Joint mortgage after separation

Silly_Shirl

Please could anyone advise where my daughter stands. Following her husband's infidelity, she has left him and is temporarily staying with me, with their 6 year old son.
They bought their first house 10 months ago for 185k, with a 9k deposit. It has just been valued at 190k due to improvements she has made. She wants to remain in the home so their son has stability, and I will help her to afford the mortgage repayments by herself once he leaves, which he has agreed to do on 1st January 2020.
If she then takes over all the bills and mortgage payments, does that mean he only retains a 4% equity interest? (i.e. half the 5k increase value + half the initial 9k deposit = 7k).
Can this agreement simply be drawn up by a solicitor as a Declaration of Trust? Payable if the house is one day sold, or pay him off with this percentage in the unlikely event that he decides to buy another property, and needs to remove his name from the mortgage. In that case, as she earns £17000 so would be unlikely to pass an affordability test, could I be her guarantor? I am 63 and self-employed with a mortgage free home.

AnotherJoe

First, given you seem to be financially OK I think you'd do better to buy ex out now and cut all ties ASAP.
Second, speak to a broker but your best bet might be to loan (With no repayment schedule) daughter money to enable the mortgage to come to a figure she can afford. .and then maybe at some point she can pay you back or of not it's an early inheritance.

Silly_Shirl

Hi, thanks for your reply.
Her deficit on her income would be almost 100k, I don't have anything like that to loan her

AnotherJoe

Then maybe she is being over ambitious planning to stay in this house and should buy something cheaper.
If you don't have £100k (which you could get by for example remortgaging your house) then I doubt you can be a guarantor either.

Silly_Shirl

Oh right, thanks, might consider that then.

Thrugelmir

Difficult to see the other party wishing to remain liable for the mortgage while having no financial interest in the property. Selling up unfortunately may be in the best interests of everyone in the longer term.

Silly_Shirl

No, he wouldn't be. I'm told a Declaration of Trust can be set out which means he retains any equity, but absolves him of repayments.

Thrugelmir

Silly_Shirl wrote: »

No, he wouldn't be. I'm told a Declaration of Trust can be set out which means he retains any equity, but absolves him of repayments.

DOT doesn't absolve the ex of the legally binding conditions of the mortgage agreement.

Silly_Shirl

Oh. Thank you.