Relationships Breakdown and Mortgage

[mkandy]

Need some advice for my brother.

 

He's in a mortgage with his now ex-girlfriend, he is the principle earner in the relationship and has a clause that if anyone was the leave the mortgage it would have to be her.

 

Anyway, things have got rather sour, she will only leave the mortgage if he buys her out, i.e releases equity on the house. The house was bought for 150k at the beginning of 2008, it's a 50% shared ownership house, making it a 75k mortgage. The house is now valued at around 130k. Obviously if they were to sell up they would be in negative equity and would make a loss. My brother however is quite happy to take on the house himself and not sell up.

 

The main spanner in the works is his ex has a kid from a previous relationship and wants to lose the house so her and the kid get rehoused by the DSS.

 

Is there anything my brother can do here, since the inception of the mortgage he is the only one who has been paying anything towards it, but i'm guessing because both names are on the mortgage, that's all that matters.

[vickson]

Does your brother have any arrears on the mortgage.

if not, some mortgage companies will let you do a transfer of equity, meaning that his ex is removed from the mortgage, however he will have to meet the lending criteria.

he would have to approach the mortgage company and ask them, he will need a solicitor and they charge about £450.

Is it a high street mortgage or sub prime?

I tried to do that 2 years ago with GMAC and they would not do it because I was in arrears.

 

I would first ring up the mortgage company and ask them if this is possible,

[mkandy]

Does your brother have any arrears on the mortgage.

if not, some mortgage companies will let you do a transfer of equity, meaning that his ex is removed from the mortgage, however he will have to meet the lending criteria.

he would have to approach the mortgage company and ask them, he will need a solicitor and they charge about £450.

Is it a high street mortgage or sub prime?

I tried to do that 2 years ago with GMAC and they would not do it because I was in arrears.

 

I would first ring up the mortgage company and ask them if this is possible,

 

No he's not in arrears and never has been which is good, I do believe their lender is Sub-prime, it's Capstone Mortgages, they couldn't get a mortgage due to her poor credit rating.

 

The other side's family are now instructing her to demand a 5k pay out before she takes her name off the mortgage which I feel is extortion considering she doesn't even earn 5k a year!

[vickson]

A bit difficult because to do a transfer of equity he will need her signature, Also am not sure wether they would treat this as new lending because I am not sure if they are still lending.

Also I think others will correct me here but Capstone is not a lender they administer mortgages on behalf of spml and preffered among others.

Maybe put a request n writing to Capstone and see what they say and then perhaps try to convince ex that it s the best way to go as she is probably just being spiteful at the moment

[mkandy]

Spiteful, and a bit...dense I think. She still thinks there is money locked away in the property and can't comprehend that negative equity means it's not worth anything (in terms of profit) to her. Essentially they just want to milk my brother dry.

 

I've told him to go to Citizen's advice in the first instance and write a letter to Capstone afterwards.

Edited May 19, 2009 by mkandy

[jansus]

I think she would do well to remember that if her name is on the mortgage she is also responsible for payments.

 

If there is no equity he should not have to buy her out.

 

he is doing her a favour by taking her name off so she has no responsibilities.