Separating with mortgage, NOT married - rights??
Separationtata
Posts: 6 Forumite
Both names on the mortgage, one partner (employed) wants to stay in the house and buy the other partner (unemployed) out.
What are both parties' financial (and any other) rights in this situation?
What are both parties' financial (and any other) rights in this situation?
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Separationtata wrote: »Both names on the mortgage, one partner (employed) wants to stay in the house and buy the other partner (unemployed) out.
What are both parties' financial (and any other) rights in this situation?
What does the Deed of Trust say will happen in the event of a relationship break down and/or about how any equity is to be split? If there isn't a Deed of Trust then legally it's a 50/50 split of any equity. Both parties have legal right to reside in the property but if one party wants to sell/buy the other out and the other party doesn't want to sell and can't afford to buy the other out then then one who wants to sell could go to court to force the sale so really it's in both parties interests to get it sorted before solicitors and courts get involved.0 -
Lover_of_Lycra wrote: »What does the Deed of Trust say will happen in the event of a relationship break down and/or about how any equity is to be split? If there isn't a Deed of Trust then legally it's a 50/50 split of any equity. Both parties have legal right to reside in the property but if one party wants to sell/buy the other out and the other party doesn't want to sell and can't afford to buy the other out then then one who wants to sell could go to court to force the sale so really it's in both parties interests to get it sorted before solicitors and courts get involved.
How would I go about finding out if there's a Deed of Trust? Is there a maximum length of time the partner being bought out can remain in the house before the partner buying out has the right to force eviction?0 -
Separationtata wrote: »How would I go about finding out if there's a Deed of Trust? Is there a maximum length of time the partner being bought out can remain in the house before the partner buying out has the right to force eviction?
I think if you had a Deed of Trust you would know. It's not a usual item in property conveyancing so you would have specifically asked for one to be created. Whilst both parties remain owners they both have the right to remain in the property so until the transaction to buy one owner out is complete the one being bought out can legally stay.0 -
Lover_of_Lycra wrote: »I think if you had a Deed of Trust you would know. It's not a usual item in property conveyancing so you would have specifically asked for one to be created. Whilst both parties remain owners they both have the right to remain in the property so until the transaction to buy one owner out is complete the one being bought out can legally stay.
Thank you. What about any other assets or property bought as a couple? How are those separated?0 -
Separationtata wrote: »Thank you. What about any other assets or property bought as a couple? How are those separated?
That depends on how they are owned. Separating couples just need to separate what is jointly owned in whatever proportion it is owned, if there's nothing specifying an ownership split then it's just a straight 50/50. Anything owned by just one party, such as a pension doesn't come into it. There is no such thing as a common law spouse in the UK so separating couples don't have the same rights as divorcing spouses/civil partners.0 -
Lover_of_Lycra wrote: »That depends on how they are owned. Separating couples just need to separate what is jointly owned in whatever proportion it is owned, if there's nothing specifying an ownership split then it's just a straight 50/50. Anything owned by just one party, such as a pension doesn't come into it. There is no such thing as a common law spouse in the UK so separating couples don't have the same rights as divorcing spouses/civil partners.
Thanks for your help.0 -
Follow-up question: Are there financial advantages or disadvantages to either partner if a decision is made to sell the house instead of transfer the mortgage?0
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Separationtata wrote: »Follow-up question: Are there financial advantages or disadvantages to either partner if a decision is made to sell the house instead of transfer the mortgage?
Well its a buyers market. Meaning the house could sit for a while - financially tying both of them to it (and each other) and costing them more money. No guarantee they'd get asking price either.
Plus the arguments on who lives there during this time - unless they'd continue to live together. And who pays what. Which then turns into who should get what from the equity because they were paying the mortgage for the 12 months the house was on the market.
Of course, there's the possibility its a desirable house in a desirable location and would have no issue selling - even over offer.You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride0
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