Mortgage Liability After Divorce

mia_fawcett

I have a buy-to-let with my ex, against which there is a mortgage in our joint names The plan is to sell the house to pay off the mortgage (just!), but after 2 years on the market there hasn't been a single offer. Reducing the asking price would result in negative equity, which he's not prepared to do.
The house is occupied and the rent clears the monthly expenses so he seems happy to carry on letting it out, but the Court Order specified sale / clean break. I have offered to just give him my share of the house, but he's refused.
When we divorced, he put the house into Tenants in Common, but of course the mortgage is still a joint and several liability. He has since re-married, and my worry is that if he dies (he's a lot older than me, and not in great health), he will leave his half of the house to his new wife, leaving me with half the house but all the mortgage.
Any advice as to how I can get myself out of this situation, which was not of my making?
My main worry is if he has another heart attack and dies, will I be liable for the whole of the mortgage, or will the bank be able to take his share of the house from his estate?
Can I take out life insurance on him (he's told me he can't get life insurance because of his health, but that could mean he can't get it at a price he's willing to pay!!).
I'm a bit surprised the bank let him change the ownership of the house to tenants in common when the debt is joint and several. Presumably he'd be in the same situation if I suddenly died?

AnotherJoe

See a solicitor. You'll have to get a court order and force a sale even if it ends up him buying it from you for a fiver, and him getting a new mortgage. The cost of the court order, if he fights it will likely dwarf the Negative Equity (the costs will lie on him) , and obviously there is some significant NE if in two years there hasn't been a single offer, its priced too high so the NE calculation is wrong.

ViolaLass

Sounds like the OP already has the court order. Talk to a solicitor about how to enforce it.

AnotherJoe

Good point.

MEM62

+1 On that. You already have a court order for the sale / clean break. See a solicitor and take advice on enforcing it.

AnotherJoe

p.s. are you/he putting down the rent as taxable income on your tax returns ?

mia_fawcett

Thanks everyone for your advice.
My main worry is if he has another heart attack and dies, will I be liable for the whole of the mortgage, or will the bank be able to take his share of the house from his estate?
Can I take out life insurance on him (he's told me he can't get life insurance because of his health, but that could mean he can't get it at a price he's willing to pay!!).
I'm a bit surprised the bank let him change the ownership of the house to tenants in common when the debt is joint and several. Presumably he'd be in the same situation if I suddenly died?

Thrugelmir

mia_fawcett wrote: »

I'm a bit surprised the bank let him change the ownership of the house to tenants in common when the debt is joint and several.

Makes no odds to the lender. What is the % split.

I'd put a charge on his current home to provide a safety net.

mia_fawcett

It was joint tenants, it's now tenants in common 50% each

mia_fawcett

I'm not a taxpayer as my income, including the rent, is less than the personal allowance.
I very much doubt that he's declaring the income on his tax return.

AnotherJoe

Well maybe there's an angle there to encourage him ?