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Charge over property on divorce - does anyone know the process when you have to pay out?

(10 Posts)
caracaramia Fri 16-Nov-12 20:40:26

When I got divorced 14 years ago from very abusive H, he was awarded a charge over the marital home and I managed to keep the house payments up by taking in a lodger. When my youngest daughter finishes uni in May next year, my X will be entitled to get his money from the house and he has made several comments to the children that he'll be doing just that.

What is this process called ( redeeming the charge? )and how does it happen i.e. does my X have to apply and how long would I have to sell? The reason I ask is that I have 3 problems:

1. I have been looking for over at year at properties but the market is dead and I need a much smaller property as he is getting a substantial payout, so I am also up against first time buyers who can move very quickly.

2. I am about to be made redundant again (never work in financial servies) - 3rd time in just over 4 years i.e. will probably only get month in lieu of notice

3. I have an opportunity (if I havent found anything more permanent) to work overseas between April and October next year and I can see it will be very difficult to buy and sell before I went. (Two friends in the same area who recently moved took 8 and 11 months respectively to complete their sales).

ANY HELP WOULD BE VERY MUCH APPRECIATED - I've googled and goggled (maybe not using the right terminology) and can't find out how the payout process works.

Some further background that probably has no bearing but just in case ...

Since the divorce, as his earnings power is much greater than mine, he has gone on to buy a house of about equal value, married a woman who also has a house and inherited 2 properties from a parent.


Collaborate Fri 16-Nov-12 20:45:17

You either buy him out (make him an offer) or you market it for sale and he takes his cut of the proceeds. Simple really.

sittinginthesun Fri 16-Nov-12 20:48:49

What Collaborate said - one option, which is know might be unsettling, is to go into rented for 6 months. This will enable you to time a future purchase better, hopefully get a job sorted, and/or take the opportunity abroad.

At least you'll be clear of your ex.

caracaramia Fri 16-Nov-12 20:55:34

Thanks for replying ladies but whilst quite happy to pay out,move on etc I just want to know the process. Do I wake up the day after daughter graduates to find a letter saying "money please"? Or what happens.

Obviously I won't actually have to do anything until she graduates unless I choose to (and I have been trying to, because psychologically I think it is better for it to be 'my choice') but how long will I have to sell once the wheels are in motion?

sittinginthesun Fri 16-Nov-12 23:12:05

I suppose it depends on your ex - if he instructs a solicitor, then you do the same, or talk to him direct. If you can't reach agreement, then he could apply to court.

Others will know more than me, but I think one of you will need to initiate it.

Collaborate Sat 17-Nov-12 00:20:26

It won't happen as per your last post. When the triggering event occurs then you have to either sell the property or buy him out. He can't make you buy him out, but he can make you market it for sale at a reasonable price as advised by estate agents.

caracaramia Sat 17-Nov-12 14:21:14

Hi - thanks again all but I would really like to know if anyone has been in the situation of having a charge redeemed. My X is not a reasonable person and will be as obstructive as possible, although I fully intend to fulfil my commitments.

If I can't sell up etc by April, my daughter will still need somewhere to live when she returns from uni at end May. I am not sure I could be overseas if a letter is going to arrive giving me say a couple of months to sell. Though the alternative might be to be out of work here sad

I am sure other people have worse problems but its something I would like to sort out and knowing the exact process would be very helpful. Will go to a solicitor once I have decided what I plan to do but am trying to minimise expenses (and solicitors are very expensive!)

avivabeaver Sat 17-Nov-12 15:49:11

I really don't think you need a solicitor. Surely you put the house on the market and the conyveyancing solicitor arranges to pay the charge and puts the rest of the funds to you?
Rather than waiting for him to contact you why not just tell him that you plan to move next summer? If you get ready to sell over the next few months it shouldn't be too hard. You don't need to be here to sell. Maybe being abroad might be good!

mumblechum1 Sun 18-Nov-12 02:55:40

I'd suggest that you place the house on the market immediately after your daughter leaves Uni. It may take several months, but so long as you are making all reasonable efforts to sell, you're fine.

Xenia Sun 18-Nov-12 15:09:25

The first post reads like trying every excuse in the book. The father has waited an absolute age years and years for his share of the money so the children could be housed and you have known for over a decade exactly when this will come.

It is possible he might want to buy you out. Ask him first. That woudl bhe simplest. If he cannot afford that put it up for sale and see what offers you get. If it's not selling before you have to move abroad let him handle the same and/or put it up for auction.

The process is he will ask you to sell the house. First of all go and read the consent order or court order from the divorce and perhaps paste the words here - it will probably say what is to happen eg sometimes it says he and you jointly market the house so that you do not scupper the process by putting off buyers. If you did nothing then he could get a court order obliging you to put it up for sale and you would have to pay thousands to fund the costs of that so not worth fighting over.

Does he get half the equity in the house?
Also if you are about to be made redundant it may be worth applying for a new mortgage on a cheaper home now before you lose your job so that you get the new loan before you are unemployed unless you feel you could not keep up repayments and will have to rent for the rest of your life.

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