Ex-partner is wanting to sell the house.

Slam62 said:
She obviously thinks there's a load of equity in the house. There's absolutely no point in her selling as she won't get any money, in fact she'll owe money due to fees etc.

She should just leave it as it is , she's getting the interest paid anyway.

If there was a divorce, there must have been a ruling on the house, if you were not married then she can't force you to sell, you don't owe her any money and you made most of the mortgage payments.

For those who say she could force a sale, she would have to go through the courts and it would be very difficult, I suspect they would just say tough.
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May not be just an equity thing.

Maybe the debt is affecting her ability to get a mortgage on another property?

Additional rate stamp duty could also be a consideration.
 
I suppose that the other side of this is the OP making the mental adjustment that he doesn't own a house....

Regardless of what's been paid in (or how much it should have increased in value) if he gets a valuation and the house is worth less on the market than his current mortgage amount then he owns nothing. Even if his mortgage is £2K less that what they could sell the house for that's only £2k of assets - money that will quickly disappear in the selling of a house.

I genuinely hope you can work something out, but in this situation it looks like it's getting to the point where it's her or you that's going to come off massively unhappy.

Either you, by getting kicked out, or your ex by being left with literally nothing when she thought she had something to jumpstart her life again (oh, and that's going to hang over her for probably another 10 years minimum)
 
satchef1 said:
May not be just an equity thing.

Maybe the debt is affecting her ability to get a mortgage on another property?

Additional rate stamp duty could also be a consideration.
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it probably would make things complicated. Ultimately, should the op stop paying she could be liable for the whole lot and she still wouldn't be able to chuck the family out.

In reality she's probably very lucky he's paid what he has, she should have sorted all this out when they separated.
 
This is quite easy to sort

Get three independant valuations and an average of estate agents fees let's say 4% (free)
Get your latest mortgage statement (free), remember any ERC which could be a killer!!

Show your ex the total amount made from the sale (minus the 4%), then discount the mortgage. Split the equity 50/50 and tell her the sale from the house will net her £1,000 cash...OR, with the ERC she will actual be in debt

Things need to be presented in black and white at times like this. Speculation is nothing more than wasting time.
 
As above, what was the purchase price? What was the mortgage amount and LTV%? What was the period she was paying repayments for? What's the current valuation?

They're the key things, but it could all be a moot point, surely she could tell the bank she no longer is involved and it's just him living there which would invalidate the agreement of the mortgage?
 
Droolinggimp said:
...o i was stuck with them (now Nram) paying interest only. Yep it's a **** way to do it but I cannot afford the repayment mortgage on my wages at the time and certainly not now.
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I'm curious what the OP exit strategy was before he created this thread.

You're basically renting, and you cannot extend a interest only payments indefinitely (i assume) . At some point will you not have to pay off the balance?
The house isn't appreciating. There will be no equity. Did you intend keeping the ex in limbo till you or your current wife, increase your earnings to switch to a repayment mortgage in your own names. That seems a long way off.
Would you not be better off, realising you can't afford the house and downsize to something, somewhere cheaper. Rent and start over.
I realise this is not a small things, with kids in school, family and friends in a local area. But people do move and it mostly works out.

If it were me I'd want to re-organise my life so I wasn't struggling to make ends meet.
Watch Dave Ramsey on YouTube. Its US based and you wouldn't always agree with it, but its good for giving oneself a reality check.
 
Slam62 said:
it probably would make things complicated. Ultimately, should the op stop paying she could be liable for the whole lot and she still wouldn't be able to chuck the family out.

In reality she's probably very lucky he's paid what he has, she should have sorted all this out when they separated.
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Ouch. OP's ex seems to have made a very bad decision not selling her share here. I suspect she is going to be very disappointed with how this turns out. I think I'm right in summarising OP's exes problems as follows:
  • She has been betting for 12 years that house prices will go up, so hasn't sold. The property value has not increased, therefore there will be no equity due to her from a sale. The cash with which to start a new life is a fantasy...
  • She is at financial risk if OP stops paying the mortgage - she will be liable as co-signatory
  • It will probably be hard for her to convince a court to kick OP and the family out, particularly as she resisted being bought out previously
  • The mortgage will be a credit millstone around her neck, particularly if she wants to buy another property
  • She will be liable for additional rate stamp duty if she wants to buy another house in the future?
 
randomshenans said:
...surely she could tell the bank she no longer is involved and it's just him living there which would invalidate the agreement of the mortgage?
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It would be less security for the bank to switch from the ex and the OP to just the OP and his ex. Even if its the same thing in the end.

I think the OP might want to try get an debt aid group to negotiate this with the bank with him.
 
The OP at least made a good decision is asking for advice here. Hopefully its made him realise he has to deal with this issues instead of kicking it down the road any more.
 
OP are you not withholding any information? It just doesn't follow that there's zero equity in the house given:
  • There must have been some deposit put down at the start
  • You payed capital + interest for at least some years
  • We can assume the value of the property hasn't dropped
@AndyT is spot on, it's a horrid situation for OP's ex, and given OP would have to put up with a tonne of inconvenience to help her out, it looks like it's going to be a gristly stalemate. This is why buy to let mortgages are awful, it is essentially people living in houses they can't afford, hoping that the price will increase and all be dandy. If the price doesn't increase, you're stuck with zero equity and as you get older and closer to 'retirement' age, that's a timebomb.
 
Housey said:
Based on what I am reading here as I have nothing else to go on, she seems to have been accommodating and helpful since you split. She also bailed you out when you hit hard times, money from what I read you have not paid back and suggested come sale time she would seek repayment from the equity, which seems eminently fair. I am assuming she has no responsibility for the children you mentioned (they are not hers?) and now, after 10-12 years she is seeking to move on with her life, move away from a liability/investment that is offering her little and is looking for your support. Your current work situation, that of your wife and your children are of little concern to her and she has up to this point been very fair and gone above and beyond to help and support you.

You are now seeking to take advantage of that goodwill to ensure you are not removed from your house because it does not suit your situation and circumstances and it would seem have over leveraged your house (drawn down from the mortgage I am assuming, but will stand corrected) and so in the 10-12 years your house value has not increased. Looking at it purely black and white she is doing nothing wrong and you should perhaps work out how you might buy her share or accomodate he with a plan to sell at some point fixed in time.

Just noted your point on it being interest only. So for a period of time she has actually been paying for you to live in a house for zero benefit. She seems like a good person to me, I think she has every right to move on with her life now IMHO and you would be best placed to help her do that.

My 2p

Too further add if she is not paying the mortgage payments, which I may have got completely wrong here that changes it somewhat, but I still think she is within her rights to exit.
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Pretty much this.

Also

I din't actually agree to this but she will still think she will get a cut of my share of equity coming my way.
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Makes you sound like a dick as she helped cover the repayments.

It's a bit naive to think this was never going to come round. Just buy her out and put it onto the existing mortgage?
 
Droolinggimp said:
The thing is she would be stupid to take it to court as I have children (I did a bit of research on children in house selling, whether or not they are hers or not) and she cannot force a sale. Simple as that. She suggested that I come off the mortgage, which again will benefit my as then we can move at our own pace as, again, she cannot force a sale or kick up out as tennents.
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This is incorrect. The children are nothing to do with her and you cannot hold her hostage when her own money (what ever the amount) is involved.

As others have said she’s been more than amicable with you.
 
Jonnybmac said:
Makes you sound like a dick as she helped cover the repayments.

It's a bit naive to think this was never going to come round. Just buy her out and put it onto the existing mortgage?
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2 repayments. Also, I'm inferring a whole lot, but I think a car loan may have been added to the mortgage value at some point by her (OP hasn't been very clear on this!)

From the sounds of it the house is pretty much 100% LTV anyway right now. Apparently.
 
Pudney said:
2 repayments. Also, I'm inferring a whole lot, but I think a car loan may have been added to the mortgage value at some point by her (OP hasn't been very clear on this!)

From the sounds of it the house is pretty much 100% LTV anyway right now. Apparently.
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I took it to be a separate loan, secured against the house which i'd assume was now paid off. But perhaps you're right and they remortgaged to purchase the car.
 
Marvt74 said:
I took it to be a separate loan, secured against the house which i'd assume was now paid off. But perhaps you're right and they remortgaged to purchase the car.
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The former is a possibility too, but if it was the former then I'm not sure why it's relevant (other than a rant about the ex).

Either way it's as clear as mud :D
 
OspreyO said:
It would be less security for the bank to switch from the ex and the OP to just the OP and his ex. Even if its the same thing in the end.

I think the OP might want to try get an debt aid group to negotiate this with the bank with him.
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the op cannot take over the mortgage as there is not enough equity in the house, also I doubt he could meet the income requirements.

For everyone else, she doesn't own the house, she owns the debt. The house is the banks security, on the debt. The bank paid for the house on the understanding that the couple would either pay back the money or give the bank the house, provided its sale covered the debt, otherwise the couple would be liable for anything outstanding.

The op is effectively a sitting tenant and as such could be very difficult to shift even without kids.

So basically, the only thing that can happen could be that she persuades him to leave, she has no case to kick him out.

The only other way she can get out of it is by paying off her half of the mortgage, but that might be difficult if he can't qualify for his half.

So she might have to pay of her half and some of his and she could maybe get a covenant to say when he sells she gets half the cash or something.

People think mortgages and houses are just payments, they aren't, all you are doing is buying a massive debt as a trade for living in the house rent free, and you get to choose the decor.
 
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