My ex-partner is still named on the mortgage of the house DS and I live in. So although we have agreed he has no equity left in the property (I've paid him his share), and I pay the monthly (interest-only) mortgage, he co-owns the house with me (not ideal).
We need financial separation. I have sufficient cash to pay off most of the mortgage, retaining it (much-reduced) in my name only - BUT this would mean getting rid of a very good (extremely low-rate) mortgage, my ex-partner not being able to benefit from the mortgage we're both named on (the lender won't do a split port), and me having no cash left for a rainy day (replacing the car in a few years, etc), nor to address some looming maintenance issues with the house.
The property is such that I could extend and remodel it to make two. My idea is that if I invest my money in doing this, and sell one of the properties, this would more than clear the mortgage (I wouldn't need to be on it at all anymore), my ex could then take on - and benefit from - the mortgage moving forward, and the potentially expensive maintenance issues with our home would be addressed for some time to come. My calculations also suggest I'd still have some money left for a rainy day (replacing the car, etc). So I'd be financially secure, in the home DS has always known, and my ex would be happy too.
My ex is on board with this idea; he'd like the mortgage. However, I have asked him if he would transfer the beneficial title to me from now (i.e. before I submit for planning and effectively start investing in the property), and he won't. He says he will feel too vulnerable financially, which I understand in theory, although I have never not paid the mortgage and have a healthy financial track record and a lump of cash in the bank - and it's in my best interests to make it work. He, on the other hand, hasn't been great with money; he has blown a lot, and been untrustworthy with shared/business money in the past. So I would need some kind of safeguard for the money I'd be investing in the property, and the assurance that I'm not risking my home; that it's still mine. And without the beneficial title transferred, surely in legal terms, he could obstruct a sale of the house, or make a claim to half the equity in the property, if he ever decided to become difficult.
He has said he's happy to draw up a contract, but not transfer the title. So it's messy. And if I could do the project without him on the mortgage at all, I would (I have a voluntary sector job that I love, but it doesn't pay much). But I do see the fairness in him ultimately getting the mortgage if I can undertake some work on the house which means I don't need it, and also leaves me in a better financial position.
Anyway, sorry this is a bit long (it's complicated!), but is there any way at all for me to be able to proceed with this project with my ex still on the mortgage, and without the beneficial title being transferred to me, while still safeguarding all of my investment (and the corresponding increase in value in the property)? I'd want something in place that would stand up in a court of law; otherwise, I'm not prepared to take the risk.
Failing that, how else could I possibly finance it? My ex and I have agreed that, if we can't agree, I'll simply pay off most of the mortgage, retaining what's left of it in my name only - and hope the house doesn't cost me too much as we move forward! But this seems a shame, and a bit of a ticking time bomb. DS is so, so happy and settled here, and we have friends and his school just around the corner. It really is home. I've asked if my parents would be willing to be named on the mortgage just for a couple of years, but they're not keen.
Maybe it just can't be done?
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Legal advice please from anyone in the know about house ownership/mortgages
11 replies
doublewhammy · 28/09/2012 10:07
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