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Original poster

How to get off a mortgage

89 replies

AlbertBridge · 31/01/2022 09:15

My DH bought a house with his ex back in 2005. They split in 2009. He’s still on the mortgage as his ex refuses to buy him out, sell or even discuss it.

His ex lives there with one of their DC, who will be 18 next year. The older DC has already left home.

The mortgage is interest only. After selling, there’d probably be about £250k equity left. DH is saying he’d be happy to get off the mortgage and walk away without any equity, but I don’t think that’s fair as he paid for renovations on the property and paid the mortgage when they were together. AIBU to think he’s entitled to a share of the equity?

This old mortgage means we can’t buy a house together due to the extra stamp duty he’d have to pay because it would be classed as his “second home”. So we are stuck in the house I could afford to buy by myself. We desperately want to move before we get too old to get a mortgage (we’re both in our 50s).

What can we do? The ex is not a nice person and will go nuclear when we begin this process.

OP posts:
Unknown83 · 31/01/2022 16:41

@AlbertBridge

You're all making this sound so straightforward! Every solicitor DH has contacted about this suggested it was going to be very hard.

Maybe that was because the DC we're younger then?

When there was a child involved it was hard. Childrens Act 1989, TOLATA, all that jazz. No real knowledge of the outcome.

Once the child's grown up it's a lot easier, although the fact the ex put down a huge deposit complicates matters. If she put £100k down 16 years ago and there is only £250k left now then either that house hasn't increased as much in value as the rest of the market or she's been borrowing against the equity. I can understand why your ex might think sod the money because he probably won't get much or anything if she put down the deposit and paid the mortgage on her own for 13 of the last 16 years.

How much did he put in at the start?

Original poster
AlbertBridge · 31/01/2022 17:23

If it was an interest only mortgage then the full amount will still be due - did they buy the house with a £100k deposit and a £240 mortgage? Or did they pay £240 for the house with a £100k deposit?

You're right, these numbers don't add up. Let me go look at the paperwork again. I've got something wrong!

goes to desk

Ok, they paid £240k for the house. The mortgage was £175k. Ah - so her deposit wasn't nearly as big as I thought.

OP posts:
Embracelife · 31/01/2022 18:26

@AlbertBridge

If it was an interest only mortgage then the full amount will still be due - did they buy the house with a £100k deposit and a £240 mortgage? Or did they pay £240 for the house with a £100k deposit?

You're right, these numbers don't add up. Let me go look at the paperwork again. I've got something wrong!

goes to desk

Ok, they paid £240k for the house. The mortgage was £175k. Ah - so her deposit wasn't nearly as big as I thought.

Still 27% So she shoukd get 27 % of the equity Then the rest divides equally
Bushkin · 31/01/2022 18:31

He needs to see a solicitor and you should go with him. It’s worth going through whatever effort it takes to get this sorted

Original poster
AlbertBridge · 31/01/2022 18:33

He needs to see a solicitor and you should go with him. It’s worth going through whatever effort it takes to get this sorted

Thank you -- I think we'll do that.

Where we live at the moment (that I bought myself) is too small and too noisy and I can only get through another summer if the end is on the horizon! We have a hideous neighbour here and I spent the last 2 summers cowering indoors. 😢

OP posts:
Tippexy · 31/01/2022 20:13

@AlbertBridge

How much is the extra stamp duty now?

3%. It turns £10k stamp duty (on say a £400k house) into £22k. 😬

It sounds like you think you can go ahead anyway buying but pay extra stamp duty

To be honest, I think we could buy now and reclaim that extra 3% back from the government if we manage to sell the other house (the ex's one) within 3 years.

You can’t claim it back even if the house is sold in three years, because it’s not your DH’s main residence. It’s a frustrating loophole.
Tippexy · 31/01/2022 20:15

@Dinosaurwoman

Surely if the ex has been paying the mortgage on her own he doesn’t get to share the equity 50/50. He should only get a share of the equity as it was when he last paid the mortgage. So needs to get a valuation for say 2009 and split that valuation 50/50 . The rest of the equity belongs to the person paying the mortgage since then.
Nope.

He is entitled to half of it as the courts class 50% of her monthly mortgage repayment as just that, and the other 50% they class as in lieu of a rental to the DH for sole occupancy of the house.

Bushkin · 31/01/2022 20:23

@Dinosaurwoman not unless she’s been paying him rent on his half or it was offset against child maintenance

sleepyhoglet · 31/01/2022 20:55

Even if he comes of the mortgage, you would pay second home stamp duty if he is classes as an owner in the deeds. A solicitor would need to change that. My dh isn't on our mortgage as he was self employed at the time so more tricky but he does own the house with me

millymolls · 01/02/2022 22:16

Her deposit is irrelevant legally unless ringfended via a deed of trust, or unless they hold the tenancy in unequal shares ( eg not 50:50)
If not legally it’s 50:50
They can agree between them a different split ….

PicaK · 02/02/2022 05:40

I would check again if you can get a mortgage.
My ex did. If you look at the rules it's not counted as a 2nd home. So stamp duty is normal rate.
Plus there are mortgage lenders out there who will lend on this basis.

SarahBellam · 02/02/2022 06:12

If you can get a mortgage alone I'd do that for now and then he can buy into your house when he sells up and pay rent in the meantime - with a proper lawyered up agreement of course.

Collaborate · 02/02/2022 06:51

Saying he is entitled to anything other than half the proceeds of sale is bad advice. They used to hold as joint tenants so will have made the conscious decision to have owned it equally. She’s not entitled to her deposit back in the same way as he’s not going to be refunded his payments to the mortgage after he moved out.

TheHoptimist · 02/02/2022 07:05

You will only get a mortgage to age 67

SpiderinaWingMirror · 02/02/2022 09:00

If ever there was a time and place to pay for legal advice this is it!
My mate had similar, in reality it took one solicitors letter for her ex partner to realise that time was up. She put it off for years because it was going to be difficult.

Leftbutcameback · 02/02/2022 09:31

@SpiderinaWingMirror - absolutely. Couldn’t agree more!

AtLeastPretendToCare · 02/02/2022 09:42

On a purely practical basis even if he gets an order for sale, if the ex doesn’t want to cooperate then it will be hard to get a sale through and/or done quickly. Given she is in residence she would be able to be difficult about estate agents valuing, difficult about allowing viewings, deliberately present the house badly, pointing out all the flaws to people who view etc etc.

I would also think about the impact on DH’s relations with his children if he forces their mother to sell their home.

BTw perfectly normal and sensible to sever a joint tenancy when you split. On death a joint tenancy passes to the surviving tenant whereas tenants in common it could be Left to whomever. That has protected you as DH’s spouse.

Jarstastic · 02/02/2022 15:19

@TheHoptimist

You will only get a mortgage to age 67
Why do you say this?

We are looking at a mortgage for a new house and have been offered up to 75. If there’s nothing in your work contract that says you have to retire at a certain age plenty of providers will lend to you till 75.

TheHoptimist · 02/02/2022 23:09

We are looking at a mortgage for a new house and have been offered up to 75. If there’s nothing in your work contract that says you have to retire at a certain age plenty of providers will lend to you till 75.

Depends on mortgage value often.
You wont get a large mortgage past 67.

Jarstastic · 02/02/2022 23:14

@TheHoptimist

We are looking at a mortgage for a new house and have been offered up to 75. If there’s nothing in your work contract that says you have to retire at a certain age plenty of providers will lend to you till 75.

Depends on mortgage value often.
You wont get a large mortgage past 67.

We are looking for £400k but offered up to £770k.
Tippexy · 03/02/2022 08:10

@TheHoptimist

You will only get a mortgage to age 67
State retirement age for people in their 30s is now 68…
Tippexy · 03/02/2022 08:12

@SarahBellam

If you can get a mortgage alone I'd do that for now and then he can buy into your house when he sells up and pay rent in the meantime - with a proper lawyered up agreement of course.
As they are married, they would still have to pay the second home stamp duty even if they bought only in the DW’s name. This wasn’t the case until a few years ago, but the law changed!
Original poster
AlbertBridge · 03/02/2022 11:28

As they are married, they would still have to pay the second home stamp duty even if they bought only in the DW’s name. This wasn’t the case until a few years ago, but the law changed!

WHAT??! Oh FFS! That's absolutely awful!

OP posts:
Tippexy · 03/02/2022 11:41

I agree, it is hugely unfair. The law only changed a few years ago, apparently they ‘closed a loophole’ Hmm

Toanewstart22 · 03/02/2022 11:43

Something very shady about act he’s willing to walk away from £250k equity when the pair of you hardly sound financially comfortable