What are the options? HELP

[bubblepaper]

Hi

Quick background: Me and my exH divorced around 4 years ago. All amicable now, we get on well for the kids. As part of the divorce agreement when we split, he let me stay in the family home for the stability of the kids, his name remains on the mortgage but I pay solely for it. The conditions are that when either; a) I re-marry b) I move anyone else in or c) our youngest child turns 18 (currently 7) then I have to buy him out of his share, either by raising the cash or selling the house if necessary and dividing the equity that way.
By staying on the mortgage he can't go get another mortgage so he has been renting with his new partner and kids

I received a text from my ex yesterday asking if there'd be any way I can buy him out now as he'd received a letter stating the banks are repossessing his house as his landlord has not been paying her mortgage. I feel terrible for him, they're due to be kicked out just before xmas. Does anyone know anything about this? Does he have any rights?
I can't get the amount of the mortgage as it is in just my name (hence why we agreed he'd stay on there) so I doubt I'd be able to add any more on and take it on alone, although I am going to try. He suggested that my new partner buy him out but as things stand that isn't possible as my partner also already has a mortgage which is at it's max and his parents occupy his house with him so he can't exactly sell up and kick them out. Plus I don't want to be pushed into a mortage with someone who I've only been with a year anyway, despite the fact things are going well.
I feel a bit overwhelmed by it, it's obviously come as a shock so I just wondered if you wise people had any advice for me/ him as to a way forward?
Thank you!!

Sounds like you have a Mesher Order, or a similar agreement.

I have a lot of sympathy for him - it’s pretty detrimental for the non resident person.

Ultimately, I would be selfish and keep a secure home for my children.

BUT, these orders aren’t necessarily that great for the person in the house either. What happens in 11 years? Often, you just postpone the problem - sometimes losing a home then, at the same time as child related benefits disappear and you’re financially worse off. He’s not paying the mortgage, but you still need to buy him out.

You need to make a good decision for the kids, but I think to be fair to him you need to try to find a way to release him from the mortgage.

I would be looking at:

• how much he needs for a deposit
• how much equity you need to be able to get a mortgage on a different cheaper property that you could be approved for. You might also want to get a specialist broker to advise on lenders that will include CM payments (a few do, or certainly used to!). He might need to increase the CM to help you secure a mortgage. He may be able to afford to do this if buying not renting is cheaper for him.

This might mean he reduces the amount of equity he previously agreed to - he may agree to that if it’s in his better interests to get off the mortgage.

Say you have a £80K equity in a £200K property.
You have £20K income and can get a 3x mortgage for £60K.
He has a £40K income and can get 2.5x due to CM payments.
A cheaper house is £120K (for each of you).
He needs £20K from the equity + £100K mortgage.
You need £60K equity + £60K mortgage.
You get lots more from the house - but he can buy now, and you no longer have to worry about the buyout later in life.

It’s worth playing with the numbers to see what’s possible. I think that downsizing / cheaper areas can be a fairer solution (and avoid issues when the payout is due) than Mesher Orders.

I would get in touch with a broker. I earn £20k per year but with my child support (if it ever gets paid). And benefits I can get the mortgage I need to pay ex off. Don't think he has twigged yet he is cutting his nose off not paying child support because he wants out ASAP.

Also long term it maybe good to address this now rather than 10 years time.

I think two approaches if you can't buy him out can you at least take on the mortgage in your own name?

It all comes down to income. I've spoken to our lender and they are fine with h borrowing another £200k for his new home and putting our family home into my sole name at land registry, listing him as guarantor. He is a high earner though. I'm getting the house as part of my settlement