Mortgage after Moving Out

AuntyJean

happybroker wrote: »

you mentioned in your previous post that he had maintained the mortgage until may and then that he didn't but had to take out a loan to clear the arrears at that time.

if he has an unsecured loan the mortgage should take priority over those payments. Has he spoken to the lender?

When they were sharing the same house she would pay her wages (part time cleaner) into his bank account and he paid the mortgage. In December 07 she stopped paying this into his account so he could not keep up with all the bills and the mortgage and it slipped into arrears. He already had an unsecured loan and was going to top it up but as he was due a bonus in March a close friend offered to lend him the money and he repaid him when his bonus was due. When he found out his OH had moved out he stopped the mortgage payments and we started to make arrangements to get his daughter (then 17, now 18) re-housed. (Although we are now in a position to have her with us she remains in the house of her own choice, at present).

He has incurred approximately £1200 worth of bank charges as he was struggling to pay off mortgage and two loans plus help towards his daughters keep as she was not earning enough to live on her own.

We went to the bank who gave him a telephone number to ring but by the time he rang them they said he was not in arrears so could not help. His OH has only just had the house valued and we have no idea what she has done to progress the sale. He could not do anything as it would need both signatures to sell it and he has no idea where she is living (nor does her solicitor!). He has no idea of how much the mortgage is as she took all the paperwork with her and when I rang the mortgage company to offer details of his solicitor they did not show any interest in taking this info. He has spoken to them and all they wanted to know was would he be paying or not. They did not seem interested in his predicament. There are no payment holidays so charges are now being added monthly.

Debt_Free_Chick

Your OH should ask his solicitor whether he can make a counter-claim against his ex for Occupation Rent, back to the date he moved out. The argument in favour of Occupation Rent goes like this ...

They own the property jointly. She has been occupying 100% of the property, including his half. Technically, she has be renting his half from him and he is, therefore, entitled to charge her rent for it.

Occupation Rent arises under the Trusts of Land and Appointment of Trustees Act 1996. I've just successfully claimed this (albeit via agreement between the solicitors) from my ex, right back to May 2007

If he is successful, then it's likely that the amount he is owed will simply be reflected in the final settlement.

The current priority is the arrears, however. I strongly suggest he talks to the lender. The mortgage should now be on interest only (no point in shoving more capital into the property). Will they allow any of the arrears to come out of the current equity? Will they allow future payments to be made out of the equity?

Before he sees the lender, he must have a full Statement of Affairs showing all his assets, debts and monthly income & expenses.

So - solicitor re the Occupation Rent and the Lender re the arrears.

Good luck

dimbo61

Hi auntyjean
Has your boyfriends wife ( EX) moved out of the marital home ?
Is the 18 year old daughter living in this house on her own ?
Then move back into his old house ( he is paying the mortgage YES )
Pay the arrears on the mortgage and ask to transfer the mortgage to
interest only while property is being sold. send copy of letter to her solictor confirming this and asking EX to agree and sign forms from lender.
You have been renting for nearly 6 months so you should be able to give 1
months notice and get back deposit !
With 18 year old daughter working she can help with bills but WHY should she
move out and get a flat at 18 ?
She needs your help and support its her mum and dad who have split up
so offer her a home not kick her out.
Why have your boyfriend and his EX got no or very little equity in the house ?
They have been together for 18+ years and no money to show for all that
time together ( WARNING be careful dont tie yourself up to him financially )
So leave the flat after sorting out the rent/deposit and move into his old home and try to sell it.
Keep it clean and tidy and do whatever is needed to help sell the house
without spending a fortune.
Get a good male divorced solictor and get your finances in order.
Dont let the mortgage company reposses the house.
If you like the house and can live with it being your boyfriends and his wife,s
marital home then look at buying her out !
Have a good look at the spending habits of the family and start living as
cheaply as you can GOOD LUCK

dimbo61

Get your boyfriend to cut all financial links with his Ex ! wife and change
bank account and credit cards so she cant get finance or use his CC card.
Keep your finances seperate and out of sight of everyone else ( leave in locked file at mums/dads )
She had the affairs so refuse to support her. she can get off her !!! and work to support herself.
Split equity 50/50 if any ? in property
She will go for half pension so dont give her any cash, make her wait till her ex husband is taking his pension.

Noz

Debt_Free_Chick wrote: »

Your OH should ask his solicitor whether he can make a counter-claim against his ex for Occupation Rent, back to the date he moved out. The argument in favour of Occupation Rent goes like this ...

They own the property jointly. She has been occupying 100% of the property, including his half. Technically, she has be renting his half from him and he is, therefore, entitled to charge her rent for it.

Occupation Rent arises under the Trusts of Land and Appointment of Trustees Act 1996. I've just successfully claimed this (albeit via agreement between the solicitors) from my ex, right back to May 2007

If he is successful, then it's likely that the amount he is owed will simply be reflected in the final settlement.

The current priority is the arrears, however. I strongly suggest he talks to the lender. The mortgage should now be on interest only (no point in shoving more capital into the property). Will they allow any of the arrears to come out of the current equity? Will they allow future payments to be made out of the equity?

Before he sees the lender, he must have a full Statement of Affairs showing all his assets, debts and monthly income & expenses.

So - solicitor re the Occupation Rent and the Lender re the arrears.

Good luck

Excellent post DFC.

AuntyJean

dimbo61 wrote: »

Hi auntyjean
Has your boyfriends wife ( EX) moved out of the marital home ?

Yes, she met a man from Dorset and tried moving him in but he and the daughter did not get on so she moved out with her boyfriend leaving the daughter to cope on her own.

dimbo61 wrote: »

Is the 18 year old daughter living in this house on her own ?

Yes, we offered her to live with us when we moved into my old house (I bought my ex-husband out when we divorced and let the house but when tenant gave notice I moved back in)

dimbo61 wrote: »

Then move back into his old house ( he is paying the mortgage YES )

I have suggested that but it is in a 'rough' area and in a very bad state. Would need to be gutted. We were trying to give daughter a new start in life away from bad influences.

dimbo61 wrote: »

Pay the arrears on the mortgage and ask to transfer the mortgage to interest only while property is being sold. send copy of letter to her solictor confirming this and asking EX to agree and sign forms from lender.

Tried contacting the mortgage company to ask for a copy of the agreement as his ex took all the paperwork with her but all they are interested in is the arrears. Will try again.

dimbo61 wrote: »

You have been renting for nearly 6 months so you should be able to give 1 months notice and get back deposit !

We did get our deposit back.

dimbo61 wrote: »

With 18 year old daughter working she can help with bills but WHY should she move out and get a flat at 18 ?
She needs your help and support its her mum and dad who have split up
so offer her a home not kick her out.

Daughter spends her money on clothes, cigarettes and booze/friends then comes to us when she has spent it. She has no bills to pay other than an electric meter and bus fare and spends £100 in three days then asks for help!! She says we keep on at her (ringing her to get her up for work is keeping on at her - she keeps missing the bus/oversleeping - I managed to get her a temp job in the office where I work but she has managed to be late twice in two weeks). She doesn't understand that we have bills to pay - I have two jobs in order to keep us going! Her excuse is 'but dad, you said you would look after me!

dimbo61 wrote: »

Why have your boyfriend and his EX got no or very little equity in the house ?
They have been together for 18+ years and no money to show for all that
time together ( WARNING be careful dont tie yourself up to him financially )
So leave the flat after sorting out the rent/deposit and move into his old home and try to sell it.

That I do not know. All I know is they were renting for the first part of their marriage and then bought the house which they remortgaged about 18 months ago. OH moved in with three black bags. He has no possessions of any worth and does not drive. They did not go abroad on holiday but I think most of it went on the house and daughter.

dimbo61 wrote: »

Keep it clean and tidy and do whatever is needed to help sell the house without spending a fortune.

OH is too embarrased to even let me see the house. Evidentally his ex never did any housework at all and the carpets are covered in dog hair etc. When his family come to visit they comment on how different it must be for him to live in a clean house with food in the fridge! He used to live on takeaways and sleep in a sleeping bag on the sofa. His ex has taken all the furniture she wanted and left everything she did not want in black bags. Daughter has turned her bedroom into a bedsit. OH recons it would take a good day or so to sort it out. Now we have settled into my house we do not really want to take a backward step.

dimbo61 wrote: »

Get a good male divorced solictor and get your finances in order.
Dont let the mortgage company reposses the house.
If you like the house and can live with it being your boyfriends and his wife,s
marital home then look at buying her out !
Have a good look at the spending habits of the family and start living as
cheaply as you can GOOD LUCK

OH has got a good solicitor but it is difficult to get time off work to see him so conversation is limited to telephone calls during his lunch hour. His work has shut down for two weeks so hopefully an appointment can be made to discuss at length.

As I already have a mortgage on my house (£110K) we cannot afford to take on the mortgage for his house too especially as she wants all the equity (if any) from the sale and half his pension!

First concern has always been the daughter but now she is refusing to live with us she has to start making her own plans. There is one last payment to go on a loan OH has and then we can start planning our future financially. OH's priority is for me to be able to give up my second job but I have always been dependent and made sure I do not rely on others. Our accounts are separate and always will be. Have had bad experiences in the past so am very cautious.

Even with everything that's going on I have never been so happy in my life. OH cannot do enough for me. He works hard, helps with housework and is handy around the house. We sit and chat for hours on end and thank our blessings.

AuntyJean

dimbo61 wrote: »

Get your boyfriend to cut all financial links with his Ex ! wife and change
bank account and credit cards so she cant get finance or use his CC card.
Keep your finances seperate and out of sight of everyone else ( leave in locked file at mums/dads )
She had the affairs so refuse to support her. she can get off her !!! and work to support herself.
Split equity 50/50 if any ? in property
She will go for half pension so dont give her any cash, make her wait till her ex husband is taking his pension.

She is 7 years younger than him so she will benefit from his pension when he retires in 15 years time. Hopefully, solicitor will work on this for him as he has 17 years of maximum contributions to date. Was considering stopping the contributions or reducing them to a minimum and starting an investment elsewhere but presumably, she can only claim on his pension up until the date they split up/divorce?????

lindens

FRom the description of the house its not going to sell in that condition, or he's not going to get a good price. I would say to the daughter, you move in with us or on the streets, spend a week cleaning it and doing as little decoration as you can get away with, then advertise it as no chain and empty and he will have a better chance of selling.
Hopefully for the daughter, once she is out of that neighbourhood and living with you, being looked after properly in a clean and well fed environment, her behaviour might improve.