Mortgage Questions

Darey · 12 Feb 2013 at 13:22

To cut along story short. Split with the girlfriend, but we have a joint mortgage. Not married nor have any kids. Been living in the house for just over 2 and a half years. Been to see citizens advice this morning. Didn't know all the answers to my questions.

Basically she put 2k into the deposit, I put 10k. She wants her deposit back, which seems fair. She also wants a further 2k for money spent on the mortgage and the house itself. Is this reasonable? Will I need to go to a solicitor to sort out a contract so she can't ask for more? I don't want to just hand over all that money.

Could taking her name off the mortgage mean I pay more money per month?

Unless I have to, I don't want to go to a solicitor as they are expensive.

Thanks in advance.

Foghorn Leghorn · 12 Feb 2013 at 13:28

Depends, if the house price has dropped significantly over the last 2.5 years then she may owe you money.

danielanthony · 12 Feb 2013 at 13:33

What is the house worth and how much is the mortgage?

Will the bank put the mortgage just in your name (do you earn enough to cover it)?

Before giving her any money, these questions need to be answered.

Darey · 12 Feb 2013 at 13:52

danielanthony said:
What is the house worth and how much is the mortgage?

Will the bank put the mortgage just in your name (do you earn enough to cover it)?

Before giving her any money, these questions need to be answered.

We paid 84k with a 12k deposit. As of December we owe roughly 69k. Santander did their own survey at the time of purchase and valued the house at 88k (still have the paperwork)

The mortgage would just be in my name. Paying it could be a struggle at first. Just need to cancel unnecessary outgoings and I think I could manage.

areksnumbr1sxylady · 12 Feb 2013 at 14:00

You have to take into account current price of the house... I think.

liamcrane · 12 Feb 2013 at 14:04

Sorry to hear about this Darey, i had a similar issue years ago when i spilt with regards to "What to do with the mortgage" I take it you will be the one that carries on living there? is that right?

Darey · 12 Feb 2013 at 14:07

liamcrane said:
Sorry to hear about this Darey, i had a similar issue years ago when i spilt with regards to "What to do with the mortgage" I take it you will be the one that carries on living there? is that right?

Yes, she has said I can have the house and all that's in it, she just wants her deposit and £2000 for money she has put into the property.

Andy__C · 12 Feb 2013 at 14:13

If she'll take £4k and it doesn't hamper the terms of the mortgage, Just pay her that mate.

Leave it too long and she'll get other ideas/interference from the next boyfriend and do silly things like try throw you out so she can rent it, claim that the rent you could get is far higher than the mortgage so you owe her money monthly (you are in effect a landlord tennant if staying there), claim silly figures for the house and end up causing you all kinds of hassle and solicitors fees.

Cut ties asap. Just cut them.

(voice of experience).

Edit: you will need a solicitor to help with the sign over of the deeds plus agreement with the mortgage company, should be less than £100 if you don't encounter any problems.

Teledude · 12 Feb 2013 at 14:13

Darey said:
Yes, she has said I can have the house and all that's in it, she just wants her deposit and £2000 for money she has put into the property.

Go for it - 4k in the long run will be nothing and will save so much agro

Get a letter written and get a solicitor to approve it before making her sign it - then get the deeds changed

Fishman · 12 Feb 2013 at 14:15

So she wants everything she ever contributed to the house back ? she lived in a house for 2.5 years and should expect to pay something (other than a bills contribution) for that.

Pudney · 12 Feb 2013 at 14:15

If you can't be bothered or that fussed to get a proper valuation, Zoopla can do an estimate of your house's current value based on other sales in the area.

Diesel · 12 Feb 2013 at 14:18

I'm currently in a similar situation except my house is in negative equity. My (ex)wife is walking away and I'm simply signing the mortgage into my name. Technically she probably owes me money.

Since you have almost £20k in equity in the house I'd bite her hand off at the idea of her walking away for just £4k. First see if the mortgage provider will let you transfer it into your sole name and then see if they will extend the amount by £4k which you can use to pay her off.

Stumble Bum · 12 Feb 2013 at 14:19

So you have paid off 15k of the mortgage and all she wants in return is her deposit and 2k. (Which also includes some of the house stuff you've both bought).

Bite her hands off for the deal.

Darey · 12 Feb 2013 at 14:19

Fishman said:
So she wants everything she ever contributed to the house back ? she lived in a house for 2.5 years and should expect to pay something (other than a bills contribution) for that.

This is what I think, is she asking too much? Too little? I'm going to try and pay as little back to her as possible, without having it going to court or anything as ridiculous as that.

Edit: I have some savings. I can afford to give her a £2000 lump sum, and I verbally agreed to the rest in reasonable installments over time.

liamcrane · 12 Feb 2013 at 14:23

Andy__C said:
If she'll take £4k and it doesn't hamper the terms of the mortgage, Just pay her that mate.

Leave it too long and she'll get other ideas/interference from the next boyfriend and do silly things like try throw you out so she can rent it, claim that the rent you could get is far higher than the mortgage so you owe her money monthly (you are in effect a landlord tennant if staying there), claim silly figures for the house and end up causing you all kinds of hassle and solicitors fees.

Cut ties asap. Just cut them.

(voice of experience).

Edit: you will need a solicitor to help with the sign over of the deeds plus agreement with the mortgage company, should be less than £100 if you don't encounter any problems.

Teledude said:
Go for it - 4k in the long run will be nothing and will save so much agro
Get a letter written and get a solicitor to approve it before making her sign it - then get the deeds changed

Took the words outta my mouth, if you can give her 4k and get rid of her go for it. If you decide to sell in the future then you know everything is yours

eatcustard · 12 Feb 2013 at 14:26

You must take her off the mortgage, or in say 5 years time she could sting you.

Payer her off, and get a legal contract made up, so she cant take anything else off you.

Darey · 12 Feb 2013 at 14:28

liamcrane said:
Took the words outta my mouth, if you can give her 4k and get rid of her go for it. If you decide to sell in the future then you know everything is yours

Thanks for the help, put my mind at rest a little, knowing the information is coming from people who have been through this already

Citizen's advice said go back to the solicitor who I dealt with when buying the house, so I think I'll go to see them tomorrow.

liamcrane · 12 Feb 2013 at 14:32

Even if you have to payup a little yourself a get a small contract written up like eatcustard mentioned above it could save you heaps of ££ in the long run especially if house prices do ever decide to go on the up and she comes crying back for more...

Teledude · 12 Feb 2013 at 14:33

Darey said:
Thanks for the help, put my mind at rest a little, knowing the information is coming from people who have been through this already

Citizen's advice said go back to the solicitor who I dealt with when buying the house, so I think I'll go to see them tomorrow.

Just for reference this is what my wife got her ex to sign

Miss Z has paid Mr X £xx,xxx for the transfer of equity for above said property into sole ownership of Z. (Dated x/x/xxx).

Mr X wishes to be removed from the property and is doing so of his own free will.

The above amount has been transferred into Mr X’s account and this letter confirms the signing off on behalf on both said parties into sole ownership under the name of Miss Z.

Mr X's name will be removed from the mortgage and from the deeds of the property upon completion of transfer of equity.

This payment was a final settlement to Mr X and no further claims can be raised. Miss Z will therefore have full responsibility for the future payments.

Diesel · 12 Feb 2013 at 14:38

Darey said:
Citizen's advice said go back to the solicitor who I dealt with when buying the house, so I think I'll go to see them tomorrow.

I went straight to my mortgage company, they said they would deal with the solicitor. You need to know whether they will let you take over the mortgage first of all.

Darey said:
Edit: I have some savings. I can afford to give her a £2000 lump sum, and I verbally agreed to the rest in reasonable installments over time.

Don't do this. Take out a small loan, extend the mortgage, sell a kidney, but please get rid of all financial ties in one go. While you still owe her money she'll have a hold over you.