Partner on mortgage for houses for TWO ex-wives!

SimpleLife

What can be done about this?

Rough background - boyfriend married twice before. First one divorced over ten years ago, he's still on the mortgage, she lives in house alone with their three children from that marriage. Second wife recently divorced but he left the home beginning of 2016. She lives there with their two children from that marriage. Her new partner has moved in.

Any advice? What impact will this have on us buying our own home together? He is now renting and I own my home.

glosoli

The full mortgage repayments would have to be taken into consideration, along with any maintenance/child support payments. I would imagine his borrowing capacity will be fairly limited for a third mortgage.

Higher rate stamp duty should be applicable also.

SimpleLife

Higher stamps duty? He has no legal or beneficial title to the properties as this formed part of divorce settlements.

Already appreciate the maintenance payments situation.

It would be clear from financial disclosure that has not paid first mortgage for over a decade and latter since end 2015. But understand the liability under it and lenders would want to take this into account.

What options are there for removing his name from the mortgages? Would they each have to remortgage without him and therefore be able to prove income sufficient to meet repayments? Or is there any other legal procedure he could utilise given he has no interest in the properties anymore?

glosoli

Yes - exactly, they would have to go through their own mortgage application processes and re-apply for the mortgages in their own name or joint with new partners.

antrobus

SimpleLife wrote: »

...What options are there for removing his name from the mortgages? Would they each have to remortgage without him and therefore be able to prove income sufficient to meet repayments? ...

See the relevant Consent Decrees. They normally require the party who gets the house to use their 'best endeavours' to remortgage.

SimpleLife

Re Stamp Duty -

I'm hoping someone can clarify this point.

1. Any new house will be our (his) main residence
2. He has no legal interest in the previous two properties and is simply named on the mortgages

Does this mean the higher rate of stamp duty is not payable?

SimpleLife

Antrobus - that may be the case but then what...? She still has to be able to in fact remortgage in her own name.

I have been coming across examples where lenders have simply removed an ex spouse without the need to remortgage. I'm trying to ascertain how this works.

glosoli

If he isn't named on the title then higher rate stamp duty is not applicable.

getmore4less

glosoli wrote: »

If he isn't named on the title then higher rate stamp duty is not applicable.

Beneficial interest determines Stamp duty not legal ownership.

antrobus

SimpleLife wrote: »

Antrobus - that may be the case but then what...? She still has to be able to in fact remortgage in her own name...

That's right. The mortgage is a contract between the lender and the original owners. The lender is not a party to the divorce. They can please themselves.

SimpleLife wrote: »

..I have been coming across examples where lenders have simply removed an ex spouse without the need to remortgage. I'm trying to ascertain how this works.

Yes. It works on the basis that the ex spouse' finances are sufficient to meet the lending criteria.

What the ex-spouse is supposed to do is to try and remove their former partner from the mortgage. It may well be the case that many don't prioritise it; it doesn't cause them any problems.