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  • FIRST POST
    • ClaireE
    • By ClaireE 8th Jan 19, 10:42 PM
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    ClaireE
    Ex husband wants to release equity from house...
    • #1
    • 8th Jan 19, 10:42 PM
    Ex husband wants to release equity from house... 8th Jan 19 at 10:42 PM
    My ex husband has been out of work for a year and a half following redundancy. He is in all sorts of debt & is now unable to continue his monthly payments towards the mortgage & child support.

    The mortgage & house is in joint names. The consent order states the house be sold in 2025 with a 50 50 split. I live at the house with our 3 children, he lives elsewhere on a moored boat.

    He is asking for £50,000 to be released from the house. He wants to pay off debts, get himself sorted & also give me an amount from it to cover his late & future payments.

    I have no idea if this could or should be considered. As the house & mortgage is in both our names would the ER loan have to be in both our names? Would the monthly mortgage payments go up? Would my ex not having any employment record for 18 months make it unlikely he could secure ER?

    I work full time and I can just about cope with his share not coming into the household. I would not want any future loans in my name too or there to be any risk of the mortgage repayments b becoming higher each month.
Page 1
    • Kynthia
    • By Kynthia 9th Jan 19, 1:06 AM
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    Kynthia
    • #2
    • 9th Jan 19, 1:06 AM
    • #2
    • 9th Jan 19, 1:06 AM
    I'd post this in the mortgages forum for advice.

    However as far as I know equity release is for much older people who usually have paid off the mortgate. Therefore you'd be looking at increasing the mortgage amount not ER. So it would be a joint application which would increase the monthly repayments. With him not working and you only just affording to get by you both might not pass the affordability for extending the loan
    Don't listen to me, I'm no expert!
    • Dizzy Ditzy
    • By Dizzy Ditzy 9th Jan 19, 8:01 AM
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    Dizzy Ditzy
    • #3
    • 9th Jan 19, 8:01 AM
    • #3
    • 9th Jan 19, 8:01 AM
    I see that you have already posted this on the Mortgage board - would you like us to delete this one as a duplicate?
    I'm a board guide on Quick Grabbit while you can, Marriage, Relationships and Families, Health & Beauty Moneysaving, Greenfingered Moneysaving, Praise, Vents and Warnings, Consumer Rights and Sports & Fitness Moneysaving boards.

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    Aims for 2919 - walk 1000 miles - 0/1000. Savings up to £8000 - £3000/£8000. Lose 50lb - 0/50
    • Ozzuk
    • By Ozzuk 9th Jan 19, 8:16 AM
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    Ozzuk
    • #4
    • 9th Jan 19, 8:16 AM
    • #4
    • 9th Jan 19, 8:16 AM
    Depending on the terms of your mortgage, this will likely require a new rate (for the additional), new application and of course increased payments.

    Don't do it! If he can't pay now, whent the money is gone he'll stop paying again, then you've let him have equity and you're paying for it. You'll also have to adjust your court order as the equity split will now be different. I'd also watch out for him taking out any secured loans on the property.

    If you want a get out of jail free card, call your provider, explain the situation and see if they'd be even willing to loan if he isn't working - I'd bet they are not, so you can pass that on and they are the bad guys not you.
    • Keep pedalling
    • By Keep pedalling 9th Jan 19, 9:23 AM
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    Keep pedalling
    • #5
    • 9th Jan 19, 9:23 AM
    • #5
    • 9th Jan 19, 9:23 AM
    ER is for older people who own their homes outright, there is zero chance that you could do this.
    • Gavin83
    • By Gavin83 9th Jan 19, 11:39 AM
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    Gavin83
    • #6
    • 9th Jan 19, 11:39 AM
    • #6
    • 9th Jan 19, 11:39 AM
    I'm really surprised that the divorce court ordered that he was still responsible for paying the mortgage on your house. He must have had a terrible solicitor.


    I'd also watch out for him taking out any secured loans on the property.
    Originally posted by Ozzuk
    Genuinely curious here. If two (or more) people own a property do you need the authorisation of all owners in order to take out a secured loan or just the one?
    • motorguy
    • By motorguy 9th Jan 19, 12:23 PM
    • 18,252 Posts
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    motorguy
    • #7
    • 9th Jan 19, 12:23 PM
    • #7
    • 9th Jan 19, 12:23 PM
    ER is for older people who own their homes outright, there is zero chance that you could do this.
    Originally posted by Keep pedalling
    I suspect just poor wording by the O/P - theres nothing to stop someone applying for additonal borrowing on their mortgage.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • motorguy
    • By motorguy 9th Jan 19, 12:28 PM
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    motorguy
    • #8
    • 9th Jan 19, 12:28 PM
    • #8
    • 9th Jan 19, 12:28 PM
    My ex husband has been out of work for a year and a half following redundancy. He is in all sorts of debt & is now unable to continue his monthly payments towards the mortgage & child support.

    The mortgage & house is in joint names. The consent order states the house be sold in 2025 with a 50 50 split. I live at the house with our 3 children, he lives elsewhere on a moored boat.

    He is asking for £50,000 to be released from the house. He wants to pay off debts, get himself sorted & also give me an amount from it to cover his late & future payments.

    I have no idea if this could or should be considered. As the house & mortgage is in both our names would the ER loan have to be in both our names? Would the monthly mortgage payments go up? Would my ex not having any employment record for 18 months make it unlikely he could secure ER?

    I work full time and I can just about cope with his share not coming into the household. I would not want any future loans in my name too or there to be any risk of the mortgage repayments b becoming higher each month.
    Originally posted by ClaireE
    I cant see it flying with the mortgage company if hes unemployed / unemployable / wrecked with debt and the reason for the £50k is "debt consolidation".

    His debt, his problem. Dont get involved. Borrowing money to pay off debt rarely ends well. Ask him has he considered seeking debt advice? For example a debt management plan?

    Even IF it all went through, he could take the £50K, do as he liked with it and then not pay a penny towards paying it off / paying the mortgage and you'd be left liable for the whole lot.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Ozzuk
    • By Ozzuk 9th Jan 19, 12:31 PM
    • 1,550 Posts
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    Ozzuk
    • #9
    • 9th Jan 19, 12:31 PM
    • #9
    • 9th Jan 19, 12:31 PM
    I'm really surprised that the divorce court ordered that he was still responsible for paying the mortgage on your house. He must have had a terrible solicitor.




    Genuinely curious here. If two (or more) people own a property do you need the authorisation of all owners in order to take out a secured loan or just the one?
    Originally posted by Gavin83
    I think it needs both, but desperate people sometimes do desperate things and I've heard of people forging signatures.

    Quick google bough this up from 11 years ago:
    https://forums.moneysavingexpert.com/showthread.php?t=384103
    • hazyjo
    • By hazyjo 9th Jan 19, 12:50 PM
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    hazyjo
    I think it needs both, but desperate people sometimes do desperate things and I've heard of people forging signatures.

    Quick google bough this up from 11 years ago:
    https://forums.moneysavingexpert.com/showthread.php?t=384103
    Originally posted by Ozzuk
    My OH's ex did. He ended up with the debt. Unfortunately he wasn't in the right frame of mind mentally to deal with it all.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes; Thai cooking stuff; Jo Brand talk; Slime Factory; Flawless tickets; Comedy night tickets; Triominos
    • TBagpuss
    • By TBagpuss 9th Jan 19, 5:15 PM
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    TBagpuss
    If he has lost his job then he probably isn't liable to pay so much in child support and could apply to have the maintenance (mortgage payments) reduced.
    You could chose to agree to remortgage to release a lump sum to him. You'd need to get a proper agreement drawn up (possibly saying that he has recieved £xx equal to yy% of the equity, and that he agrees to you having a sum equal to yy% of the equity, from his share, when the house is sold.
    Your mortgage payments would no doubt go up, as your loan would be higher.
    How much is the equity now? IS there any chance you could buy him out, so the house goes solely into your name? Again, you would need to document this to prevent him seeking to 'double dip', but you might be able to negotiate with him so he gets a sum which is less than 50% of the current equity on the basis that he is getting his share of the equity early.

    Does the order provide that if either of you fails to pay your share of the mortgage payments, the money is reimbursed to the other party on sale?
    • ClaireE
    • By ClaireE 9th Jan 19, 11:27 PM
    • 4 Posts
    • 1 Thanks
    ClaireE
    When we went through mediation to help divide our property etc my ex husband was then employed. I was in no position to buy him out so he remained joint owner & therefore responsible for still paying half the mortgage.
    • Keep pedalling
    • By Keep pedalling 10th Jan 19, 8:53 AM
    • 5,799 Posts
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    Keep pedalling
    I'm really surprised that the divorce court ordered that he was still responsible for paying the mortgage on your house. He must have had a terrible
    Originally posted by Gavin83
    The court also ordered that when sold he will get 50% of the proceeds, so yes he should be paying his share of the mortgage.

    Now that his financial situation has changed dramatically something needs to change.
    • Gavin83
    • By Gavin83 10th Jan 19, 1:18 PM
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    Gavin83
    When we went through mediation to help divide our property etc my ex husband was then employed. I was in no position to buy him out so he remained joint owner & therefore responsible for still paying half the mortgage.
    Originally posted by ClaireE
    If you weren't in a position to buy him out I would have expected a court to order the property be sold. It's not often they'd expect a person to maintain two properties for what is a considerable length of time.

    The reasons why this is done is largely irrelevant now though so I won't mention it again.

    The court also ordered that when sold he will get 50% of the proceeds, so yes he should be paying his share of the mortgage.

    Now that his financial situation has changed dramatically something needs to change.
    Originally posted by Keep pedalling
    As above. If she was to remain in the property I'd have expected he'd have got 50% of the equity (once sold) at the time of the separation, with any future equity build up going to the OP. I suspect given the change in the financial situation this will be the outcome. He obviously won't be expected to pay money he doesn't have.

    OP, there is something else to consider here. How much debt is your ex husband in? If it's significant and it leads to court appearances or ultimately bankruptcy that could cause a whole world of pain for you, given that you live in a house he owns 50% of.

    There's a lot to consider here but given that you're still financially tied to your ex husband via the house his debt is also a major problem for you. Ultimately you aren't responsible for his debt but they won't just ignore his share of the property.
    • Hectors House
    • By Hectors House 10th Jan 19, 1:42 PM
    • 435 Posts
    • 703 Thanks
    Hectors House
    [QUOTE=Gavin83;75295760]If you weren't in a position to buy him out I would have expected a court to order the property be sold. It's not often they'd expect a person to maintain two properties for what is a considerable length of time.

    The reasons why this is done is largely irrelevant now though so I won't mention it again.



    A court wouldn’t rule that the property be sold during divorce proceedings because there are children.

    They will do whatever means the least disruption to the children so keeping them in their school etc.
    • Gavin83
    • By Gavin83 10th Jan 19, 4:10 PM
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    Gavin83
    A court wouldn’t rule that the property be sold during divorce proceedings because there are children.

    They will do whatever means the least disruption to the children so keeping them in their school etc.
    Originally posted by Hectors House
    They wouldn't often expect an individual to be maintaining two properties for a long period of time and pay maintenance, it's unrealistic, unless the individual earns a substantial amount. It limits the non resident parents ability to purchase another property.

    Also it keeps the ex partners financially tied for that period and it could create serious problems in the future, as this topic has clearly demonstrated.
    • Working Mum
    • By Working Mum 11th Jan 19, 3:58 PM
    • 344 Posts
    • 1,178 Thanks
    Working Mum
    I had an ex-husband who didn't pay me for over 2 years - in the end he gave me the equity he owned in the previous) marital home (which I lived in with my children). I was already paying the mortgage, insurances etc and we exchanged letters - his said in lieue of £x owed to me he would relinquich his share of the equity when the property was sold and would co-operate with the solicitors etc during the sale.

    My letter advised him I was accepting the equity in lieu of the £x he owed me (for missed child payments etc), I promised to keep paying the mortgage and not expect him to contribute to the mortgage/upkeep/insurances etc.

    I have continued to pay the mortgage and it is still in joint names (as I am self employed and we split up at the time of the crash so I couldn't get a mortgage in my name).

    We didn't involved solicitors but I was guided by a solicitor friend of mine as what to write etc.

    My ex-husband has kept this arrangement safely away from his new wife but I have kept my children in their home and myself off the streets.

    Good luck, I hope you get somehting sorted.
    • ClaireE
    • By ClaireE 14th Jan 19, 10:19 PM
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    • 1 Thanks
    ClaireE
    But he doesn't maintain two properties. Where did I say that?
    • sarahevie1
    • By sarahevie1 14th Jan 19, 11:04 PM
    • 524 Posts
    • 2,729 Thanks
    sarahevie1
    But he doesn't maintain two properties. Where did I say that?
    Originally posted by ClaireE
    I appreciate that you have said he has a moored boat, but when giving a court order the expectation is that both parties will maintain their own property. Therefore it is very unusual for an ex to be expected to have to pay half a mortgage on a house they don't live in.

    It is more usual for one party to buy them out, or sell the house and split the equity, or keep the house and mortgage, but the person living in it pays the mortgage.

    Personally I think that you need to go back to court, as you need to cut all ties sooner rather than later. You could lose the house if he isn't paying the mortgage and you can't either. Perhaps if he has missed payments you may be entitled to more of the 50:50 split. If he's out of work he is unlikely to owe you much child support, so this amount probably needs amending.

    When I split with my ex I wanted a final settlement so I bought him out of the family home, the equity enabled him the deposit to buy another house. I got a mortgage for the family home in my name only and he pays child support.
    Last edited by sarahevie1; 14-01-2019 at 11:18 PM.
    Home - Cash purchase £350,000 nov 2018
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