Coming off a mortgage when other party does not want to lose house

Vmclean

Hi all

Looking for some advice for a friend of mine who is in a bit of a sticky situation and maybe some best practice.

He has split from his girlfriend June this year and has moved out of their joint property. They are currently in year one of a 5 year fixed term. He wants to come off of the mortgage (understandably in my opinion) but she is seemingly not allowing this. He has been paying half the mortgage since then but now is seeking some sort of resolution of not wanting the responsibility of the home he is no longer residing in.

The problem being, is that she is refusing to contact the bank and does not want to give up the house even though she believes she is unable to afford this property by herself.

She has gone to solicitors and been advised they can draw up a contract (or something to this effect) where his name still remains on the mortgage but isn't liable to payment? Now, he doesn't really want to remain on the property at all but my question is (as she is refusing any other alternative) can someone provide a bit more insight to what this proposed contract is? Will he still be liable for payments on the property if she defaults? Will this affect his future capability of getting another mortgage or will this contract prevent that?

Any help or information would be appreciated.

JMA74

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

Vmclean

JMA74 said:

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

I though as much - so does all of that still apply even with this contract she is looking to draw up with the solicitors? I don't see how its legal for her to force him to stay on a mortgage contract he does not want to be on - he has offered to give her the house and forfeit his entire share in it but she is refusing to do anything.

MalMonroe

Hi, I think the best thing your friend can do is go to a solicitor of his own and ask for advice. Or, he could contact Citizens advice who may well be able to point him in the right direction.

Many solicitors offer one free introductory session. But if not, it may be worth his while to pay for advice because he needs to know exactly what he is, and is not, entitled to. There's actually no reason why he can't contact the bank himself if they're in a joint agreement.

It does sound as if your friend is being dictated to by his ex and he needs to find out all the facts for himself. I do hope he won't agree to or sign anything without having his own representative check it first. It's been six months since he left the home, there's no rush now, no need to panic - and it's much better in the long run to take one's time with important financial matters such as this.

MalMonroe

JMA74 said:

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

I really don't see the helpfulness here, just misery, doom and gloom. And I'm very surprised to see that your signature says you are a mortgage adviser. Don't you feel that the OP's friend needs to consult his own legal adviser in the first instance? Then he can decide what needs to be done.

JMA74

She has to go to the bank and ask to take the mortgage on in her own name.  If the bank runs their checks and say that she cant afford (on paper) to borrow enough to take it over then they will refuse and the mortgage and property will remain in joint names.

The contract with solicitor is likely just her agreeing to not ask him to pay towards the mortgage and he gives up his rights in the property.  None of this overrules the lenders rights in having 2 people to chase for payment

All he can do if she is refusing is either:
1. Get solicitor to threaten court proceedings to force a sale
2. Move back in to the house until she feels its too awkward and actually does something about the situation

MattMattMattUK

Vmclean said:

JMA74 said:

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

I though as much - so does all of that still apply even with this contract she is looking to draw up with the solicitors?

The contract would be meaningless even if a solicitor would agree to it and I doubt they would. He would still be on the mortgage, he would still have a mortgage, he would still be liable.

Vmclean said:
I don't see how its legal for her to force him to stay on a mortgage contract he does not want to be on - he has offered to give her the house and forfeit his entire share in it but she is refusing to do anything.

He is an idiot if he is going to forfeit his share just to placate her. She is not forcing him, he needs to market the house and force through a sale, using the courts if necessary, she is being unreasonable so he will have to be assertive, not passive. 

MFWannabe

Vmclean said:

Hi all

Looking for some advice for a friend of mine who is in a bit of a sticky situation and maybe some best practice.

He has split from his girlfriend June this year and has moved out of their joint property. They are currently in year one of a 5 year fixed term. He wants to come off of the mortgage (understandably in my opinion) but she is seemingly not allowing this. He has been paying half the mortgage since then but now is seeking some sort of resolution of not wanting the responsibility of the home he is no longer residing in.

The problem being, is that she is refusing to contact the bank and does not want to give up the house even though she believes she is unable to afford this property by herself.

She has gone to solicitors and been advised they can draw up a contract (or something to this effect) where his name still remains on the mortgage but isn't liable to payment? Now, he doesn't really want to remain on the property at all but my question is (as she is refusing any other alternative) can someone provide a bit more insight to what this proposed contract is? Will he still be liable for payments on the property if she defaults? Will this affect his future capability of getting another mortgage or will this contract prevent that?

Any help or information would be appreciated.

Your friend needs to put his foot down and get a clean break, either ex takes over the mortgage properly and his name is taken off or the house is sold. 

Just because she wants to stay there why should he keep paying? She could string this out for years if your friend doesn’t stand up to her. What happens then when one of them meets someone else and wants to move on with their lives? 

Solicitor contract won’t mean anything, both still liable for the mortgage 

welly_59

MalMonroe said:

JMA74 said:

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

I really don't see the helpfulness here, just misery, doom and gloom. And I'm very surprised to see that your signature says you are a mortgage adviser. Don't you feel that the OP's friend needs to consult his own legal adviser in the first instance? Then he can decide what needs to be done.

JMA74 is just talking facts, if they are doom and gloom is not the point

JMA74

MalMonroe said:

JMA74 said:

Yes he will be liable to the lender if she doesn't pay.
If shes doesn't pay his credit rating will be trashed
And if he asks for another mortgage he will still have one in the background so will impact his affordability and availability of products 

I really don't see the helpfulness here, just misery, doom and gloom. And I'm very surprised to see that your signature says you are a mortgage adviser. Don't you feel that the OP's friend needs to consult his own legal adviser in the first instance? Then he can decide what needs to be done.

Consulting a legal advisor doesn't change anything that i stated. 
Speaking to a solicitor doesn't change the lenders protections and doesnt change that both parties are jointly and severally liable for that debt (regardless of what else goes on behind the scenes).

And yes I am a mortgage advisor and perhaps i am straight to the point but sugar coating it doesn't change the situation

Vmclean

JMA74 said:

She has to go to the bank and ask to take the mortgage on in her own name.  If the bank runs their checks and say that she cant afford (on paper) to borrow enough to take it over then they will refuse and the mortgage and property will remain in joint names.

The contract with solicitor is likely just her agreeing to not ask him to pay towards the mortgage and he gives up his rights in the property.  None of this overrules the lenders rights in having 2 people to chase for payment

All he can do if she is refusing is either:
1. Get solicitor to threaten court proceedings to force a sale
2. Move back in to the house until she feels its too awkward and actually does something about the situation

So if she does happen to go to the bank - will they offer her a term extension on the mortgage to make this firt affordability or is this something that she would have to ask for? or will the bank offer all solutions before denying taking it in to her sole name do you think?