Transfer of Equity with a mortgage in place - HELP PLEASE!

daddy_of_four4

Hi,

Hoping someone can help please 

I have instructed a solicitor to start the process of a transfer of equity on a property I have with my ex wife. This property is mortgaged (interest only). It was purchased in 2008 and we separated in 2010 when I subsequently moved out into rented accommodation. 

I have contributed nothing towards the mortgage since I left 15 years ago and we have been now also been divorced for 10 years. I am now remarried with two children and ideally want to purchase our own property
instead of renting.

My ex wife contacted the mortgage company in March to be told she would have to make an application which would be assessed and submitted to the underwriters for approval. Yesterday evening when I contacted them for an update I was advised that she had been declined the transfer of equity (I would suspect due to affordability).

Does anyone know what the next steps would be ? She is refusing to sell the house to pay off the mortgage but I need out of it as soon as possible to secure a new mortgage with my wife, so feel a bit stuck and citizens advice haven't been much help so far. 

The mortgage term only has 7 years 11 months remaining so regardless of this happening now or then, her affordability is unlikely to have changed massively and the full amount will still be outstanding given it isn't a repayment mortgage. 

Any help, advice or similar situations would be appreciated

Cheers!

Dof4

MWT

daddy_of_four4 said:

I have contributed nothing towards the mortgage since I left 15 years ago and we have been now also been divorced for 10 years...

Was there financial settlement agreed at the time of the divorce? That would normally have covered the property and the responsibility for the mortgage?

Hoenir

Was a financal consent order drafted at the time of the divorce? I assume that the children are now out of full time education. 

daddy_of_four4

MWT said:

daddy_of_four4 said:

I have contributed nothing towards the mortgage since I left 15 years ago and we have been now also been divorced for 10 years...

Was there financial settlement agreed at the time of the divorce? That would normally have covered the property and the responsibility for the mortgage?

No unfortunately there wasn’t 

daddy_of_four4

Hoenir said:

Was a financal consent order drafted at the time of the divorce? I assume that the children are now out of full time education. 

No there wasn’t any order drafted. The children are no my ex wife’s they are my two children with my wife now. They are both still of an age to be in full time education. 

RedFraggle

Was the house as tenants in common or joint tenants?
Given it was interest only what is it now worth and was the capital loan repaid at all?

MWT

daddy_of_four4 said:

MWT said:

daddy_of_four4 said:

I have contributed nothing towards the mortgage since I left 15 years ago and we have been now also been divorced for 10 years...

Was there financial settlement agreed at the time of the divorce? That would normally have covered the property and the responsibility for the mortgage?

No unfortunately there wasn’t 

Then you are pretty much stuck.

Was there any plan in place to pay off the mortgage when it reach the end in a few years time, or is selling the property the only realistic option?

Do you know if your ex tried to qualify for a repayment mortgage instead? ... These days it is harder to get interest only mortgages than it once was and she might have more luck with repayment, but if she really doesn't want to keep the house then that would not make sense either.

Obviously you are on the deeds with her, is it as joint tenants or tenants in common?

Hoenir

You need to speak to a family lawyer and agree a financial settlement with your ex. Postponing the matter isn't advisable. 

daddy_of_four4

RedFraggle said:

Was the house as tenants in common or joint tenants?
Given it was interest only what is it now worth and was the capital loan repaid at all?

I have no idea? How would I find this out?

it’s currently worth 92-96K - balance is around £85k 
I should of  said I have no financial interest in the property I just want my name removed from the mortgage 

daddy_of_four4

MWT said:

daddy_of_four4 said:

MWT said:

daddy_of_four4 said:

I have contributed nothing towards the mortgage since I left 15 years ago and we have been now also been divorced for 10 years...

Was there financial settlement agreed at the time of the divorce? That would normally have covered the property and the responsibility for the mortgage?

No unfortunately there wasn’t 

Then you are pretty much stuck.

Was there any plan in place to pay off the mortgage when it reach the end in a few years time, or is selling the property the only realistic option?

Do you know if your ex tried to qualify for a repayment mortgage instead? ... These days it is harder to get interest only mortgages than it once was and she might have more luck with repayment, but if she really doesn't want to keep the house then that would not make sense either.

Obviously you are on the deeds with her, is it as joint tenants or tenants in common?

Selling the property is the only option if she can’t get a mortgage in her own right. Like I said no only lived there for two years after buying the house. 

She just went through the mortgage company for a transfer of equity I have no clue what that entailed as they won’t give me any information relating to her application. 

I am not sure about the tenants situation ? Where can I find this out? 

daddy_of_four4

Hoenir said:

You need to speak to a family lawyer and agree a financial settlement with your ex. Postponing the matter isn't advisable. 

Postponing what exactly? I want this sorting asap to enable me to buy a house. If I’m taking no financial interest in the property what would the settlement be for?