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Implications of husband remaining on mortgage?

  • Sooveritnow
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9 months 2 weeks ago #508910 by Sooveritnow
What are the implications on my Husband if he stays on the mortgage of the family home until the term runs out in a few years time? He can get a small place whilst remaining on it. Just wondering about tax, stamp duty etc?

We only owe about £50,000.

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  • WYSPECIAL
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9 months 2 weeks ago #508913 by WYSPECIAL
It would limit his chances of being able to buy anywhere himself.

If such a small mortgage is there no chance they will let you take it on in your own name?

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  • Grrrrrrrrrr01
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9 months 2 weeks ago #508918 by Grrrrrrrrrr01
Replied by Grrrrrrrrrr01 on topic Re:Implications of husband remaining on mortgage?
Good morning Sooveritnow

Talking from personal experience, It would be easier to get him off the mortgage.

My situation has gone on for over 3 years now & it has caused nothing but problems & a lot of health issues & stress for me.

Ask yourself, what if he stops paying his share of the mortgage ?

What if he gets involved in a new relationship ?

Personally, from experience it causes such a long drawn out situation it's not worth the stress.

I have battled with the courts to get a ruling changed that entitled my Ex to \"keep\" the fmh, To re-mortgage to release me from any financial responsibility & still it drags on.

long story short, she has faulted on the mortgage so NOW has no choice to sell, their is a repossession order being slapped on the house on the 28th of this month & it's all very ugly.

If you can afford to take the mortgage on on your own, I would strongly advise it through my own experience.

I've not been able to get a mortgage, I become homeless for many months & slept in my work truck, I eventually managed to get a place to rent.

It's been very hard, Due to Ex not paying her share, running up debt's, my credit rating was totally wrecked, it's taken over two years to improve things...

Their are a lot of implications that can be created by him being on the mortgage, ruining your credit being namely one. My Ex borrowed more on the mortgage without me being aware & this has only just come to light.

Regardless of what I've gone through, Do you want to take the risk of things turning ugly & you too could end up in my situation ??

I would certainly spend the time & effort at looking to getting him off, but that is MY personal opinion.

Best wishes

Grrrrrrrrrr01

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  • Sooveritnow
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9 months 2 weeks ago #508924 by Sooveritnow
Replied by Sooveritnow on topic Re:Implications of husband remaining on mortgage?
I was kind of wondering if there was a way to keep him on it but I would pay all the instalments until I can remove him when the term is up. I don’t want him to have any actual connection just like a silent name on it.

I need to get myself in a better financial situation with more hours at work. It’s proving hard with a 3 year old. I can afford the current bills on my own at the moment but fall short for taking in the whole mortgage.

I’ve read he would need to pay stamp duty of both places are over £120,000 is that right?

Are there any other financial complications?

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  • hadenoughnow
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9 months 2 weeks ago #508927 by hadenoughnow
Replied by hadenoughnow on topic Re:Implications of husband remaining on mortgage?
Yes you can have him remain on the mortgage. You would have to agree to use your best endeavours to remove him from it. There would need to be an indemnity clause i.e. you indemnify him against arrears. There would need to be an end date at which point you would receive 100% of the equity.

This would only be acceptable if there are sufficient assets for him to be housed adequately.

Hadenoughnow

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  • Sooveritnow
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9 months 2 weeks ago #508945 by Sooveritnow
Replied by Sooveritnow on topic Re:Implications of husband remaining on mortgage?
Am I right in thinking that if we owe £50,000 then he could get a flat or something and it be under the threshold for stamp duty he would avoid paying it.

He would be getting a small amount of equity when our son reaches 18, would there be any taxes involved?

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  • WYSPECIAL
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9 months 2 weeks ago #508955 by WYSPECIAL
Sooveritnow wrote:


He would be getting a small amount of equity when our son reaches 18, would there be any taxes involved?


So are you looking at him staying as a named person on the mortgage or a Mesher type order where he still has a financial interest in the property?

Depending upon what he earns he will find it difficult to get a mortgage to purchase his own home whilst still named on your mortgage.

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