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Original poster

New partner taking on mortgage

31 replies

Magicstars · 30/04/2021 14:56

Hi I’m looking for advice on a complex situation please!

My ex moved out, has bought a new house with a mortgage & stopped paying towards our shared mortgage some months ago. His choice to stop paying, after I asked him to leave.

My new partner would like to come on the mortgage with me, this is in keeping with ex’s wishes too. At the time of ex stopping paying our mortgage, I got the house valued by three agents, at his request. He was not happy with the estimates given (too low in his opinion).

Ex & I both have sums invested in the house. He wants me to agree to pay him a sum that grows & reflects the value of the house when sold in the future. Ignoring the valuations given at the time when he stopped paying the mortgage.

Should I stand my ground & say no to him benefitting from the potential increase of the house’s value over the years?

For context I ended the relationship due to his behaviour. He has a new property with new partner & despite us being married (can’t agree on financial settlement for divorce) & I don’t intend to make any claim on his new purchase.
We have two young children together, who mainly live with me. My reason for wishing to keep this house is to maintain the childrens’ community, emotional security, school etc. I would not be able to afford a suitable alternative in this area. New partner has no savings to invest, but is eligible to come on mortgage with ex’s capital in the house.

What’s the most fair way forward please? Thank you for reading.

OP posts:

Original poster

Magicstars · 30/04/2021 14:59

In brief, Should my ex get his share of the house valued when he stopped contributing to the mortgage? Or is it fair for him benefit from the house price increasing (presumably) over the years?

OP posts:

MadeForThis · 30/04/2021 15:01

Definitely only until he stopped contributing. 3 agents is a fair attempt at valuation.

Lou98 · 30/04/2021 15:09

First off, I personally wouldn't be adding a new partner on to my mortgage - how long have you been together?

For the house value, it really depends I think on whether he wants to sell the house or not. Do you have the money available now to buy him out but he isn't happy with the value so refusing? If that's the case then of course he should only half of the value up until he stopped contributing.

If however, you don't currently have the money to buy him out and don't want to sell to get him the money then I'd say he's right to stop contributing but still be entitled to half of the property value and I think in this situation you could be forced in to selling

Rollercoaster1920 · 30/04/2021 15:22

You are still legally married so this is all better answered by your divorce solicitor. Especially as you can't agree the divorce financial terms.

They may advise you to keep the new partner well out everything until the divorce is finalised too.

FranklySonImTheGaffer · 30/04/2021 15:26

Definitely value of the house when he stopped contributing. He can't refuse to pay towards the house but also benefit from the increase value (which is only available because you've paid the mortgage)!

I would aim to get this sorted ASAP - friends of mine are in the same situation. They couldn't agree so have left things and now, 2 years later, the house has increased in value by £80k, neither of them can afford or buy the other out and they are going to waste money in court sorting this out.

GrumpyHoonMain · 30/04/2021 15:28

Get legal advice.

HidingFromDD · 30/04/2021 16:29

He should be entitled to a percentage which reflects his share of the current equity. Eg if the mortgaged value represents 70% of the house value, he should be entitled to 15% of the final sale value. This reflects the fact that he can’t use the money on anything else (new property purchase etc). However, get legal advice as you may well be entitled to a greater than 50% of the joint assets.

He was also very silly to purchase with a new partner unless the new property is solely in partners name as that could be included as part of the joint assets.

Tippexy · 30/04/2021 16:36

@MadeForThis

Definitely only until he stopped contributing. 3 agents is a fair attempt at valuation.

Lots of posters are saying that he shouldn’t benefit from any increase in value once he has moved out but actually the law doesn’t tend to agree. There is legal precedent such that let’s say you have a couple, Billy and Brenda:

If Billy’s name is still on the mortgage
He doesn’t live there any more
Brenda lives in the house and pays 100% of the mortgage

The law views it as Brenda paying 50% towards the mortgage for herself and 50% of it is paid on Billy’s behalf in lieu of rent, as she has exclusive use of the property.

In addition, if your partner is on the mortgage OP but doesn’t benefit from living there, then he is exposing himself to risk of you defaulting. The ‘price’ of this risk that he is bearing on your behalf is that if the value of the house goes up, he should get half. Don’t forget, if the value of the house went down and/or you defaulted, he would be liable for that too!

Amammi · 30/04/2021 16:40

Are your children also his? How will he be contributing to their living costs?

Newnormal99 · 30/04/2021 16:47

When I looked into this if I did a mesher the split of equity would be based on value at that time. It didn't matter that he would not have contributed foe 'x' years.

Original poster

Magicstars · 30/04/2021 16:59

Thanks all for your advice.
The children are ex-h’s & mine. He pays me child maintenance.
We have 50/ 50 capital invested in the house we bought together as well as a mortgage.
I cannot afford to buy him out, but for the sake of the childrens’ emotional well-being, I don’t want to sell as it would mean relocating to a new area.
He has a suitable property which he & new partner have bought together. I am not interested in pursuing this as I would prefer to keep things amicable.
We want to get divorced but are stuck on how to proceed in relation to the home we own together.

OP posts:

RandomMess · 30/04/2021 17:00

You were married and have DC speak to a solicitor about what the courts would say. You also need to factor in pension valuations etc.

ittakes2 · 30/04/2021 17:12

I think you have answered your own question. It sounds complicated and it is. Too complicated for it not to go wrong at some point. You need to agree a divorce and his name needs to be off the titles of the house.

Lou98 · 30/04/2021 17:24

@Magicstars with your update to be honest I'm not sure what outcome you're looking for.

The house is half his, you want to stay living there so don't want to sell but equally don't have the money to buy him out. It doesn't really matter that he now has another house he can live in, he still owns half the equity in the house you live in.

I would seek legal advice but while you're both married and on the mortgage you can't decide how much of the house value he should get, regardless of whether he is still paying the mortgage or not as you are solely living in it. However, I'm not sure what your other option would be other than to sell to give him his half

BluebellsGreenbells · 30/04/2021 17:26

So you want to keep his share until the property is sold some years down the line. When he could take his share now, over pay his new mortgage and be better off financially?

So you don’t have pay him a higher share later on?

You are the only one benefiting in this arrangement -

And why put the new partner on the mortgage when he’s contributing nothing?

You need legal advice

Dacquoise · 30/04/2021 17:31

This could get very messy because in law you aren't financially separate until you have a court approved financial settlement and this will include your ex's new house. Are there any other assets that could be offset against your ex husbands share of the house? ie pensions, savings, shares? If there are you could agree to take a lesser pension share from him if appropriate in lieu of buying him out of the house. Also be aware that putting your new partner on your mortgage gives him a beneficial interest in your property. You could end up with another bill if you split.

Snookie00 · 30/04/2021 17:38

You can’t expect him to tie up his money in the house for an indefinite period of time but not benefit from future house price rises. If he agrees to you using his equity then you will need to compensate him for that by giving him his share of future proceeds.

Likewise your current partner would be an idiot to contribute to a mortgage for a property that he does not own. He also doesn’t sound like a sound bet financially if he has zero funds to contribute to a deposit.

Speak to a solicitor as this sounds completely unfeasible and you might need to adjust your expectations.

WellIWasInTheNeighbourhoo · 30/04/2021 18:24

Where did the money come from for him to buy another property? If it was marital assets you may not have the luxury of not including it in the pot. Not if you want to stay in the house you're in. Id speak to a lawyer. And don't prioritise amicability with him, that can come later when you've housed your kids.

mobear · 30/04/2021 18:29

If his capital is still invested in the property then he should gain from any increase in its value. If you don't want him to benefit from an increase in value, then you need to buy him out or sell.

You could also look at a creative solution, for example, if you are both liable for 50% of the mortgage but you are currently paying 100%, he could remain invested in the property and you could deduct his missed mortgage payments from his half of the proceeds of sale when the property is sold. It is difficult to make these kinds of arrangements binding though and it may have to be done on trust.

If you add your new partner to the mortgage, or if he evens contributes to the house in any way that isn't defined as "rent", then he may also have a claim on your house.

You definitely need to get legal advice.

Outbutnotoutout · 30/04/2021 18:34

You have an exhusband, a husband and you want to put your new partner on the mortgage before you are even divorce or sorted out a settlement.

Seems madness to me

Original poster

Magicstars · 30/04/2021 18:45

Food for thought.
Appreciate your responses.

OP posts:

HollowTalk · 30/04/2021 18:45

There is no way I'd have a new boyfriend on that mortgage. You need your own security.

PastMyBestBeforeDate · 30/04/2021 18:52

You could end up losing an awful lot of house and money this way. If your partner is on the mortgage and you split up you could end up having to buy him out or sell the house at which point your xh would want his share too.
The one thing you definitely need is a will!

Egghead81 · 30/04/2021 18:54

How long have you been with new partner?

HollowTalk · 30/04/2021 18:55

Have you seen a solicitor about this? I would have thought you'd be entitled to stay in the house until your children were 18 before giving your ex his share.

It could be a real mess if you bring this other guy into it now.

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