I have been with my partner for 10 years and got married 8 months ago, but have been separated for 6 months now. We have two young children, which we share custody of and she currently lives in the marital home which is mortgaged in my name.
She recently came forward with a solution to have the house signed over to her and she would make the repayments herself leaving myself to pay child maintanence, but i would remain on the mortgage due to her low earnings. I have had the house valued and discovered it is currently in negative equity as it is an unfinished property with building work to be finished, so at the present time iit cannot be remortgaged. She is insisting on staying in the property, but this would leave me unable to get a another mortgage as I unable to leave this one.
my ideal solution would be to finish the property, bringing it back into having some equity, selling it and giving my ex partner the proceeds from the house, but she does not see this as an option. Could you please advise any alternatives.
I would take her up on her offer. Many men find themselves in the position you describe, that they are still on the mortgage of the FMH since their ex does not have the ability to remortgage in their sole name. That is very common. Your ex is offering to take on the negative equity and forego spousal maintenance. A great deal if ever I saw one.
You should get this all signed and sealed by in a Consent Order, get her to indemnify you from mortgage payments and there will be a clause about "best efforts" to remove you from the mortgage.
As for getting a new mortgage, since this is a common situation, many mortgage lenders will understand. Some might not so you might be more limited in your options, but you should still be able to get a mortgage if you shop around.
Keeping the house to refurbish would open all sorts of cans of worms. Who pays for the work? What happens if she decides she wants to sell before it is finished? What happens if she decides she wants to keep it when it''s finished? What happens if she gets a new partner and moves him in? I would cut the ties now rather than make more.