Hi, I have a joint mortgage with my ex partner. We separated in February and he lost his job in June.
Since June I have paid all of the mortgage and as he does not seem to be able to get another job looks like I don't have a choice but to continue to pay it all.
We have a 4 year old, so selling is not an option as it's his home and he's has been through enough. My questions are:
If I can prove I have been the only person paying, can I prevent him from being entitled to half the equity when I sell?
When the time comes to remortgage, what happens? Do I have to declare that his circumstances have changed if I remortgage with the same company? I seem to remember it being very simple last time with not many questions asked.
Will the bank let me take his name off if I can prove he isn't paying?
Would the bank need to assess me for a mortgage solely in my name, if he actually agreed to take his name off, or would they be happy that I'd been managing it on my own. I earn £55k, and the outstanding mortgage is circa £210k, so not sure if I'd get a mortgage on my own?
If he declared himself bankrupt, does that affect me or the property in any way?
I don't think it matters who has been paying, half of any equity will be his so long as his name is on the mortgage. You'd probably have to be re-assessed on your own right in order to take his name off (meet affordability thresholds etc). He'd still be entitled to half of any equity until that point though. You could buy him out and do a transfer of equity.
I take it that you haven't actually spoken to the mortgage company?
I doubt not paying for a few months would completely wipe out his equity in the house otherwise women on unpaid maternity leave would also be stuffed if they didn't contribute! A long period of time may affect the percentage he'd get on the sale of the property, but I wouldn't bank on him getting nothing. The bank won't take him off the mortgage either, you'd have to remortgage and not every company is happy with only one person on the mortgage and two on the deeds.
Or he can sign equity over to you without you buying him out, if that's what he wanted to do. You could do a mortgage calculator online to find out his much you can borrow on your own. Perhaps spread it over a longer term.....
For all the bank knows, one person pays the mortgage, the other pays all the bills, or does all the childcare, or has done loads of improvements on the property. They really don't care who has been paying the mortgage in terms of establishing entitlement to equity.
My DP paid the mortgage on the family home for the best part of a year after he'd moved out (and she then moved out a few months later before it was sold)- according to his solicitor it doesn't count for anything.
The bank won't see the fact you've been paying alone as proof you can afford to. Since new mortgage regulations came in 2014 they have to prove they are responsible lenders and will recheck your affordability as if you're a totally new customer. We just remortgaged with our bank. Same lender, not extending mortgage, just switching to fixed rate. They spent over an hour picking through all our finances when thy could see we'd never struggled paying for the last decade