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

400ixl

She will need to speak to one of the bank's mortgage advisors and go through the options with them. This should cover options such as extending to loan period to reduce the monthly payments.

Needs to be a proper advisor conversation.

MWT

Vmclean said:

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?

If they are in the first year of a 5 year fix there are not likely to be any offers of changing the term without triggering the ERC, but the more basic question is can she support the amount borrowed with just the income she has? ... from what you've said she doesn't believe she will pass the affordability test so the likely answer is no...

Your friend must have some idea what she earns, just use the banks mortgage calculator and see what it says...

Everything JMA74 has said is correct, your friend is in a bad position and it doesn't look likely to be easy to get it resolved amicably so getting proper legal advice is their next step...

MattMattMattUK

Vmclean said:

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?

What they will offer her depends on her circumstances, earnings, age, other debts, career etc. She needs to speak to a mortgage advisor.

Vmclean said:
or will the bank offer all solutions before denying taking it in to her sole name do you think?

The bank will either offer a mortgage or they will not, they will not allow her to take on the mortgage on her own if she does not meet their lending criteria.

Emmia

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? 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.

When he originally signed up for the mortgage and did the 5 year fix, he signed and agreed to be jointly and severably liable for the debt of his own free will. So, if she stops paying, the bank will chase him for the money, to cover the whole mortgage.

The property was presumably bought in both names? On the assessment of joint income and affordability?

If she won't pass the banks affordability criteria alone, then the property would need to be sold to avoid ongoing liability. 

kazwookie

Your friends needs to froce the sale, and have a clean break, so they can move on with their life.

silvercar

MattMattMattUK said:

Vmclean said:

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?

What they will offer her depends on her circumstances, earnings, age, other debts, career etc. She needs to speak to a mortgage advisor.

Vmclean said:
or will the bank offer all solutions before denying taking it in to her sole name do you think?

The bank will either offer a mortgage or they will not, they will not allow her to take on the mortgage on her own if she does not meet their lending criteria.

It may be that she would be near affordability on her income alone. In which case he could decide to make a lump sum payment to reduce the mortgage level to enable her to take on the mortgage alone. However unpalatable that seems, he is making a payment to rid himself of a debt. 

Gycraig

So she wants him to pay half the mortgage on a property she doesn’t live in for presumably the next 4 years while also renting somewhere else ?. 

I would just move back in to be honest, no way am I paying half a mortgage for an ex to live in a house she can’t afford. 

SavingPennies_2

silvercar said:

MattMattMattUK said:

Vmclean said:

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?

What they will offer her depends on her circumstances, earnings, age, other debts, career etc. She needs to speak to a mortgage advisor.

Vmclean said:
or will the bank offer all solutions before denying taking it in to her sole name do you think?

The bank will either offer a mortgage or they will not, they will not allow her to take on the mortgage on her own if she does not meet their lending criteria.

It may be that she would be near affordability on her income alone. In which case he could decide to make a lump sum payment to reduce the mortgage level to enable her to take on the mortgage alone. However unpalatable that seems, he is making a payment to rid himself of a debt. 

This sounds like a terrible idea, he might have equity which he could get back when the house is sold (or she buys him out) why would he do this and lose even more money or have I misunderstood you point? 

silvercar

SavingPennies_2 said:

silvercar said:

MattMattMattUK said:

Vmclean said:

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?

What they will offer her depends on her circumstances, earnings, age, other debts, career etc. She needs to speak to a mortgage advisor.

Vmclean said:
or will the bank offer all solutions before denying taking it in to her sole name do you think?

The bank will either offer a mortgage or they will not, they will not allow her to take on the mortgage on her own if she does not meet their lending criteria.

It may be that she would be near affordability on her income alone. In which case he could decide to make a lump sum payment to reduce the mortgage level to enable her to take on the mortgage alone. However unpalatable that seems, he is making a payment to rid himself of a debt. 

This sounds like a terrible idea, he might have equity which he could get back when the house is sold (or she buys him out) why would he do this and lose even more money or have I misunderstood you point? 

It could be a numbers game. If forcing a sale he will have to pay (out of his share of equity) half the estate agents fees and legal costs and any mortgage redemption penalty. If that comes to more than the equity it will end up costing him to walk away. 

If she refuses to sell, stays in the property and can’t meet all the mortgage payment, his credit rating is trashed and he won’t be able to get a new mortgage.

he could gain by paying some money now and retaining a right to some equity when the property is sold eventually 

diggingdude

He either needs to move in or put a lodger in the spare room. Selling the house is the only realistic outcome which works for people