Consent Order - Mortgage

[emma81]

Hi Forum

 

I am wondering if someone is able to offer any advice.

 

My partner and his ex wife have recently got divorced.

The marital home is still the remaining issue.

 

The solicitor is drawing up a consent order, whereby my partner will not be responsible for any part of the mortgage or secured load on the marital home.

 

As we are yet to receive the consent order..

.I am writing this in hope someone has experienced similar.

 

Apparently my partners name is coming off the deeds, but due to his ex wife's current credit status cannot have his name removed from the mortgage as such.

Is this possible to be removed from the deeds but yet still be named on the mortgage but not be responsible financially if it goes wrong while his ex wife is in the house?

 

I am looking at this with a view to my partners credit score, if we try and move from the apartment we're in or generally apply for any credit....

 

obviously if I am not responsible for the mortgage then when lenders search, surely it should be discounted/overlooked but how is this done?

Would he have to send a copy of the consent order to Equifax, Callcredit and experian to let them add something to his credit file.

If anyone can shed any light on this matter it would be greatly appreciated.

[OrangePrimate]

Hi Emma

 

Doesnt sound right to me! If his name is removed from the deeds, he effectively has no ownership rights over the property, but if his name remains on the mortgage, he is still responsible for the payments and any defaults ect would also go against him.

I was in similar situation years back. My Ex partner moved out, House in joint names. I was not in any financial position to formally take on the mortgage and have partner removed but i did pay the actual payments, it remained in joint names and had i defaulted (or done a runner as often tempted!) then partner would have been chased for the payments.

Partner very unhappy with that situation as couldnt get another mortgage while still 'tied' to ours and was worried about me running off!

When i could afford to take on the mortgage myself about 6 years later, partner signed away any rights to the property and agreed to have name removed from deeds. this was done after i effectively 'bought' the house from the present owners - us! I had to go through a proper mortgage application and everything! basically a new mortgage paying the amount of the joint one.

Glad i didnt do a runner, house price doubled after i 'bought' it!

 

Only advice can give on this one, be very wary about your partners name staying on the mortgage agreement but losing any rights to the property by being removed from the deeds, unless it is established that by removing him from the deeds he would in no way be liable for any payments on the property, but cant see how that would be allowed to happen as being 'named' in a mortgage or loan makes you liable.

 

Not sure if any of that helps!

[reallymadwoman]

Both myself and my partner are in this situation, but from opposite positions.

My partner's ex-wife was on benefits at the time of their divorce. He signed the house over to her but couldn't get his name taken off the mortgage as she would have had to apply for a new mortgage and couldn't because she was on benefits. He has a signed form from her agreeing that she is entirely responsible for the mortgage etc. and only needed to produce that to get a new mortgage.

I was also on benefits at the time of my divorce and in the same position as his ex-wife - I simply could not get a mortgage in my own name. Unfortunately this has caused problems for me because although I have made all payments on time etc, I am still 'financially linked' to my ex, who has a tendency to run up huge debts over and over again, so partner and self are now in the position where we are selling two houses to buy one slightly bigger, but mortgage will have to be in his name only.

Moral is that it doesn't matter who is or is not paying the old mortgage - problems can arise either way.

[gizmo111]

I am assuming this will be a mesher order where your partner will have a share in the equity but will not be realised until the children are 17, he will have a charge on the house and this can be released by certain triggers - usually when the youngest reaches 17 or 18 or when she has been cohabiting for 6 months or re marries, all the consent will say is that she will make her best endeavours to release him from the mortgage. Fact is though he will find it difficult to get another mortgage, and he will be liable joint and severably for this one shoud she default. He will also be linked financially to her whilst the mortgage remains in joint names.

 

I would also suggest that he gets himself a copy of the Which guide to divorce - costs about £10, bu has been known to save people 000's

 

A good site for divorce and finances is Divorce: ondivorce for friendly community support

[emma81]

I will get my partner to discuss the Consent Order with His ex wifes solicitor as If he is removed from the deeds but still named on the mortgage then It doesnt benefit us really. He will lose anything he may have been entitles to regarding the house if its signed over to her, yet he still cant move on and get a further mortgage if its still taken into account.

 

Thank you all.

[gizmo111]

I will get my partner to discuss the Consent Order with His ex wifes solicitor

 

Has your partner not got his own solicitor?

Has this consent order gone before a Judge?

[emma81]

He has had two solicitors during the course of the Divorce. He hasnt benefitted from anything they have done, so once the actual divorce was finalised he finished with the later solicitor. So dealing directly with Ex Wifes Solicitor. I believe the consent order when its signed by my partner and Ex Wife then goes before the Judge is that correct?

[poppynurse]

Bear in mind that the ex's solicitor is acting for her and will be looking to her best interests not your partners - I would not move ahead with this without impartial legal advice, it might cost you a bit but could save a fortune down the line if the ex defaults.

[gizmo111]

And the ex's solicitor cannot give the other side legal advice - just present the CO

[emma81]

I visited legalzone.co.uk free service posted the questions above, and got a response the next morning. They advised not to sign the consent order, for his ex partner to apply to the abbey first and she will have to go through credit checks etc and prove her finances that she can take it on. But we have doubts. Otherwise if i sign it, the deeds can be ammended (my partner would lose any right over the property) but he would still be on the mortgage so she would have it all as she wants. Liberty to apply then implies that it can go before the court then to let them decide.

[gizmo111]

Have they got children? Why is not retaining someinterest in the property?

[emma81]

One dependant who is 6, Lives with the mother in the marital home. All he wants is his name off the mortgage, so that we will find it easier to move out of the flat we are in. He is willing to walk away from the marital home, as long as his name comes off the mortgage

[gizmo111]

Is she in a position to take a mortgage in her own name?

[emma81]

It has been two years since he left her. She works as a personnel Manager for Asda and we assume her salary is around £28k, the house is worth £185 £190k Mortgage was £115k Secured loans of £10k and £30k on the property, My partners credit history isnt the best and as they are still financially linked, then I would assume hers would be in a similar state and it is also know that some of her debts are consolidated through the Credit Councelling Service. She has been Paying the Mortgage Since he left as well as the Secured Loans, plus she has recently got to the CSA as it now getting double what he used to pay her for maintenence

[gizmo111]

Well it doesn;t seem like she would be in a position to remortgage - £155K plus costs is going to be around 5 times her income and with a DMP in place shw would be looking at the sub prime market anyhow. I think you are stuck wit the situation for the time being.

Has she actually applied for a morrtgage anywhere or spoke to the current lender?

[emma81]

To be honest she is very stubborn, and I wouldnt trust anything she says. She says she has, then she says she hasnt, the only ones likely to though i think would be the abbey given the history on the account. I think we will let it take its course, without signing the consent order. Least that way we still have a say over the house.

[gizmo111]

You could of course say that if she doesn't get a move on then you will reconsider your position and take a charge on the house until the daughter is 17 - that may give her an incentive to sort out her own mortgage.

[patrickq1]

Debt Factsheets - Mortgage Shortfalls

not sure if this is relevant but their may be other types of info on here

[emma81]

Take a Charge on the Property? Can you explain what that is

[gizmo111]

Take a Charge on the Property? Can you explain what that is

 

See my post 4 above

[emma81]

retaining interest in the Property?

[gizmo111]

retaining interest in the Property?

 

Yes as in post 4

 

Often where a young child/children is involved a mesher order is made, which means that the vacating party has an interest in the property by way of a charge, ususally around 25%, sometimes more/less, depending on circumstances.

 

As I said before yu will get excellent advice on all aspects of divorce on Divorce: ondivorce for friendly community support as well as buying the which guide to divorce.