Ex husband wants to release equity from house...

ClaireE

My ex husband has been out of work for a year and a half following redundancy. He is in all sorts of debt & is now unable to continue his monthly payments towards the mortgage & child support.

The mortgage & house is in joint names. The consent order states the house be sold in 2025 with a 50 50 split. I live at the house with our 3 children, he lives elsewhere on a moored boat.

He is asking for £50,000 to be released from the house. He wants to pay off debts, get himself sorted & also give me an amount from it to cover his late & future payments.

I have no idea if this could or should be considered. As the house & mortgage is in both our names would the ER loan have to be in both our names? Would the monthly mortgage payments go up? Would my ex not having any employment record for 18 months make it unlikely he could secure ER?

I work full time and I can just about cope with his share not coming into the household. I would not want any future loans in my name too or there to be any risk of the mortgage repayments b becoming higher each month.

Kynthia

I'd post this in the mortgages forum for advice.

However as far as I know equity release is for much older people who usually have paid off the mortgate. Therefore you'd be looking at increasing the mortgage amount not ER. So it would be a joint application which would increase the monthly repayments. With him not working and you only just affording to get by you both might not pass the affordability for extending the loan

Dizzy_Ditzy

I see that you have already posted this on the Mortgage board - would you like us to delete this one as a duplicate?

Ozzuk

Depending on the terms of your mortgage, this will likely require a new rate (for the additional), new application and of course increased payments.

Don't do it! If he can't pay now, whent the money is gone he'll stop paying again, then you've let him have equity and you're paying for it. You'll also have to adjust your court order as the equity split will now be different. I'd also watch out for him taking out any secured loans on the property.

If you want a get out of jail free card, call your provider, explain the situation and see if they'd be even willing to loan if he isn't working - I'd bet they are not, so you can pass that on and they are the bad guys not you.

Keep_pedalling

ER is for older people who own their homes outright, there is zero chance that you could do this.

Gavin83

I'm really surprised that the divorce court ordered that he was still responsible for paying the mortgage on your house. He must have had a terrible solicitor.

Ozzuk wrote: »

I'd also watch out for him taking out any secured loans on the property.

Genuinely curious here. If two (or more) people own a property do you need the authorisation of all owners in order to take out a secured loan or just the one?

motorguy

Keep_pedalling wrote: »

ER is for older people who own their homes outright, there is zero chance that you could do this.

I suspect just poor wording by the O/P - theres nothing to stop someone applying for additonal borrowing on their mortgage.

motorguy

ClaireE wrote: »

My ex husband has been out of work for a year and a half following redundancy. He is in all sorts of debt & is now unable to continue his monthly payments towards the mortgage & child support.

The mortgage & house is in joint names. The consent order states the house be sold in 2025 with a 50 50 split. I live at the house with our 3 children, he lives elsewhere on a moored boat.

He is asking for £50,000 to be released from the house. He wants to pay off debts, get himself sorted & also give me an amount from it to cover his late & future payments.

I have no idea if this could or should be considered. As the house & mortgage is in both our names would the ER loan have to be in both our names? Would the monthly mortgage payments go up? Would my ex not having any employment record for 18 months make it unlikely he could secure ER?

I work full time and I can just about cope with his share not coming into the household. I would not want any future loans in my name too or there to be any risk of the mortgage repayments b becoming higher each month.

I cant see it flying with the mortgage company if hes unemployed / unemployable / wrecked with debt and the reason for the £50k is "debt consolidation".

His debt, his problem. Dont get involved. Borrowing money to pay off debt rarely ends well. Ask him has he considered seeking debt advice? For example a debt management plan?

Even IF it all went through, he could take the £50K, do as he liked with it and then not pay a penny towards paying it off / paying the mortgage and you'd be left liable for the whole lot.

Ozzuk

Gavin83 wrote: »

I'm really surprised that the divorce court ordered that he was still responsible for paying the mortgage on your house. He must have had a terrible solicitor.




Genuinely curious here. If two (or more) people own a property do you need the authorisation of all owners in order to take out a secured loan or just the one?

I think it needs both, but desperate people sometimes do desperate things and I've heard of people forging signatures.

Quick google bough this up from 11 years ago:
https://forums.moneysavingexpert.com/discussion/384103/urgent-advice-needed-on-loan-secured-against-house

hazyjo

Ozzuk wrote: »

I think it needs both, but desperate people sometimes do desperate things and I've heard of people forging signatures.

Quick google bough this up from 11 years ago:
https://forums.moneysavingexpert.com/discussion/384103/urgent-advice-needed-on-loan-secured-against-house

My OH's ex did. He ended up with the debt. Unfortunately he wasn't in the right frame of mind mentally to deal with it all.

TBagpuss

If he has lost his job then he probably isn't liable to pay so much in child support and could apply to have the maintenance (mortgage payments) reduced.
You could chose to agree to remortgage to release a lump sum to him. You'd need to get a proper agreement drawn up (possibly saying that he has recieved £xx equal to yy% of the equity, and that he agrees to you having a sum equal to yy% of the equity, from his share, when the house is sold.
Your mortgage payments would no doubt go up, as your loan would be higher.
How much is the equity now? IS there any chance you could buy him out, so the house goes solely into your name? Again, you would need to document this to prevent him seeking to 'double dip', but you might be able to negotiate with him so he gets a sum which is less than 50% of the current equity on the basis that he is getting his share of the equity early.

Does the order provide that if either of you fails to pay your share of the mortgage payments, the money is reimbursed to the other party on sale?