my ex will receive 40% and I 60% after the mortgage, and various fees are paid.
Obviouly I would very much prefer to remain in the house and just buy my husband out, and when I receive this inheritance money I will have enough money to do this. This wouldl mean I have a home for life and won't have to sell unless I want to. My ex is agreeable to this and I have checked with DWP and CAB who have told me I would be allowed to spend some of the money to do this without it being classed as 'deprivation of income'.

The problem is the mortgage. My ex obviously does not want to be still tied to the mortgage if I am buying his share of the house- but I won't have enough inheritance money to both pay off the mortgage AND give him his 40%. I can either pay off the mortgage, but that still leaves my ex with a share in the house, OR i can buy his share, but not pay off the mortgage. I am sure I cannot get a mortgage in my own name, even though it would be relatively small by today's standards (approx £65, 000) because I am on benefits.
I am wondering if someone with any financial knowledge can see a way around this? Is it something I should see a financial advisor about? Any advice on where to start would be appreciated.

Number75

I can't advise on you taking over the mortgage, sorry.

But - just a comment on him still being tied to the mortgage. Basically: tough. When you (and he) made a choice to marry, to create and child, and to divorce, this all brought consequences. He has to stay on the mortgage because the law takes seriously the housing security of his child.

I hope that you can find a solution to remortgaging, but don't feel too bad if you can't.

I'm sorry for your loss.

When_the_going_gets_tough

I don't think your ex could be taken off the deeds of the house whilst he is still liable for the mortgage so you can't pay him off if you cannot remortgage in your own name. paying off the mortgage would advantage you provided it was not regarded as doc. Do you have a prospect of working and obtaining a mortgage at some time in the future? Have you talked to a broker at all?

s@sha

Thank you. Both my ex and I are very aware that the needs of our child are paramount, which is why my ex never tried to push to sell the house and split the proceeds when we divorced- we both wanted our son to have as little disruption as possible, to stay in the same school and home. It's also the reason I'd like if possible to be able to buy our home now, as that will give both me and my son the security a home for life. We also both know the law (quite rightly) would never have agreed to him forcing me and our child out so he could get his share of the equity at the time. I'm just trying to find a way to use this money sensibly to benefit everyone-My buying him out early would give him and the 2nd wife a welcome lump sum, enough to put a deposit on a house of their own (they currently rent).
I suppose I am asking, can I still legally buy his share of the house AND have him remain on the mortgage? The mortgage is what is the problem in his mind. It wouldn't bother me if he was still on it, my priority is just securing a home that's mine for the future-and my ex is happy for me to buy him out - but he thinks we can't if if he's still jointly responsible for the mortgage on it? I'm confused as to who to go to for advice on this in the Real World-a mortgage advisor? Financial advisor? Solicitor?

When_the_going_gets_tough

The only person who could definitely answer your question is the mortgage provider. But the security for the loan is the house. Without it there would be nothing for the mortgage company to use if either of you defaulted. Your ex cannot have a loan secured on a house if he doesn't own the house - I hope you see the problem? How much will your inheritance be?

s@sha

When_the_going_gets_tough wrote: »

I don't think your ex could be taken off the deeds of the house whilst he is still liable for the mortgage so you can't pay him off if you cannot remortgage in your own name. paying off the mortgage would advantage you provided it was not regarded as doc. Do you have a prospect of working and obtaining a mortgage at some time in the future? Have you talked to a broker at all?

Thank you, that's essentially what I thought. I just didn't know where to go for advice. It seems unlikely that I will be able to ever go back to work full-time- I'm 50 this year, I'd love to work part time if I could manage it in the near future, but seriously doubt that would give me enough income to get a mortgage. At the moment the DWP pays the interest on it, and it's a flexible mortgage so we have till the oldest partner (me) is 65 to pay it off.

Thrugelmir

Choices have to be made. As there's not enough money in the pot to achieve everything concurrently.

Logically the place to start is to repay the mortgage. This provides you and your child with security. Secondly your ex is removed totally from having a mortgage. Which is one barrier to him obtaining a mortgage in his own right.

Until such time as you earn an income in your right. There's no opportunity for you to buy your ex out. As a mortgage on benefits isn't an option.

s@sha

When_the_going_gets_tough wrote: »

The only person who could definitely answer your question is the mortgage provider. But the security for the loan is the house. Without it there would be nothing for the mortgage company to use if either of you defaulted. Your ex cannot have a loan secured on a house if he doesn't own the house - I hope you see the problem? How much will your inheritance be?

Thank you, yes- I can see the problem with it now you have explained it like that! The inheritance is likely to be in the region of £60-70,000.

Richey_

If I was you Sasha I would seek professional advice before you put any of that money in the house to pay off any of the mortgage. You co own the house so if he was to force a sale or stop paying you could end up losing a lot of this money to either him or the bank

s@sha

Thrugelmir wrote: »

Choices have to be made. As there's not enough money in the pot to achieve everything concurrently.

Logically the place to start is to repay the mortgage. This provides you and your child with security. Secondly your ex is removed totally from having a mortgage. Which is one barrier to him obtaining a mortgage in his own right.

Until such time as you earn an income in your right. There's no opportunity for you to buy your ex out. As a mortgage on benefits isn't an option.

Thank you- I agree, I can see the logic in getting rid of the mortgage, and I may have enough to do that (subject to the DWP allowing it). But what impact would that have on the financial agreement we made at the time of the divorce? If I pay off the remaining mortgage, that will mean I have put far more money into buying the house than my ex has. Would I still have to also give him the 40% of the house too, or can our financial agreement be altered to reflect the fact I've paid the mortgage off with my money?

s@sha

Richey_ wrote: »

If I was you Sasha I would seek professional advice before you put any of that money in the house to pay off any of the mortgage. You co own the house so if he was to force a sale or stop paying you could end up losing a lot of this money to either him or the bank

Just to clarify- he doesn't contribute anything to the mortgage, and hasn't since we separated in 2011. Nor to any household bills or any other income of mine. The only money I receive from my ex is maintenance for our child who is 11.
I'm sure he would never force a sale, as he could have tried to do that when we first separated, but obviously once our son is over 18/out of full time education (whichever comes first) the agreement is that he can ask for the house to be sold so he can be released from the mortgage and receive his 'share' of the proceeds. It's called a mesher agreement, and is quite common apparently-so my solicitor told me at the time.