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Original poster

Help! Charge on property 25%

23 replies

Tulipgirl123 · 09/09/2014 22:27

I have a 25% charge on property payable to my ex -
when my son reaches 21 (now 18 yrs)
I remarry (not remarried)
sell the property
vacate it for more than six months
die

At the time the charge was put on the property, I was not in a position to pay him off. When the charge was put on 8 years ago it was worth £50,000 now it almost £80,000 and I fear that I may not be able to pay him off if the charge increases. I I asked to pay him off and he refused, preferring to wait for 3 years as he hopes the charge will increase. I am now 59 years and fear that I will be paying him off around 62 when I am very near retirement. Is there anyway I can pay him off now? Should I sell now and pay him off? Someone suggested a back to back sale (i.e. sell to pay him off and buy it back????) any suggestions very welcome, thanks.

OP posts:
mandy214 · 10/09/2014 08:33

You probably need to take some financial advice. Is the mortgage paid off? You should have more equity in the house if it has increased in value, but as I see it, the problem is actually getting the money out of the house when you're 62 and your son is 21 and you have to repay your ex. I would anticipate it would be difficult to re-mortgage at that point because you'll have retired and have a low income I presume. Does your ex understand that? I don't know the answer but is there a way of coming to some sort of deal? That you will give him 25% of the current value (get 3 valuations - market value not asking price and use the average) and then agree that if there is an increase in value in the next 3 years (go through the same process then), that you'll give him 25% of that increase.

bonborez · 10/09/2014 09:25

What is the market like where you live? After a huge surge its stalling now in many areas.

Have you any savings at all towards it so far ?

RCheshire · 10/09/2014 09:56

Do you mean that when you sell in 3 years you won't have enough equity to pay him from the sale? Or do you mean you would need to sell in order to pay him and you don't want to leave the house?

Original poster
Tulipgirl123 · 10/09/2014 10:33

Dear All,
thanks for the suggestions. The mortgage is paid off. I currently owe him about £80,000 and have just 7 years left of my working life to raise the money. If I leave it for another three years, I may not be able to buy him out and may not have sufficient to buy a smaller property either. I have been trying to save to pay him off, but I am chasing a moving target and find that prices are rising higher than I can save up.

Mandy214 suggested that I pay him 25% of the current value and any increases in 3 years time. That is a good suggestion and I will follow it up.

OP posts:
roneik · 10/09/2014 16:39

Just my two penny worth. Wait house prices may very well crash . After the election in may the REAL cuts will happen all parties have said as much.

In the event of a crash it is possible you may only owe half of what you think you do at this time.

Read the papers what's happening with the Scottish independence vote has even the prime minister panicked

This will probably affect all of us and the economy will suffer badly from what I have read

greenfolder · 10/09/2014 18:25

what is your plan to raise the £80000 over 7 years? If that is not feasible,then why not sell and settle it all? Presumably the house is worth £320,000? what could you buy with £240? or a bit more with a managable mortgage? once you have made the move and have no link, you can get down to planning your retirement

RCheshire · 10/09/2014 20:10

roneik, not sure I'd turn to you for investment advice. The OP has paid off the mortgage. Her ex has a 25% charge, leaving her with 75% of the property value . If she waits until the market falls she will lose out more than he will...

OP, if you sell and pay off your ex, will you not have enough to buy anything - presumably you are looking for a two bed place to allow your son to visit?

RCheshire · 10/09/2014 20:15

Actually, I'll correct my criticism. If the OP really wants to stay in the house (although I wonder if that means all funds to pay off ex rather than cover retirement etc) and can save up say 60k then I might be tempted to take roneik's advice and gamble on a fall. I wouldn't put money on his 50% crash, but I would be unsurprised if house prices fall gently over the next few years.

roneik · 10/09/2014 22:20

Er house prices went sky high while people could get the sky high money to pay for them. From where I am seeing things that is changing by the day. Banks stricter loan criteria. Falling incomes , markets awakening to our vulnerability if the scots go independent and europe a basket case for our trading prospects. Not forgetting if ukip influence gets us out of EU and the effects on our gdp

No sorry there is nothing to stop a 50 % fall

They wont be Queuing to come here then to fill the rentiers dreams of entitlement. It sounds negative and maybe a bit doom monger but I reckon we are well and truly screwed. I am glad I am a wrinkly god help the young screwed by greed and idiots from eton

roneik · 10/09/2014 22:31

Lower valuations
Collapse in chains
shrinking incomes
Black swan event (likely)
People who are poor getting restless (remember the riots) few hundred could not be controlled

Markets getting restless as I type this (read news)
Pound under stress as of now
The countries deep deep problems with debt
The herd get's spooked by the money withdrawals happening NOW to foreign shores
Banks still in the doo doo

No you will have to give me some reason to believe we are not going to see property collapse in price to what it should be in a sane world 3x4 salary

EssexMummy123 · 10/09/2014 22:36

you need to talk to a solicitor - or post on the legal threads section.

roneik · 10/09/2014 22:57

For one moment I thought that read I should see a shrink

I am sure that if any doctor saw my reactions to any of the westminster elite on the tv he or she would have me sectioned

RCheshire · 11/09/2014 07:11

A stopped clock is correct twice a day.... Of course we will have economic black swan events in the future - trying to predict their likelihood at any given point in time is entirely missing the point though yes?

Most of what you wrote has been true for a number of years now.

Have you spotted that rates for 5yr fixed mortgages have been falling this month and the number of products increasing? Associated swap rates also fell.

Lower house prices over time will be healthier for the economy, better for the overall population and give future generations a chance. I see this as a steady decline measured primarily in real terms - you, and a few others on hpc, are a little too excitable about the possibilities of a cliff-edge crash. Could it happen? Of course. But don't be surprised if you are chanting the same mantra tomorrow as you are today.

roneik · 11/09/2014 20:04

Yes I also noticed that Morrisons like for like sales are down 7% , all the big supermarkets sales are down. Still does not matter people are eating bricks now, it’s the recovery don’t you know.
Just because the odd few million people are destitute and not buying much food will in your world not impede a crash. In fact if they lick enough bakery shop windows it might help keep hunger at bay. Or maybe even help the area become up and coming

In your dreams ,it’s almost game over and the time is……

roneik · 11/09/2014 20:43

Please tell me when in our history of boom and bust after the recovery people earned less ?
Can you tell me why in this recovery all the major supermarkets are struggling?

Can you tell me why we owe billions more each month in national debt? if we have had a year of recovery

We cant even stop the deficit rising yet alone pay off the debt.

roneik · 11/09/2014 20:51

The banks have dropped the fixed rate to keep the plates spinning. Houses falling in price affects their balance sheet . If houses crash banks will be toast and so will we if we have money in them

The EU ruled bank bail ins for the next event , which means depositors will pay, banks will not be bailed out

HaveToWearHeels · 12/09/2014 11:23

Shall we get back to the thread now ? !

I would do as mandy214 says and offer him 25% of the value now and then a top up (if there is one) in three years. If he is agreeable of course.

roneik · 12/09/2014 12:10

Carney has warned the TUC that interest rates will rise in the spring, but wage rises above inflation will not follow until productivity rises.

We all know what will happen when interest rates go up, a certain amount of property will be repossessed.

This is what happens increase of property at lower price, auctions at price levels that just cover the bank at best

No I think it would be wise to wait and see what happens between now and next july at least

It could mean you paying out a lot less

roneik · 12/09/2014 12:15

We all have to get out of this mindset that property cannot or unlikely to crash

The uk and world economy has never been in a place like this before

Are you all blind or ignorant to economical reality

HaveToWearHeels · 12/09/2014 14:47

No I am not, I am well aware of what COULD happen thank you. However if we all knew what WAS going to happen we would all be worth millions !

roneik · 12/09/2014 15:07

I don't know anything in advance , but observing is a trait that saved my home and kept me earning through previous downturns. It wasn't a dig at any particular person, it was a statement of fact that too many people seem oblivious to how precarious the housing market and the economy is .Once you have worn the T shirt a few times you get to have a feel for what might be the outcome of certain situations.

As for making millions that will be our in the know eton educated mps and corporate skunks and the odd banker. You would probably not see the bus until you were under it

roneik · 13/09/2014 00:05

R cheshire , that's one off my list already, I was called the seer on a forum in 2006/7 but had to stop posting as it got a bit nasty as my predictions started to ring true. Was not banned I just got sick of the insults

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