Can someone please explain how a deferred charge on a property works. If the current endownment mortgage is in joint names. The ex tb has not paid either the mortgage or endownment policies since oct 2006. His solicitor is recommending that he goes for a 30 per cent deferred charge on the property. He is paying csa minimum for child maintenance only. Would he have to continue paying 30 per cent of the mortgage , what are the trigger events for the property to be sold and he get his money.
Basically the FMH is transferred to your name, you pay the mortgage and your x2b retains his interest as a charge against the property. The usual triggers for sale are the youngest child reaching 18 or if the person living in the property cohabits, remarries or dies.
Depending on the 'need' of one party and the ability to pay of the other sometimes spousal maintenance is paid which may help with mortgage payments.
An endowment mortgage is one way of repaying the capital sum borrowed. The policy will be charged to the lender and on maturity the lender will apply the money in satisfaction of its debt. There may be a surplus or there may be a shortfall and it may be necessary in such cases to agree or determine how such situations would be dealt with if they arise. I would have expected that, since the endowment policy is part and parcel of the mortgage arrangement with the lender, the spouse who pay the mortgage interest would also pay the endowment ; but like most things it is negotiable.
So if the mortgage is transferred into one persons name. They continue to pay the interest only and endownment part. The only calcuation for the division of assets is the value of the house less debt less selling cost as the endownments are being used to clear the final debt.
or is it value of house plus surrender value of the endownment less debt less selling cost.
or is it value of house plus projected value of the endownment less debt less selling cost