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Ex now not paying mortgage - want to buy him out!

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  • Ex now not paying mortgage - want to buy him out!

    Hello,
    I am new here and looking for some advice and guidance please J
    My husband of 11 years walked out on me for a 20year old nearly 3 years ago now. We are actually now divorced but still on the same mortgage for the 3 bed detached home I share with our daughter who is now 10 years old.
    The house is valued at approximately £175,000 and has £70,000 remaining on the mortgage. He has paid his half of mortgage payments up until now but announced this last week he has no money and will no longer be paying towards the mortgage or his daughters’ maintenance either. That issue will be dealt with through CSA but I am looking for guidance here regarding the mortgage situation.
    I would like to buy my ex out if at all possible but have spoken to a financial advisor this week who says I just do not earn enough and the Woolwich who the mortgage is with would not transfer the loan into my name only on my low income.
    I currently work as a special needs teaching assistant 20 hours weekly and earn £7,600 pa. I have fostered children for the local authority voluntarily for 16 years now and was headhunted for a new scheme by the Gov as a contracted short break carer for disabled children with a private fostering agency. I have been undergoing the long assessment process and I should be approved next month and start this role in Jan 2011. For the role I will earn £17,000 pa but of course some of the monies from that income will need to be used to feed the foster kids and entertain them etc. It is on a contract but paid in a self employed capacity. Therefore for mortgage purposes I could not look at using that income until at least two years time as they require two years self employed accounts.
    I have been told that although my ex is, along with me, ‘jointly and wholly’ responsible for the mortgage he can legally get away with just stopping his payments and his default means it now relies on me to pay the monthly amount due. What seems farcical is that they would not allow transfer of the mortgage into just my name yet it is just me who now will have to pay it, or lose my home!
    My financial advisor says an alternative lender would be a good deal more money each month, if anyone would lend to me anyway! He says I still have an amazingly great product with the Woolwich. It is an offset mortgage with a current account attached to it, still in joint names, and a large reserve account of £20,000!
    I could actually get my hands on approx £10,000, from another source, and I asked my ex if he would accept that low amount to transfer the mortgage into my name solely and get his name off the loan. He agreed he would like to be away from it all now and would accept whatever I could raise to buy him out knowing it would be nowhere near his share if the house were sold. So this is good but the Woolwich won’t have it!
    I have had the following alternative suggested to me:
    Having a legal agreement drawn up that signs away any future interest in the property following settlement of the agreed sum, the 10K if I can get it.
    I would indicate that I would make arrangements to transfer the mortgage into my name as soon as it was possible to do so, allowing me to build up my employment history and putting me in charge and able to determine when this took place. It would be at least two years though as I will be self employed!
    I would though need to ensure that he had no further access to the reserve or bank account (which would need to stay in joint names until the mortgage transfer took place)
    1. Can I get such a document drawn up as my friend has suggested?
    2. What sort of cost would this legal document be?
    3. How would I prevent him from accessing the reserve and joint current account? (When he left I asked him for the cheque book and card he had for this joint account which he handed over, but he is able to ring the Woolwich anytime and ask for a replacement, he actually took £800 out of the reserve when his car needed fixing last year!)
    I do not want to lose my home, my daughter loves it here, the fostering job would be lost if I had to move, and the catch 22 is that rental would be so much more costly than the mortgage payment anyway and we would lose our animals, we have lots, as most rental places would not allow dogs, cats, hamsters, budgies, fish, hens and ducks to move in too!!!!
    I have considered the rent a room scheme to help financially but the fostering agency would be against it as anyone staying here would need to be assessed to ensure all children in my home were safe from harm. A reassurance for me and my own daughter but can you imagine if you wanted to just get some lodgings somewhere and you had to go through all that assessment and police checks, it would be easier to just go find a room in another house!!!
    Sorryfor such a long rambling message!
    Any thoughts, advice, other ideas would be very gratefully received.

  • #2
    Re: Ex now not paying mortgage - want to buy him out!

    If you are divorced, all the financial aspects should be (or have been) tied up in a financial order. I suggest you speak to your divorce lawyer to check on the position from that angle before doing anything else
    This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

    Comment


    • #3
      Re: Ex now not paying mortgage - want to buy him out!

      I divorced him myself, got the papers from the court and filled them in, sent that back, he agreed to it all, no solicitors involved!

      Comment


      • #4
        Re: Ex now not paying mortgage - want to buy him out!

        I have just got all the papers out from the divorce and gone through them. There is / was no financial order at all.
        On the Statement of Arrangements for Children it states how much he agreed to pay for maintenance and he has signed this so I could use that in trying to still get maintenance but regards the mortgage it just says on the Statement of Arrangements for Children 'Is the house owned and by whom?' to which the answer states it is owned by us both on a mortgage with the Woolwich. Then it says 'Is the mortgage being regularly paid?' and the answer is yes. It says nothing about who pays what / how much / how often etc etc.

        So............ seeing as I do not have a Fincancial Order that you had hoped I had what do you think about all the things I mentioned in my initial post? Can I have such a legal doc drawn up as suggested and how would it be done, how would I prevent him accessing the mortgage account reserve monies?

        I do appreciate your help and guidance! :-)

        Comment


        • #5
          Re: Ex now not paying mortgage - want to buy him out!

          Stage 1: Get a free or fixed fee interview with a divorce lawyer to make sure there are no hidden traps in what I suggest for stage 2

          Stage 2: Apply (with your ex's cooperation) for a transfer of equity in the house, including changing the reserve account into your sole name
          This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

          Comment


          • #6
            Re: Ex now not paying mortgage - want to buy him out!

            Thanks for your advice once again.
            I am sorry to be so thick though but what does this actually mean? Stage 2!
            Does he stay on the mortgage but have no rights to any monies in the future? Do I still pay him the 10K I may be able to get my hands on?
            Is this something the mortgage company may agree to although I earn so little?
            The reserve account / current account is attached to the mortgage, it had to be opened as part of it due to it being an offset mortgage, so can they keep his name on the mortgage but take his name off that account?
            Am I even understanding what you are saying?
            I am ever so sorry but I dont actually know what this means!

            Comment


            • #7
              Re: Ex now not paying mortgage - want to buy him out!

              It means transferring the property into your name, which almost certainly will require the agreement of the mortgage lender. Your ex would, ideally, want to be released from the mortgage (by the lender) or, failing that, to be indemn ified by you. If the lender will not cooperate, it is possible for you and your ex to enter into a binding agreement (incorporating a power of attorney) for him to transfer the property to you at some time in the future, in exchange for a payment now.

              There are, however, many variables, and you should get specific advice on your specific circumstances
              This is based on my experience as a conveyancing solicitor in England, but I do not accept liability for information I give in this forum

              Comment


              • #8
                Re: Ex now not paying mortgage - want to buy him out!

                Ok thanks very much. That is what I was asking in my first post, the Woolwich wont agree to his name coming off as I stated then due to me earning so little! Quote below from my first post:

                Having a legal agreement drawn up that signs away any future interest in the property following settlement of the agreed sum, the 10K if I can get it.
                I would indicate that I would make arrangements to transfer the mortgage into my name as soon as it was possible to do so, allowing me to build up my employment history and putting me in charge and able to determine when this took place. It would be at least two years though as I will be self employed!


                My worry still would be ensuring he did not have access to the reserve monies any more!




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