Taking over mortgage

[Catsruledogsdroolokay]

We have a small mortgage on our house
I want to stay in it till July 2026 when youngest will start secondary school
Then happy to move with both kids to town where the secondary is
We are just about to start discussing finances
What’s the best way to approach this?
I can’t afford to buy husband out now
My suggestion would be that I take over the mortgage and in 2 years when we sell the house he gets his portion (50? 40? 30?%)
As the mortgage is small I can afford it
I am certain he will not want to wait 2 years though and I have no clue what the steps are, and in what order, to make this a reality

Anyone got any advice?

What you are describing is a Mesher order (putting off the sale of the house to a future date).

Modern courts hate them and try to avoid them wherever possible but they are still used sometimes. Basic information linked.

https://www.co-oplegalservices.co.uk/media-centre/articles-jan-apr-2018/mesher-orders-explained/

How/where would he live for 2 years until he got his share?

It will depend on whether he is able to house himself somewhere so that the children can stay with him too - you both have the same housing needs. If he can’t also rent or buy something suitable near to where the children go to school, then you may have to sell now.
The split after it’s sold will depend on many factors including both of your earnings or earning potential, pensions, assets. He is still entitled to his share of the equity, even if you have taken over the mortgage, as his living costs are likely to be much higher for the period of time that his share is tied up in the family home.

Thanks for your reply

Why don’t courts like them?

I just can’t buy him out - and don’t want a massive mortgage just for 2 years wait until youngest goes to secondary

Do you think that they would give me the house if I asked for less of his pension (His pension currently worth 4x more than mine)

Should say he is currently renting a place big enough for the kids and has them 40% of the time
He is a high earner and earns 10x my salary so he can afford it!

Are you working full time? Are you entitled to any benefits? Can he get a mortgage whilst remaining on the mortgage at the family home? If the mortgage is small, his current outgoings may be far more if he is renting. What’s the difference in income, including child benefit etc once his rent has gone out and he’s paid child maintenance?
You may be able to have a higher share of the equity if he has a larger pension, it depends if he would still be able to afford to buy a home for him and the kids without his share of the equity? If he has got to rent for two years, that would be taken into account when splitting the equity.

The courts don’t like mesher orders because you’re still tied together and moving the problem down the road, whilst the person who isn’t in the family home is throwing money away on rent and can’t move on or buy with their equity in the house and their name on the mortgage. The person staying sometimes finds they are still unable to buy the person out or are in no better position to buy once the time has come to sell and their ex has their share.
if your salary is low you may find that, once you add things like universal credit, child benefit and child maintenance to your own salary, have gone full time if currently part time, etc, there is much less difference in your income, to pay a mortgage now.
if you sell now, can you buy somewhere near the secondary school but travel to the primary for two years? How far is it?

If he’s earning 10x he must have a very high salary
what’s the value of equity ?
whst his pension? Yours?

if he’s already renting will he not just agree to do so for the next few years or is he pushing to come off the mortgage ? I mean it could take that long to reach settlement anyway

Mortgage is currently £1100pm
His rent is £1500pm
But with utilities etc we are roughly spending the same each month (family home is bigger so Ctax & bills are higher)

I don’t know what the CM will be as he’s a high earner & the calculator caps at £156K
It says 1200 pm but I think it should be more?

Including 1200 CM, and staying PT I would have an income of ~3K a month
After CM his would be ~8K a month
If I went FT mine could go up to ~4K
So he’d have double what I had but have similar ongoings

Can you clarify what you mean when you say that the fact he has to rent for 2 years would be taken into account in terms of equity?

Re the pensions and the house - both pensions, the equity in the house and all other assets would go into the pot and then you’re looking at splitting that pot fairly which can mean taking less than half of each others pensions to have more of, say, the equity in the house. But it completely depends if he’d agree that or whether he also needs the equity now. You both need to take all the figures to a solicitor to see what you are likely to get and then take it from there.

Even if he agrees to waiting 2 years could a judge say ‘no’?

Just that that is £36k in rent rather than putting to a new home.
A friend of mine who is a high earner had a 70/30 split of equity in his exes favour, no mesher order and no pension share. His ex could buy a house with that share, CMS and a mortgage in the area they lived so was not allowed to stay in house because both were in a position to house kids and buy if home sold, whereas he couldn’t buy as he didn’t have a deposit if she couldn’t release his 30%. She had the kids 12/14 nights which was one of the reasons she received 70%.

A judge can say no if they don’t think something is fair / reasonable. I think if you were not in both in a position to buy somewhere else with your share, a mesher order would be granted. They are looking at needs - can you both meet your housing needs and the children’s without a mesher order. If yes, (even if that means both renting) they might think it’s not fair to have one as it prevents him from buying and doesn’t allow a clean break. If you can’t meet your housing needs by selling and he agrees it, then they are more likely to agree it too.

Chances are that the agreement, plus the time selling, will take the best part of two years anyway.

I’m saying to divorce and agree finances ( if you can’t agree a split and it drags out, can take 2 years anyway. So can’t he rent for that period anyway while you just pay the mortgage without actually changing names etc on it?

as he’s a very high earner ( must be 200k + based on figures given) he can easily afford rent in the interim even with cms

op you’ll need to look to a full time role too

This!

What's his view anyway? Can you agree this between you?

If his pension equals (or is more than) the value of the house, you may well be able to trade all the house for giving up rights to / taking less of the pension.

Whether or not that is the right thing to do (you don’t want to trade security in retirement for two years of housing) is something to discuss with a solicitor. If he had a high income, you may want to speak to one about all the financial issues.

Don’t forget all assets get split - does he (or you) have personal savings? If so, those go in the pot, too.

In terms of the kids we have agreed (via mediation) that I will stay in the house (with the kids) until summer 2026
It’s bad enough that they are shuttling back and forth between us, moving to another new house will have a negative impact on their mental health.
He can afford 36K in rent.
I guess the consequence of him having an affair is that he won’t be building equity for 2 years?

I don’t think he will MAKE me sell the house
He agrees we should stay here until the youngest goes to secondary
But I don’t think he will want off the mortgage
I want as little as possible to do with him.

he is building equity - as he retains his interest in the marital home even if you pay the mortgage - in return for him renting elsewhere and you having sole use of the asset

and settlement won’t ’penalise Him’ for ‘blame’

The courts do not like Mesher orders.

My now DH’s EW had one (at the time they did the consent order the judge advised the house should be sold as there was enough equity (£300k) to share amongst then and that could both rehouse themselves.

The EW did not like this as she liked the big house on a private gated development. So it was agreed she could stay for a further 4 years (she got a Mesher order).

This was problematic for a number of reasons:
• They were still tied together and had a very toxic relationship
• She couldn’t afford to maintain the house (it was literally falling apart).
• The mortgage was on an interest only and had been for 19 years (so a massive problem was looming)
• The problem of selling was just pushed 4 years down the road
• The EH was forced into rental as he didn’t have the lending capacity for a 2nd mortgage
• 4 years down the line when the house was sold - the EW (even though she got £195k from the sale) couldn’t afford to buy a 3 bed house (she could of done 4 years earlier). So she’s basically spunking the £195k she received on rent now.

Don’t push the problem down the road would be my advice. Sell now & face into it.

Be aware that he is building equity. In your current house.

In their current asset , fir which he holds and oats a large stake in and is incurring costs to live elsewhere so its right he is

But if I took the remaining mortgage on on my own then he wouldn’t accrue equity in that right?

Say we have 60% equity in the house now
Say house is currently worth 100K
So if we split the house 50/50 then his current equity is 30K

If I take over the mortgage for 2 yrs
And house price increases to 120K
His equity is now 50% of 60% of 120K = 36K
Mine is also 36K plus what ever I have paid down of the mortgage.

Right?

I have no problem with him growing the equity that he has on the date the financial consent order is signed if we then agree to not sell for 2 years but it seems unfair if he gets a portion of any mortgage equity that I pay down?

No, generally he does get all of the increase in his percentage even if you pay the mortgage. That’s how Mesher orders work.

The reasoning is that you aren’t paying him rent for his share of the house but he isn’t getting the benefit (somewhere to live) from it so the increase in equity over the years when you are paying the mortgage on your own makes up for this.

The only way to crystallise the shares of equity is to buy him out (either literally by remortgaging or by taking the house in lieu of other assets).

Also, are you able to literally take over the mortgage? If you mean informally (and he stays on the mortgage) that will significantly affect his ability to buy a property for himself. If you want to formally transfer the mortgage, I’d be surprised if the bank agreed to release him - if he earns far more than you, the mortgage is probably based on his salary.

No of course he would accrue equity. In the same way you have while he’s been paying the mortgage down.

his capital is tied up in an asset you’re getting sole use of, while incurring cost elsewhere so it’s right that he does accrue even while you’re saying. He also can’t use that to invest elsewhere so he retains his interest and equity growth in the house.

what needs to be agreed is the financial split and does he get 30/40/50% etc but it would be that % at whatever time you sell not at the time you take the mortgage. The % will depend on many factors and as he’s a high. Earner you’re in a strong position