Joint Mortgage Help

[RJH]

Just looking for a bit of advice and have no idea where to start or what kind of costs would be involved in something like this:

Took out a joint mortgage with my then girlfriend at the age of 19, so nearly ten years ago. 40 year term, second charge on the property I believe.

We broke up, and years later in 2013 I was declared bankrupt but somehow I was kept on the mortgage.

Ex has married and now has 3 (+1 on the way) children - 1 of which is my daughter, the other 3 with her husband. 3 bed house, space getting tight.

I would like to take my name off the mortgage but have no idea what I would need to ask for, or how to go about it, or even what the potential costs could be.

I might be asking a lot, but I don't have funds to be going to solicitors etc, so if someone could ask any questions and maybe help me understand things a bit more I would be most grateful.

Thanks,
R

[Amethyst]

Re: Joint Mortgage Help

Presumably your ex is looking towards selling the house? Or are you just thinking ahead in case she does? Do you know current value vs mortgaged amount ( any negative equity issue?) If not and she just sells it, gets a new mortgage on her own/with husband, and uses the proceeds from the sale to pay off the mortgage, it'd be quite easy. Otherwise I think it will depend on whether your ex and her husband could afford / would be elgible to take over the mortgage in their own right ( does your ex's husband want to go on the mortgage ? ). Have you been paying the mortgage / share of the mortgage at all ? ( do you want to retain any ownership of the house ?) Fee's wise there is likely to be some kind of admin fee, which you could find out from the mortgage company.

[RJH]

Re: Joint Mortgage Help

Presumably your ex is looking towards selling the house? Or are you just thinking ahead in case she does? Do you know current value vs mortgaged amount ( any negative equity issue?) If not and she just sells it, gets a new mortgage on her own/with husband, and uses the proceeds from the sale to pay off the mortgage, it'd be quite easy. Otherwise I think it will depend on whether your ex and her husband could afford / would be elgible to take over the mortgage in their own right ( does your ex's husband want to go on the mortgage ? ). Have you been paying the mortgage / share of the mortgage at all ? ( do you want to retain any ownership of the house ?) Fee's wise there is likely to be some kind of admin fee, which you could find out from the mortgage company.

Hi [MENTION=6]Amethyst[/MENTION]

She isn't looking towards selling it, although in the near-ish future it could be something that comes up. The other scenario is that I may look to be added onto a mortgage at some point in the next 12-24 months.

I don't know the current value but it was purchased at £147,500 and the mortgage if I remember rightly might have been around the £120k mark.

I haven't asked about whether he wants to take over the mortgage with her, but if it's a sensible thing to ask I'm willing to suggest it?

I have paid nothing towards the mortgage for years now, so my name is just sitting on it.

Hope this helps.

[Diana M]

Re: Joint Mortgage Help

Took out a joint mortgage with my then girlfriend at the age of 19, so nearly ten years ago. 40 year term, second charge on the property I believe.

We broke up, and years later in 2013 I was declared bankrupt but somehow I was kept on the mortgage.

Ex has married and now has 3 (+1 on the way) children - 1 of which is my daughter, the other 3 with her husband.

. . . I would like to take my name off the mortgage but have no idea what I would need to ask for, or how to go about it, or even what the potential costs could be.

I might be asking a lot, but I don't have funds to be going to solicitors etc, so if someone could ask any questions and maybe help me understand things a bit more I would be most grateful.

Some questions from me

What did the Trustee of your bankruptcy decide about your financial interest in the property at the time, and when were you discharged?

You say there is a second charge/secured loan on the house so shall I assume that would be a joint liability too. If so when is that due to be paid off? When there is more than one charge on a property any changes to a loan secured on it may need the approval of the other lender.

This may also affect your ex's husband because he would probably have to be substituted on both loans if he wants to buy you out of the house.

You say your daughter continues to live at the property so are you intending to try and negotiate the change (your removal of liability for the mortgage/home) in an amicable way because that would be the easiest way?

You've also said that you're looking to be added to a mortgage in the next 12 - 24 months but if your bankruptcy was in 2013 it will remain on your credit file for six years (from the date of the original order) so that may impact on your ability to be accepted. Most lenders ask the question "have you ever been bankrupt?" so you would have to declare that. This would also apply to someone being 'underwritten' as a joint borrower on an existing mortgage.

I know you say you don't have the funds to be going to solicitors, but try and source one in your area who gives free initial advice because you also need to establish whether you have any beneficial right to the equity in the property (who paid the deposit when it was purchased?). Taking your name off the mortgage may seem convenient but you need to know if that's financially wise and/or how to preserve your entitlement (if any).

Di

[RJH]

Re: Joint Mortgage Help

Some questions from me

What did the Trustee of your bankruptcy decide about your financial interest in the property at the time, and when were you discharged?

You say there is a second charge/secured loan on the house so shall I assume that would be a joint liability too. If so when is that due to be paid off? When there is more than one charge on a property any changes to a loan secured on it may need the approval of the other lender.

This may also affect your ex's husband because he would probably have to be substituted on both loans if he wants to buy you out of the house.

You say your daughter continues to live at the property so are you intending to try and negotiate the change (your removal of liability for the mortgage/home) in an amicable way because that would be the easiest way?

You've also said that you're looking to be added to a mortgage in the next 12 - 24 months but if your bankruptcy was in 2013 it will remain on your credit file for six years (from the date of the original order) so that may impact on your ability to be accepted. Most lenders ask the question "have you ever been bankrupt?" so you would have to declare that. This would also apply to someone being 'underwritten' as a joint borrower on an existing mortgage.

I know you say you don't have the funds to be going to solicitors, but try and source one in your area who gives free initial advice because you also need to establish where you have any beneficial right to the equity in the property (who paid the deposit when it was purchased?). Taking your name off the mortgage may seem convenient but you need to know if that's financially wise and/or how to preserve you entitlement (if any).

Di

[MENTION=87380]Diana M[/MENTION]

Thanks for coming back to me.

I'll be honest, it's been that long since I've dealt with the mortgage I couldn't tell you when the charges etc. are due to be paid off. The second charge would be a joint liability I assume as it would be in both names?

Re: Bankruptcy, I'm officially discharged in February 2019 so very aware of the need to be waiting before being looked at to be added to a mortgage. I have no idea why I kept the house, but memory tells me that it was because there would have been no financial interest to them at that time, and I can only assume that will be the case when I'm discharged because the value of the property will not have increased.

Deposit wise - that was paid in full by myself only.

Hope this helps.

I would like it to be amicable if possible.

[Diana M]

Re: Joint Mortgage Help

The second charge would be a joint liability I assume as it would be in both names?

Re: Bankruptcy, I'm officially discharged in February 2019 so very aware of the need to be waiting before being looked at to be added to a mortgage. I have no idea why I kept the house, but memory tells me that it was because there would have been no financial interest to them at that time, and I can only assume that will be the case when I'm discharged because the value of the property will not have increased.

In which case I suggest you first seek some advice on your bankruptcy situation if you are not going to be discharged until 2019.

For example you need to know the pros and cons of what would happen if your ex's husband buys you out of the property before your BR is discharged even if no money changes hands (do/did you have a beneficial interest etc.).

Di

[RJH]

Re: Joint Mortgage Help

In which case I suggest you first seek some advice on your bankruptcy situation if you are not going to be discharged until 2019.

For example you need to know the pros and cons of what would happen if your ex's husband buys you out of the property before your BR is discharged even if no money changes hands (do/did you have a beneficial interest etc.).

Di

I will do, and then I'll come back with news when I have it. Is there anything specific that I should be asking?

Thanks

[FionaC]

Re: Joint Mortgage Help

Hi RJH,

I'm a family lawyer and completely endorse what Amethyst and Di have said. From my perspective you are obviously able to have some discussions with your ex-girlfriend and you have plans for the future both of which are good. If your ex-girlfriend wants to stay in the property she has the ability to make an application to the court under schedule 1 of the Children Act 1989 to use the equity in the property to house your child during their minority. This is worth saying because if she and her husband cannot afford to release you from the mortgage covenants ( get your name taken off the mortgage) you may have to stay on the mortgage for a while. D

i is right it might be worth considering whether you have a share in the equity. If you are a joint legal owner you may have a significant share of the property despite not contributing to it for years. If the property is not going to be sold and you can reach agreement what you need is a transfer of equity with your ex re-mortgaging. You will need a conveyancing solicitor to help with this. This website is great for all family issues www.resolution.org.uk and mediation can be very useful if you are still trying to reach an agreement.

FionaC

[RJH]

Re: Joint Mortgage Help

I should be back with some answers hopefully by the end of this week......

thanks all so far

[RJH]

Re: Joint Mortgage Help

[MENTION=6]Amethyst[/MENTION] [MENTION=87380]Diana M[/MENTION] [MENTION=85489]FionaC[/MENTION]

I have emailed the Insolvency Service this morning about the mortgage etc, and this is the reply that I have received:

Dear Sir

Thank you for your email received 27 November 2017.

As the mortgage creditor is a secured creditor the Official Receiver would have no ability to influence the mortgage company or remove you from the mortgage, because of Section 285(4) of the Insolvency Act 1986

The Official Receiver has already secured his interest over the property concerned by obtaining a charging order.

It would therefore be for your mortgage company to consider your removal from the mortgage agreement

The charging order I am very, very, very vaguely aware of, but who are the best people to send me a copy of that?

Also, what steps should I take now in getting more info about the possibilities of the removal of my name, etc?

Thanks!

[RJH]

Re: Joint Mortgage Help

FURTHER UPDATE:

I have a meeting with my mortgage provider tomorrow morning at 9:30am, and I have requested a copy of the charging order against me from the Official Receiver.

[Amethyst]

Re: Joint Mortgage Help

Have you requested the info from the Land Registry as well ? I think there's a charge £3 maybe? https://eservices.landregistry.gov.u...285.1501684179

[RJH]

Re: Joint Mortgage Help

Have you requested the info from the Land Registry as well ? I think there's a charge £3 maybe? https://eservices.landregistry.gov.u...285.1501684179

No, but I will do today. Which one out of the three on the list should I be looking to obtain, and what can I use that for?
[MENTION=6]Amethyst[/MENTION] - I now have the title register for the property. Is it worth anyone taking a look at?

[RJH]

Re: Joint Mortgage Help

@Amethyst @Diana M @FionaC

Had my meeting with the mortgage provider today and have the following info:

- Mortgage has 31 years left to run to completion
- Outstanding amount is currently £108,855 (which includes £4000 arrears built up my ex partner it seems)
- They wouldn't look into taking me off the mortgage because my ex wouldn't be considered for re-mortgaging due to the bad arrears situation that has been created
- The charging order isn't their business (so I will sort that out separately and make necessary arrangements to start paying this off) (UPDATE - charging order was originally £6603.20, but is now just under £8,000, increasing by £1.44 per day due to interest.)
- There is a 2nd charge on the property, shared equity, which is most likely from the builder (I'm in the process of finding out figures that need to be paid back - assuming will be required in 2019 as this is 10 years after mortgage taken out) (UPDATE - 08/10/19 is the payback date. 15% of house value or house sale price - based on the figures I got today (taking the lowest amount) would be £23,500 approx.)

The situation at present is that I spoke to my ex yesterday and she says she is not looking at all to sell the property. She is currently pregnant expecting what would be a 4th child overall (all will be girls), living in a 3 bed house. My opinion is that it will get too cramped in there at some point in the next year or two anyway.

She has created £4000 arrears on the mortgage and appears to be paying none of that back, instead just making the monthly payment agreed (therefore arrears stay as they are or build up)

If and when the shared equity is called for (the part that was borrowed by the builders etc. to allow us to buy), neither of us are going to have the money available to pay this back as they will be expecting it, so logically in my head the only way out is for the house to be sold, any equity split, and then I pay off my charging order and carry on with my life. She then will have to rent because her husband doesn't earn enough anyway to take on a mortgage alone (which is the only other way the lender would look at doing anything).

When the lump sum is called for and it can't be paid, is there any way to force a house sale as it seems to be the only way that things can be sorted properly without leading to severe debt problems for myself again, and obviously her too?