Does an overseas property help with UK mortgage capacity

[ZigaZigBahhh]

I am divorcing and my Ex and I have been asked by a judge to provide details of our mortgage capacities.

We own two properties in joint names: a house in the UK and a flat overseas.

My Ex also bought her Father’s house some years ago - she owns this outright. Initially she didn’t want to declare this in the disclosure.

She is saying that her Father’s house is not a relevant asset in the divorce and won’t help with her mortgage capacity for another property in the UK.

Is this true?

To clarify:

I have no interest in a share of her Father’s house and I do NOT think it should be sold due to our divorce.

I am asking for the flat and the house that we own together to both be sold so that we can both purchase new properties in the UK.

No it won’t help with her mortgage capacity in the slightest. Even if he paid rent it wouldn’t help her.

@Bristolbitsandbobs
Why is that? Is it because it’s overseas?

I had assumed it would still be relevant as an asset though?

No. The banks in the U.K. do not take overseas earnings from property into account. Even with a proper contract. It does not count as an asset. I have been through this several times with different banks.

Sorry if I’ve misunderstood - not earnings from rent... I’m talking about it as capital - an asset in her name only.

We have two assets in joint names.

I mean surely an asset owned outright (no mortgage) is significant?

Capital assets do not count towards mortgage capacity. End of - it’s the law. The only thing that counts is liquidity i.e income.

You can’t sell an asset to pay a mortgage so it’s irrelevant.

You can petition for a share of that asset, but you’ve said you don’t want to, so in that context you need to forget about it.

OK - thanks for advice.

Seems strange that it has no significance, when I was advised by my solicitor that it should be included in disclosure as an asset.

Of course it should be included in the disclosure - if you want it to be taken into account.

Form E is a TOTALLY different issue to what a mortgage lender will consider. As I say how can you pay a mortgage with a capital asset.

Seems to me you do want that house taken into account.

That aside contact a mortgage broker. They will calculate your capacity and put it in writing. As they are a regulated profession this is taken as a legal document. It’s not enough to go online and work it out.

Oh and it can ‘seem strange’ as you like, but the calculation of mortgage capacity has a legislative basis. You might not like it (or believe me ) but that’s the case