Mortgage dilemma

[Avispa]

Am I still liable to pay half the mortgage when I move out of the home jointly owned by myself and ex until either she sells or buys me out?

[Miss Zippy]

All parties to a mortgage deed are joint and severally liable for mortgage payments.  So assuming you are a co-mortgagee, then, yes, you are still liable for paying the mortgage together with your ex.

[spk]

Yep you certainly are. You are jointly and severally liable. The only way you can get around it is if yourself and the 2nd applicant both send letters confirming that you are to be taken off the deeds, if the deeds are in joint names. You will probably have to pay a solicitor for this its usually about �140. Her affordability will need to be reassesed as well- to see if they will let her take on the mortgage in just her name based on her income. Hope this helps

[kernowman]

Can you afford to pay half of this mortgage as well as support yourself in a new property? Is there any substantial equity in it? Can she afford to buy you out? Can I suggest you run this one past your local Citizens Advice Bureau to tease out your options here.

[Avispa]

We had the house valued and there is around �30k equity. Her father was going to give me the money so she doesnt have to remortgage, but has only offered �10k. I have read that she may also be liable to pay me rent as she will still effectively be in my house! I'm so confused.

[Hgrove]

I think you are entitled to half the equity so if the equity is �30k, you should ask for �15.    This thing about the rent is interesting.  I initially read about it in another thread here.  If you move out, you both have to continue paying the mortgage: this one is between yourselves and the mortgage company.  But she is getting the benefit of living there, while you are not.  So until she has bought you out, I think in theory she ought to pay you some kind of rent.  I suggest you see a Citizen Advice Bureau.

[Hgrove]

The following thread of 6 / 11 / 04 may be of interest:-

http://www.theanswerbank.co.uk/Money_and_Finance/Questio n75516.html

[Avispa]

Many thanks for all your help. I shall update on the situation tomorrow as an offer of some kind is going to be made tonight. Oh joy!

[Sludge]

Hgrove is wrong. Under the circumstances you describe no rent is payable or can be demanded. You are liable for half the mortgage, and if you and your ex own the property in joint tenancy there is no obligation to buy you out and you cannot force a sale. I will explain further if you would like.

[Hgrove]

Just to clarify, I did not write that there is an obligation to buy him out.  I know as well as anyone that the trust for sale was abolished by the Trusts of Land and Appointment of Trustees Act.  Avispa wrote that they have offered him �10, implying they have agreed to buy him out already.  As for the rent, I am merely reporting what someone else had advised on the AB in an unrelated thread.  I would be grateful Sludge if you would quit casting aspersions on myself.  I ask you to take back your comment that I am wrong and apologise.

[Hgrove]

Sorry, I meant they offered him �10k.

[Avispa]

Ok, alright already!! She has said and it has been agreed that I will get �15k, my name shall be taken off the mortgage, and she can keep the furniture and everything else that goes with the house, incuding the expense of taking my name off the mortgage. Which, incidently, she claims will cost around �1400, but as I am leaving all the furniture she has kindly let me off.So nice of her!

[Sludge]

You are very fortunate indeed, and have every reason to be very, very grateful to both your ex and her family. They have been exceptionally and quite unnecessarily generous towards you. I can tell you from the facts you have presented and a long experience of these matters that had a settlement been negotiated professionally you are not entitled to and would not have received one penny, not one penny. However, to be helpful to you, make sure that your name is removed not only from the mortgage but also from the Land Registry, otherwise some very unwanted and unpleasant chickens may well come home to roost with you some years from now. 

[Hgrove]

Avispa, I suggest you take no notice of Sludge's comments.  For your info. it used to be the case that when two people bought a house for sale, there arose by operation of law something called a trust for sale.  This meant that there was an obligation to sell and split the profits.  This obligation to sell was however suspended while the parties so agreed.  In practice this meant that when the relationship broke down, one party could "force a sale" on the other one.  This was, however, abolished by the Trusts of Land and Appointment of Trustees Act.  So now one party can no longer force a sale on the other.  It is still be possible, however, to go to Court and ask for an order to sell.  The Court may agree or not.  Fortunately this does not apply to you because you two have reached an agreement without falling out/going to Court etc.  Based on the thread I mentioned earlier, half the equity is the correct sum they have to pay you to buy you out.  If you were litigating the matter, legal costs would easily swallow the �30k equity and more;  but as it stands, half the equity is fair.

[Avispa]

Many thanks for all of your help. I have taken note of your advice and will ensure my name is taken off the land registry as well.

Regards

[confused????]

Can one of you please help me, you say that this person is entitled to just 15k half the equity what about half the person's deposit back and half the cash the person has paid off on the mortgage so far?