Finance question re still being on mortgage after seperation
Discussion
Hi,
A question please for the legal guys/gals here.
Jane and John lived together in a house and had a joint mortgage, Jane separated from John approx 12 years ago and and she moved out, never married.
Following a credit check today Jane realised that she is still on the mortgage with approx 30k outstanding but not in arrears, current property value approx 170K.
John is elderly and has two grown up children.
Jane understands that technically any mortgage debt would be hers to pay if it went into arrears but this is not expected.
Jane has just applied for a Shared ownership new build property and has been informed that if her name is on any other property deeds she cannot apply for the equity loan under the scheme as 1st time buyers only/no other ownership and therefore cannot go ahead.
If Jane does nothing and leaves her name on the deeds and mortgage and John passes away who does the property belong to ? ,options i assume would be one of the following re Jane,
A 50% share of the value of the property even though no financial contribution to mortgage paid by Jane in last 12 years ?
A 100% share of the property as Jane is the remaining person on the property/deeds.
A 33.33% share of the property as divided by Jane and both dependants of John
A 0% share of the property as Jane not contributed financially for last 12 years
Anything other option not thought about ?
Jane could ask to be taken off the mortgage and deeds so that she could then apply for a new property and meet the conditions required or is it best for Jane to sit tight and ultimately wait until the inevitable to avoid losing out on a potential ownership/share of a property long term, it is not known if there is any will made by John.
Hopefully that makes sense ?
Names changed to protect identity,
Regards,
Martyn
A question please for the legal guys/gals here.
Jane and John lived together in a house and had a joint mortgage, Jane separated from John approx 12 years ago and and she moved out, never married.
Following a credit check today Jane realised that she is still on the mortgage with approx 30k outstanding but not in arrears, current property value approx 170K.
John is elderly and has two grown up children.
Jane understands that technically any mortgage debt would be hers to pay if it went into arrears but this is not expected.
Jane has just applied for a Shared ownership new build property and has been informed that if her name is on any other property deeds she cannot apply for the equity loan under the scheme as 1st time buyers only/no other ownership and therefore cannot go ahead.
If Jane does nothing and leaves her name on the deeds and mortgage and John passes away who does the property belong to ? ,options i assume would be one of the following re Jane,
A 50% share of the value of the property even though no financial contribution to mortgage paid by Jane in last 12 years ?
A 100% share of the property as Jane is the remaining person on the property/deeds.
A 33.33% share of the property as divided by Jane and both dependants of John
A 0% share of the property as Jane not contributed financially for last 12 years
Anything other option not thought about ?
Jane could ask to be taken off the mortgage and deeds so that she could then apply for a new property and meet the conditions required or is it best for Jane to sit tight and ultimately wait until the inevitable to avoid losing out on a potential ownership/share of a property long term, it is not known if there is any will made by John.
Hopefully that makes sense ?
Names changed to protect identity,
Regards,
Martyn
Edited by Martyn-123 on Thursday 3rd December 20:17
snotrag said:
The thing is - regardless of what she arranged with John, she isn't getting a help to buy house because she's not a first time buyer is she?
Strictly its not a problem if you are not a first time buyer for HTB (although thats relevant to the stamp duty holiday) but for HTB it has to be your only home - so having another current mortgage would be the issue.CoolHands said:
I thought deeds don’t exits now? I don’t have any and neither does my mortgage company I believe
The records are held electronically on the Land Registry's systems, with any legacy "quill and parchment" deeds being added at the point a house is sold or remortgaged etc..Sarnie will confirm, but some lenders may have to use the property as a second property in affordability calculations which could affect lending on her own mortgage.
As long as she is on the mortgage she could be liable for any mortgage payments so if the ex were to stop paying she could be affected in that way.
As long as she is on the mortgage she could be liable for any mortgage payments so if the ex were to stop paying she could be affected in that way.
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