Remortgaging with a charge on the house

[kellyjo]

Sorry for this being ever so slightly random, dont know who else to ask!!!

Im in the process of divorcing my husband and in order for him to pay me anything like a reasonable amount of maintenance for our 3 kids he needs to re-mortgage his (our!) house to reduce his monthly outgoings. My solicitor has recommended i place a charge on the house so if he ever sells it i would receive a certain percentage of any profits.

The problem is that my ex is saying he is unable to remortgage with a charge on the house, that no lenders are prepared to consider it.

I'm just wondering if anyone knows if this sounds true, cos i cant believe a word he says!!

Thanks for taking the time to read this xx

[Daimo]

Can't advise you on it.

All I can say from experience (the younger end), don't let the battle thats about to commence between you and your ex effect your children, nor should you use them as bargining tools in terms of money.

I see so many divorced people using their children as a means to get money (not saying you before doo gooders start), it destroys the kids.

Bear that in mind when your at each others throats sorting those last few quid out.

Oh yeah, sorry, can't help. In all honestly my mum remortgaged to buy out my dad outright. but given the current times, mortgages are hard to get. Esp if your now single, and the house is worth quite a bit and theres quite a lot outstanding.

[BigBaddad]

Sounds likely. As there would be two parties after the property or sum should anything happen. You might be able to get something drawn up to say that the mortgage company gets their part 1st, then you get the extra.

I've bought and sold many properties so feel free the pm me for further help.

[Ed]

No residential lender will be happy with anything other than a first charge.

So you could agree to postpone your charge to the lender's charge, ie you come second. You'd want to agree the amount of the first charge so that you know that there is still equity in the house. Whatever, being second can be an exposed position to be in as you're the first to lose, so make sure that any deed of postponement holds water.

Ed

[kellyjo]

Thanks guys, im just at my wits end with this!!
All i want is enough cash to provide for the kids, im quite happy to go without.
Ive already agreed to waiver my right to £80,000 of his pension if he agrees to pay me a very basic £300 a month for his three kids because the kids and i need help now and not when he retires in 15 years. It seemed fair enough that i place a small charge on the house so that maybe one day i might get some further financial reward, even though it may only be a few grand.
Hes got the kids at his house now and hes telling them how hes going to have to lose his house if he cant remortgage it and then he'll only be able to see them every other weekend (at the moment he has them 6 nights out of 12) because he is more than willing to involve and upset them.

So what do i do? Give in even more and forget the charge so he can remortgage to pay me the £300, or risk that hes telling the truth and will ultimately have to sell up and will make sure the kids think its my fault, or do i let the courts decide. I am frustrated, angry and and the end of my tether with him.

[davepreston]

id have him speak to your solisiter and sort things out with them ,have him explain the curcumstances and come to a agreement with your brief, then when your brief is happy they will phone you to give the go ahead
thats why your paying the brief

[Daimo]

.
Hes got the kids at his house now and hes telling them how hes going to have to lose his house if he cant remortgage it and then he'll only be able to see them every other weekend (at the moment he has them 6 nights out of 12) because he is more than willing to involve and upset them.



See what I mean.... Typical, the kids are always abused in these situations. Theres already propogandar there. He shouldn't be talking the the children about adult conversations.

Far better to only see them once a week then drag them into the ins and outs of something they won't understand yet. The children can adjust. Dad blaming mum and vice versa will only cause more seperation.

Sorry, really gets on my goat people using kids in seperations. :smt092

[paiste]

Not that this helps whatsoever but My brothers wife left him.
He had to remortgage the house to buy her out, buy her a car etc.
She left him with two kids and to this day she has not paid him a single penny in maintenance :evil:
Sometimes there really is no justice!

[Bluefish]

you should talk to your solicitor, if my ex was ever to sell our house i get 35% and her 65%, very fair that i thought, solicitors are worse than politicians, *******s.

[Bri w]

Kellyjo, as Ed sez.

[JamesMio]

Kellyjo, as Ed sez.

Was just going to add that - Ed's opinion is worth it's weight on here for legal matters.

[DavieSV]

If he carn't afford to keep the house and pay you,
Should he not sell the house, divey up the funds, move to cheaper accomodation and then he could still pay the kids their maintenance,

[Ed]

TBH it's an unusual gesture to sign away your right to claim some of his pension and you really ought to think about how you are going to live when you are older, when the kids have left home, and you have nothing left. You will be seeing your ex retire on a very good pension and you will have nothing and feel very bitter. I act for a client where precisely this has happened (I didn't do the divorce), she is now 63 and has to work 4 days a week because she has nothing, only the house she lives in. And there is no prospect of any change, and she is worried half to death about what will happen in 5 years time when she can't work any more.

If he's going to be an ar$e then let the Judge decide. The only problem in going to a full hearing is the expense as a day in Court ain't cheap. You will probably find though that you don't need to go that far - at the directions hearing the judge is likely to say what s/he would order if a settlement can't be reached.

Stick to your guns.

[james160987]

edited

[Ed]

Are you for real, James numbers.

£300 for 3 kids is reasonable? Have you ever bought kids' shoes?

I can't take you seriously.

[keith_d]

Hmm, so let me see. He gets to keep his pension, keep the house and is still being difficult. I think you need to have a long talk to your solicitor...

Just my (uninformed) opinion,

Keith.

[james160987]

useless info removed

[Ed]

I'm simply saying that £300/month for 3 kids will not go very far.

[james160987]

useless info removed

[Bri w]

Guys, Kellyjo has asked for some advice at an extremely difficult and painful time for her. And not wishing to sound blunt or brutal but could we leave this to the experts like Ed. Lets cut the pain of a long dissection of her problems off line.

Sorry if I've offended anyone but...

[james160987]

no probs, posts removed, however this bit

lenders wont always remorage if there is a charge,

so for example said house is 100,000, your current morgage is 50,000, so ltv is 50% - you can remo on that,

now if you get a second charge you have morgage 50000, second charge , (lets say 30,000) so your loan to value is now 80%, this normally moves you into higher rate brackets etc) making it more difficult to get lower repayments,

may be useful- i think ed someone else could confirm this, i used to work closely with our remo dep, but a remo advisor will be able to give more clarity

[kellyjo]

Thanks guys, I really, really appreciate your comments on this, thankyou.

With regards to my waiving pension rights this has only been agreed on condition that the £300 monthly contribution is paid as spousal maintenance as opposed to child maintenance. A child maintenance order can apparently be reviewed after a year and will cease when my youngest reaches 18, however spousal maintenance is paid for life giving me some financial security. And if he is paying me £300 a month for 20 years that is a healthy total of £72,000.

There is very little equity in the house, about £10k, so ultimately a charge wouldn't be terribly beneficial, it was more the principal of the issue I felt strongly about, however if a charge means he can't remortgage to find me the £300 then I have no choice but to forfeit that aswell.

I am trying to avoid court, not because of the costs but because of the stress involved and as I said he will involve the kids because he will be too busy wallowing in his own self pity.
My priority is to get them through this whole episode as unscathed as possible, with a decent amount of contact with their dad (at the end of the day just because I cant live with him doesn't mean they shouldn't have him play a big part in their lives) and if that means I lose out in some ways financially then so be it, I just need to achieve some level of financial stability for us for the future.
I feel it is also imperative that on some level their dad and I come through it as friends, my youngest is only four and we have many years ahead of us where we need to be able to communicate properly and show our kids a united front.

My solicitor thinks i'm a 'mug' and she may be right, i'm just trying to be the best mother I can.

[Tara]

i don't think you are mug at all good for you and all you are doing right for your children.

Kellyjo good luck

[james160987]

dont want to song negative but the way the markets are, last time i checked there are only a few lenders currently going to 90% ltv, so finding a remo will be quite difficult, i think lloyds might still do if thats any help,

there used to be lenders who would go to 120% ltv but not any more,

i think getting something drawn up with % figures would be your best bet, so if property increases in value you gain,

i imagine your ex may want a end date though when he can relase his share, ie you buying him out in say 20 years, or when children have left home, but thats another issue entierly