My DD’s relationship has been ended by her (ex) Fiance and Father of her reception age child.
They have a house/mortgage as joint tenants, it will have to be sold as neither would be able to buy out the other.
Thankfully there’s enough equity for decent deposits for them both to be able to buy homes, they both earn similar amounts.
Unfortunately there was no deed of trust - DD put in 2/3 of the deposit 3 years ago ( we gifted it to her ) , so she wants 60% of the equity ( £50k ish) but she might go 50/50 if he agrees to pay all the selling costs and the ERC on the mortgage from his half, which was only fixed a year ago 🙄 I don’t know how long the fix was for.
Would it be wise to sever the tenancy or is it not really an issue ( unless one of them dies whilst it’s all being sorted of course) because they will both have to agree to the sale either way?
I’ve advised her/them to go interest only once the house goes on the market, it will save around £400 a month jointly, which will cover utilities and council tax - he is moving out.
I’ve advised her to get rid of him as beneficiary for her Teacher’s pension death benefit and get her life insurance written in trust for her child, presumably with him as trustee?
Is there anything else to consider?
I’ve also advised her to rent somewhere for a while after the house sells so there isn’t the added stress of trying to buy a place at the same time plus there isn’t a lot for sale around where she currently lives, which is a few hundred yards from DGC’s very good school 🙄 I don’t think the house will take long to sell but it will be the top of the chain, it’s a large 4 bed detached but at the ‘cheaper’ end of the market so good value for money.
She will have a fairly small area of choice because I do the school runs so I’m there at 7am 4 mornings a week and 3pm x 3 afternoons, we currently live 10 minutes apart. She won’t want to have to move schools, there’s enough bloody upheaval.
I’m trying to be practical because she’s obviously devastated and her sole focus is my DGC.