ex-husband, ex-father-in-law, my house, my equity, help!

petrolhead_72

So, this may be an easy one that's been covered before but I couldn't find anything.

I was married for some time and got divorced a year ago. We split the family home, my husband took the business, I took the second home which was jointly owned. 

Now.., in that second home lived my father in law. As part of the divorce settlement agreement he could live there for as long as he wanted and in exchange that I would own the house (legally on paper), although the mortgage, which is still joint, continues to be paid by the ex.

I want to release equity from the second home ASAP as I want to buy my own pad as I'm in rented. There is £200k equity in the second home.

I don't want to force a sale and turf his dad out (call me stupid maybe!) and the ex has offered to buy me out but he can't get another mortgage for a few years due to financial difficulties. Therefore I'm not sure what my options are.

Any second charge mortgage would be in both our names which I don't want, and would unlikely get one anyway due to his financial issues.

There must be some way of releasing money? I'm not 55 yet so can't do equity release..

HELP!!

 

DullGreyGuy

Why would a second charge mortgage have to be in both your names? 

How much is the property you want to buy/how much deposit and stamp duty do you need? How much have you saved already?

Second charge mortgages are notably more expensive and naturally will impact your affordability calculations on your next purchase mortgage so really you need to keep it to a minimum.

petrolhead_72

DullGreyGuy said:

Why would a second charge mortgage have to be in both your names? 

How much is the property you want to buy/how much deposit and stamp duty do you need? How much have you saved already?

Second charge mortgages are notably more expensive and naturally will impact your affordability calculations on your next purchase mortgage so really you need to keep it to a minimum.

I'd been told, maybe incorrectly, that if a property has an existing mortgage in joint names, a second charge mortgage on that property would have to be in the same joint names? I need about £50k out of the house...  

DullGreyGuy

Can't say I've ever taken one out but given its totally independent lending can see no reason why it needs to be in both names. Would be a different matter if the property was jointly owned by the pair of you. 

theartfullodger

You could sell it with fil staying.  Price probably not so good.

You'll appreciate CGT may well be due. Needs declaring and paying within 60 days of sale.

Carefully file all pay(purchase, legal costs, improvement invoices etc etc)

petrolhead_72

theartfullodger said:

You could sell it with fil staying.  Price probably not so good.

You'll appreciate CGT may well be due. Needs declaring and paying within 60 days of sale.

Carefully file all pay(purchase, legal costs, improvement invoices etc etc)

Who’d I sell it too though?

theartfullodger

Anyone who'd think it a reasonable gamble.  

subjecttocontract

Selling with a sitting tenant would mean a cash buyer and no guarantee your ex FIL would have any security as the new buyer may serve notice on him at their earliest opportunity.

propertyrental

I'd be contacting your divorce solicitors and asking why they advised you to accept a property with your ex's father in it 'for as long as he wanted' as part of the settlement.....

Chemistry777

A second charge on the property would need to be in both names (as per the original/current mortgage).  Your husband may not want this as it will affect his credit file, or if you suggest he has financial difficulty you may not get a second mortgage.

You could try selling to a landlord who would then start to charge rent to your FIL.  But as mentioned there is no guarantee he will not server notice on him at some point in time.

Not sure of ages involved and how desperate you are, but could equity release/lifetime mortgage be an option on the property?

Flugelhorn

propertyrental said:

I'd be contacting your divorce solicitors and asking why they advised you to accept a property with your ex's father in it 'for as long as he wanted' as part of the settlement.....

does seem a bit unfair to be left renting when there ex and ex FIL both ended up with properties