Selling house - at a loss!

SparkleUK_

Hi everyone, just hoping to post in an area where people may have some experience and non judgement. I'm 25 and this is my first house so inexperienced! I know initially lots will say get legal advice but any thoughts or experience would be appreciated.

Bought a 3 bedroom semi in 2017 with my ex. Very soon after we split up and because of finances needing sorting and he didn't want the responsibility of the dogs, I stayed in the home and he moved out stating he didn't want anything from it furniture or money wise. He went to live with his mum. House is mortgaged with a fairly rubbish rate lender as he had a terrible credit file so at the time, it wasn't suitable to remortgage as would've been tied in for another few set years and I wanted to sell so whilst everything was being sorted, the mortgage remained the same although we told them the situation.

House is now up for sale since January this year as it was never my intent to stay here and since he's still on the mortgage, ex came back nearly a year after leaving saying he now wants money (not disputing this as fair enough, he's still on the mortgage, and I know lots say half in that case, although slightly annoying as he hasn't paid anything towards it for over a year now, bills or mortgage wise but hey), he has no understanding of the property market or the mortgage figures as due to the mortgage rate, there will be barely any equity in it but he still has a figure he's saying he should get, he's even suggested I should get a loan to pay him this figure he's come to to buy him out, despite it being up for sale. He then switches and says I should remortgage it to get onto a better rate (e.g to pay more off it so he can access more money at the end).

He was always adamant he wasn't coming off the mortgage too and says he only will if I sign something saying he will still get money on sale. House is up for £110,000 but mortgage is still in the region of £102,000 and once you take fees into account etc, there won't be much left equity wise. The starting point of the mortgage was £104,000 region in 2017. My ex thinks that he can have this figure he's decided regardless (I don't know how he's worked this out but he says it's what he's entitled to) and if he doesn't get this figure, thinks I should still be responsible for giving him it, even if the house sells with less to offer. My understanding (may be wrong) is that whatever is left when it sells is what's there for us regardless of if it's at a loss for what you 'put in' or have paid mortgage wise. He also brings the mortgage deposit into what he thinks he's entitled to even though the bulk of it was from what people gifted us at our wedding (note, we're divorced already and papers were signed saying there wasn't anything to sort or need court help for).

Had a buyer and that fell through and the market seems slow at the minute now. I'm also pregnant so don't want to be in a house with his name still over it. I'd happily reduce it to attract a sale but issues with the above and his figure demanding!

I don't want to try and 'win' or get any extra money, I'd just rather be rid so I can concentrate on the baby and my partner. I did offer him the house back but he said he wouldn't be able to get a singular mortgage on it with his credit.

Just really don't know my options and wondered if anyone else had any suggestions? Sorry for the long post and thanks in advance!

pinkteapot

What figure is he saying he should get?

When you bought, was it as joint tenants or tenants in common? If tenants in common, what did the deed of trust say would happen to the house proceeds when it was sold?

sharp910sh

Logically he will only get half the equity after the mortgage if paid off minus selling costs. He may even be liable for the the cost or negative equity if the amount the property is sold for doesn't cover the mortgage and the selling costs.

Therefore do no be afraid of what he says, he can say what he wants, there is no magic money tree for him if there is no equity in the property.

SparkleUK_

Thanks for your reply,

Just shy of £4000 for what he's wanting. I've just had a quick look over most recent communication and he briefly said he came to that over the deposit and 'what we paid' halved.

As far as I know it's completely joint as we entered into it together and both named on the mortgage/deeds.

sharp910sh

Basically means he will get half the equity minus moving costs, nothing more!

SparkleUK_

Thanks also Sharp910sh.
A little bit reassuring to hear there may be so hope in the matter!

My suspicions are he is banking on the house to help him pay things off that he has going on as to why he's so adamant he needs money.

I don't want to be unfair or it to be all about money but sadly seems it is the necessary evil in life nowadays! If there was a lot of equity in it, I would understand but there really isn't.

foxy-stoat

Whats the likelihood of you wanting another mortgage or credit in the next 5 years?

Options would be sell it, there will be no money left to split up or stop paying the mortgage and voluntarily give the keys back to the lender and watch both of your credit files go to trash.

If you do want to buy it off him you would need to pay him what he wants, so he signs the equity over to you and you need to meet the lender's affordability checks. Once yours you can look to remortgage on a better rate, if you can.

SparkleUK_

Thanks foxy-stoat,

I ideally want to buy a house with my partner closer to work as ex doesn't drive so we had to buy close to his work although have often been tempted with the second option when it's been frustrating!

Ex has said he is considering going bankrupt once the house is sold which is why I suspect he wants money from the house, although the difficulty is getting him to see the lack of money in it.

[Deleted User]

I am no expert but think you need to take any papers relating to the mortgage, his emails asking for a share of the amount left after selling, and the divorce papers to a solicitor. Depending on what the divorce paperwork says, he may have no entitlement to the house money. However, if there is a loss, it might be useful having him legally responsible for half although I suspect he won't pay it and won't care.

But going to a solicitor who can see the paperwork is a whole lot better than coming on here asking us for best guesses as to what the end position will be.

I hope this helps.

[Deleted User]

SparkleUK_ wrote: »

Hi everyone, just hoping to post in an area where people may have some experience and non judgement. I'm 25 and this is my first house so inexperienced! I know initially lots will say get legal advice but any thoughts or experience would be appreciated.

Bought a 3 bedroom semi in 2017 with my ex. Very soon after we split up and because of finances needing sorting and he didn't want the responsibility of the dogs, I stayed in the home and he moved out stating he didn't want anything from it furniture or money wise. He went to live with his mum. House is mortgaged with a fairly rubbish rate lender as he had a terrible credit file so at the time, it wasn't suitable to remortgage as would've been tied in for another few set years and I wanted to sell so whilst everything was being sorted, the mortgage remained the same although we told them the situation.

House is now up for sale since January this year as it was never my intent to stay here and since he's still on the mortgage, ex came back nearly a year after leaving saying he now wants money (not disputing this as fair enough, he's still on the mortgage, and I know lots say half in that case, although slightly annoying as he hasn't paid anything towards it for over a year now, bills or mortgage wise but hey), he has no understanding of the property market or the mortgage figures as due to the mortgage rate, there will be barely any equity in it but he still has a figure he's saying he should get, he's even suggested I should get a loan to pay him this figure he's come to to buy him out, despite it being up for sale. He then switches and says I should remortgage it to get onto a better rate (e.g to pay more off it so he can access more money at the end).

He was always adamant he wasn't coming off the mortgage too and says he only will if I sign something saying he will still get money on sale. House is up for £110,000 but mortgage is still in the region of £102,000 and once you take fees into account etc, there won't be much left equity wise. The starting point of the mortgage was £104,000 region in 2017. My ex thinks that he can have this figure he's decided regardless (I don't know how he's worked this out but he says it's what he's entitled to) and if he doesn't get this figure, thinks I should still be responsible for giving him it, even if the house sells with less to offer. My understanding (may be wrong) is that whatever is left when it sells is what's there for us regardless of if it's at a loss for what you 'put in' or have paid mortgage wise. He also brings the mortgage deposit into what he thinks he's entitled to even though the bulk of it was from what people gifted us at our wedding (note, we're divorced already and papers were signed saying there wasn't anything to sort or need court help for).

Had a buyer and that fell through and the market seems slow at the minute now. I'm also pregnant so don't want to be in a house with his name still over it. I'd happily reduce it to attract a sale but issues with the above and his figure demanding!

I don't want to try and 'win' or get any extra money, I'd just rather be rid so I can concentrate on the baby and my partner. I did offer him the house back but he said he wouldn't be able to get a singular mortgage on it with his credit.

Just really don't know my options and wondered if anyone else had any suggestions? Sorry for the long post and thanks in advance!

The divorce might be settled but do you have a financial order? If not it will turn out to be a false economy in the long run. It would also help determine what is to happen with the house and who gets what if it is sold or one of you buyers the other out, even if that something is in actual fact nothing.

Nobbie1967

You will need his agreement to sell the house, so it may be an idea to give him the impression that he will receive what he wants by telling him he will get his share. Once sold, you just give him half and as that's all he's entitled too, he won't have much choice but to accept. Depending on how bright he is, he may try and get something in writing about the £4k before sale, in which case you're a bit stuffed as he can just refuse to sell the property until you agree his demands. Forcing a sale will cost more than £4k.