Separation after 2 months, joint mortgage - help

lovelouise

Very long story short, I’m going through a relationship breakdown and we only bought our house 2 months ago. 

Situation is as follows:
275k remaining on mortgage. Ex paid all fees and deposit but we are joint owners - both on mortgage and title deeds as 50/50. We had a minute of agreement drawn up which states he’s entitled to £28k back then the net proceeds are split 50/50. He hasn’t signed this so it hasn’t been filed.

I want nothing from the sale of the house as I haven’t contributed anything. If he does now sign the deed of trust, will any early repayment charges and fees be taken from the proceeds meaning he will get less than the £28k back? I just want off the mortgage and to move on. I don’t think he can take over the mortgage solo on his income alone, so I’m preparing for the house to be sold but concerned about my liability for any fees incurred. I’m not sure whether to insist he signs the deed of trust now, or to withdraw my consent from it before it’s filed - which would be in my better interest?

lovelouise

This is the wording of the minute of agreement if it helps…

’ In the event of the said subjects subsequently being sold by the parties then the First Party will be entitled to recover the sum of TWENTY EIGHT THOUSAND SEVEN HUNDRED AND TEN POUNDS (£28,710.00) STERLING as his own absolute property prior to any remaining net free proceeds of sale being divided equally between the First Party and the Second Party;  for the avoidance of doubt in the event of the net free sale proceeds being less than TWENTY EIGHT THOUSAND SEVEN HUNDRED AND TEN POUNDS (£28,710.00) STERLING then the First Party will be entitled to recover the full net free proceeds of sale as his own absolutely property.’

DE_612183

I guess a lot depends on what the house sells for...how much did you pay for the house?

lovelouise

DE_612183 said:

I guess a lot depends on what the house sells for...how much did you pay for the house?

We paid £298k, which was £8k over valuation…

sammyjammy

Just because he can't take over the mortgage on his own doesn't mean he'll agree to sell.

If there is not £28k left after selling fees and ERC then he gets what is left even if its less.

lovelouise

sammyjammy said:

Just because he can't take over the mortgage on his own doesn't mean he'll agree to sell.

If there is not £28k left after selling fees and ERC then he gets what is left even if its less.

Thanks. I’m hoping he does agree so I can cut ties but I guess I’ll have to see what he says.

ACG

If he (or you) were to port part of the mortgage to a new property, the ERCs would be lower, as it would only be charged on the part not being ported... If that makes sense. 

Also, you might struggle to sell the property within the first 6 months as it gives any future buyer limited options.

kkqd1337

I would rent the property, or rent out a room with one of you living there and sell in 12-18 months. 

And I would probably just do this without asking the mortgage company. 

N6xxy

Same thing happened to my cousin, her fiancé left her and happily walked away leaving her with the mortgage. She rented the house out for a year to a friend (without informing mortgage company) which covered her mortgage and then sold the property and made a profit. Ex fiancé didn't want anything out of the sale but she's a good egg and made sure he had back what he put in as it was his inheritance from his grandad.

If you can I would suggest doing the same.