Separation Agreement breach

[Em Kate]

My now husband separated from his long term ex-partner who had secured a loan; against his knowledge against their property. Items from within the home were divided at the time of separation and when the mortgage come for renewal my name was placed on it alongside my husband's. However, the ex didn't have anything to secure the loan against and in order to get her off the mortgage an legal agreement was drawn up for us to absorb the £36,700 into out mortgage and for her to pay off an agreed amount £250 monthly with a 5% interest on it. She has been paying it off for nearly 10 years with several missed payments but is now disputing it and it's fairness. She claims she didn't have legal representation at the time to review it but she and her now husband both signed the agreement.
We have sought legal advice and they have said to go down the mediation route but the ex has come back with a 'proposal' pretty much stating she didn't know what she signed and what she has paid to date is fair.

Due to the additional debt added to our mortgage our interest rates were really high 5.5 % so greater than the interest added to the loan. My husband has kept everything but is unable to find the final pay off amount of the loan and the company fist plus loans has been taken over; will the company that took it over have the relevant documents as we have the reference number for the loan?

As there is nearly £8000 still outstanding we are willing to go to court if need but would like to know where we stand and if it will be worthwhile? We will be getting legal advice but feeling a bit defeated so any advice would be appreciated.

[dslippy]

Keep a very clear eye on costs. £8k is not a lot to fight over in the courts particularly where, as here, it may not be very straighforward.

You should be able to get a redemption figure quite easily from the new loan owner.